Revolut, the British online bank, has announced a significant expansion of its services in Switzerland, marking a new chapter in its competition with local banks and fintech companies, according to Handelszeitung. The company, which already serves "significantly more than 900,000" users in Switzerland (approximately 10% of the population), aims to transform from a secondary account option to a primary everyday banking solution for Swiss customers.
Key Developments:
- Swiss Banking Infrastructure: New customers will receive accounts with Swiss IBAN numbers, replacing the previous UK-based account numbers
- Enhanced Local Features: Integration of Swiss QR-bill paymentsPlanned E-Bill system integrationSimplified and cheaper deposit optionsConsideration of Twint integration (Switzerland's popular payment system)
- Integration of Swiss QR-bill payments
- Planned E-Bill system integration
- Simplified and cheaper deposit options
- Consideration of Twint integration (Switzerland's popular payment system)
New Investment Options:
- Access to 300 ETFs and 3,000 stocks
- Fractional share trading capability
- Automated investment services through a robo-advisor
- Flexible money market funds for fixed-income investments
Strategic Changes:
- Operations now run through Revolut's Lithuanian subsidiary (EU banking license) instead of UK entity
- Partnership with PostFinance replacing Credit Suisse as local infrastructure partner
- EU deposit protection up to €100,000
- FINMA (Swiss Financial Market Supervisory Authority) approval for marketing services, though crypto trading advertising remains prohibited
Growth Ambitions:
- Targeting 250,000 new customers annually in Switzerland
- Plans to launch joint accounts in Q1 2025
- Working on eliminating card deposit fees
Market Context:
Switzerland represents a "Tier-One market" for Revolut, with its 900,000 Swiss customers comparing favorably to its 2 million customers in Germany, a country with roughly ten times the population. The company faces competition from local neobanks like Yuh (260,000 accounts), Neon (222,000 accounts), and Zak (70,000 accounts). You can find all neobanks in Switzerland on this page.
According to banking professor Andreas Dietrich from the Lucerne University of Applied Sciences, while only 1.5% of Swiss currently use a neobank as their primary account, 11% are open to the idea, suggesting significant growth potential in the market.
Revolut's expansion strategy and enhanced local features demonstrate its long-term commitment to the Swiss market, with Country Manager Julian Biegmann emphasizing their intention to become an integral part of Swiss banking infrastructure.