20 June 2014
Raiffeisen and Avaloq found technology company
Raiffeisen simultaneously cancels the cooperative agreement with Vontobel with effect from mid-2017. Raiffeisen and Avaloq are founding a new company for the implementation and operation of Raiffeisen's retail banking platform. Raiffeisen will replace its previous front-end system in 2017 and migrate securities processing to a new Avaloq based banking software. Due to the changes in the technological environment and the advanced diversification, Raiffeisen is cancelling its cooperative agreement with Vontobel as of mid-2017 in line with the proper notice period.
Together with Avaloq, an international leading provider of integrated and comprehensive banking solutions, Raiffeisen is founding a new technology and service company. Raiffeisen intends to modernize and further harmonize its IT platform by means of increased integration of Avaloq. The bank is thus relying on autonomous software solutions in its overall IT strategy and is ensuring the autonomy of Raiffeisen banks. Raiffeisen owns the majority of the new company.
Raiffeisen will replace the previous front-end systems for clients and client advisors and trans-fer them to a new IT platform based on Avaloq. Securities processing will be technically inte-grated at the same time. The cooperative partner Vontobel will perform this until 2017.
Pierin Vincenz, Chair of the Executive Board of the Raiffeisen Group: "We are delighted to have found an outstanding partner in the Avaloq group that will offer us an integrated overall IT solution. The joint technology company will enable us to optimally meet the technological requirements of the financial centre, allowing Raiffeisen to further expand its position as a leading Swiss retail bank."
Francisco Fernandez, CEO of the Avaloq group: "Raiffeisen has already used our efficient soft-ware for payment transactions and central banking functions since 2009. I am very much look-ing forward to helping to shape the future experience of Raiffeisen Group clients through our combined forces and based on the Avaloq Banking Suite. This will enable the Raiffeisen Group to continue to propel the Swiss market."
The diversification strategy pursued for years enables Raiffeisen to provide services within the Group. It thus has extensive skills in investment and corporate clients business involving the production of products and services. By establishing its own Economic Research team, Raiffeisen is also underlining the strengthening of its investment business.
Clarity for the future
The advanced diversification strategy and the changes in the technological environment create a new strategic basis for Raiffeisen to provide products and services within the internal Group network. The continuation of the existing partnership with Vontobel is thus no longer expedient. Raiffeisen is therefore cancelling the cooperative agreement with effect from mid-2017 in line with the proper notice period.
Ongoing court of arbitration proceedings
Different views on whether Notenstein Private Bank Ltd falls within the scope of the coopera-tive agreement prompted Vontobel to bring Raiffeisen before the court of arbitration in November 2012. The cancellation of the contract will take place irrespective of the outcome of the ongoing court of arbitration proceedings. A verdict in this case is expected at the end of the year.
To coincide with the cancellation of the agreement, Marcel Zoller, CFO of Raiffeisen and a member of the Board of Directors of Vontobel, is also announcing his resignation from the Board of Directors of Vontobel.