Swiss retail banks are losing further ground in global digital rankings, dropping from 18th place in 2020 to 27th last year.

With a digital maturity score of 39, they fall below the global average (41) and lag significantly behind the leading digital banks (60+), none of which are Swiss.

While real-time notifications, AI-driven savings tools, and digital insurance have long been standard internationally, many Swiss banks still lack these services.

The latest global digitalisation report by Deloitte underscores the risks: banks that fail to modernise will lose customers to more agile digital competitors—many of which are international players.

Swiss Banks Falling Further Behind

Deloitte’s latest Digital Banking Maturity study analysed over 1,000 digital banking functions across 349 banks in 44 countries, including 12 Swiss retail banks covering more than 80% of the market.

The findings reveal a concerning trend: Switzerland ranked 18th four years ago, fell to 21st two years ago, and now sits at 27th. In the first edition of the study in 2018, Swiss banks were still among the top five.

While other markets have embraced mobile-first strategies, AI-powered customer interactions, and embedded financial services, Swiss banks have steadily lost their competitive edge.

Cumbersome Digital Onboarding

There has been some progress in digital account onboarding. On March 6, all but one of the surveyed Swiss banks offer digital account opening.

However, waiting times of several hours or even days remain common. In contrast, international digital banks leverage AI-driven real-time verification to enable account openings within seconds – similar to Apple Pay or Google Pay.

In Switzerland, the process often still requires a video call or even an in-branch visit.

“Swiss banks have made small improvements in digital onboarding, but compared to foreign banks, the process remains slow and complex. In countries like the UK, a simple selfie and an ID scan are enough for AI verification and instant account opening,”

explains Cyrill Kiefer, Banking Consulting Lead at Deloitte Switzerland.

Weak Customer Interaction

Smartphones have become the primary banking channel, particularly abroad. A key example is real-time spending notifications – yet only about a third of Swiss banks offer this feature.

The gap is even wider when it comes to smart savings tools.

Few Swiss banks utilise AI-driven algorithms to adjust savings plans based on individual spending habits.

This level of automation functions much like personalised recommendations on streaming platforms, yet Swiss banking apps often lack such intelligent features.

Additionally, many Swiss mobile banking apps fail to include essential tools for customer interaction and engagement.

Interactive dashboards, customisable budgeting tools, and real-time financial analytics are rare.

While leading digital banks use AI to automatically categorise expenses and provide savings tips, Swiss customers often have to manage their finances manually or rely on third-party apps.

“The true value of digital banking is not in the number of features packed into an app, but in how well they meet customers’ needs at the right moment,”

says Kiefer.

Lack of Value-Added Services

Leading digital banks are 2.5 times more likely to offer additional services such as public transport tickets, streaming subscriptions, and financial management tools.

Swiss banks have yet to tap into this potential.

One glaring shortcoming is the lack of embedded insurance services—only one of the surveyed Swiss banks offers a comprehensive solution.

Administrative automation is another area where Swiss banks lag behind: services such as tax filing assistance, in-app wealth management, or one-click bill payments have long been standard in global markets.

While digital leaders implement innovations rapidly, Swiss banks remain constrained by regulations and a conservative approach. A clear mobile-first strategy is also lacking.

Whereas digital pioneers treat apps as central banking hubs, Swiss banking apps are often merely extensions of traditional e-banking.

Rather than prioritising intuitive interfaces and personalisation, many Swiss banks simply add more features – resulting in cluttered, less user-friendly apps.

Missed Growth Opportunities

The impact extends beyond customer engagement.

Swiss banks are also failing to capitalise on new revenue streams.

Leading digital banks increase per-user revenue through intelligent cross-selling and embedded financial products.

The lack of integrated insurance, investment options, and lifestyle services is a major reason why Swiss banks struggle to compete with global digital champions.

“Banks must evolve from being mere payment and account providers into digital service platforms. Financial management, modern payment systems, subscription management, booking systems, and mobility solutions must be seamlessly integrated to become an essential part of everyday life. Those who fail to adapt risk losing an entire generation of customers,”

warns Kiefer.

Featured image credit: edited from freepik