Switzerland's Notenstein Private Bank To Focus More On Core Activity, Transfers IT, Services Work

Tom Burroughes

11 March 2015

Switzerland-based Notenstein Private Bank, part of Raiffeisen Group, is revamping its business structure by putting its information technology and some parts of its services division into Raiffeisen Switzerland and Arizon Sourcing, respectively. Two senior figures at the group have left.

The change will start on 2 September this year and there will be no staff cuts because of the move, the bank said in a recent statement.

The move is part of an attempt by Notenstein to concentrate more on its core business areas. Arizon Sourcing is a joint venture by Avaloq, the financial technology firm, and Raiffeisen; that JV already is responsible for operations at Raiffeisen Switzerland.

Moreover, certain units, such as client trading and distribution of structured products (sell-side), are to be integrated into Raiffeisen's central bank department.

Christoph Schwalm, current head of IT, will head the Notenstein IT unit within Raiffeisen's IT department.

Dr Hanspeter Wohlwend, current head of services and deputy chief executive, and Oliver Widmer, head of products and trading, have declined to participate in this restructuring and have chosen to leave the bank.

“Following Notenstein Private Bank's announcement in October 2014 that its asset management division would be incorporated as a new subsidiary in the Raiffeisen Group, this is a further step towards a sharper focus on the bank's core business: wealth management for private investors. The recently announced merger with Basel-based Bank La Roche & Co underscores this commitment,” the bank said.

“Focus and growth are vital to a private bank's success in today's challenging environment. This reorganisation further sharpens our profile as a private bank. At the same time, it highlights the key role assigned to Notenstein Private Bank in Raiffeisen Group's diversification strategy,” said Dr Adrian Künzi, chief executive of Notenstein Private Bank.

Dr Künzi is to become a member of the newly-formed “group management coordination” committee, whose role is to ensure the overarching coordination and management of Raiffeisen's group companies, the statement added.