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Credit Suisse unveils operational restructuring

Credit Suisse unveils operational restructuring

Swiss bank Credit Suisse has announced a "series of structural improvements" which will see it combine several divisions in search of operational efficiencies.

The plan comes on the back of positive results for the first half of 2020 which saw an upturn in trading activity and a 24% increase in net profit in the second quarter.

Chief among the changes are the creation of global trading and investment banking units and the consolidation of its risk and compliance functions. The bank also plans to increase its spending on digital technology and collaborations with fintechs for its wealth management business. 

The new Global Trading Solutions business "will allow for further global technology integration" and "maximize connectivity, enable a more dynamic allocation of capital and optimize global risk, technology and execution platforms and generate efficiency" stated the bank.

The newly combined chief risk and compliance officer function will create a "less complex operating model to reduce fragmentation, eliminate duplication, improve coordination and allow for faster decision making" and "enhance scalability of technology and data platform through further investments" claimed the bank.

Furthermore, Credit Suisse intends to invest in direct banking, "accelerate front-to-back digitalisation", and improve collaboration with fintechs for its wealth management business.

Despite the encouraging H1 results, Credit Suisse has not been immune to the economic impact of the Covid 19 pandemic. It has also faced questions about the governance of its supply chain finance funding, which led Japan's SoftBank to pull $500m from Credit Suisse funds following an internal review. 

The operational overhaul is also a chance for chief executive Thomas Gottstein to put his mark on the bank following his appointment in February. 

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