Vontobel abandons plans for e-bank

The private bank, Vontobel, said on Tuesday that it has decided to cancel plans for its e-banking project, "y-o-u Bank", citing concerns over costs and timing.

In a statement on Tuesday, the bank said the project had cost more than SFr150 million ($90 million) last year. But it said the decision to scrap its e-bank would not affect its operating results this year.

Vontobel was the first Swiss bank to announce plans to set up a separate business to concentrate on e-banking activities and has now become the first to pull the plug on such a venture.

Its larger competitor, Bank Baer, announced similar plans last October.

The country’s two biggest banks, UBS and Credit Suisse, have incorporated e-banking into their general business activities. This is the path Vontobel will now take.

Vontobel specialises in managing money for wealthy individuals and institutions. The Vontobel family holds 84 per cent of shareholder voting rights. The family is planning to reduce its stake in the bank to below 50 per cent.

swissinfo with agencies