UBS Virtual Museum

1965-1998

Source: Unless otherwise noted, all text and image sources come from UBS's historical archives. Personnel and anniversary publications as well as annual reports form in essence the basis.

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1965

SBC starts its business in Tokyo – followed by Union Bank of Switzerland a year later

Swiss Bank Corporation (SBC) opened an office in Tokyo’s Marunouchi business district in 1965, after recognizing in the early 1960s the future potential of Japan’s economic growth and the growing trade with the country. This provided Japanese business clients and foreign ventures in East Asia with the services of a commercial bank. However, retail banking and securities trading were prohibited by Japanese banking law. The start of investment banking operations by Union Bank of Switzerland and SBC in 1966 would be supporting Japan’s economic growth in the 1970s and 1980s.

The Tokyo branch of SBC

SBC had 15 world-wide permanent offices by 1965. The newly created Tokyo branch fitted seamlessly into this expansion policy.

Photo circa 1971; Naka-Dori Street, Tokyo.

Long-standing business relationships with Japan

SBC’s first transactions with Japan were in 1905, when its London office helped with the introduction and sale of a number of Imperial Japanese Government bonds.

Photo circa 1971; Naka-Dori Street, Tokyo.

SBC – the second international bank in Japan

The Tokyo office was primarily in charge of financing trade between Switzerland and Japan, but it also had sister offices in New York and London and was keen to build financial ties with the west coast of the United States.

Photo circa 1971; Counter and reception hall, Naka-Dori Street, Tokyo.

1967

The first cash dispenser

The move from drive-in banking to cash dispenser withdrawals was a logical one. However, the automation needed for this required a number of preparatory steps. The first generation of cash dispensers required the user to withdraw reference checks of CHF 200 each in advance. Those checks made it possible to withdraw money whenever needed. Union Bank of Switzerland was the first bank in Switzerland to introduce a cash dispenser. A year later came the Bancomat, a unified cash dispenser system by the Swiss banks. 23 such machines were operational at the beginning of 1969.

The first 24-hour bank

Union Bank of Switzerland provided its clients with the first 24/7 bank that made money transfers possible.

Keystone Photopress Archive, photographer Fernando Ghisleni

Cash dispensers made cash available at any time

The instruction manual provided step-by-step instructions on how to use “cash cards” to make cash withdrawals from cash dispensers.

No more cash worries after closing time

Along with other methods, advertising posters were used to publicize the launch of the first cash dispenser. The media response was enormous....

1969

Rapid balance sheet growth

The 1950s and 1960s were exceptionally good for Union Bank of Switzerland. Buoyed by its successful takeover of the Eidgenössische Bank in 1945, which had propelled Union Bank of Switzerland into the ranks of Switzerland’s major banks, the firm entered a period of rapid growth. Aided by increasing automation, the strong growth of the global economy and the surge in population and prosperity in Switzerland, these two decades were marked by a significant expansion of the branch network through the opening of new branches and a number of bank takeovers, especially in Switzerland. In its 100th anniversary year (1962), Union Bank of Switzerland topped the rankings for the first time, as the biggest bank in Switzerland, with total assets of CHF 6,961 million. This was equivalent to almost doubling in five years. Through its merger with Interhandel AG in 1967, Union Bank of Switzerland became one of the most highly capitalized financial institutions at European level.

A rise in interest rates causes an upsurge in the category “short-term liabilities toward customers”

Naturally, the annual financial statements from 1969 were also the cover story in the staff magazine. The information was accompanied by one of the celebrated caricatures from the pen of cartoonist Peter Hürzeler....

The cartoon depicted the average customer who benefited from the “extremely” high interest rates on the short-term money market.

Regarding the extraordinary increase in total assets to more than CHF 20 billion for the first time, General Manager Philippe de Weck commented: “If we consider that it took decades to reach a balance sheet total of CHF 2 billion or CHF 3 billion, then this growth does indeed give us pause for thought.”

UBS AG, Historical Archive, SBG Information, 19.02.1970 p. 1, Cartoon Peter Hürzeler

Overseas organization of Union Bank of Switzerland, end of 1971

Even in the years after its 100th anniversary, the bank’s balance sheet showed double-digit growth rates. This strong performance, especially from Switzerland’s big banks, was the result of economic growth, the increasingly rapid change in the economy toward the tertiary sector, and a considerable increase in general prosperity....

