Eric Wasescha is a derivatives specialist by training. Now at Migros Bank, he has become a retail banker, emulating agile principles and Youtubers, he reveals in an interview with finews.com.
In Zurich’s financial circles Eric Wasescha needs no introduction. He launched his own derivatives analysis company Derivative Partners, built up the Platform Solutions unit at Vontobel, and helped get the Swiss Structured Products Association underway.
For his next act, he has become, temporarily at least, a retail banker. Since the end of 2020, his role has been to expand Migros Bank’s many direct channels and strengthen sales to fulfill the digital transformation goals upon which CEO Manuel Kunzelmann has set his sights on.
A Sense of Urgency
«The experience of now working for a retail bank is a great enrichment for me,» explains the banker, both disciplines can learn a lot from each other, he finds. «From my career path, I can certainly bring strong results-focused work.»
«The need to change and catch up in digital transformation is probably present at every Swiss bank,» Wasescha says. Three points are important to bear in mind says the 49-year-old ex-investment banker. There must be a sense of urgency for change, which essentially boils down to a task for top management.
Oft-heard Buzz Word
A sense of urgency is something to be nurtured over months if not years, Wasescha says. Secondly, it needs to be understood that business models change with new technologies which lead to the third point of adapting to the changes. Among the buzzwords bandied about these days is transforming to and working with «agile» methods.
«Migros Bank has experimented with new technologies and offerings before. From that perspective, it now takes little convincing to get employees on board with the change,» Wasescha says about the eponymous firm known as the «orange giant».
Challenge for Management
It is much more difficult to get managers excited about agile change than the teams, he observes since it lies within that group to change its mentality and lead the way. Because employees working in an agile world mostly organize themselves, the communication of crystal-clear goals is required, and «the change is, therefore, greatest for the management team,» says Wasescha.
At Migros Bank, the idea of adopting such methods is falling on fertile ground. So, several hundred people at the institute are now working according to agile criteria, measured against a total of 1,696 employees at last count. It started with teams in the area of direct channels, spreading to operations and product development where most employees are now agile. In addition, individual agile tools are now also being used in frontline sales, Wasescha reports.
Sofa Banking
One of the new aspects is the long-term commitment to the product. «Anyone who takes on a project knows that they will be responsible for its future operation,» and that sense of ownership increases quality and the sense of responsibility. «In the end, that benefits the customers,» and shows that rebuilding processes is not just doing it for the sake of doing it, says Wasescha whose own area of responsibility is direct channels.
«What we see, for example, is the need of different customer groups to implement their banking fully digitally – at home from their sofa.» Unlike neobanks which focus primarily on payments, Migros Bank is building the digital version of a universal bank.
Personalized Help
Unlike its competitors, «we will not have an app with our own brand» at Migros Bank which currently has nine live digital products. Everything should be from a single source, says Wasescha.
The focus is on where the bank traditionally has a range of products: Mortgages, loans, investment solutions for retirement planning or wealth accumulation, as well as online business loans and online leasing for corporate customers. In addition, there are the existing basic products with accounts and cards.
High on Wasescha’s list of priorities is distance consulting. Despite current digital offerings, customers should be able to get personal help from Migros Bank at any time via video chat or telephone. The institute is also thinking further afield for ideas. «When developing the product of distance consulting further, we don’t just take inspiration from leading digital banks, but also look at how the YouTube stars do it, or the streamers on TikTok.»
Change for the sake of change?
That all sounds pretty hip, and Wasescha does not want to be accused of change for its own sake. «Migros Bank started the digital transformation from a position of strength. But I say that despite the current strength, we remain vigilant because the market position has to be earned anew every day.»
Wasescha’s future at Migros Bank, on the other hand, is limited to the medium term. As he explains, he is accompanying the digital transformation of the direct channels at the bank in consultation with the management and is a mandate limited to a few years. What happens after that is an open question, he says.
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