ZURICH: Swiss financial titans UBS AG, Credit Suisse are expanding their operations in provincial Poland in a cost saving drive made more urgent by the surge in the value of the Swiss franc.
Economic imperatives are forcing the banks to transfer some of their functions to cheaper locations and swap lakeside Zurich, with its streets lined with luxury boutiques, for the rougher edged charm of Krakow and Wroclaw.
UBS is planning to open what it described as a “new business solution center” in the southwestern Polish city of Wroclaw.
The Swiss central bank abandoned its cap on the currency in January the cost of taking on someone in Poland was just 50 to 60 per cent as much as hiring an equivalent employee in Switzerland, according to two industry sources.
But since the cap was removed, the savings from shifting operations eastwards have become even bigger. Poland’s zloty has fallen 11.6 percent against the Swiss franc since Jan. 15.
Dariusz Ostrowski, chief executive of the Agency for the Development of the Wroclaw Conurbation, said UBS was considering a city center location.
Wroclaw is a far cry from Zurich, where UBS has its main headquarters on the Bahnhofstrasse, lined with Dior and Prada boutiques and shops selling 20,000 euro ($22,800) watches. Wroclaw has a medieval market square but the most prominent international brands are the likes of fast food chain KFC and fashion store H&M.
