How neo-banks are moving (also) to conquer Switzerland – rts.ch

An example of these new establishments, which are no longer on the market, the N26 bank is based in Berlin to conquer the world. It has been in existence for just under four years but already has more than 3.5 million customers. It is the equivalent of Raiffeisen, the third largest banking group in Switzerland, which has been in existence for 150 years.

With this 100% mobile bank, there is no more counter: customers control everything from their smartphone, no opening or account management fees, and with virtually no foreign exchange commissions.

"You have your agency in your pocket, because it's your mobile phone," says N26 general manager for France Jeremie Rosselli, Friday in the 19:30. "You can open an account even on a Sunday afternoon from home, there is no more paperwork."

And this bank does not stop there, it already offers other purely banking services as consumer credit and plans to expand its range with savings or investment.

Young customers in the spotlight

Today, N26 has 1500 employees. It is active in 26 countries – including Switzerland recently. 20,000 Swiss customers were on the waiting list despite the fact that the accounts are only in euros.

"We observe that there are many young people in Switzerland with high expectations in terms of online banking," says N26 founder and CEO Maximilian Tayenthal. "We have looked at the offer of traditional banks and we have found that they do not provide a service up to par, and their commissions are high."

The reaction of traditional banks

These ambitious 4.0 banks, like Revolut too, are beginning to mow the wool of conventional banks. Credit Suisse, for example, has decided to invest hundreds of millions of francs in these new technologies, particularly to attract young workers.

"It is true that today, young people interact almost exclusively with their smartphone, with a tablet or with the computer," says Christian Steinmann, regional director "Wealth management clients" at Credit Suisse. "The probability that a young person enters a traditional branch to open an account is now almost zero, which is why we must have a global, user-friendly digital offer."

For Michael Desforges, MAS in Banking & Finance IFSB Lecturer, these neo-banks will disrupt the banking world in the manner of Uber for the taxi corporation. "These neo-banks have been created by former customers who are unhappy with traditional banks," he says. "Most had the idea that we could do better, give a customer experience much richer and much simpler to its customers."

Accounts blocked for months

But there is also a setback to the medal, warns the observer of the financial world. "When an operation does not pass or is blocked, that your account is blocked, you are not dealing with an adviser who can negotiate with you, but with an algorithm, and he does not argue, you have dramatic cases of people who have their account blocked for several months and can not do anything to get their money back. "

Nevertheless, N26 aims in the medium term 50 million customers. But for now, it's still not profitable even though its customer base doubles every six months.

Philippe Lugassy / oang