Zaehringer Privatbank opened its doors a year ago only – today the latest banking arrival in Switzerland's capital is already profitable, while its rivals find it hard to make ends meet in the small banking place.
Martin Schenk, the boss of Zaehringer Privatbank, is all smiles: a year ago, at the opening of the bank, he forecast the company to reach profitability after three years. Now, the bank has done in a third of that time.
Zaehringer Privatbank, based in the middle of the Bernese old town, a Unesco world heritage, has attracted 840 million Swiss francs in clients assets so far, the necessary amount for the firm to operate profitability, the local newspaper «Bund» reported.
Keeping Promises
Schenk, a banker with years of experience at Wegelin and Notenstein private banks, has done what he promised a year ago in an interview with finews.ch.
The achievement by the new arrival comes as a surprise given the harsh business climate and compares favorably with rival banks. Piero Huwyler for instance gave up his job as local branch manager at J. Safra Sarasin in April. And sources at Julius Baer also suggested that the city towering above the river Aare is a hard nut to crack.
Local Connections an Advantage
Schenk is convinced that the local connections are of paramount importance. At Zaehringer, he was joined by almost the entire team of Notenstein Bern, and alongside followed clients and their assets.
The new bank kept its staff small and decided to concentrate on a few niche products. Swisscom, Switzerland's largest telecommunications operator, is managing the back office of Zaehringer. The client advisers at the front have specialized in pension fund solutions for companies and independent entrepreneurs.
Employees as Stakeholders
Zaehringer is the name of an old Bernese family, in fact the founders of the city of Bern. The name sure has helped gain attention in the city. The modesty of the company, which has adopted a maximum wage of 120,000 francs per year, may have contributed even more. Schenk and his team of 17 are all stakeholders – creating a unique bond between bank and employee.
