Credit Suisse and UBS are pondering back-office tie-ups to save money. Switzerland's two biggest banks came close to setting up a superbank years ago. What happened?
Massive pressure on spending and thinning margins are forcing banks to do things differently. One proposal is Project «Superbank,» or a bank with no clients – instead it would offer back-office services for several Swiss banks, at a cheaper price than if the banks did so individually.
UBS boss Sergio Ermotti as well as Credit Suisse CEO Tidjane Thiam – both under pressure to cut spending – have been vocal in recent months about seeking superbank-like agreements.
It turns out, the two came very close to cooperating on back-office and administration services already years ago, according to «Sonntagsblick» (article not available online).
Contract Inked
«We held talks years ago and had even laid out a final contract, but UBS pulled out,» a high-ranking Credit Suisse banker is quoted by the tabloid.
Oswald Gruebel, who was then CEO of UBS, confirmed that the two banks had discussed a back-office tie-up nearly ten years ago.
«We decided against it because we couldn't guarantee the necessary safety nor banking secrecy,» Gruebel said. For example, client and account names were visible to the outside service provider.
Gruebel is skeptical that Swiss banks will mount a superbank. Regulator Finma could nix an aggregated services deal because of potential concentration risk, he said.
The other, more mundane reason: some bank employees «are wedded to their own systems and will block any sort of cooperation,» he said.
