Jan Schoch's digital bank for the super-rich is in the starting blocks, but the unexpected departure of the Chief Executive and another founding partner have dealt painful setbacks for the Leonteq boss' vanity project.
Flynt is supposed to «inspire entrepreneurs to achieve their life’s worth», according to the company's website. It plans to do this by offering agile software development, saying «wealth is a gateway to opportunity,» using simplicity and security in technology.
It is the pet project of Jan Schoch, founder and Chief Executive of derivative platform Leonteq who founded Flynt more than two years ago in an idyllic hamlet in rural eastern Switzerland. The venture, backed with 1 million Swiss francs in capital, was initially called Janit – as in, Jan-IT.
Heavy Turbulence
The firm has since moved to Zug, where a staff of 35 has developed a platform which promises more information on February 17 – Flynt is set to go live next month.
Flynt's start has been rocky, and marked by heavy turbulence and uncertainty. The bank found itself without a CEO after Alexander Rueegg quit abruptly last month with no explanation. Top executive Christoph Baumann followed him out the door.
Where's the License?
The venture's start was also called into question because Flynt wasn't immediately granted a banking license by Swiss regulator Finma. Last July, finews.com wrote that Flynt already had a license to operate as a bank – that reporting was based on erroneous information.
Rumors began circulating late last fall that Finma might be withholding a bank license for Flynt because the regulator had reservations about whether certain executives were fit and proper – in regulatory speak: fitness and probity standards.
Finma had sanctioned and fined Leonteq for market manipulation in 2015 and clawed back profits of 3.2 million francs. For Schoch himself, 2016 also turned into an annus horribilis: Leonteq's stock collapsed from a high of 233 francs in 2015 to 39 francs, where it currently trades.
Slump in Net Worth
That means Schoch's personal net worth, as owner of 6.5 percent of Leonteq's total shares, melted like ice in the sun – not the best premise to found and capitalize a new bank. A spokeswoman for Schoch said the Leonteq founder and CEO wouldn't comment to finews.com.
The tension over Flynt has since eased, as the fintech bank has received its banking license, chairman Jasmin Schmuki told finews.com.
«The license is necessary in order to offer bank services like transactions or securities custody,» Schmuki said, but she had few specifics to add about Flynt's offering.
«In short, Flynt will offer holistic portfolio management as well as bank and other modules,» based on an intelligent and secure technology platform.
New CEO Search
Flynt plans to release more details in February, she said.
Another piece of the puzzle is the search for a new CEO. Juerg Inne has taken the role temporarily, while Steffen Lentz and Matthias Frisch round out top management.
«This team covers the main areas including legal and compliance, risk management, and customer business,» according to Schmuki, who runs Jan Schoch's personal holding, after stints at Swiss banks including Credit Suisse and Raiffeisen.
The sudden and unexpected departure of Rueegg and Baumann remains mysterious: the two had decided to take on roles outside Flynt, Schmuki said.