The bank dealt with the growing demands of this expansion of business activities through repeated injections of capital. Overseas activities contributed significantly to the rapid growth in business volume. While the international share of assets was 23% in 1962, this figure had risen to 41% in 1969, with the international share in liabilities increasing from 30% to 43% over the same period.

Expansion was curbed

The expansion of the business volume would have been even greater at times if the federal government hadn’t restricted the growth of the domestic banking sector through policy measures introduced to cool economic growth and through an agreement between the banks and the Swiss National Bank, which, among other things, limited the inflow of external funds and foreign investments in Switzerland and capped domestic loans and staffing levels.

1972

UBS takes over Pozzy Bank

In addition to opening a new branch in Switzerland’s Puschlav valley, Union Bank of Switzerland acquired the banking division of the Pozzy trading company in 1972. Pozzy Bank was founded in 1747, making it the oldest of all the banks acquired by UBS to date. Pozzy Bank is still the oldest of the 370 or so UBS predecessor institutions: none of the banks acquired by Swiss Bank Corporation were established even remotely as early as Pozzy Bank. UBS maintained operations of the Poschiavo branch until 2021.

The Union Bank of Switzerland branch in Poschiavo

Photo circa 1982.

UBS AG, Historical Archive, photographer unknown

Pozzy Bank advertising board

Puschlaver Bank has undergone a number of name changes throughout its lengthy business history....

As Bank Ragazzi, it was established in 1747 by Jacobus Ragazzius. Ragazzi & Pozzy was the company’s name from 1869, when three cousins joined as partners. The bank was renamed Giorgio Pozzy in 1892 when Giorgio Pozzy took over management of the institution without any partners. After his passing, his son Attila and Augusto Semadeni took over the banking company, which they renamed Pozzy, Semadeni & Cie. in 1900. After 1958 the bank was known as Pozzy & Semadeni, and after Dialma Semadeni left in 1965 it was known as Pozzy & Cie.

Urs A Müller-Lhotska: Geschichte der Bank Pozzy in Poschiavo. (History of Bank Pozzy in Poschiavo) (2001) BaselUBS AG, Historical Archive

View of the old bank office of Pozzy Bank

Following the takeover, Union Bank of Switzerland meticulously removed the old bank office before opening the new branch in Poschiavo keeping it aligned with the Union Bank of Switzerland model.

Up-close view of the old bank office at Pozzy Bank

Work was done at the standing desk, the inkwell at the ready: before the first typewriter was purchased, everything was written by hand – initially with quill pens and then with metal nibs and ink.

1975

Union Bank of Switzerland opens the Wolfsberg Training Center

In 1970, Union Bank of Switzerland bought Wolfsberg Castle, built in 1576 and perched on cliffs above Ermatingen, including around 12 hectares of land, with the idea of establishing a training center there. The contract to refurbish the castle and build the training center was awarded to the Zurich architectural firm of Rudolf and Esther Guyer. The older buildings, which were renovated in close cooperation with the department responsible for the preservation of historic monuments, include the castle, Parquin House, a castle chapel and stables. These buildings housed the guest rooms, dining and recreation areas, staff quarters, and offices. The new school wing consists of classrooms, a lecture hall and an auditorium. Three residential buildings with 120 single rooms and a sports facility were also newly built.

Wolfsberg Castle overlooking the Untersee, also known as Lower Lake Constance

The training center was opened on 8 May 1975. From then on, not only were scores of internal specialist courses delivered, but, right from the beginning, the training center was also made available for external courses in the fields of business, society and HR management....

The first year of operation was a resounding success: course participants for 1975 numbered 3,091, along with 1,039 meeting attendees. In addition, around 12,000 visitors came to Wolfsberg for an outing or a public event.

Wolfsberg as a host for cultural events

It’s not only training, teaching and learning that happen at Wolfsberg Training Center. From its inception, the Center has always been envisioned as a meeting point for the general public....

As part of the public “Wolfsberg in-house events”, the training center hosted lectures, readings, concerts, theatrical performances and film screenings. In addition, four art exhibitions are presented in Parquin House each year.

