Since the collapse of Flowbank, it has become clear that competing in the Swiss digital banking market is no easy feat.

Founded in 2020, Flowbank was closed by the Swiss Financial Market Supervisory Authority (FINMA) this past June due to insufficient capital and the management's inability to meet minimum capital requirements. By the end of last year, FINMA noted significant and serious violations of these requirements.

Challenges in Swiss Online Banking

To succeed in Switzerland, financial institutions need resilience and significant capital. While incomes in Switzerland are high compared to neighboring countries, the market is small, especially in wealth management. To attract clients, providers are focusing on low fees and advanced software, enhancing user experience—an approach that requires significant investment. Put simply: size equals success.

Saxo’s Offensive Heats Up the Competition

Saxo Bank Switzerland, led by CEO Stanislav Kostyukhin and Deputy CEO/COO Oliver Buomberger, is now turning up the heat in this battle. As reported by finews.ch, Saxo's client base has grown by 43 percent, though the bank has not disclosed exact numbers. The firm also introduced a product initiative and showcased its new platform, described by Kostyukhin as a «robust Volvo» rather than the «Lamborghini» of its predecessor. The platform offers a simplified interface aimed at investors making informed decisions without the advanced tools often requested by traders. Additionally, Saxo has launched AutoInvest, enabling clients to set up automated ETF investment plans without fees for ETF purchases, monthly charges, or minimum deposits.

Striving for Number One

New clients can also trade the 100 most popular U.S. stocks without fees until the end of the year as part of the «U.S. Election Campaign,» targeting the heightened market sensitivity around the U.S. elections. «Nothing is truly free,» said Kostyukhin, «which is why this offer is time-limited.» Nonetheless, Saxo expects this campaign to drive additional client growth.

Kostyukhin acknowledges that Saxo has yet to claim the top spot in Switzerland, but that’s the goal — specifically, to challenge Swissquote, the long-time leader in Swiss online banking.