"Our focus this year is on growth"

Mr Schneider, you have been Head of the Liechtenstein Region and a member of the Group Executive Management of VP Bank since August 2023. What makes this position so attractive to you? In other words, why Liechtenstein?

Adrian Schneider: For me, this position was a great opportunity to combine my professional activities with my private life. I live with my family in Vaduz and my two boys are growing up here. My ties to Liechtenstein go back 17 years. When I started my studies at the University of Liechtenstein, I never thought that I would be living right next door. Since I took over responsibility for the Liechtenstein market at VP Bank, I have noticed that the bank enjoys an extraordinarily good reputation among the population. VP Bank belongs to the country, and the country belongs to VP Bank. 

Do you think VP Bank has a different reputation among the population than it does in the financial world? 

No, I don't think so. Since I started working here, I have spoken with many clients, employees and other stakeholders. VP Bank is perceived as dynamic and agile, both in the financial centre and by other stakeholders. And that's exactly what we are. With around 1,000 employees, we have a good size, we are agile and we have short decision-making paths. I think it's great that so many people in the country have a relationship with VP Bank and identify with the bank. Particularly in the intermediary segment, we have clients who have been in dialogue with the Bank for many years, which has led to close relationships.

What stands out: VP Bank invests a lot in Liechtenstein - events, marketing, sponsoring. The Liechtenstein market really seems to be important to the bank. 

That's true. Our home country is very important to us. We have been part of Liechtenstein since we were founded by Guido Feger in Vaduz in 1956. Our head office is in Vaduz. So it's important for us to give something back to the country. One of my personal highlights was organising the Genussfestival, which I was able to attend twice. It was sensational - the atmosphere was excellent and the city was full of connoisseurs. With the Music Academy in Liechtenstein, we support young musical talent and give them a platform. We support the development of young talent in football clubs and are the main sponsor of Harmoniemusik Vaduz. It means a lot to us to be able to give something back to the country.

You are in dialogue with the public: what feedback has been received regarding the so-called efficiency measures, i.e. the cost-cutting measures implemented by VP Bank over the past six months?

Of course, the public has recognised that we have had challenges, but in our discussions we have always emphasized the high quality of service and the personal relationship with VP Bank, especially with our client advisors.

Were people worried too? The Bank has also cut jobs. 

A lot of feedback shows that people have understood that the bank is moving in the right direction and has set the right course. Our clients appreciate the fact that we are refocusing on our core business. The efficiency measures and the associated stronger positioning in our home market have shown that the Liechtenstein market is important to us. Among other things, we believe in the trust business, we believe in the local intermediary business and we will continue to invest there. We have reduced certain positions because we no longer offer certain services or no longer want to be active in certain markets, but we have not cut any client advisors in Liechtenstein; on the contrary, we want to continue to expand and invest here.

For example, you closed your office in Hong Kong. Has this streamlining process been completed? Is VP Bank being rebuilt, so to speak? 

Our focus this year is on growth. We are concentrating on the implementation of our business plans. In this sense, the measures have been completed.

How is the mood in the teams? Is there uncertainty or is it all over for the employees? 

Last year was of course challenging. My compliments go to our employees, who have done an excellent job in this environment. They have always shown us what is planned and we have noticed that employees appreciate what has been done in recent months. Now you can feel the upturn, the mood is different, even though we still have a lot to do.

The most important thing, of course, are the figures. Are you optimistic about the balance sheet?

We can't talk about the balance sheet figures yet. We are listed on the stock exchange. 

We've talked about the soft factors, how things are going, but a lot depends on the hard facts. Does that make you nervous?

At the end of the day, we are also commercially driven and we want to be efficient. The measures were aimed at increasing profitability and thus reducing costs. Now we are focusing on growth and achieving our goals.

You emphasised that VP Bank is closer to its clients. What exactly has changed?

It is important for clients that the core business is functioning. I believe that with our services and our high quality of service, we are back where our clients want us to be. A recent client satisfaction survey confirms this. Three-quarters of our private banking clients are satisfied or very satisfied with VP Bank overall. Particularly positive ratings were given to the Bank's accessibility, personalised client advice, client service and client experience. They also appreciate the proximity. This is also confirmed by the latest Fuchsbriefe test. The survey also shows that two thirds of our intermediary clients are satisfied to very satisfied with us. 

Does client proximity mean less digitalisation and more direct client contact?

One does not exclude the other. We are known for our digital platform, and I believe we have one of the best platforms in the business. Clients appreciate that. At the same time, we want to maintain personal contact. People will continue to want to talk to each other, especially in private banking. Banking is generally a people's business. This does not mean that we are not investing in our digital platforms. It is important for us to understand our clients' needs. This helps us to develop the digital platforms in a targeted way. 

For smaller banks, the investment is probably a challenge. Medium-sized banks like VP Bank often have to invest in the same way as a large bank like LGT or LLB. Does size have more advantages or disadvantages? 

The important thing is to know where you are positioned and then to invest in the right place. We are clearly committed to the fiduciary and intermediary business and will continue to invest there in the future. Private banking is also important. You don't have to do everything, just the right things. We have realised that it is better to focus on the core business.

Focus is always important. What about consistency? Your new CEO, Urs Monstein, has been on board since 2018. How is it working with him? 

In my opinion, Urs Monstein is a stroke of luck for the bank. He knows the bank, he knows the challenges, and that has enabled us to set the right course relatively quickly. The cooperation is very constructive.

What are the major challenges facing VP Bank in the coming months and years? 

Like all banks, we are very concerned about the regulatory and geopolitical environment. The talent market in Liechtenstein is also a challenge for all companies. We are very interested in continuing to promote our young talent and to offer them opportunities and prospects. We have both young, innovative and experienced employees. If we were a football team, we would have the perfect team.

How do you find talent in Liechtenstein?

We have a history of recruiting talent from Liechtenstein and investing in their development. Our Private Banking Team Liechtenstein, for example, is largely made up of people from Liechtenstein. But of course we are also open to the national market. This is also important in order to gain new perspectives.

Another big challenge will be dealing with the US under Trump. Do you find the situation more interesting or more problematic? 

It is said that we are in uncertain times, but if you look at the past, times have always been very eventful. There was the coronavirus pandemic, conflicts and wars, financial crises, the SNB's minimum exchange rate... Now, with Donald Trump, we have a president who acts very dynamically and you don't know today what will happen tomorrow. We don't know whether this will have a positive or negative impact on the markets and what will happen with inflation and tariffs. Because of these uncertainties, it is important for us to have risk management under control, to have early warning indicators so that we can react with a certain degree of agility without getting caught up in actionism. That would also be bad. And I think at the end of the day that is the trick.