Swiss banks may have laid the foundations for their digital development. But this shouldn’t engender a false sense of security.
The Kodak effect is a well-known phenomenon. The erstwhile industry leader in the 1970s started developing technology that later would be used for digital photography. But as it kept its focus on the old analog technology for too long, it missed the train and dropped out of competition.
The Options Are Available
Swiss banking may be in similar situation, according to a study published by Zeb consultancy in cooperation with the Swiss Finance Institute (SFI). Banks have all options available to switch to digital banking, but there is no strong competitive pressure to do so.
«Like the former American leader in conventional photography, Swiss banks have also recognized early on the disruptive potential of the digitalization of their business activities,» said the authors of the study. «Until now, however, due to a lack of strategic necessity and to relatively weak competition, Swiss banks have failed to uncompromisingly implement and launch their digital concepts.»
Need for Cooperation
This may be about to change. So-called neo-banks and external competitors are starting to challenge the position of the traditional companies in the industry. While larger firms have enough resources to invest in technological solutions that will help them introduce new offerings, smaller firms are facing a potentially harmful development.
If smaller banks want to keep up, they will be forced to cooperate. That way they may develop sort of a digital Swiss banking, as demanded by the authors of the Zeb study.
