UBS is focused on executing a rapid and effective IT integration following its acquisition of Credit Suisse, intending to retain only a fraction—10%—of its former competitor’s extensive portfolio of 3,000 applications.
The acquisition, which took place last year during a critical rescue operation, is projected to yield approximately $13 billion in cost savings, largely through the amalgamation of IT systems. However, UBS CEO Sergio Ermotti emphasized at a recent event that any delays in the IT and data integration process could jeopardize these anticipated savings.
“We are quite confident that the primary risk lies in potential delays, rather than our capacity to execute the plan,” Ermotti stated. The migration of clients from Credit Suisse to UBS is slated to commence this year, with ambitions to retire 30% of Credit Suisse’s applications by 2024.
Ermotti remarked, “By integrating just 300 applications out of the 3,000 from Credit Suisse, we are significantly mitigating IT integration risks.” He also acknowledged that the bank’s focus on this integration might cause it to lag behind competitors in the quickly evolving landscape of generative AI.
“Yes, that risk exists, but we are cognizant of it,” he told attendees. “Currently, we have around 100 advanced AI technology projects underway, evenly split between front-end and back-end applications, so we are proactively managing this.”
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