The 1.4km cableway will connect Landiwiese with Zurichhorn across the northern tip of the lake and will be able to transport 2,000 passengers per hour in its 14 gondolas.
The idea is to open the cable car in 2020 – the bank's 150th anniversary year – for a period of five years.
In a statement on Thursday KZB, which was founded in 1870, said it wanted to “build on the pioneering spirit of its founders” by creating something that would underscore the bank's ties to the city and canton.
It also wants to make the population think about the traffic issues that are “part of the major social questions of today and tomorrow”, it said.
Though the project is still in the planning stages, the bank said it had the support of the cantonal and municipal authorities.
The cable car is estimated to cost 40-60 million francs. The expected ticket price for a journey would be 5-15 francs.
The bank also wants to create an ‘adventure garden' at Landwiese containing a park, cultural pavilion, hanging gardens and play areas.
To get an idea of the new cablecar, watch this video.