The English garden with coach house and Parquin House.

The UBS Center for Education and Dialogue

The training center has operated under this name since the merger of Union Bank of Switzerland and Swiss Bank Corporation in 1998.

Aerial view of the entire Wolfsberg site

Over the past 50 years, some modifications and refurbishment have been necessary. In 2020, a new building by architects Arndt, Geiger, Herrmann replaced the original conference building dating from 1975.

1976

Real-time banking

In the late 1970s, Swiss Bank Corporation created a revolution in digitalization. Swiss Bank Corporation was the first Swiss bank to enter the era of real-time banking. This innovative step linked almost all of the computers within the bank together into a single network, accelerated the exchange of data and, little by little, automated a range of work processes across all banking areas. The improvement in efficiency, while simultaneously improving quality, was enormous. Tasks that, up to then, had usually been done manually, in time-consuming and labor-intensive steps, were now dealt with by real-time banking in just a few seconds.

Before–After / Offline–Online

Unlike in the days before real-time banking, when the account balance reflected the amount of the previous day or the day before that, real-time banking made it possible to synchronously track and record the account balance for each transaction....

To put this in context, prior to the introduction of real-time banking, when cash was withdrawn at the bank counter a transaction receipt was generated, which was sent by post or rail to the regional headquarters for entry in the banking records. There, the data was typed up in three shifts, then transferred to punch cards and later to magnetic tapes. The following day, the hard copy bank statement was returned to the branch.

Pictured is a customer counter at Ahornhof in Basel in 1977.

Real-time banking components

The real-time banking systems consisted of terminals (Burroughs Front-End Modules), a concentrator that controlled communication from up to eight terminals to the mainframe computer (an IBM 370). In the event of any system malfunction, the concentrators were able to maintain banking operations in offline mode....

The Burroughs terminals were designed to be modular and, depending on requirements, could consist of five components: monitor; keyboard; reader for magnetic strip cards to identify employees and customers; cash desk printer at the counter; and office printer in the back office.

Pictured: IBM 370 in the regional center of the SBV, which was considered the most modern electronic data processing system in 1972.

Expansion of real-time banking

Between 1975 and 1979 all branches were connected to the real-time banking network. In total, more than 1,300 terminals were installed in the front- and back-office settings....

The first applications in 1976 included the most important cash register functions, information on banking transactions, and domestic and international payment transactions.

On 20 June 1977, Swiss Bank Corporation became the first Swiss institution to be connected to the SWIFT system (Society for Worldwide Financial Interbank Telecommunication).

In 1981, additional features were added, such as processing of standing orders, coupon credits and, in 1986, among other things, domestic and international stock market orders, as well as credit transactions and real-time banking telex.

One device for multiple EDP-systems

Despite the existence of real-time banking, until the 1980s the most important office tasks were carried out on a range of devices: bank transactions were performed at the real-time banking terminal; correspondence, forms and protocols were typed up on a typewriter; and for storing and retrieving information, computers or index card systems were used....

By the late 1980s, offices were increasingly equipped with personal computers (PCs), because many more essential applications and features, from word processing and calculation functions to data management and graphics creation, were available on their operating systems. On the PCs, not only could work processes be combined, but data could also be transferred from one application to another. From the second half of the 1990s onward, more and more real-time banking functions were transferred to PCs.

With PCs comprehensively networked, in 1989 electronic mail (e-mail) began its conquest of the communication world. In addition, once they’d been created, documents could now be forwarded without paper printout or other media discontinuities.

At the end of 1989, 5,000 PCs were installed at SBC in addition to 6,300 real-time banking terminals. The goal was to further standardize the IT infrastructure by 1998 so that all employees would then only work on a standardized workstation.

1989

A mascot for the littlest savers

Any child who opened an account with Swiss Bank Corporation received a money box and also, from 1989 onward, a cuddly toy: a little turquoise fox. Since then, the bank’s mascot has taught thousands of children all about saving and about managing their money. After Swiss Bank Corporation and Union Bank of Switzerland merged in 1998 to form UBS, the little fox’s fur color was changed to red, and he was given the name Topsy and a group of friends to go on adventures with, friends known in English as Sophie Squirrel, Barry Badger and Willie Woodpecker. Topsy and his pals have since appeared as computer animations, coloring-in pictures, and gadgets in communication media, and they’ve also appeared live at a range of events for children.

