Hauer's remarks hit home for traditional banks, which have in Switzerland subsidized free digital offerings which – apart from so-called upselling – aren't financially worth their while.

In fairness to Credit Suisse, the Swiss bank isn't simply cutting its branch network but also adding new ones aimed at catering to a more digitally savvy clientele. UBS, Switzerland's largest bank, hasn't taken up the gauntlet on pricing thrown down by the challengers.

No Direct Response

The furthest UBS has gone is rolling out a new credit card which makes shopping outside of Switzerland cheaper. This can be interpreted as a direct response to Revolut, which is primarily used precisely for this by Swiss users.

UBS doesn't plan to launch a digital bank anytime soon that competes directly with Revolut or N26, according to people familiar with the matter. The Swiss bank prefers to hone and expand its existing offering instead.

Swiss Platforms

Both big Swiss banks are comfortable platforming: UBS launched mortgage provider Key4 under platform head Martha Boeckenfeld, while Credit Suisse is contemplating a similar move into insurance via a tie-up with France's Axa.

Postfinance is happy taking up the challenge: the state-backed lender recently partnered with Swissquote to begin building a digital bank. The outline of the offering appears to be a carbon copy of Revolut or Neon, in that users can choose between a basic free service and a pay-per-use model for premium services.