It was an honour for the Lauder Business School to host, on 27 March, MMag. Gerda Holzinger-Burgstaller, CEO and CFO of Erste Bank Oesterreich, for an insightful discussion on the future of European banking. In times of economic uncertainty and geopolitical flux, MMag. Holzinger-Burgstaller shared her expert insights on where the industry is heading and how young professionals can best prepare for the evolving landscape. With a focus on adaptability, innovation, and strategic foresight, she highlighted the key skills and perspectives essential for success in the rapidly changing financial world.

MMag. Gerda Holzinger-Burgstaller’s vision offers invaluable guidance for the next generation of leaders navigating the challenges and opportunities ahead in European banking.

Erste Bank Oesterreich was founded in Vienna over 200 years ago with a clear social mission to provide financial services to all, regardless of background. These roots, MMag. Holzinger-Burgstaller emphasized, remain, to this day, central to the bankยดs identity, aligning closely with modern ESG and diversity values. As part of the broader Erste Group, the bank plays a key role in the Central and Eastern European region, serving approximately 17 million clients, employing over 40,000 people, and managing a balance sheet of more than โ‚ฌ350 billion.

MMag. Holzinger-Burgstaller discussed the current economic and political landscape, noting that 2024 was a year of implementation following elections in various countries. Austria is currently experiencing its third year of recession and has a new three-party coalition government, a departure from the traditional two-party system, the long-term effects of which remain to be seen. The CEO expressed concerns about the banking levy, the special tax imposed on banks by the government, and its potential impact on the Austrian economy, estimating that the โ‚ฌ500 million levy could equate to around ย โ‚ฌ8 billion in forgone loan growth, hindering overall prosperity for the country. In spite of these challenges, MMag. Holzinger-Burgstaller emphasized that times of uncertainty call for innovation and resilience, and institutions like the Erste Bank Oesterreich are privileged to innovate and find proactive internal solutions rather than rely on external support.

On a broader level, MMag. Holzinger-Burgstaller pointed out the growing disparity between the regulatory environment in the U.S. and the EU. While the U.S. moves toward deregulation, Europe has in the past introduced regulatory frameworks that did not sufficiently take into consideration global competitiveness. She highlighted the lack of a strong European capital market as a major structural weakness, especially when it comes to financing critical areas like the green energy transition, digital infrastructure, and defense. To address this, she referred to the idea of a โ€œsavings and investments unionโ€ and even a digital European stock exchange, aimed at redirecting private household savings into productive investment channels.

In response to questions from LBS students, she reflected on Austriaโ€™s traditionally cautious investment culture. Many Austrians still prefer savings accounts or real estate over capital market instruments, a mindset that Erste Bank seeks to shift through active financial education. Initiatives such as the interactive Financial Life Park or FLIP in short, a financial literacy app, and tailored education programsโ€”including those specifically for women like she investsโ€”are central to this effort. On the topic of digital competition, MMag. Holzinger-Burgstaller acknowledged the strengths of neobanks, particularly in user experience, but underlined that Erste Bank Oesterreich offers a broader, more sustainable hybrid model that combines digital innovation with the trust and support of a physical branch network stating that โ€œTrust is our biggest asset and currency as a bank.โ€

Looking ahead, MMag. Holzinger-Burgstaller shared her vision for the evolution of digital banking, placing strong emphasis on the role of Artificial Intelligence. She believes AI will move beyond simple chatbot functions to serve as intelligent financial advisors, helping clients manage their finances in more meaningful, personalized ways. She highlighted Erste Bankยดs digital platform, George, as a leading solution in Austria, with continued investment going into integrating all services into a seamless digital experience.

In closing, she shared career advice with our students: โ€˜โ€œAvoid limiting yourself to narrow career tracks. Seek out organizations that offer diverse opportunities for growth across different areas.โ€ She encouraged our students to remain open to different paths within an organization, take initiative, and embrace lifelong learningโ€”especially in a dynamic field like banking, where change is constant and opportunity is everywhere.

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