Credit Suisse has moved one of its most senior officers to Singapore in a clear signal of the importance it now places on the region. Joachim Straehle, a member of the firm's executive board, relocated to the Lion City a fortnight ago.
Straehle is the head of Private Banking International and his move from Zurich is a key strategic decision by the bank. He now ranks as the most senior private banker in the Asia-Pacific.
But what is the thinking behind the move?
"The private banking area is the most important part of the Credit Suisse group in terms of net profits," says Straehle. "Last year SwF2.48 billion out of a total SwF5.2 billion came from private banking, so it's a substantial part of the business. And the international part, which I run, is viewed as the growth engine for private banking within the group."
He adds, "The region growing at a double-digit rate is Asia. So it was very clear to me that sitting in Europe and running the international part was a mistake. Looking at the populations and growth rates, and the fact that Credit Suisse is the second largest private bank in the world, I felt I should be here."
He says the decision to move him was taken last year. "Last September, we had our group executive board meeting in Shanghai and we discussed my moving here. Both Credit Suisse's Chairman and CEO thought it was a good idea. I concluded that sitting in Zurich with two branch managers in Asia doesn't guarantee me the growth I am expecting."
He has based himself in Singapore, but will spend an equal amount of time in Hong Kong. He will also still make business trips to Latin America, Russia and the Middle East in his role as head of the international business.
"It's a punishing travel schedule, but I had that in Switzerland as well," he comments. "The only difference is that I am sitting here in Asia and have appointed a deputy in Switzerland. My focus is mainly Asia and with a second eye, the Middle East."
He adds: "Now I'm here in Asia I have to build up the management capabilities and the platform. This is important because we have grown our staff in Asia by about 50% over the last two years. And due to the shortage of relationship managers in this market, I have brought with me the business school we established in Switzerland.
"This is a private banking training school and opens in Singapore in May. We're looking for talent - students from university, and people from related areas. This school will allow us to give the new recruits the necessary skills to be relationship managers and faster integrate them into our organization."
Straehle, who joined the Credit Suisse Group in 1978, says China is a key focus, even though regulations currently forbid private banking onshore. "There are many issues with currency convertibility, licenses and so forth. With the WTO this might change, but I still feel we have to prepare. We have to get to know China, the mentality, the products and learn how we can go about doing business. We may also look out for partners."
He also sees great potential in India: "On May 1 we will open our branch in Dubai. We'll have 50 people there and will cover India from Dubai - since many Indians go to Dubai or live there and it's only a two hour flight. Our plan is to go onshore in India, but it is a question of the license, and what exactly we can do locally. This has to be looked at very carefully. But it's a fantastic market."
While it is true that Asia and its wealth are growing fast, isn't it also the case that the number of private banks chasing that wealth is also increasing? Does Straehle, who was based in the US as eight years as a private banker, worry about excessive levels of competition in the industry in Asia?
"Obviously, you should never underestimate your competitors," he muses. "But as I mentioned earlier, our profit contribution to the overall profit of Credit Suisse is very large. When you compare other banks and their private banking contribution, you clearly see that Credit Suisse is one of the most committed. Therefore from the very bottom to the very top of management, our people are committed to this business."
