Matthias C.E. Preiswerk, chairman of the board and partner at Baumann & Cie, wants to retain the independence of his Basel-based private bank. At the same time, he mulls the option to merge with a similar institute as he told finews.ch in an interview.

Mr. Preiswerk, Baumann & Cie is displaying an appetite for more, publishing its results for the first time and by opening a new branch in Olten. But isn't this more a sign of desperation in times of consolidation in Swiss private banking?

We haven't been able to take care of our business as much as we would have wanted for two and a half years because of the U.S. tax program. With the signing of the agreement with the U.S. Department of Justice this impediment is now gone. In the past few months though, the small-bank-bashing has reached a new peak. Bigger rivals are using the opportunity to lure our advisers and customers away. We had to defend ourselves – and show that our business model is watertight.

Did you feel the Hottinger-effect after the liquidation of Hottinger & Cie in October?

We still can feel it – and the effect is being aggravated with intent by big rivals and consultants. During the financial crisis, the big players were hit. Now, the small institutes are being hit full force by the swing of the pendulum.

«The banks and their lobby were left stark naked after the start of the U.S. tax dispute»

Unfairly so?

Look, this is the market! But of course, the banks and their lobby were left stark naked after the start of the U.S. tax dispute. Everybody is simply looking for his own good and the financial market was enormously fragmented.

Baumann is looking to gain in importance by opening a branch in Olten. The town on the Aare river isn't exactly exuding private-banking glamor.

First of all, we are not looking for glamor. We are Joe Bloggs, the banking equivalent to small- and medium-sized companies. As such we strive to do business with companies of a similar vein. In the heartland of Switzerland, there is a lot of potential for this type of business, which our competitors are underestimating. I know that not least because I grew up in the region of Olten.

«We are not looking for glamor. We are Joe Bloggs.»

Are you planning to expand beyond Olten? After all, you have the means to do so.

Quite so. But we definitely won't be acquiring another bank – we did so in 2004, buying Trafina private bank and we have learned our lesson. Buying a bank also means taking over capital, which you don't need and can't put to good use. We are rather pondering solutions for small wealth managers or merging with a bank similar to ours.

Any preference?

Everybody is talking to everyone at the moment, as you can imagine. But we definitely don't want to lose our independence.

«I don't fancy going back to work as an employee at a big company.»

What about Notenstein La Roche?

I don't fancy going back to work as an employee at a big company anymore. And my three partners feel the same. So far, there has been no corresponding opportunity either.

You thus retain the partnership-model and your independence. How long will you be able to do so?

Our business model is very modern, even if it may widely be seen as outdated. We made the necessary changes to take on new employees on beneficial terms, who want to develop their entrepreneur careers in banking.

Who still wants to take the full risk of being a partner today?

We have one or two athletes at our bank who we expect to be able to do so. But of course: whether the partnership model has a future will show with the succession of our business.

Bank Baumann & Cie is based in Basel. On Monday it held a press conference, informing about its structure for the first time ever. The institute has about 60 employees in Basel, Zurich and Olten. Two thirds of its customers are Swiss-based, foreign priority markets are Germany and the U.K. Baumann owns Trafina private bank in Zurich.

The company earned 15.7 million francs in 2015. Its own capital amounted to 121 million francs. The bank has four partners who are fully liable, making Baumann one of the very few remaining «real» private banks.