A Swiss retail millionaire is among the clients of a regional bank being swallowed up by Credit Suisse. What the Swiss bank's handling of wealthy clients like him reveals.
Roland Brack, a Swiss entrepreneur and millionaire, is a client of Neue Aargauer Bank, or NAB, a Swiss regional lender owned by Credit Suisse. Brack said at an industry event this week he had been surprised when NAB never offered him products from the larger bank in the past.
Brack, whose online emporium brack.ch sells everything from electronics and duvets to ubiquitous Swiss soda Rivella at near-wholesale prices, was even more taken aback when Credit Suisse on Tuesday disclosed that it would fully merge NAB, he said.
Self-Made Millionaire
A native of the same region in central Switzerland that NAB is headquartered in, Brack is the epitome of the type of self-made client Credit Suisse is thirsty for: the 48-year-old started selling goods out of his parents converted attic in 1994, and is now reportedly worth roughly $160 million.
Competec Group, controlled by Brack (pictured below, middle), is within striking distance of 1 billion Swiss francs ($1.1 billion) in annual revenue. He is better known to a Swiss audience as a judge on a local version of «Dragon's Den», a reality show where contestants pitch start-up ideas and vie for funding.
(Image: still from «Hoehle der Loewen,» TV24)
Embarrassing Fumble
Credit Suisse's apparent failure to secure Brack on side is an embarrassing fumble of its flagship business. The example also illustrates how banks, which have poured billions into technology like big data, artificial intelligence, and business analytics, can fall down on the basics.
Brack said he always wondered why NAB never offered to link him up with Credit Suisse's products and services, and never became a client of the parent bank. The Swiss businessman said he understands why Credit Suisse is emphasizing digitization far more following the merger (ironically, Brack's wealth is build on his early recognition of the potential of e-commerce).
E-Commerce Boom
The pandemic sparked a surge of business for Brack's online shop, which was quickly overwhelmed by the demand. «At first we were excited, until we noticed that we couldn't meet the demand for certain products,» Brack said. «It's still inconceivable how much toilet paper people ordered. We worked day and night.»
Part of Brack's business success is providing goods to other Swiss online retailers like Galaxus, thanks to huge warehousing space in central Switzerland. Brack, who began tinkering with computers during his apprenticeship as an electrician at ABB, founded his first company during his studies in electrical engineering.
