Loans for companies made easy: UKB introduces subsidiary Kamuno

Small companies should be able to take out a loan with just a few clicks and within a short space of time: This is the idea behind Kamuno, the first subsidiary of the Cantonal Bank of Uri. The company was founded in the spring. On Thursday evening, representatives from the worlds of politics and business were informed in an informal setting. They were also able to watch a demonstration of the platform, which is available in a beta version. For example, they were shown how a carpentry business can submit a loan application for CHF 45,000 in just a few minutes. The aim of the platform is to enable entrepreneurs to apply for a loan from their sofa. Some documents are required, such as balance sheets and supporting documents. However, the software is also linked to the commercial register and loads certain information automatically. With the help of artificial intelligence, the platform is able to make an assessment in the first 5 minutes as to whether the company is creditworthy and what amount is possible.

With the rules of the UKB

As co-developers Roger Twerenbold and Régis Lehmann explained, the software will later also be able to grant loans automatically. However, they emphasized that the criteria are the same as those currently applied by UKB "by hand". Between 100 and 120 rules have already been programmed in. The developers are constantly adding new ones. The software also learns independently and will be able to make more and more automated decisions after a while.

UKB CEO Christoph Bugnon believes there is great potential. "SMEs are the backbone of the Swiss economy," he said. 600,000 companies in Switzerland fall into this category. Kamuno wants to specialize primarily in smaller companies with two to nine employees, i.e. small businesses. "This segment is not attractive for larger banks," says Bugnon.

Simplicity is unique

Loans in the five to lower six-figure range are to be granted via the platform. A maximum of CHF 250,000 is currently planned. Up to now, checking such loan applications has involved a great deal of effort for banks. This made the processes slow and complicated - which is why many companies do not even ask the bank for a loan. The unique selling point of Kamuno is its simplicity, explained Bugnon. The Cantonal Bank of Uri holds a 70 percent stake in Kamuno, while the management, which does not include any UKB employees, shares 30 percent. However, CEO Christoph Bugnon is Chairman of the Board of Directors in his role. He himself is retiring next year. Bugnon estimates that his successor will also take over the Board of Directors mandate. The development of Kamuno cost CHF 5 million. The money was mainly used to develop the platform. The investment in Kamuno will have no negative impact on UKB's distribution - an important revenue item in the canton of Uri's budget, the CEO assures us. On the contrary: in the longer term, the subsidiary could even stabilize UKB's finances. However, Kamuno does not receive a state guarantee, Bugnon emphasized. Last but not least, the subsidiary will also create highly qualified jobs in Uri. These are currently located in the "innovation biotope" in the UKB main building at the cantonal railway station. But why has UKB set up a new company?

Growth for independence

"The Cantonal Bank of Uri should remain independent for at least the next 10 to 15 years," explained Heini Sommer, Chairman of the Bank Council. However, the interest margins have become smaller, while costs are rising, for example in the IT area. At the same time, increasing digitalization is also creating more competition on the market. "Our strategy is therefore to grow." On the one hand in the traditional market, but on the other hand UKB also wants to "tap into new growth areas", as Heini Sommer explained.

"However, growth should not take place at any price, but rather in a well-considered manner and step by step," says Sommer. This does not mean that there is an "appetite for risk", but rather that the budget has been set very carefully. For the time being, the platform will be tested with "friends and family", as the speakers put it. A pilot phase will then follow at the beginning of the year. Controlled expansion is to follow in April. The aim is to turn a profit from 2027.