Swiss banking giant Credit Suisse is going to challenge the booming challenger banks as it plans to launch an app-based banking platform, called CSX, as soon as in October.
In the official announcement on Thursday, the Zurich-headquartered bank detailed that its upcoming platform will offer free foreign transactions and fully digital wealth management.
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To attract more customers, the banking app will also offer free online banking services and a free-of-charge online debit card. It also has plans to add more services over the months, enabling customers to take out mortgages, making investments, and plan pensions.
The wealth management services on CSX will be rolled out by mid-November.
Challenging the challengers
With this, Credit Suisse will directly compete with other popular European digital banks like UK’s Revolut and Germany’s N26. Both these fintechs have attracted millions of customers in recent years and are also heavily funded.
These startups do not offer the range of services the Swiss bank is planning to bring on its digital banking app.
It is to be noted that these mobile-based banking platforms are particularly popular among younger customers, and Credit Suisse wants to tap this particular client base.
“We want to grow with our clients,” Credit Suisse CEO Andre Helfenstein said. “We thought we needed to do more for young people.”
The new digital banking initiative also aligns with the Swiss bank’s efforts in cutting operational costs. It has plans for closing a quarter of its retail banking branches in Switzerland, but with digital banking service, it can still maintain its growth in the retail sector.
Apart from the Swiss lender, JP Morgan Chase is also reportedly launching a similar digital banking platform for its UK customers by Q1 2020.
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