Swiss private banking group Julius Baer is looking to tap the wealthy in Russia directly by setting up a local unit, Bloomberg has reported.

The bank has till now been catering to its Russian clients from its Swiss office.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

It has been operating in Russia since 2008 through a representative office in Moscow.

By opening the Russian entity this December, the bank intends to lure 200 new clients, market head for Russia, Central and Eastern Europe Ewgeni Smuschkovich was quoted as saying by the report.

Plans are on to hire six to eight relationship managers in this regard and win business in locations far from Moscow.

Smuschkovich noted: “There are many clients in Russia who still keep their money in deposits rather than use financial consultants.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“With our expertise in private banking we may offer more customised solutions compared with big local banks.”

Expansion in Russia is said to be challenging in Russia amidst international sanctions.

Besides, in 2018, the bank’s Russia office head was implicated in a secret arms deal case with armament producer Ruag.

Moreover, competition from banks such as Sberbank and VTB Group, which provide over 3% for one-year dollar deposits to affluent clients, pose a threat, according to the report.

“I’m not afraid of competition with Credit Suisse or UBS. I’m afraid of competition from the client and any digital, low-cost investment platform, which in the alliance are doing the same thing as we are, but much cheaper,” Smuschkovich added.

The latest move comes shortly after Julius Baer’s announcement to offload its Venezuela, Panama and Peru operations.

At the same time, the private bank expanded to South Africa late last year.