Female Founders: An Interview with Dr. Maja Baumann
Dr. Maja Baumann is a business lawyer, advising clients on the areas of corporate law, mergers and acquisitions, contracts, and real estate. In addition to being a Partner in a Zurich-based law firm, she is a member of several Boards of Directors of Swiss family-controlled companies. In particular, she sits on the Board of Vontobel, a listed, globally active investment manager with Swiss roots. As a member of the fourth generation of the Vontobel family, the company’s values of ownership, foresight and tenacity are especially important to her.
Innovation has become an increasingly catchall buzzword in the business world. Especially in the banking industry, with fintech and blockchain applications coming up. How would you define it? What does ‘innovation’ mean to you?
Vontobel has existed for almost 100 years – but it would not have survived for all that time if it hadn’t been innovative. Our predecessors and those of us who have responsibility for the company today have had to rethink and adjust the business model, the product offering, internal and external processes, communication channels and many other essential elements of our company a number of times. My great-grandfather Jakob Vontobel started the business as a brokerage firm with a physical stock exchange and little trading slips that were exchanged by hand. Today, Vontobel is a globally active investment manager where technology is as important as investment expertise. However, defining ‘innovation’ is quite difficult. For me as a Board member, it means that I have to be alert to what is happening all around me and in every direction – and gain knowledge of other industries, markets, cultures and people who have nothing to do with banking or the world of investment. It also means that I need to listen carefully and try to figure out how some of the trends could become relevant for our business. For example, our investment app Volt needs to be just as user-friendly and intuitive as a leading online clothes retailer. Of course, the trends in the financial industry are also important – but here our employees and, in particular, our Executive Management closely follow these developments and those of us at Board level have to foster a culture that is open to and values new ideas, provides sufficient resources to test them, and decides quickly whether they represent an opportunity for the business.
What role do you think women play in promoting innovation?
My fear is always that we may fail to spot an emerging trend, a new opportunity or, of course, a new risk. The more diverse the company’s management team is, the more knowledge, experience, insights and ideas it can bring to the company. One important aspect of diversity is gender – and adding women to all-male teams brings in a different perspective and additional sources of innovation. This not only broadens the scope of ideas but also leads to a better assessment and more balanced discussion of ideas.
In May 2021, Vontobel published the ‘Swiss Equities ESG Update’ study, which concluded that the percentage of women in executive and Board positions in companies listed on the SMI is disappointingly low. According to handelszeitung.ch, Vontobel is doing better than other Swiss companies in the financial sector. Multiple studies have shown that teams with more diversity tend to be more innovative. I should point out that Vontobel understands diversity to mean not only gender but also age, education, cultural background and many other aspects that make us different and valuable as employees.
How do you promote both women and innovation in your business and how should the diversityissue in Switzerland be tackled?
I believe there are two key factors to empower women in business and drive innovation. The first is an entrepreneurial culture. The second is a long-term perspective. If the company is to survive over the long term, we need the best talents and diverse teams, and we need to scrutinize and adapt our business model and our offering constantly. It is all about being open to new trends. Of course, it is not enough to simply define a set of corporate values; they have to be translated into actions. In other words: We have to walk the talk. At Vontobel, we have done a lot, such as creating a special internal ‘disruptor unit’ to enable us to set up the investment advisor business with a stand-alone digital offering. We have supported more decision-making in mixed forums instead of hierarchical approaches, and extended paternity leave, introduced part-time working models and established internal women’s networks – to name just a few examples. Of course, there is more to be done, but we have already made good progress.
Determining the best way to tackle the diversity issue in Switzerland is a very complex matter. I guess a starting point would also be to accept that everyone should live according to their own wishes. Society should be more open to different lifestyles. If it is broadly understood that women who make a career in business can also be good and caring mothers, this would be a significant first step.
At InnoSource we help startups from Israel gain ground in the DACH-region by connecting them with VCs and corporates in the region. I read that Vontobel is also active in the corporate venturing business. In Summer 2020, Vontobel got into a partnership with Yapeal, an innovative fintech startup. What are your thoughts on corporate venturing as a driving force of innovation?
For every innovation you would like to pursue, you have to decide whether to start from scratch, acquire an entirely new concept or partner with and/or invest in an innovative company that offers the corresponding solution or is about to develop it. So you see, corporate venturing is an important aspect of innovation, but having the ability to develop innovations yourself is at least as important.
What are in your opinion the biggest challenges of corporate venturing in the financial sector?
The financial sector is highly regulated, and regulations vary between jurisdictions. Further, as soon as a company holds a banking license, every asset must be matched with equity or hybrid capital. So a business run as an independent start-up can be very attractive but if it is incorporated into a group that is subject to strict banking regulations, capital rules and additional compliance and control requirements, the business case no longer works. And even initially unregulated areas where a fintech finds a niche could later become subject to regulations.
Strategic innovation partnerships have become essential to foster innovation. Should corporates pay more attention to gender identity when building strategic innovation partnerships?
When taking a decision, people automatically decide to eliminate as many uncertainties as possible; that is part of human nature. The issue is, however, that we feel most confident when assessing people who are most like us. I am thinking here in particular of people with the same educational backgrounds, ethnic origins and gender. This means that we feel more comfortable with a decision if the choice falls ‘closer to home’. However, when hiring new team members or partnering to achieve innovation, you don’t need a variation of yourself, but rather someone who is different to you, while sharing the same core values. When deciding on a new strategic innovation partnership, a company should first define the list of skills needed and other characteristics it is looking for in a new partner. This includes additional perspectives and experiences that this partner can bring to the venture – whether they are from a different geographical region or market, a different sector – or, of course, a different gender.
What are, generally speaking, the biggest challenges faced by women in business?
I have asked myself that question very often – especially now that I have a daughter. I have heard and thought of different responses, but I think none of them is itself the sole or even the biggest cause. I think women face challenges due to the expectations of society and of men on a number of levels, such as corporate culture, education, and their role as business partners, including investors. They also face pressure due to a lack of role models and often put themselves under immense pressure to succeed.
What advice would you give other women who aspire to become startup founder?
Be yourself, trust your gut instinct, and if you experience a setback, quickly get back on your feet again and keep moving forward.
