For today’s executive insight we talked to Hans Nützi, CEO of Swiss Bank Clariden Leu, which has CHF 129 bn assets under management (2007).

PBI: Clariden Leu is now one year old, since it originated from the merger of Credit Suisse’s former independent private banks. What was tougher to manage during this first year, the retention and acquisition of clients or the retention and “acquisition” of good private bankers?

Both deserve our full attention. Our USP are our employees because Private Banking is a people’s business. We differentiate from our competitors through our professional employees and their commitment, as well as the ability of the bank to offer those products and services which fit our client needs. A professional relationship manager must know how to tailor-make products and services to our clients demands.

In a very competitive market the retention management towards our employees is key. The employees will stay within our company or choose to join us if all factors like the brand, products, potential of the company and the professional development fit together as well as the compensation. Clariden Leu is very well positioned. We pay competitive salaries and have a very attractive compensation model. Relationship managers have their own business models which they can actively manage and realize.

These very professional employees help us to practice active retention management towards our clients and to acquire new clients. In addition to that we generate growth by acquiring new teams in our growth markets like the Middle East, Asia, Eastern Europe and other selective markets in Europe.

PBI: On www.privatebankinginnovation.com we strive to improve private banking management practice. With Clariden Leu you are leading the third largest Swiss private bank. Do you use any specific strategic management methods (Porter, strategy maps, other…) about which you could share your practical experience with our readers, other senior executives in private banking?

We do not build our strategy on a specific strategic management method.

PBI: While we are talking of strategy and management, could you tell us what you see as the toughest challenges for Clariden Leu in the coming months and how you will tackle them?

We are very well positioned. Despite the on-going migration and a challenging market environment, we achieved very good results in 2007. Our Private Banking division was successful and we were able to strengthen our positioning in the market. To allow our relationship managers to concentrate and focus on their clients and to acquire new clients we do closely monitor our processes and services in the back offices. Especially now, when the markets are so volatile, our relationship managers need their full capacity to focus on their clients.

In addition to that, we offer a broad and first class platform for innovative products. Our structured products are state of the art. As we sell our structures products heavily to our clients and also to the external market we increased our sales force substantially to get a better market appearance.

PBI: Clariden Leu is still owned by Credit Suisse. Are you directly competing with the Private Banking of Credit Suisse or do you divide the market of wealthy individuals among the two entities?

The service range of Clariden Leu is complementary to the one of Credit Suisse. Clients come to Clariden Leu because they wish to bank with an exclusive, pure wealth manager with a strong tradition in Swiss private banking. Clariden Leu has its own brand and an autonomous presence in the market, underscoring the key competences of the bank: the Swiss tradition of comprehensive and tailor-made wealth management coupled with specialist product expertise and considerable innovative strength. We focus on growth in markets like Asia, the Middle East, Eastern Europe and other selected markets in Europe. We do not divide the market between Clariden Leu and Credit Suisse.

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