There is no sign of tension in Anton Stadelmann. The CEO of Radicant Bank sits calmly at the table during the meeting with finews.ch and says, «We have done good work in recent months and achieved quite a bit.»

Stadelmann has been on board at Radicant Bank for just over five months. The subsidiary of Basellandschaftliche Kantonalbank (BLKB) has been in the market for nearly a year and has faced a lot of criticism, especially from the political side. Critics have pointed to the millions in write-offs and the business field itself. The digital bank specializes in «sustainability.»

Anton Stadelmann (Image: zVg)

The political storm does not worry Stadelmann. «Such a discussion is legitimate,» he says, adding, «But I hope that in the future we will be judged more on our products and services.»

Fewer Positions, More Flexibility

A lot has happened since the beginning of the year. The new CEO has whipped the company into shape, reduced the executive board, and simplified processes. About a fifth of the positions were cut, mainly outsourced positions. Such an approach is not uncommon for start-ups to become more efficient after market entry and ultimately gain greater financial leeway.

In addition, the strategy has been sharpened. Radicant no longer defines itself exclusively by the theme of sustainability. In the new advertising campaign, the word is no longer mentioned. The focus is on investments in solutions rather than problems. «Our products must be better and must be available to our customers faster,» the CEO mandates.

 The new advertising campaign from Radicant (Image: zVg)

Bank License Proves Advantageous

To be better and faster than others, a banking offer with «attractive interest rates and zero-cost card transactions abroad» was launched within a few weeks, as the bank emphasizes. This is mainly possible because the fintech has its own banking license and makes good money from the interest business.

And in asset management, Radicant Bank has introduced a telephone customer service to build more trust.

Turnaround in Customer Funds

Stadelmann is familiar with such rapid adjustments in strategy and offerings from his time as Deputy CEO at Twint. There, too, the initial course was adjusted, and the products received a better presentation. Only then did success materialize.

This now seems to be repeating itself at Radicant. Customer funds have multiplied since the beginning of the year, according to the bank. Exact figures are not disclosed because the parent company, Basellandschaftliche Kantonalbank, is listed on the stock exchange. Financial figures, including those of the group subsidiaries, are communicated at the end of the fiscal year and at half-year intervals. The next half-year report is due on July 18.

Interest Rate Conditions Cause Discussion

The parent company is also satisfied with the recent development. «The BLKB considers the development of Radicant Bank since the beginning of the year to be positive, both in terms of customer funds and strategic and operational adjustments,» it writes in response to an inquiry from finews.ch.

So, Stadelmann seems to have managed to get Radicant on track. He has no time to enjoy the early summer sun. A political storm is looming. On June 13, the Basel-Landschaft parliament will address several issues concerning Radicant Bank. Among other things, there is the question of why the subsidiary can offer better interest conditions than the parent company.

«This Won't Be a Walk in the Park»

Andreas Dietrich from the Institute of Financial Services Zug at the Lucerne University of Applied Sciences and Arts has been following the development of Radicant Bank since the beginning. He says to finews.ch: «I think the Radicant solution is good. But it is a very tough market the bank is operating in. So, it was always clear to me that this wouldn't be a walk in the park.»

However, one cannot expect a start-up to be profitable after just two years, he says. It takes time to position a business model successfully.

Break Even Expected in Five Years

But how much time does BLKB give it? «Radicant Bank broadly entered the market in August 2023. 'Break Even' is expected five years after that, i.e., 2027/2028,» it writes.