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Digital Banking Maturity Study

Are Swiss banks prepared for the new world of banking?

In this EMEA report, Swiss banks score high when it comes to digital maturity – to a certain degree, surprisingly high. What are Swiss banks doing well, and where can they improve when it comes to their range of digital offering – and to the user experience of their customers?

European and Swiss banks have increasingly placed ‘digital’ on the top of their agendas, leading to significant advances in this space in recent years. They have been developing and enhancing their digital functionalities at a high pace in recent years, though progress varies tremendously from bank to bank.

Which banks are true digital champions, offering a wide range of functionalities relevant for customers and a compelling user experience? Deloitte undertook a comprehensive, cross-geography assessment of European banks’ digital channels from a customer’s point of view.

Swiss banking in sum digitally mature

Deloitte’s Digital Banking Maturity study covers 238 banks across 38 countries in EMEA. Within Switzerland, it covers nine banks, including universal banks as well as selected cantonal banks and other retail banks.

The primary focus: Assessing digital banking functionalities. What do we mean by this? For example, in online banking, blocking a credit card is one functionality. Unblocking a credit card is a second functionality. The same two functionalities may exist in mobile banking, which means that we are looking at four functionalities and so on.

With this approach, Deloitte has developed a very granular catalogue of 826 functionalities, structured along the customer journey. The study also includes a mystery shopping approach. Our testers opened real accounts with banks participating in the study, going through an onboarding experience, trying out online and mobile banking and other digital applications. Through this process, the presence of various functionalities was tested. Overall, this has given us an objective comparison of the digital maturity of banks across the EMEA region.

When it comes to overall digital matury, Switzerland ranks second out of 38 countries and is considered a market with extensive functionalities. The leading position of Swiss banks is mainly due to the fact that they offer the widest range offunctionalitiesalong the client journey. On the other side, Swiss banks exhibit relatively poor results when it comes to user experience.

Furthermore, in Switzerland:

  • Traditional banking products and services are digitalized to a high degree 
  • Open banking functionalities are still in the early stages of being implemented
  • Beyond banking functionalities are within EMEA average, but far behind leading banks
  • Banks focus on informing and onboarding, with digital maturity disparities across banks

The client journey – Swiss innovation

Most would describe Switzerland as less innovative than other countries such as UK or the Nordics, especially in the retail banking space. Our research paints a more differentiated picture:

Purely in terms of functionalities, Swiss banks on average offer a particularly broad range. This is especially true for the two steps of the customer journey that account for the vast majority of relevant functionalities: day-to-day banking and expand relationship.

Switzerland findings summary

However, if we look beyond functionalities and into user experience, the picture for Switzerland is reversed. The customers Deloitte surveyed rated the user experience with their respective Swiss bank relatively poorly. Given the large gap between Switzerland and other markets, user experience is a much more important area for Swiss banks to improve on – whereas most Swiss banks can be quite selective and are currently placing a large(r) focus on developing additional digital functionalities.

Key EMEA findings

  • Digital champions are those financial institutions which offer a wide range of functionalities relevant for customers and a compelling user experience
  • EMEA markets can be broadly divided into 4 groups with regards to their functionality offering, ranging from extensive to limited
  • Environmental pressure from customer preferences (expectations regarding services) and competitive pressure (digital ‘arms race’ ignited by banks which decide to leverage digital channels as key competitive advantage) is responsible for creating EMEA’s digital champions
     

Deloitte EMEA Digital Banking Maturity by the numbers

How does your bank compare to competition?

The full country and competitor data behind the EMEA Digital Banking Maturity study should be the starting point to any bank’s strategy planning for the world of open banking.

To discuss the in-depth findings for your particular financial institution in more detail, please do not hesitate to get in touch with us.

About the study

Deloitte member firms across EMEA joined efforts to conduct the most comprehensive and objective assessment of financial institutions’ digital maturity in order to separate the true digital champions from the smart followers, adopters, and digital latecomers.

What makes a digital champion? To answer this, we measured financial institutions’ performance across four critical areas:

  1. Functionality review of each of the 248 financial institutions across 38 countries. A team of 136 ‘mystery shoppers’ opened current accounts and evaluated each bank’s internet and mobile banking channels to map their offering against 826 functionalities.
  2. Customer survey of more than 8,000 clients of banks to understand customer needs and preferences, and to be able to map each bank’s functionality against consumer expectation.
  3. User experience (UX) evaluation of mobile banking by customers according to the User Experience Questionnaire (UEQ) framework to supplement the above.
  4. To provide a snapshot of the results and identify trends in digital banking maturity, the EMEA country-level trends compare the five largest banks by asset size of each country. The full study has comprehensive data on 238 banks and 10 FinTechs mapped against customer expectations derived from over 8,000 banking customers surveyed.
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