Credit Suisse Investing in Human Capital

In an age when Wall Street  seems to be “all-in on electronic training,” Credit Suisse is “taking a different approach to its trading strategy by ramping up on human capital,” according to a recent article in Forbes.


Last year, the article reports, the firm hired one of Bank of America’s top traders to run U.S. cash equities training, adding that Credit Suisse’s most recent quarterly earnings showed an approximate 16% gain. “The results showed the bank benefitting from CEO Tidjane Thiam’s three-year plan to focus on wealth management over investment banking,” the article states.

The firm’s head of equities told Forbes, “There has been an increased need for active managers to take large positions to prove value and differentiate themselves.” The article explains that larger orders can be ill-suited to electronic trading. “Instead, it may make more sense to speak with a sales trader for a client to unload the entire position.”

According to the article, Credit Suisse was one of the first to adopt electronic trading, “which has now become more complex and somewhat fractured. It seems like the only trades out there when you look at efficient flow process are the difficult ones that are not easily automated and are better served with a human touch.”