Page 1 of 2

Credit Suisse is facing one of the most difficult times in its history. In an interview with finews.com, the head of the Swiss business talks about what the bank is doing to counteract that.

Mr. Helfenstein, as the head of the Swiss business, what are your feelings about what Credit Suisse is currently going through?

It is a challenging time that has also affected me. But I have a few people who keep me grounded and keep reminding me that there will be a few difficult years here and there in a nearly 30-year career.

What is the atmosphere like in the Swiss business? What do you hear from employees?

Many are proud that the Swiss business has been so successful, and it makes me optimistic that we will be able to surmount our current difficulties. But the atmosphere is often subdued and there is frustration and anger because the current situation has lasted so long.

Are clients unsettled?

Clients are not very understanding of the situation we are currently in. We have very loyal, long-term clients that have the right to know what is happening in our bank. They are often most interested in getting a better picture of how Credit Suisse managed to get embroiled in so many problems.

Our reputation has suffered greatly. But I am still confident that the predominant majority of our clients are satisfied with our advisors and our solutions.

What do you tell clients?

What is important is that the Swiss business has been doing a good job. It posted a record result in 2021. And we already have a strong position this year with the performance in the first half.

«We are not at the top of the list of priorities»

Having that kind of performance together with the quality of our employees gives clients a sense of security - not least given some of them have been working with the same advisors for years or even decades.

Will the Swiss business be less impacted by restructuring than other parts of the group?

Switzerland makes up about a third of the group performance in a normal year. We are reaping the benefits of the steps we made in 2016 to make the business more efficient while redirecting it towards more growth. That has allowed us to continually invest in the business, and the number of employees has again risen this year. The Swiss business is healthy and profitable.

«We expect to have over 200,000 clients on the CSX platform by the end of the year»

At the same time, we want to continue becoming more efficient as a way of financing continued investment in the business. As part of that, we will also be making cuts related to the cost-saving program, but we are not at the top of the list of priorities.

Credit Suisse has a strong market position in Switzerland. Where do you see possibilities to grow?

We intensively manage «high touch» high net worth and ultra-high net worth clients as well as large companies and institutions, and we want to remain a market leader in the medium to high segments of those markets.

«I wouldn't only look at restructuring - but also at the additional potential that we can take advantage of»

On the other hand, we have been in a position to get new clients for the first time in years in the broader segments of the business, which we increasingly serve by telephone or digitally. We expect to have over 200,000 clients on the CSX platform by the end of the year.

How is the branch network affected by the increased emphasis on digital channels?

We were probably pioneers in Switzerland when we started streamlining our branch network in 2014. But we have not been just looking at the number of branches. We offer more than we did previously in our 109 branches and the profile of our employees is constantly expanding.

Where are you restructuring the most right now?

I wouldn't only look at restructuring, but also at the additional potential that we can take advantage of. After establishing the personal business banking segment and integrating Neue Aargauer Bank (NAB) in 2020, we took further steps to further digitalize our offering and mesh that with personal advisory services.

The CSX platform, which is still primarily used to open accounts and credit cards, will be expanded to include investments, financing, and retirement products.

What do you think of current trends in investment themes?

The Swiss business is pretty far advanced in the area of ESG although it lags on the financing side. We are currently trying to close the gap. We are still in the early stages when it comes to digital assets. We could see similar fundamental innovations here in the way we saw when it came to developments in investment funds and exchange-traded funds (ETFs).

What developments do you see in the Swiss retail business?

Currently, we serve the majority of our roughly 1.5 million Swiss clients out of the personal and business banking segment. We intend to increase the proportion of digital services while keeping personalized service in the branches.

In private banking, we are investing in a comprehensive financial planning offering, particularly for baby boomers, and promoting cooperation with the corporate side in ways that have a more direct link to our position as the «bank for entrepreneurs».

The recent collapse of the takeover of robo-advisor Wealthfront by UBS is a recent example showing that transforming an established wealth manager is no walk in the park. Will many banks get the short end of the stick compared with the fintech sector in the future?