Credit Suisse is to shut down its pan-European online brokerage platform, creditsuissedirect.com, after just six months of operation. The Swiss bank says it will instead concentrate on the development of multi-channel product delivery in regional markets.
Credit Suisse says the move is in line with the the development of its Personal Finance multi-channel offering in key European markets. In addition, the group inherited an established online broker in the UK in the form of DLJdirect, whilst the planned acquisition of General de Valores y Cambios will provide it with a local Internet offering in Spain.
Further factors cited by the bank include the sharp decrease in demand for purely online services and fiercer competition in the online brokerage market.
The bank's fledgeling pan-European online brokerage platform was run out of Luxembourg and has been operational since early November 2000. A marketing campaign was planned for spring 2001 in an effort to boost customer uptake but has since been scrapped.
The bank says the closure of creditsuissedirect will result in a one-off restructuring charge of CHF57 million after tax in the first quarter of 2001.