Swiss private bank J. Safra Sarasin has acquired a 70% majority stake in Danish Saxo Bank, with shares coming from Geely Financials Denmark, a subsidiary of Zhejiang Geely Holding Group and Mandatum Group.
This strategic move marks a step for the traditional private bank to position itself in the digital financial services sector.
Despite the majority takeover, Saxo Bank will continue to operate as an independent entity. Founder and CEO Kim Fournais will retain his 28% stake and remain at the helm of the company. Fournais expressed confidence that the new ownership structure would further foster the bank’s growth. The acquisition aligns with J. Safra Sarasin’s strategy to expand its business with innovative financial services, without neglecting its existing strengths in wealth management.
Different cultures, common goal
Saxo Bank, founded in 1992 in Copenhagen, is known for its digital trading platform. The company manages a client assets of $118 billion and employs 2,300 staff at locations in Zurich, London, Singapore, Amsterdam, Dubai and Tokyo.
In contrast, J. Safra Sarasin, with a long tradition in discreet wealth management, currently manages $247 billion for its clients.
J. Safra Sarasin now manages a total of $365 billion in assets.
The combination of these two distinct banking houses is likely to bring challenges. While Saxo Bank is a dynamic fintech company, J. Safra Sarasin adopts a more cautious and traditional approach. The integration process will need to be carefully designed to leverage synergies without diluting the strengths of both entities.
Expansion beyond traditional wealth management
The takeover of Saxo Bank marks an unusual but well-thought-out step for J. Safra Sarasin. While many Swiss private banks focus on traditional wealth management, this move shows a clear strategy of diversification.
Through Saxo Bank’s technology and trading platform, J. Safra Sarasin could tap into new client segments and significantly expand its digital presence in the global financial market.
For Saxo Bank, the new ownership structure may also bring benefits. The stability and reputation of a Swiss private bank could strengthen the trust of institutional and high-net-worth clients, opening up new growth opportunities.
Whether the combination of traditional wealth management and high-modern digital financial solutions will be successful in the long run remains to be seen. However, J. Safra Sarasin’s move undoubtedly marks a significant shift in its strategic direction.