The Danish bank’s branch had a mixed start in Switzerland. But now Saxo Bank is growing at an above-average rate in this country. This is increasing management’s appetite.
It cannot be overlooked: In the entrance area of the office in the Circle at Zurich Airport there is an imitation dinosaur skeleton. It is a reminiscence of traditional banking. But it also stands for a world with which the Saxo Bank has nothing in common anymore.
Saxo Bank is one of the pioneers of online stock trading. Its trading platform is often referred to in the industry as the Lamborghini: professionals rave about it, but it can sometimes be too much for laypeople. “We know that not everyone wants to drive a Lamborghini. There are also customers who are happy with less horsepower. We will soon be able to serve them,” says Stanislav KostyukhinCEO Saxo Bank Switzerland.
The month of July will go down in history
When it comes to business, those responsible at Saxo Bank prefer to go full throttle. 2024 is proving to be a positive year in Switzerland in this regard. The neo-bank has been doing well since the beginning of the year. But the month of July is likely to go down in history. “In July, we gained more new customers than in the whole of last year,” says Oliver BuombergerDeputy CEO and COO of Saxo Bank Switzerland. Buomberger therefore expects record growth in both the acquisition of new customers and the increase in new customer funds for 2024.
This is not a given. On the one hand, neo-banks in this country are in a highly competitive environment. On the other hand, Saxo Bank has had turbulent times. Three CEOs have followed one another within three years. There was also unrest within the team. Ideal conditions look different.
Fees reduced by up to 95 percent
The management duo Oliver Buomberger and Stanislav Kostyukhin, who have been in office for almost a year, managed to bring calm and boost business.
This is partly thanks to low fees. Saxo Bank had reduced them by up to 95 percent this year. Depository fees are limited to a maximum of 10 francs per month or are waived completely for securities lending. Inactivity fees have also been abolished.
45 percent more customers
“The pricing helped us a lot. In addition, many Flowbank customers switched to us,” says Kostyukhin.
The bottom line is that the customer base has grown by 45 percent since the beginning of the year. The online bank does not provide any absolute figures. According to Kostyukhin, Saxo Bank already has 1.2 million customers worldwide, and Switzerland intends to make a significant contribution to this success.
Also noticeably strong in Ticino
The customer base grew by around 140 percent in Ticino. Assets under management (AuM) grew by 492 percent in southern Switzerland in the first eight months of this year. For this reason, Saxo Bank Switzerland is holding events in Ticino next month to accompany its online marketing measures. A relationship manager has also been appointed specifically for Ticino.
Saxo Bank also wants to intensify its marketing efforts in the rest of Switzerland over the next three years. “We are extremely hungry. We want to become a relevant player in this country,” says Buomberger. The first step has already been taken.
