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May 08, 2013

'One Bank' Consolidation Allows Credit Suisse to Save 35 Percent on Costs

Thanks to a consolidation project started in 2011 known as One Bank, Credit Suisse has saved 35 percent in costs. Simplifying network architecture and centralizing data accounts for the majority of increased efficiency.

Prior to One Bank, Credit Suisse had what effectively amounted to multiple IT departments with 10 individuals making purchasing decisions related to IT. As a multinational corporation, Credit Suisse operates in several different regions and operations. This contributed to the development of data silos and redundant decentralized IT operations.

Additionally, the company had multiple network lines to liquidity pools, used for no other purpose than trade routing. 

One Bank consolidated market data operations and created a network that consolidated lines to data centers. Sites would no longer have individual lines to liquidity pools, but instead would have a low latency line to the new network. Multithreaded software combined with routers and other hardware created a centralized system that performs better.

The results speak for themselves. One Bank was part of an overall cost reduction plan that cut thousands of jobs and saved the company $2.6 billion since the plan began. Credit Suisse's stock is trading in the $29 per share range, near its 52-week high of $30.40 and nearly double the 52-week low of $16.09.

First quarter 2013 profits for Credit Suisse were $1.37 billion, nearly 30 times the $46 million from first quarter 2012. Net revenue was six percent higher at $7.66 billion.

Although chief executive Brady Dougan does not specifically mention the One Bank data consolidation, he does mention actions the company started taking two years ago.

"The first quarter of 2013 shows that the strategic measures we have successfully implemented since mid-2011 are effective in bringing results to the bottom line on a consistent basis,” he said.

Centralization, as Credit Suisse has done, is critical in an era where corporations must be lean to be competitive. Such consolidation would not be possible without improvements in technology that allow a centralized system to perform as well or better than decentralized systems from previous generations did. It eliminates wasteful redundancy and is the best way to allow companies better control over information assets.

Edited by Rachel Ramsey

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