Credit Suisse Group AG will set out an overhaul of its local division, or Swiss Universal Bank, including separating some business units and investing a hefty amount in its digitalization effort, as the Zurich-based banking group tries to navigate low interest rates, growing margin pressure and clients' shift to online banking, among other factors.
The change will see the formation of a new direct banking business area that will serve retail and commercial customers beginning Sept. 1. The new business area, which will be headed by Mario Crameri, will have more than 500 employees serving over a million retail clients and 60,000 commercial clients.
Crameri will also become an executive board member of the Swiss Universal Bank arm and of Credit Suisse (Switzerland) Ltd. He previously headed IT and operations at the Swiss Universal Bank, for which he will be replaced by Kirsten Renner and Daniel Eggenschwiler, respectively.
The bank also said it will make an investment "in the high three-digit million range" in digitalization, client advisory and marketing in the next three years. The bank aims to hire a high double-digit number of new employees by 2021-end for teams focusing on advisory services for wealth management clients, premium clients, corporate banking, institutional banking and sales and IT.
Beyond its digital offering, Credit Suisse also aims to increase the availability of its telephone advisory services by expanding teams in its customer service centers and extending hours. The move will be supported by additional options for digital interaction as well as the provision of personal advice in the regional network of branches. Further details of the new offering and branch concept will be announced in the first half of 2020.
Additionally, Credit Suisse will also carve out its investment banking operations in Switzerland from its corporate and investment banking segment and manage it as a separate business area going forward to optimize services for ultra-high-net-worth and institutional clients.
The to-be-separated Swiss investment banking unit will continue to be headed by Jens Haas, who will also become a member of the executive board of the Swiss Universal Bank arm and of Credit Suisse (Switzerland) Ltd.
Given these planned changes, the group affirmed the target of its Swiss Universal Bank of an above-market growth in revenues and client business volume, a cost-to-income ratio of less than 60% and a return on regulatory capital of over 18%.
The group formed the Swiss Universal Bank division in 2015 with an aim to publicly list its shares two years later but eventually shelved the plan.
