Berner Kantonalbank (BEKB) has announced the immediate departure of the two top executives at its IT subsidiary, Aity. The bank cited disagreements over strategy and rising operational costs as the primary reasons for the leadership change at the 300-employee firm.
Aity's CEO, Oliver Kuster, and his deputy, Pascal Eugster, have left the BEKB Group. The move follows weeks of analysis and discussions regarding the company's direction. An external interim management team will now take over while the bank searches for permanent replacements.
Key Takeaways
- BEKB has dismissed Aity's CEO Oliver Kuster and Deputy CEO Pascal Eugster, effective immediately.
- The bank cited "different views on the operational implementation of the owner's strategy."
- A special task force was previously established to address rising costs, particularly those related to Aity's cloud strategy.
- BEKB denies reports of a multi-million franc write-off on a key project, stating investments are still expected to yield returns.
- An external interim leadership team will manage Aity during the transition period.
Sudden Leadership Change at Aity
Berner Kantonalbank confirmed the major leadership reshuffle in a statement released late Thursday evening. The decision affects Aity, the bank's wholly-owned IT services provider based in Köniz-Liebefeld, which employs approximately 300 people.
According to the official communication, the departures of CEO Oliver Kuster and Deputy CEO Pascal Eugster were the result of a "constructive dialogue" following a careful analysis of the company's performance and strategy in recent weeks. The core issue was identified as differing opinions on how to execute the bank's strategic vision for its IT arm.
The bank has moved swiftly to install an external interim management team. This temporary leadership is tasked with ensuring operational stability and providing the necessary space to recruit new executives and guide the company's future development.
Strategic Disagreements and Rising Costs
The central reason provided for the dismissals was a conflict over the "operational implementation of the owner's strategy." While BEKB maintains that the overall strategic direction for Aity remains unchanged, the method of execution became a point of contention.
Adding to the strategic friction are concerns over increasing expenses. Prior to the leadership change, BEKB had already established a task force to address financial management at Aity. A bank spokesperson clarified the roles of this group.
"While the task force focuses on structural and financial levers to increase efficiency and on concrete savings potential, the management board concentrates on operational business, the implementation of key projects, and ensuring service quality."
This division of responsibilities suggests that concerns about financial oversight were significant enough to warrant direct intervention from the parent company. The spokesperson specifically mentioned rising costs associated with Aity's cloud strategy as a key area of focus for the task force.
Who is Aity?
Aity AG is the IT service provider for Berner Kantonalbank. Founded to handle the bank's extensive technology needs, it also offers IT services to third-party clients. Based in Köniz-Liebefeld, it is a significant local employer with around 300 specialists in software development, infrastructure management, and cybersecurity.
Questions Surrounding a Major Investment Project
The leadership change comes amid external reports of significant financial challenges at Aity. The industry publication 'Inside Paradeplatz' recently claimed that the company was facing multi-million franc write-offs, pointing specifically to a project named "OPAN" (Optimized Investing).
According to an anonymous source cited in the report, the OPAN project alone had incurred costs of 30 million francs and was flawed from its inception. This has raised questions about the return on significant investments made by the bank into its IT subsidiary.
BEKB has publicly addressed these claims, firmly denying any write-off. A spokesperson stated that while the bank has made "substantial investments in strategically relevant key projects" over the past five years, including OPAN, these funds are not considered lost.
Project OPAN Status
- Internal Launch: The first phase of the OPAN project has been successfully rolled out within BEKB.
- Compliance Hurdles: A full public launch is pending the resolution of several compliance-related questions.
- Timeline: BEKB is working to resolve these issues and anticipates a final implementation sometime next year.
The bank maintains its belief that the investments will ultimately prove valuable. However, the ongoing compliance work and the public scrutiny highlight the pressure on Aity to deliver on its high-cost strategic initiatives.
The Path Forward for BEKB's IT Arm
With an interim team in place, BEKB's immediate priority is to stabilize Aity's operations and begin the search for a new, permanent leadership team. The transition period will be crucial for redefining the subsidiary's operational goals and ensuring they align with the bank's financial and strategic expectations.
A key question for the future will be Aity's focus on external clients. The company was developed not only to serve BEKB but also to market its IT services to other businesses. The new leadership will likely be tasked with evaluating the success and profitability of this dual strategy.
The appointment of a task force to control costs, combined with the dismissal of top management, signals a clear intent from BEKB to assert greater control over its IT subsidiary. The coming months will reveal the new direction and determine how Aity will evolve to meet the technological and financial demands of its parent company.