The announcement from Coop’s corporate strategy sounded grandiose: under the name «Coop Finance+,» they would launch «the first company in Switzerland to offer a new and fully digital solution for financial and pension products.» Even finews.com reported on the new app at the time.

One could have thought it was a major retailer in Silicon Valley mode, expanding its retail omnipresence in Switzerland into the financial sector. At the very least, the ambition to become a major player in the finance business again after selling the former Bank Coop (now Bank Cler) was evident.

Demand Too Low

Ten months later, the experiment is already over. As Coop announced in a brief statement on Thursday, the company has decided «not to continue the Finance+ project as the operator, as demand did not meet expectations.» Additionally, the environment has changed due to «increased competition in the financial sector in recent months.»

Specifically, the finance app offered a mix of payment and pension products from other providers. The Hypothekarbank Lenzburg was responsible for the payment functions, the 3a pillar accounts were managed by the Glarner Kantonalbank and funded by the fund providers Vanguard and OLZ. The app was programmed by Additiv.

Super Points for the 3rd Pillar

At some point, Coop customers were supposed to be able to convert their super points into pension credits.

Coop's entry into the neobanking business was relatively late. The field with national and international competitors was already crowded at that time.

Brand Overestimated

Additionally, the product apparently did not meet customers' technical expectations. Android users gave the bundle a meager 2,5 out of 5 possible points, and Apple users rated it 3,1 out of 5.

Coop also apparently overestimated the transfer power of its brand into new business fields. While a bank could grow in the arms of a major retailer decades ago, things seem to be different today.

Who Bears the Costs?

As the company states, it will ensure the operation of the platform for the time being. Alternative solutions for customers are being examined.

What the experiment means financially is unclear. It is likely that cooperation partners, as is usual with such ventures, made significant upfront investments in anticipation of rapid scaling.

It speaks well of Coop that the major retailer realized in a short time that the trees in the neobanking world do not grow to the sky.