The best retail banks in Switzerland - as seen by customers

For the tenth time, the IFZ Retail Banking Study of the Lucerne University of Applied Sciences and Arts examines the core business of domestic-oriented banks. The anniversary edition of the study analyzes the satisfaction of bank customers. It also shows which banks are the best in the country from the point of view of financial ratios and how the corporate governance of the retail banks stands.

Only one in five people would recommend their bank to others

As part of the IFZ Retail Banking Study, 78 members of the management of Swiss banks and 694 bank customers were surveyed on their satisfaction with products and services. According to the survey, customers are very satisfied overall with their house banks. Only a few of those surveyed are willing to change their house bank, namely just over one percent. At the same time, however, only 18 percent of bank customers would recommend "their" bank to friends. Andreas Dietrich, Professor of Banking and Finance at the Lucerne University of Applied Sciences and Arts, says: "The banks deliver good quality. However, enthusiasm and recommendation factors, which are the basis for a recommendation, are almost completely missing."

Price before service: New banks win customers

The study thus identifies a large proportion of satisfied customers who do not have strong ties to their main bank. Against this backdrop, it is not surprising that new market participants in the financial sector - so-called neobanks - have also been able to win a very large number of new customers in Switzerland in a short time with low-cost offers. "Passively satisfied customers are often price-sensitive and correspondingly open to low-cost offers from neobanks," says Dietrich. Currently, only about one percent of Swiss people describe a neobank as their main bank. The authors of the study are certain that this will change in the coming years.

Who are the best retail banks in the country?

This year, the retail banking study also examined the annual financial statements of 90 institutions. Based on nine key figures, the best retail bank from a numerical perspective was determined. Due to the large differences between the banks (for example in terms of size or product range), the banks were divided into size categories for the first time. The Caisse d'Epargne d'Aubonne (balance sheet totals up to CHF 1.5 billion), Bank EEK (CHF 1.5-3.0 billion), and the cantonal banks from Nidwalden (CHF 3-12 billion), Schwyz (CHF 12-25 billion) and Graubünden (balance sheet totals over CHF 25 billion) performed best. The study also includes an analysis by major regions of Switzerland, revealing significant regional differences. For example, the average interest margin of retail banks in central Switzerland is 1.01 percent - whereas in the Lake Geneva region it is 1.26 percent.

Proportion of women: on the rise on boards of directors and executive boards

In the last part of the study, the corporate governance of 73 banks was analyzed. Among other things, it shows that the proportion of women on boards of directors and executive boards has risen once again - albeit only slightly. According to the study, the number of women on boards of directors increased from 130 to 132 within a year and now stands at 25 percent. Among newly elected board members, the proportion of women has been 34 percent for the past seven years. The number of women on management boards increased from 28 to 32. However, at ten percent, the proportion of women on management boards is still much lower than on boards of directors.

Source and further information: www.hslu.ch/retailbanking