A clever little fox

The beloved little animal started out in 1989 as a cuddly turquoise fox that was given as a gift to every child who opened an account with SBC.

Symbol of wisdom

At Union Bank of Switzerland it was Esmeralda the owl who, from 1987 onward, encouraged children to save their money. In the shape of a wooden money box, Esmeralda and her son Sebastian are still considered an icon of Swiss design. They were produced in a woodworking factory in Brienz in the Bernese Oberland.

Topsy turns red

After the two banks merged, it was decided that the children’s savings scheme should be continued. Although children loved the animals used by both banks, it would have been strange if UBS had had two mascots....

When it came to deciding on a mascot, Topsy just pipped Esmeralda at the post. Topsy’s fur was given a new color to match the UBS logo, and its design has changed regularly over the years: sometimes Topsy’s been made of wood, sometimes of plastic with a treasure chest, and then back to a cuddly toy with a little money bag.

1993

The Union Bank of Switzerland Kinebar – a glittering jewel

Ordinary gold bars gleam dazzlingly. But the gold bars issued by Union Bank of Switzerland aren’t ordinary: they’re counterfeit-protected Kinebars. Kinebars are minted using what’s known as Kinegram technology, in which a computer-generated image is applied to the reverse of the bar. Depending on how the light falls, an iridescent rainbow of colors in every hue seems to shimmer within the image. This world-first innovation at Union Bank of Switzerland was announced to the press on 2 December 1993. When they were launched, the Kinebars were offered in 5 gram, 20 gram and one ounce sizes.

Union Bank of Switzerland is the first bank in the world to launch counterfeit-protected gold bars

The Kinegram technology was developed by the Zug company Landis & Gyr. Union Bank of Switzerland asked the company whether the high-tech process could also be used for precious metals. The idea was followed by a period of intensive development work between Landis & Gyr and the Argor-Heraeus gold refinery, which was then owned by Union Bank of Switzerland.

The Union Bank of Switzerland Kinebar embarks on a world tour

Following its launch in Switzerland in December 1993, the Union Bank of Switzerland Kinebar was sent on a world tour. In early 1994 it hit the test markets of Hong Kong and Taiwan, and in September it was launched in Singapore and Malaysia, followed by the Middle East and the Gulf region. The Union Bank of Switzerland Kinebar then celebrated a successful entry to the market in Japan’s major department stores. North and South America were the final stages of the tour.

The “diamond” among gold bars

Never be stuck for a gift idea again! The Union Bank of Switzerland Kinebar was advertised as the perfect “gift with absolute assurance”.

The Union Bank of Switzerland Kinebar 2000 came onto the market in December 1994

When the Union Bank of Switzerland Kinebar 2000 was launched, investors had the opportunity for the first time to purchase a physical gold bar with price protection, for which the Bank guaranteed a fixed redemption price. This allowed buyers to protect themselves against falling gold prices and benefit from price increases....

The Union Bank of Switzerland Kinebar 2000 was available in weights of 100g, 500g and 1kg.

1994

Swiss Bank Corporation embarks on a partnership with Art Basel

The success story that has become the largest and most important art fair in the world has its origins in Basel. It was here that in 1970 three local gallery owners turned their idea of an international art fair into reality. The trio selected 271 galleries that met their high-quality criteria, just one in three of the applicants. This meant the standard of the exhibits was exceptional, and both the number of visitors and the sales figures grew steadily each year. The high quality of Art Basel, its international flavor and its ability to consistently adapt to new movements has made the fair a resounding success and in 1994 brought it a partnership with Swiss Bank Corporation as the main sponsor. Eight years into this partnership, Art Basel expanded to Miami Beach, where it was soon attracting tens of thousands of collectors to each session. And in 2013, Art Basel's expansion continued in Hong Kong, where it is now the leading art fair in the Asia-Pacific region.

