Switzerland has a reputation for providing trustworthy, reliable, and innovative financial services. As one of the key drivers of Switzerland’s economy, the Swiss banking industry continues to face wide-ranging and well-known challenges. Rapidly evolving customer expectations and emerging digital-only bank competitors are changing the industry.
Leveraging robust but inflexible legacy banking software in Switzerland that worked well before no longer provides the same level and diversity of services for Swiss banks. Local and foreign fintechs are challenging the status quo.
In March 2020, Swiss authorities issued the first Swiss fintech banking license to a digital banking startup Yapeal. More licenses are set to follow as Switzerland’s fintech industry matures further and attracts new firms with great political stability and legal landscape.
2020 Fintech hub ranking. Source: IFZ
Revolut’s client base in Switzerland, on the other hand, has surged by over a third to 250 thousand customers in 2019. Digital challengers rely on modern banking software to provide better service to Swiss customers, more conveniently. Find out how digital banks like Revolut are created in our article here.
Even though Swiss banks have been successful in establishing modern digital strategies, the number of online banking products remains lower than the EU average. According to a Swiss Finance Institute report, incumbent banks are well-positioned in terms of knowledge but are lagging behind the rest of Europe in terms of implementing those insights into their banking software in Switzerland.
Comparison of digital performance of Swiss banks and the EU average. Source: Swiss Finance Institute
To keep up with the competition, KPMG outlines that Swiss banks should upgrade their legacy banking software, purchase or establish a digital bank. Collaboration between incumbents and specialized fintechs can address digitalization pressures and lead the way to the future of banking.
Global core banking software providers like SDK.finance can help banks in Switzerland reach a broader market with modern solutions faster, cheaper, and more efficiently. The digital retail banking software is available in all popular formats: web, iOS, and Android applications that help to reach the new generation of mobile customers quicker.
SDK.finance provides technology and supports banks of all kinds at every stage of the digital transformation from market research to product launch and scaling. Banking customers can benefit from a modern and secure experience guaranteed by two-factor authentication, biometric checks, security notifications, and Strong Customer Authorization for payments.
The Platform consists of 5 main components: a back-end wrapped in 400+ API endpoints, 3 front-end frameworks, and a web for system management with capabilities in iOS and Android for our clients.
Advantages of software that is built on API-first architecture:
- The speed of releasing new features and functionality is much faster
- The cost of ownership is more economical
- Fewer bugs and more stable products exist
- Better flexibility, scalability, and features are just some of the advantages of the SDK.finance core banking software ready for Switzerland banking.
Click here to find out more about the Switzerland banking software solution and how it can help your business unlock new opportunities.