Entris banking cedes securities trading unit to Vontobel

Entris banking cedes securities trading unit to Vontobel

Swiss investment banking major, Vontobel will be taking over the securities trading functions of Entris Banking AG.

The arrangement is a new cooperation that will see Entris Banking performing payment solutions services for Vontobel. A total of almost 40 client banks – including Zuger Kantonalbank, Clientis and others.

According to Vontobel, a total of almost 40 client banks – including Zuger Kantonalbank, Clientis Group and Valiant – have been migrated from Entris Banking to the Vontobel Transaction Banking platform.

The cooperation between Vontobel and Entris Banking encompasses global execution across all asset classes and the global custody of all securities positions. The new partnership underscores Vontobel’s proven expertise in the B2B securities business.

In return, Vontobel will benefit from Entris Banking’s unique market positioning in the life cycle management of payment solutions. Financial institutions in Switzerland are faced with rising costs and declining margins, as well as the need to invest in their IT systems. These developments are driven by growing client demand and by emerging regulatory developments in the areas of execution and the global custody of securities.

By partnering with Vontobel Transaction Banking, financial institutions can significantly reduce their costs in this area and focus on their core competencies. Vontobel offers its clients and partner banks a transaction banking platform that is already aligned with future requirements, including the fully MiFID II-compliant execution of securities orders on the global financial markets. With highly sophisticated order routing technology, it can search highly fragmented securities markets in fractions of a second to find the most attractive prices for clients.

A transparent transaction cost analysis ensures that clients are fully informed of the effectiveness of the chosen trading strategy. In addition, Vontobel Client Order Protection (COP) processes actively defend client orders against detrimental trading strategies of external market participants. Entris Banking provides investment and custody, payment solutions, payment operations and pension administration services to small- and medium-sized financial institutions. Through the bundling of volumes, standardization and the provision of support in technical banking matters, Entris Banking contributes to the diversity and efficiency of regional banks in Switzerland.

This new cooperation in the area of global execution across all asset classes and in the global custody of all securities positions represents a further milestone for numerous small- and medium-sized client banks of Entris Banking and complements its existing offering. At the same time, Entris Banking is pleased to collaborate with Vontobel in the areas of cash solutions.

Peter Camenzind, Head of Vontobel Transaction Banking, stated: “This is an important step forward in our efforts to establish Vontobel as a global partner for Swiss regional and cantonal banks in the execution and custody of securities over the long term. The fact that Entris Banking has chosen Vontobel’s solution is a testimony to the performance of our transaction banking platform. At the same time, we value Entris Banking as a strong and reliable service provider in the payment solutions business.”

Steffen Rossberg, Head of Banking and a member of the Executive Board of Entris Banking, stated: “We carried out a rigorous evaluation process and selected Vontobel in view of its professionalism and its comprehensive product range. We are convinced that with Vontobel Transaction Banking, we have a trusted partner at our side with whom we can tackle the challenges in the finance industry in the interests of our clients.”