Multibanking for Private Individuals Is Live: What That Means for the Swiss Financial Center

What was long regarded as a technical goal has now become reality: Within the framework of multibanking, private individuals can simultaneously monitor their accounts with a number of banks via a single app. It’s a convenient solution since a recent study by the Lucerne University of Applied Sciences and Arts (HSLU) reveals that more than 70% of respondents have more than one bank account. Moreover, they can link third-party providers (TPP) such as budget apps directly with their account data. The study also shows that respondents expect to have a comprehensive overview of all their assets – not just of accounts, but across other financial positions as well. Multibanking thereby meets a key need for greater transparency and a more comprehensive overview.   

At first glance, for private individuals that might seem to be just another “small” function in their digital banking application. But behind it lies a technological and strategic milestone. These additional applications are possible only because financial institutions have recently made private individuals’ financial data available to third-party solutions – provided customers have given their explicit consent.

Standardized and secure data exchange occurs via centralized application program interfaces (APIs) on the bLink open banking platform of SIX, which banks and Fintechs are connected to. With this scalable approach, the development of multibanking in Switzerland constitutes a critical next step toward data sovereignty for private individuals.

At the start of multibanking, 30 Swiss banks are providing the relevant data via bLink. Eight banks and two Fintechs are already aggregating data from other banks and offering their customers multibanking functions in their apps – and the trend is growing. More providers, both banks and Fintechs will continue to join over the coming months.

Multibanking applications for private individuals currently include aggregated account overviews, spending analyses, and budget planning. The Luzerner Kantonalbank (LUKB), for instance, makes it possible for its customers to view their accounts with third-party banks directly in their LUKB E-banking application. In addition to a unified overview, the solution offers an intelligent financial assistant. It categorizes transactions automatically, allows comprehensive budget management, and points out savings potential using spending analysis. This creates a new level of transparency and control over one’s personal financial situation.

On the TPP side, for example, new fintech startup Liquid has developed an app for personal financial management focusing on young adults. Here, too, all bank accounts are aggregated and listed in the app via the bLink interface. This central overview is enhanced through gamification elements such as streaks, challenges, and a wishlist . These elements transform financial management from a tedious obligation into a motivating daily habit.

A multi-year industry initiative preceded the start of multibanking. In May 2023 leading Swiss banks agreed to make financial data of private individuals accessible via standardized interfaces. The aim: Create customer-oriented solutions and spur on innovation in the Swiss financial center by allowing also non-banks access to bank data. This established the foundation for an open, secure, and customer-driven exchange of data.

Up until now, only business customers in accounting and asset management could view their account data in aggregated form. The availability of financial data belonging to private individuals now makes the open-banking initiative more tangible to the wider public in Switzerland. With this milestone, the Swiss financial center is demonstrating that an open model is gaining acceptance. This promotes innovation and incorporates international development in the area of open finance.

Because private individuals aren’t the only ones who benefit: The newly accessible standardized banking data of private individuals is very attractive to various institutional financial market participants. TPPs, for example, can use this new data foundation to develop additional innovative services – Cue Embedded Finance.

Other countries such as Great Britain, the USA, and Brazil implemented open banking through regulation. In contrast, the Swiss financial center is taking a market-driven approach and setting its own pace. The regulatory authorities are monitoring the progress and haven’t intervened – yet.

This also shows that multibanking is more than a single use case. It is a clear sign that open banking in Switzerland works, and makes an active contribution toward the objectives of open banking, as stated by the Swiss Federal Council.

A large proportion of Swiss banks is already active on bLink. The technical foundation for a standardized data infrastructure doesn’t just exist – it’s in active use. Third-party providers now have real, streamlined access to a broad market with many opportunities.

However, the Swiss financial center still lags behind in international comparison. According to the HSLU study, the banks remain heavily focused on the technical aspects of open finance. The study’s authors call for a greater emphasis on the long-term strategic benefits for customers and for the banks.

Now that multibanking for private individuals is legally and technically prepared and the go-live is over, a decisive opportunity arises for both banks and TPPs in this regard. The rollout in Switzerland is taking place in a decentralized and phased fashion – banks and TPPs can thus decide for themselves when and how they wish to launch a product or service. However, those who are involved in multibanking from the very beginning can help define standards and position themselves as innovative in the eyes of customers. This is because their demand for integrated solutions that go beyond existing financial services will continue to increase.