The art world’s central platform

With high-profile galleries from all over the world and exclusive partnerships, including, since 1994, a partnership with Swiss Bank Corporation, Art Basel has continued to build its reputation, attracting media attention, art lovers and the general public....

The financial importance of the art fair is also growing. In addition to the tourist industry, new art events organized by young galleries also benefit from Art Basel’s high profile.

Art Basel, photographer Mina Monsef

Expansion to Art Unlimited

In 2000, UBS broadened its partnership to include the newly created exhibition platform, Art Unlimited, which offers artists the space they need for monumental artworks. A concept that was launched as an experiment quickly became established among the collector community, museum representatives and the general public.

Image source: Art Basel

Successful global expansion of Art Basel

Together with UBS, as global lead partner, Art Basel’s expansion events, to Miami Beach in 2002 and to Hong Kong in 2013, have been enormously successful. Within just a few years, both fairs have become established as leading art events in their respective regions.

Art Basel, photographer Martin Ruetschi

UBS as an art connoisseur and art collector

UBS’s commitment to Art Basel is based on our shared passion for art. Our predecessor banks had been amassing their own collections of contemporary art for decades. With more than 30,000 works, the UBS Art Collection is one of the most important corporate collections in the world.

Art Basel, photographer Tom Powel

In-depth annual analysis of the art market

In 2017, Art Basel and UBS launched the globally successful Art Market Report. This art market analysis, published annually by an external, world-renowned expert, is now an integral part of the art calendar.

Image source: Art Basel

1998

Union Bank of Switzerland and Swiss Bank Corporation merge to form UBS

On the morning of 8 December 1997, Switzerland woke up to a news story that was remarkable and made headlines around the world: the two major Swiss banks, Union Bank of Switzerland and Swiss Bank Corporation, had announced that they were merging. The name of the new Swiss universal bank was UBS. As the press release said, the merger paved the way for the creation of one of the world’s leading financial services firms. UBS would go on to occupy a globally top-ranking position in its three core areas of business: private banking, institutional asset management and investment banking. With its leading position in the market for private and corporate clients in Switzerland, UBS had a very solid foundation on which to build further international expansion.

The two main architects of the new bank

Mathis Cabiallavetta (right) became Chairman of the Board of Directors at UBS. At Union Bank of Switzerland he had been President of the Group Executive Board since 1996. Marcel Ospel took over as CEO of UBS. He had held that position at Swiss Bank Corporation since 1996.

Keystone, photographer Martin Ruetschi

Chronology of the merger

The first merger talks took place in January 1997. By the end of November 1997, the main questions about the merger had been resolved. On 5 December 1997, the merger was approved by the Boards of Directors of both parties. Three days later, on 8 December 1997, the merger was announced....

tv news broadcast: Schweizer Fernsehen – Hauptausgabe der Tagesschau 08.12.1997 - Fusion von Bankgesellschaft (UBS) und Bankverein (SBV) zur UBS

The shareholders in Union Bank of Switzerland agreed to the proposed merger by an overwhelming majority at their Extraordinary General Meeting in Zurich on 3 February 1998. The next day, the same result was announced in Basel, where the shareholders in Swiss Bank Corporation voted at their Extraordinary General Meeting.

The merger took legal effect on 29 June 1998.

Image: Basel St. Jakobshalle, 4 February 1998

Share exchange

The shareholders of Union Bank of Switzerland and Swiss Bank Corporation were offered a share exchange. One bearer share from Union Bank of Switzerland was exchanged for five bearer shares in UBS, and one Union Bank of Switzerland registered share was exchanged for one registered share in UBS. For each Swiss Bank Corporation registered share, the shareholders received 1 1/13 registered shares in UBS....

UBS shares opened on the first day of trading, 29 June 1998, at a price of CHF 552. That put the market value of UBS at CHF 118.3 billion.

tv news boradcast: Schweizer Fernsehen – Hauptausgabe der Tagesschau 26.06.1998 - Fusion UBS-Bankverein (SBV) wird vollzogen

Key figures for UBS AG in 1998

Head office: Basel and Zurich...

Total invested assets: CHF 1,572 billion

Workforce: 48,011 in Switzerland: 32,706 internationally: 15,305

Around 400 branches in Switzerland and 78 branch offices and subsidiaries outside Switzerland