Swissquote, an online trading platform, and PostFinance, Switzerland’s fifth largest retail bank, have extended their partnership to launch a joint digital banking application.
According to Wednesday’s official announcement, the two financial institutions already signed a letter of intent to launch the joint venture as the digital platform is aimed for a launch in the market in the next year.
The financial services unit of Swiss Post first unveiled its plan to launch a digital banking app in September, and now it has decided to team up with the Swiss online trading platform. The bank then highlighted the impotence of the digital transformation of financial institutions.
Notably, the two are already partners in other areas of financial services for several years. The online trading offering of PostFinance is based on the services of Swissquote.
The Swiss bank is currently in the process of receiving regulatory approvals and will reveal further details on the upcoming services in the first half of next year.
The Rise of Digital Banks
PostFinance is launching the digital banking platform when neobanks are getting a massive boost globally. The rise of platforms like Revolut, N26, and Monzo has already cut down the retail business of big banks, and now many banking giants, including JP Morgan Chase and Credit Suisse, are also set to go digital.
Swissquote highlighted that the launch of a digital bank is a key element in its strategy as it is “the next logical step to develop its wide range of services.”
As detailed earlier, the upcoming digital bank will offer both free and paid services, similar to many of its competitors.
PostFinance has already initiated the development of the banking application, and now the two companies will further refine it as a part of the joint venture.