Online banks are competing for Swiss customers

The time for banks are heavy. Because the negative interest rates they earn no more money with the deposits of their customers. Many banks, therefore, increase fees, in order to give against tax, such as, for example, the Postfinance.

a New, purely digital providers, increasing the competitive pressure. Also foreign institutions to discover the Swiss market. The German Start-up N26 want to open in the first half of its platform for Swiss customers, however, initially with a limited supply.

"We do not offer accounts in Swiss francs but also in euros. We see a large enough demand," says Alex Weber, who is at N26 in the Executive Committee for the international expansion charge. So around 10'000 Swiss N26 were already on a waiting list listed. "We will open without a banking license, but offer accounts of Germany," says Weber.

Without a banking license

N26 starts with what has made the Swiss banks big: the cross-border business. That is from abroad is easily possible in Switzerland according to the Swiss Supervisory law, only those institutions need an authorisation from the Supervisory authority Finma, in Switzerland, permanent staff, and accounts. Say, foreign banks without a branch or other permanent representation in Switzerland can online from abroad from a Swiss customer.

The British Revolut, which advertises with particularly favourable foreign exchange transactions,. The Start-up claims to have already about 50'000 customers in Switzerland. Payments out of Switzerland to settle, the British recently been performing with Credit Suisse. Thanks to such a cooperation with a Swiss Bank, the Newcomer avoid the expensive and long effort to request a banking license. Whether N26 looking for a Swiss Bank to partner in this way, also Frank accounts offer, N26-Manager Weber.

Swiss banks moaning often and gladly on the regulation. However, with a view to the foreign Neobanken, such as the Smartphone-banks, also are called, are the Swiss Supervisory rules to a difficult-to-overcome protective wall, the Swiss banks, foreign competition in the offer of Frank accounts from the body.

Therefore, N26-Manager Alex Weber says: "If and when we will offer accounts in Swiss francs, is yet to be decided. We start with a first, simple product range and look for so, how are the customers reactions." The basic product is a free checking account with a Debit Mastercard. The opening of the account is digital only about the Smartphone video-chat.

Smartphone-banks are still rare

N26 is considered to be one of the most successful Start-ups of the European financial scene. Recently, the Berlin-based company closed a new financing round of 260 million euros, in the case of the N26 with a total of 2.6 billion Euro was assessed. To the shareholders, among other things, the Alliance and Paypal co-founder Peter Thiel. The company has around 750 employees and is active in 24 countries. A total of N26 has according to own data already 2.3 million customers, a breakdown by countries, however.

up to now, these Smartphone banks in Switzerland play, according to a study by the business consultancy ZEB not a big role, their market share amounts to less than 0.1 percent. And as long as players such as N26 and Revolut settling payments in Swiss francs, UBS & co., no Worries that the new Player from abroad will snatch them in a large scale customer.

In France, by contrast, the new Smartphone-banks have already made a breakthrough. According to the French Bank supervision, these new players have already captured a market share of 6.5 percent. The top dogs of the French banking business, such as BNP Paribas, have launched their own Smartphone-banks, such as the Hello Bank, offering the full range of banking services to mobile.

abroad can save you money

In their niches are the new Player in the Switzerland are already very competitive, such as, for example, in the case of payment cards. This shows a survey of the comparison service, money country for the "Sunday newspaper". The payment cards from providers of Revolut and Transferwise were compared with the Offerings of the Supercard from Coop, the Cumulus card from Migros and the Cashback card Swiss card.

When shopping abroad, the editing, the way to fall in Revolut and Transferwise are often fees or are lower than those for the Swiss cards. "With Revolut and Transferwise in foreign countries compared with Swiss credit cards save a lot of money," says, therefore, money, land expert Ralf Beyeler.

The Swiss banks are reacting. The Bank Cler, which belongs to the Basler Kantonalbank launched in the past year, the Banking App Zak, a free-of-payment account in addition to a Maestro card and credit card offers. How many customers use the services, is not disclosed. (Editorial Tamedia)

Created: 21.01.2019, 16:13 PM