From a legal perspective, Credit Suisse in Switzerland is now history. However, the process of merging customer data is just beginning, and it comes with several challenges.

As of the beginning of this week, Credit Suisse (Switzerland) AG (CS) no longer exists as a company. The corresponding entry in the commercial register of the Canton of Zurich has been deleted. When UBS refers to this as a «milestone» in the merger of the two institutions, it is not incorrect – even if the process may appear straightforward at first glance.

Only after the deletion from the commercial register and the associated transfer of rights to UBS can the migration of customer data begin. The general terms and conditions of the Credit Suisse companies have been adjusted to enable data transfer between the companies. This change was particularly crucial in preparing for the migration.

UBS Has Invested More Than CS

UBS will begin transferring customer accounts from CS to its system in early 2025, favoring the UBS system. This is not only due to technical aspects – UBS has invested more in IT in recent years than its former competitor – but also because of the data volume: around 1,5 million CS customer accounts need to be migrated, whereas the reverse scenario would have involved significantly more.

UBS is taking a strict approach to the process: «We have 3,000 CS IT applications. Of these, we will keep 300,» said CEO Sergio Ermotti in London in November 2023. In this context, the CSX banking app will also disappear.

Highly Complex Cases

This decision may be lamented in the media, but ultimately it is understandable: UBS aims to have everything on one platform. To avoid increasing complexity and risks, only the necessary data will be migrated.

All of this is intended to reduce costs; UBS aims to save a total of 13 billion euro ($14.1 billion) by the end of 2026. IT plays a crucial role in this.

In the transition, UBS follows the maxim: start with the simple, the complex comes last. For large multinationals, this requires months of preparation.

Expansion of Personnel

To ensure a smooth process, UBS will employ several hundred people to assist customers with any uncertainties. This does not necessarily mean an increase in staff numbers, as the bank plans to recruit mainly internally.

Either way, the entire transition will be costly. According to Bloomberg, the merger is expected to cost between $1 billion and $3 billion. By the end of 2026, not only will the legal form of CS be history, but so will its IT.