Banks are exposed to many influences – regulation costs, global competition putting a squeeze on margins, and at the same time, enormous investments in digitization. The conditions are changing and negative interest rates are certainly not helping profits at traditional banks.
Time will tell which banks will make it and which won’t.
Vontobel will make it?
Vontobel is something of an early adopter. We don’t always have to be first, but we are monitoring closely what is happening in the industry. We are developing further in line with our strategy and our dimension.
How exactly?
When we launched our online platform Deritrade, we were aware full well that we might cannibalize our own products – something that didn’t happen in the end. To only offer your own financial products doesn’t meet today’s customer demands.
«We waited a long time for Notenstein La Roche»
We, therefore, opened our platform for other banks and thus ensured that clients would get the best product at the best price. This is the process of individualization or our aspiration to provide what is effectively sought after.
Vontobel acquired several banks in the past years. Is that a thing of the past given that banking is undergoing fundamental change?
We waited a long time for the acquisition of Notenstein La Roche because we always thought it was the best fit with us.
Another such takeover isn’t on the cards then?
Indeed, at the moment, we don’t see another such opportunity as Notenstein La Roche. Both corporate cultures fit very well – it was essentially the old Wegelin culture, where once our CEO Zeno Staub had been active. And some of the units, such as the Eastern European business of Notenstein, we had already assumed at an earlier stage. Inasmuch, it was a very good transaction.
Will the experience keep you from making further such acquisitions?
No. We are still open for acquisitions. But first, we will consolidate and grow on the basis of what we have.
Vontobel is paying very well compared with the industry as a whole. Is that part of the corporate culture?
It is more a question of hygiene.
How do you mean?
We aim to pay in a way that put us in a good position in the market. We also are a reputable player, meaning that our staff is sought after in the market – also by companies larger than ours, and they also pay some very good salaries.
«Our staff is sought after»
Therefore we wanted to have a hygiene factor and be able to say: we also pay well. But money shouldn’t be the sole reason for wanting to work at Vontobel. If you’re only interested in the salary, maybe you’d be better off elsewhere.
What do you think about recent developments in Hong Kong? Vontobel is active there.
I obviously watch events in Hong Kong closely. I don’t have a handy response. But, time and again I realize that we are far away from really understanding the dynamics of a country such as China, which has 1.4 billion inhabitants.
All the more important it is to maintain a dialogue in a bid to better understand each other. And we shouldn’t exclude, but rather integrate China in our world – in our global network. Historically speaking, we’ve made positive experiences through the principle of change through trade. This approach is also important for Switzerland. As a fairly small country, we can’t afford to just shut ourselves out, we have to be open.
Herbert J. Scheidt joined Vontobel in 2002, where he worked as the bank’s CEO until April 2011. In May 2011, he assumed the position of chairman. Before his time at Vontobel, Scheidt had spent two decades at Deutsche Bank, working from Germany, New York, Milan and Geneva, Starting in 1996, Scheidt for six years was head of private banking international at Deutsche. He studied economics at the University of Sussex and has an MBA from the University of New York. Since September 2016, Scheidt acted as head of the Swiss Bankers Association. He is also a member of the board of Economiesuisse.
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