Strategic progress

In 2023, VP Bank reached the midway point in its current strategy cycle. It is on track with its implementation and has reached important milestones even in what continues to be an extremely challenging ­environment.

VP Bank’s strategy is based on three major trends: accelerated digitisation, the increasing importance of sustainability and the transfer of major assets to the next generation. In line with these trends, the bank continues to develop its core business in its home market of Liechtenstein and at its five international locations. At the same time, it is selectively venturing into new business areas, combining traditional banking with the advantages of digital ecosystems. 

In the first half of Strategy 2026, VP Bank invested in its core business and in the foundations of the strategy. ­Specifically, risk management was strengthened by modernising the client verification process and risk steering was optimised. This also enabled VP Bank to, among other things, improve the stability of credit risk management and review its whole range of client documentation. 

In addition, technological foundations for Open Wealth were laid, as an open IT system architecture forms the ­backbone of Strategy 2026. The IT infrastructure was ­therefore migrated to Swisscom, and the IT architecture was modernised. As a result, VP Bank now has an open, flexible infrastructure, enabling Open Wealth Services to be developed quickly and in an agile way. At the same time, cyber security was also stepped up to withstand today’s threats. 

In order to create a more solid foundation for further growth, VP Bank has also rigorously focused its organi­sational structure on marketing and sales activities. Inter­national management was strengthened and pooled in the regions Liechtenstein, Europe and Asia, which report directly to the Group CEO. As of 1 January 2023, a new Group Products & Solutions division was established to create and enhance VP Bank Group’s range of services, which will combine the corresponding competences. 

This fundamental investment phase associated with the strategy developed in line with expectations and peaked in 2022. The investment phase in the strategy is now ­complete.

Following the completion of the investment phase, VP Bank is heading into the important phase of growth acceleration. VP Bank now has a strong, robust risk management framework and an organisational structure that is strategically focused on regional marketing and sales activities. Thanks to its new IT and services architecture, VP Bank is now in a position to implement its business model quickly and in an agile way. Processes can be made more efficient and the business can be scaled more easily. 

Clients benefit from the Open Wealth-compatible IT and services architecture in which products and services can be easily developed or further developed and customised, also with the involvement of complementary, innovative third-party providers. VP Bank has already launched its initial new client services, including, for example, digital client onboarding for intermediaries, tokenisation of physical assets, the automatic granting of lombard loans and the digital setting of time deposits.

Growth is being driven by regional development plans, tailored to local conditions. These plans aim to optimally link VP Bank’s strengths in the area of intermediaries and private clients with market-specific conditions to achieve sustainable, profitable growth. In particular, this involves systematically bringing established and new client services to market, supported by the enhancement of the value proposition. The existing product and price landscape will be harmonised and simplified, based on clear market coverage. VP Bank also plans to update its advisory process for private banking and further expand its relevance as a preferred contact for intermediaries. The further development of the value proposition will be carried out in close collaboration with the regional development plans and should support the growth path in the regions.