The Baselbieter Kantonalbank Faces Local Opposition
An initiative is seeking to force the Baselbieter Kantonalbank (BLKB) to focus its activities on its home canton. The conflict between local politicians and the cantonal bank is escalating.
The Head of the Initiative “BLKB – the Bank for the Baselbiet”
By Annick Ramp
The relationship between Baselbieter politics and its cantonal bank is strained. This week, a bipartisan committee led by SVP cantonal party chief Peter Riebli launched an initiative to rein in the “risky projects” and “excessive desire for involvement in sociopolitical issues” of the Baselbieter Kantonalbank.
BLKB Distracts Itself with Radicant
Local politicians accuse BLKB of distracting itself with Radicant. In the spring, the state institution had to write off 22 million Swiss francs for the Fintech, reigniting criticism of the project. The cantonal bank invested a total of 90 million in its digital subsidiary.
Furthermore, the fact that Radicant is based in the upscale Zurich Seefeld instead of the canton capital of Liestal may further irk certain local politicians. The initiative may also be a response to a small scandal that occurred in early 2023.
At that time, BLKB immediately removed Radicant’s CEO, Anders Bally, for making derogatory comments about older Baselbieter local politicians in an internal email: they did not understand Radicant’s digital business model. The initiative also targets the bank’s management, proposing a cut to BLKB CEO John Häfelfinger’s salary and advocating for more local representation on the bank’s board.
Redimensioning or Sale
Other criticisms include the green agenda of the Kantonalbank and its digital subsidiary. Peter Riebli, head of the initiative committee and SVP cantonal councilor, believes that it is not the job of a state bank to shape sociopolitical discussions. He mentions Radicant’s focus on sustainable investments, which also affects the parent company.
In response to political criticism, BLKB has downplayed Radicant’s green profile and refocused the FinTech as a cost-effective alternative to competitors like Revolut, Yuh, or Neon. Radicant announced a merger with Fintech Numarics to provide digital solutions to SMEs.
Radicant sees itself on the right track, with positive customer growth. However, Riebli advocates for a downsizing or a sale if the digital bank fails to attract enough customers.
According to the initiative committee, which includes members of FDP, Mitte, and EVP, Radicant holds the Kantonalbank back. Riebli believes that a stronger regional focus would lead to more success and better local engagement.
Back to Liestal
BLKB argues that focusing on the Baselbiet would reduce its business volume and profitability. The bank refutes claims of a loss of trust, citing an award as the best bank in the Northwest Switzerland region.
Whether the initiative succeeds remains uncertain as the signature collection has just begun. However, a regionalization of activities is already evident, with the planned merger of Radicant and Numarics set to have its headquarters in Liestal. The Radicant offices in Zurich will remain unaffected for now.