Credit Suisse has rethought its retail strategy to focus on digital banking. The CSX application will allow private clients of the conglomerate to access the full range of services online.
Swiss financial conglomerate Credit Suisse will launch CSX digital bank at the end of October 2020. The organization published a press release where it said that the new application supports all the functions of a traditional bank, and also allows cross-border payments for free.
CSX is developed by Direct Banking, which was created in 2019. A virtual MasterCard debit card will be linked to the CSX account, and it will be possible to register an account with Neobank directly from the application. CSX customers will not be charged a service fee, but users who prefer plastic cards to virtual cards will have to subscribe for CHF 3.95 per month.
Credit Suisse promises that “in the next few months” after launch, the app will gradually expand to include new features, including those related to investments, pensions, and mortgages. CSX will also feature a financial planner to help clients better analyze their income and expenses.
The online banking launch comes after Credit Suisse announced last month that it plans to close about a quarter of its branches. The solution is part of a new retail strategy focused on digital banking. Through digitalization, the conglomerate expects to achieve savings of up to $ 110 million per year.
Note that Credit Suisse is far from the first investment bank to decide to create a digital division. Goldman Sachs, Standard Chartered, and JPMorgan have similar initiatives. The latter, for example, is going to launch a neobank in the UK under the Chase brand.
The entry of big players like JPMorgan and Credit Suisse into the digital banking market could be a worrying sign for Revolut, N26, Monzo, and other neobanks that are already going through hard times. For example, the founders of Monzo have already said they are not sure if their company will be able to continue working. In the 2019-2020 financial year, neobank’s losses reached $ 150 million, which is almost twice as much as in the previous year.