UBS has decided to sell its 50% stake in Swisscard to American Express, making American Express the sole owner of Swisscard.
As part of this transition, Credit Suisse customers will move to the existing UBS credit card platform. Swisscard will continue to issue cards under the American Express, Mastercard, and Visa licenses.
UBS's decision to divest from Swisscard aligns with its broader strategy following the acquisition of Credit Suisse. Swisscard representatives have assured that there will be no immediate impact on cardholders, merchants, or partners.
UBS completed its acquisition of Credit Suisse in June 2023 and is now working on integrating the two institutions. UBS announced its intention to cut an additional $3 billion in costs following the acquisition. The savings generated from these measures will support the absorption of Credit Suisse and UBS's development strategy.
UBS remains committed to its credit card business and aims to create a more cohesive experience for its clients by transferring Credit Suisse customers to its existing credit card platform. The transition of Credit Suisse customers to UBS's credit card platform is expected to be smooth, with no immediate action required from cardholders.
The sale of Swisscard to American Express reflects UBS's focus on its core competencies and the competitive dynamics within the credit card industry. UBS's strategic shift may serve as a bellwether for other financial institutions considering similar moves.