Raiffeisen Switzerland Cooperative: A History of Trust and Excellence

Raiffeisen Switzerland Cooperative has a rich history that spans over a century. Founded in 1904, it has grown to become one of the largest cooperative banks in Switzerland.

The cooperative model has been a key factor in the bank's success, with over 30,000 members owning and controlling the bank. This unique structure allows for a high level of transparency and accountability.

Raiffeisen Switzerland Cooperative has a strong focus on community development and social responsibility, with a significant portion of its profits going towards supporting local projects and initiatives.

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Raiffeisen Switzerland Cooperative has a rich history, founded in 1899 by Johann Traber. It's a testament to the bank's commitment to serving its clients and the community.

The bank's head office is located at Raiffeisenplatz in St. Gallen, Switzerland. You can contact them at [email protected] or call their customer service center at 0844 888 808.

Raiffeisen Switzerland Cooperative has a significant presence in the country, with 690 agencies and 1600 ATMs. This makes it an accessible and convenient option for clients.

The bank's unique structure is that of a cooperative, with each of its 246 banking institutions being an autonomous entity that clients can acquire a share in. This allows for a more personalized and localized approach to banking.

Here's a list of some of the key facts about Raiffeisen Switzerland Cooperative:

In 1846, Raiffeisen founded a "society for grain and bread supply" to provide bread and credit to farmers. This initiative involved building a communal cooperative bakery.

Raiffeisen sought to understand the credit needs of farmers and craftsmen after being transferred to Flammersfeld in 1848. He worked with the support of the wealthy class to create an association that helped small farmers acquire cattle.

This association allowed farmers to acquire cattle without mortgaging their assets, thus avoiding debt.

Raiffeisen Switzerland is a cooperative that coordinates the activities of its 246 member banks, which are also cooperatives. It was formed by the Swiss Union of Raiffeisen Banks, which was established in 1902.

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The cooperative's headquarters have been unofficially located in St. Gallen since 1912 and were made the legal headquarters in 1936. This location has been the central hub for Raiffeisen Switzerland's operations for nearly a century.

The cooperative's roots date back to the 1840s in Germany, where Hermann Schulze-Delitzsch and Friedrich Wilhelm Raiffeisen founded the first cooperative banks. The idea of cooperative banks spread to Switzerland, where the first Raiffeisen bank was founded in 1899 by parish priest Johann Traber.

Raiffeisen's work has had a lasting impact on the world of finance. His ideas and principles have inspired the creation of many influential financial co-operatives.

In Canada, Alphonse Desjardin drew upon Raiffeisen's instruction and guiding principles in founding the Desjardin Group. This shows how Raiffeisen's legacy has spread across the globe.

Raiffeisen's influence can also be seen in the Netherlands, where Rabobank's history finds roots in his ideas.

Many "Raiffeisenbanks" can be found across Central Europe, a testament to the enduring power of his vision.

Here are some of the notable financial co-operatives that can be linked to Raiffeisen's work:

Raiffeisen's credit society was administered according to principles that many financial cooperatives would later adopt, including unlimited liability for members, volunteer directors, limited geographic area, and allocation of surpluses to an indivisible reserve.

In 1852, Raiffeisen was elected mayor of Heddesdorf, a manufacturing town, where he founded a charitable association that became a credit society in 1862.

The credit society provided loans for members using deposits from other members.

This initiative gained a following in German-speaking areas and eventually made its way to Alsace, which was under German rule at the time.

The credit union idea was copied in western France, spearheaded by Louis Durand in particular.

Crédit Mutuel and Crédit Agricole are, in fact, direct descendants of Raiffeisen's initiative.

Here are some key principles that Raiffeisen's credit society was based on:

Raiffeisen Switzerland is a cooperative that coordinates the activities of the 246 legally independent Raiffeisen banks in Switzerland.

It creates the basic conditions for the business activity of the local Raiffeisen banks, including IT, infrastructure, and refinancing.

