Can the banks survive fintech? Insights from Switzerland

Disruptive innovations are eating away the advantages held by financial system incumbents. A look at Switzerland’s banking industry reveals lessons for navigating the tumultuous future.

© Getty Images / Bloomberg

Innovation in financial services is no longer optional; it is the hard currency that determines survival. For decades, banks could rely on the formula of stability plus an axiom: “reliable today, scalable tomorrow — trusted always.” That simple formula has clearly been a winner for Switzerland, a small Alpine country that has built a globally relevant and renowned banking sector.

This equation held true when customers had few alternatives and regulation maintained high entry barriers. But those barriers are now eroding. Customers today can switch providers with a few swipes and clicks. Technology has redrawn competitive maps overnight, and trust and relevance — once seen as constants —have become variables.

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Authors

  • Ralph Mogicato is a fintech enthusiast with over 25 years working in finance across Europe and Asia. After co-founding and leading Synpulse, he shifted his focus to backing and advising fintech and insurtech ventures like Apiax, unblu, Kaspar&, and hypt. He is an active investor and lecturer at Swiss universities; serves on the board of SICTIC, the country’s largest angel network; and helps run the Swiss Fintech Investor Day and Swiss Fund Day.

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  • Dr. Bernhard Koye is a futurist, coach and consultant for executives and organizations. He is the founder of the Swiss NextGen Finance Institute, an independent think tank on the future of the financial sector. He is the author of various books and articles, including the recent study “Swiss Banking: Embedded Finance & BaaS – Outlook” (with Dr. Manuel Thomet). He is also a DBA coach at Kalaidos University, where he previously served as head of continuing education for the financial sector.

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