Credit Suisse (SWX: CSGN) has revealed that the use of its all-digital platform has increased significantly since its launch in October of last year.
Although not only about private banking, the numbers shared by Credit Suisse indicate a key trend now that’s taking hold in the wealth management sector – which includes a surge in the usage of digital channels to access financial services.
Credit Suisse‘s management shared that their CSX virtual bank offering has seen the total number of downloads of its banking app increase by 3x, meanwhile, account openings in Switzerland have surged by around 2x.
Of the total customer base of over 100,000 CSX users, half or 50% are under the age of 34. CSX users are (on average) now completing at least transaction each day, with about half of the customers using CSX as their primary bank account. The volume of assets currently being held with CSX is valued at over $1 billion, the company confirmed.
Going on to reference the latest market research, the Zurich-listed firm stated that around 50% of users in Switzerland are now at least familiar or have come across the name CSX.
This key trend towards the increased usage of all-digital platforms in banking, including private banking, has been quite steady. Super-tight margins, which have been made more prominent in nations like Switzerland due to their negative nominal interest rates, have led to many banks using tech to lower overall expenses while keeping clients satisfied.
A report shared by Early Metrics (in July) revealed that the private banking industry’s overall profitability has been declining, with Fintech firms now making the market a lot more competitive.
Credit Suisse has been focused on making strategic moves into to digital sector. In March 2015, the bank had introduced its virtual banking platform for customers based in the APAC region, with Singapore as the initial place of launch.
Anke Bridge Haux, Head of Digital Banking at Credit Suisse, remarked:
“We are delighted to gain confirmation from our clients that CSX is a future-oriented solution that addresses their needs and makes a relevant contribution to the development of digital banking in Switzerland. We have only just begun and will be expanding our offering on an ongoing basis. This encouraging picture one year after the launch is therefore all the more pleasing.”