Raiffeisen Switzerland advises and supports the local banks in all commercial matters, and also handles risk management and auditing.

The union runs directly managed branches in urban regions like Basel, Bern, St. Gallen, Thalwil, Winterthur, and Zurich.

These branches are not independent cooperatives, but rather part of Raiffeisen Switzerland's operations.

Raiffeisen Switzerland's headquarters have been unofficially located in St. Gallen since 1912, and were officially made the legal headquarters in 1936.

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Raiffeisen Switzerland Cooperative has faced its fair share of investigations over the years.

In 2017, the Swiss Financial Market Supervisory Authority (FINMA) launched enforcement proceedings against the cooperative due to corporate governance issues.

The proceedings were ongoing for eight months before FINMA concluded its investigation in June 2018.

Pierin Vincenz, the former chairman of the executive board, was also investigated for his handling of conflicts of interest while in office.

Vincenz resigned as chairman of Helvetia Insurance and pledged to no longer seek positions of responsibility with banks or insurance companies, which led FINMA to terminate the proceedings against him.

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However, the proceedings against Raiffeisen Switzerland remained ongoing.

In a separate case, Pierin Vincenz and Beat Stocker, chairman of Aduno, were sentenced to prison and fined in April 2022.

Vincenz was sentenced to 3+3⁄4 years in prison and a conditional fine of 280 times 3000 francs.

Stocker was sentenced to 4 years in prison and a conditional fine of 160 times 3000 francs.

The court found that Vincenz and Stocker caused financial damage to their companies by hiding personal investments and later selling them to Raiffeisen and Aduno.

Vincenz was also found guilty of charging Raiffeisen for private expenses, including visits to strip clubs and refurbishing a demolished hotel room.

Raiffeisen Switzerland Cooperative is a well-established organization with a strong commercial and operational foundation. They have a network of over 360 branches across the country.

With such a large presence, they're able to offer a wide range of financial services to their members and customers. This includes banking, insurance, and other related services.

Their commercial activities are driven by a commitment to supporting local businesses and communities.

Raiffeisen banks prioritize regional development by re-investing customer deposits within their area of operation.

They support local associations and social institutions, employing people who live in the region and contributing to local and regional tax income.

Raiffeisen banks promote local roots and proximity to clients through a federalist management style.

They're not focused on growth at any cost, instead monitoring risks and credits prudently.

Every Raiffeisenbank customer can buy up to 50 shares of their regional cooperative, with a nominal value of 200 to 500 francs.

Each year, the general assembly determines the interest paid to shareholders, typically between 3 and 4% in 2020.

Raiffeisen cooperatives guarantee each other's assets, and Standard & Poor's gave Raiffeisen Switzerland an "A+" issuer credit rating.

Note: The government does not guarantee the assets, unlike most cantonal banks.

Raiffeisen Switzerland has a diverse portfolio of participations with various firms, allowing them to offer their services to associated Raiffeisen banks. They have direct participations in several enterprises.

One of these participations is Aduno group, which offers credit cards and consumer credits, with Raiffeisen Switzerland holding a 25.5% stake. They also have a significant stake in Leonteq, a fintech company, with a 29% ownership as of September 2020 (increased to 39.98% since then).

Raiffeisen Unternehmerzentrum AG, also known as the Raiffeisen entrepreneur center, is another key participation, with Raiffeisen Switzerland owning 100% of the company since 2014. In contrast, their participation in the Swiss Stock Exchange is relatively small, with a 3.2% stake.

Raiffeisen Switzerland also has a significant stake in Swiss Bankers Prepaid Services, which offers traveller's cheques and similar products, with a 16.5% ownership. Additionally, they have a 15% stake in ResponsAbility, a microfinance company operating in developing countries.

Other notable participations include KMU Capital AG, a mezzanine capital firm, and Twint, a Swiss mobile payment company, with Raiffeisen Switzerland owning a 5% stake in the latter.

Here is a list of Raiffeisen Switzerland's direct participations:

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