The integration of Credit Suisse into UBS is progressing well, with the successful transfer of the first client funds to the UBS platform. This is a significant milestone in the merger of the two Swiss banks.
The transition is expected to include approximately 1.3 million Credit Suisse clients over the next few quarters, indicating a comprehensive effort to streamline operations and consolidate resources. UBS's Chief Technology Officer, Mike Dargan, has highlighted the successful testing of several hundred clients from Hong Kong and Singapore, which has alleviated concerns about the complexities of the integration process.
The transfer of customer data and financial information is considered a significant risk in the merger, so the successful execution of these tests is a relief for the entire UBS team. The integration process involves not only the migration of client funds but also the consolidation of extensive data assets. Credit Suisse's data stockpile is estimated at around 110 petabytes, which is equivalent to 500 billion pages of text or a two-and-a-half-year film. This data migration is crucial for UBS to effectively manage and utilize the information of its new clients while complying with regulatory standards.
In the coming weeks, UBS plans to migrate Credit Suisse clients located in Luxembourg and Hong Kong, with Singapore to follow shortly thereafter. The integration strategy includes a significant reduction in the number of applications used by Credit Suisse, with UBS set to abandon 90% of the 3,000 applications previously in use. To date, 560 applications have already been deactivated, along with the shutdown of 40,000 of the 100,000 servers that were part of Credit Suisse's infrastructure. This streamlining is expected to enhance operational efficiency and reduce costs as UBS integrates its new clientele.
As UBS continues to navigate the complexities of this integration, the focus remains on ensuring a seamless transition for Credit Suisse clients. The planned migration of clients from various countries will take place throughout the remainder of the year and into 2025. This phased approach aims to minimize disruption and provide a stable environment for clients as they transition to the UBS platform.
The successful integration of Credit Suisse into UBS not only represents a significant operational achievement but also reflects the broader trends within the financial services industry. As banks seek to consolidate and streamline their operations, the merger serves as a case study for future integrations in the sector. The ability to manage vast amounts of data and maintain client trust during such transitions will be critical for the long-term success of UBS as it embraces its expanded client base.