WW: Cash was once a well-known weekly business newspaper, then mutated into a daily free title and finally became an online portal without print support. Now comes the merger with a bank. What are you aiming to achieve with this?
André Michel: Most online media have realized in recent years that it is not easy to refinance online activities. Most publishers have been very disappointed to learn that selling content only works to a limited extent. At the same time, prices for online advertising are falling steadily. In addition, entire areas of online marketing, such as search advertising, are dominated by companies like Google. For this reason, Ringier, and not just cash, has been thinking about how else to earn money online. We see the solution in transaction-based sources of income.
When did you start thinking about this?
AM: When I took over the management of cash daily after it was discontinued, I quickly realized that it would be very difficult to achieve the ambitious business plans with the business model at the time. I therefore thought that we should try to give cash users - 95% of whom are investors - the opportunity to trade securities on our portal. After all, 70% of our users are active in online trading. The users come to us because they obviously value our information more than that of the banks where they can trade online. However, as we did not have a corresponding offering until now, our users had to trade elsewhere. This led us to the conclusion that cash would become more attractive if we were to offer our own trading solution to investors who trade online and already obtain information on cash. We wanted to find a strong partner for a new business model that would bring in more than just compensation via the thousand contact price. We wanted to earn money from the bank customers that we acquire in a partnership.
Who did you contact then?
AM: We held talks with various potential partners. Christoph Hartgens, then CEO of Trade-Jet, and Alfred Moeckli, CEO of bank zweiplus, have known cash for years. They knew that we were looking for a partner and approached us with a very concrete proposal. It was a very good fit, although we at cash had not necessarily originally envisaged such a far-reaching joint venture.
An interim question: Who owns bank zweiplus?
Christoph Hartgens: Bank Sarasin and Falcon Private Bank. The bank had exactly the opposite problem. We had 30,000 clients who didn't actually know where they were clients. bank zweiplus was not an established brand among private clients. In the sales customer business, however, with partners such as Swisslife, AWD and AXA, it certainly had a name. I knew cash from my previous job. The planned collaboration was therefore a classic win-win situation.
In what way?
CH: Cash has comprehensive news, the reach and a well-positioned brand. We have the banking and a motivated advisory team. We therefore complement each other well. It was always clear to me that you can't just give customers a computer, they have to have confidence and they have to be able to contact someone for advice. That's why we have a team of around 30 advisors at cash zweiplus. This is what sets us apart from our competitors.
Is cash now a bank with a newspaper or a newspaper with a bank?
AM: Neither! We are an integrated financial platform. For the first time, someone in Switzerland is trying to offer financial information and banking services together, a business model that brings together things that belong together. An example: Swissquote was one of cash's best advertising customers. Why did Swissquote advertise so much with us? Quite clearly, we had a lot of users who came to us for information and then wanted to trade. Now we offer these users an alternative.
What exactly do you mean by integrated?
AM: Users can choose what they want to use. As before the joint venture, they can use all the information on cash.ch free of charge, and if they absolutely have to (laughs), they can make their trade somewhere else or they can have everything conveniently on the same platform.
Does a customer who also has an account with you receive more information than an info-only user?
CH: At the moment he has the same information with one big difference: he gets the share prices free of charge in real time. Non-bank customers pay CHF 120 per year for this (based on Swiss shares). They also receive the so-called order book, in which they can see the current orders for a particular share, free of charge. For non-bank customers, this costs CHF 890 per year. These are the advantages that the bank client gains from the joint venture.
What is planned for the future?
AM: It is conceivable that we will develop one or two new offers that we will provide to bank customers free of charge or at a reduced price. We will also offer our bank customers certain services that are currently subject to a charge at cash at a reduced price or even for free. However, there is no intention to suddenly charge for content that is currently free of charge in order to force existing users to make use of banking services.
How do you want to win new customers?
CH: By providing them with good stories! This is very important to me. If nothing is written about a company, then nothing will happen in trading.
Isn't there then a danger that more will be written about certain companies?
CH: Journalistic independence is very important. If I start to control the stories, the customer notices, our credibility dwindles and we lose the customer.
Have you had any reactions to the joint venture?
AM: Initially, the reactions of some media agencies and advertising clients were rather negative. The agencies feared a lack of independence in the journalistic field. Advertising clients from the financial industry suddenly saw us as competitors. However, when the concept was presented to clients in detail, practically everyone's opinion changed. The advertisers realized that they could now address bank customers directly, something they had never been able to do before. For advertisers from the financial sector, independence is particularly important. bank zweiplus has neither its own investment funds nor structured products. Not even the asset management comes from the bank itself. So it is always third-party banks that offer this. One of our very large financial advertising clients, an investment fund issuer, was initially very negative. Until he realized that he could use cash as a distribution channel in future. For users, on the other hand, it is interesting that they can choose what they want from a wide range of different banks. We don't have our own products that we have to push on them.
CH: The neutral, product-independent platform is a cool thing. But the problem for the customer is finding the right product. And that's where independent, neutral journalism is important. It helps the customer to find the right product.
AM: The credibility of our cash brand must remain as it was, otherwise the joint venture would have been a bad investment from the bank's point of view. Without independence, we would destroy our business model.
How big is the editorial team?
AM: Seven permanent employees plus two permanent freelancers. A relatively large editorial team for the business sector.
Do you already have initial success figures?
CH: We have made a good start and are gaining new customers every day. However, as we have only just launched our advertising campaign, it is still a little early to take stock.
One last question: will cash be available as a print product again?
AM: We publish a magazine four times a year under the name cash Value. However, I can't imagine that we will ever publish a weekly or daily newspaper again. This market is still oversaturated in Switzerland and information behavior in the financial sector in particular has shifted strongly towards online.
Where will you be in a year's time?
CH: We want cash to establish itself as an online bank and become a clear alternative to other banking relationships. We want to retain our number 1 position in the area of financial information.
Interview: Pierre C. Meier