Swiss Banks Slow on the Digital Uptake
Thursday, 08 29 2019, Category: Banking, Country: Europe
Swiss banks are turning their attention to providing more digital services for customers, but their progress has been slow. This may have something to do with new technology upstarts struggling to gain significant traction thus far in Switzerland, according to a new study.
Once financial technology (fintech) innovation properly takes off in the over-crowded banking sector, the competition may well cause some traditional players to disappear, says the Swiss National Bank (SNB) in its “Survey on Digitalisation and Fintech at Swiss Banks”.
Fintech is a growing theme in Switzerland, but its current importance pales in comparison to countries like Britain, Germany, China and the United States. Digital banks, such as Revolut and N26, have only chipped away at Swiss borders, making modest inroads, while payment apps and devices are scarcely used, according to the survey.
“Although there have been significant developments in certain segments, the entry of such players into the market has thus far been relatively modest,” states the SNB survey.
Most Swiss banks (47%) forecast increased competition from fintechs and large technology companies, like Google, particularly in the area of payments. But they have been slow to react. “Overall, the banks have not yet achieved their desired level of digitalisation. In many process steps, digital maturity is well below target,” the SNB says.