Heinz Huber, the CEO of Raiffeisen Switzerland, is stepping down unexpectedly as of December 31, 2024, after nearly six years at the helm. His departure marks the end of his leadership during challenging times for the bancorp, which has been grappling with multiple setbacks, including issues surrounding its anticipated Super-App. Starting July 2025, Huber will transition to become the chairman of the Graubündner Kantonalbank (GKB), replacing Peter Fanconi, who has resigned early amid pressure related to controversial lending practices.
Upon announcing his resignation, Raiffeisen highlighted Huber's role since taking over on January 7, 2019, stating, "Heinz Huber took over as CEO at a very challenging time and has always managed the company prudently and successfully with a steady hand," according to Thomas A. Müller, chairman of Raiffeisen Switzerland's board of directors.
Throughout his leadership, Huber has been credited with steering Raiffeisen through turbulent waters following the notorious scandals involving his predecessors, Pierin Vincenz and Patrik Gisel. Under Huber's guidance, the cooperative banking group solidified its market position, achieving remarkable growth, most recently declaring revenues of CHF 4.1 billion ($4.6 billion), which reflects a 15% increase year-on-year. The profit also saw growth, rising by 17.7% to CHF 1.39 billion.
Yet, this success was overshadowed by the significant challenges brought on by the bank's digital transformation efforts. Raiffeisen had ambitious plans to launch a Super-App to integrate all banking functionalities, entailing investments of approximately CHF 500 million. Unfortunately, the project faced numerous hurdles and was unable to move beyond the testing phase, which raised questions about the effectiveness and viability of the bank's technological strategies. Two months ago, insiders revealed to the media, including the Handelszeitung, the bank had decided against rolling out the app due to instability issues discovered during testing.
The failed app launch not only impacted Raiffeisen's operational credibility but also prompted the board to initiate an internal investigation to understand how such significant financial mismanagement occurred. Mario Crameri, formerly of Credit Suisse, has been appointed to lead this inquiry. Notably, Huber had previously dismissed any concerns over resigning, stating, "A resignation is not on the agenda," just months before his unexpected announcement.
His impending move to GKB has been described as somewhat strategic, with the Graubünden being connected to Huber through his second home there. This location-based affinity played a role in his selection as the new bank President, filling the void left by Fanconi.
Christian Poerschke, who currently serves as the head of finance and services and has been Huber's deputy, will take over as interim CEO effective January 1, 2025, as the search for Huber's permanent successor begins. Both internal and external candidates will be considered for this pivotal role within Raiffeisen's executive leadership.
Critics of Huber's tenure have pointed out the missed opportunities for innovation, arguing he focused predominantly on maintaining the status quo rather than propelling Raiffeisen toward future-oriented strategies. They highlight the bank's reliance on traditional revenue streams, particularly its mortgage business, which still constitutes over 75% of its earnings, showing signs of stagnation compared to its competitors who have diversified offerings more successfully.
The broader financial community has observed these changes with mixed feelings—while some commend Huber for restoring stability, others remain skeptical of whether Raiffeisen can continue its growth without more substantial adaptation to modern banking dynamics. The cooperative's ability to effectively compete, particularly amid increasing digitalization, will be under scrutiny as Poerschke prepares to assume leadership.
Thomas Müller concluded his remarks by acknowledging Huber's contributions, stating, "The entire supervisory board thanks him for his great commitment to Raiffeisen and wishes him all the best for his professional and private future." Nevertheless, as Huber leaves behind Raiffeisen, critics are left to ponder the strategic choices made during his reign and what future holds for this influential banking group.
With the changing of the guard, Raiffeisen stands at yet another crossroads where its leadership will play pivotal roles. The upcoming transition not only defines the next phase for the bank but also establishes its stance within the wider Swiss banking framework as it confronts challenges new and old.
