Switzerland-based personal finance institution PostFinance has inked a letter of intent (LOI) to launch a joint venture (JV) with online trading platform Swissquote.
The two companies are planning to launch a digital banking app together.
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PostFinance and Swissquote have been long-term partners, previously providing online trading services.
The extended partnership now also includes a digital banking JV.
Back in September 2020, the retail lender first divulged its plan to boost digital transformation in the new “SpeedUp” strategy period.
PostFinance’s plans include rolling out a new digital service for “Banking & Beyond” over the course of the coming year.
Digital banking is also in line with Swissquote’s strategy. The bank aims to develop a wide range of services through the launch of the new digital banking app.
The company has already been working on the app. Now, the app will be further enhanced as part of the JV, and both the companies are expected to benefit from this collaboration.
According to sources, the app will come with a fee-free basic offering and the option to buy premium services on a pay-per-use basis.
The deal is subject to the official approval process and more details will be revealed when a suite of services is ready to be launched, the companies said.
The two financial institutions have scheduled the official launch in the first half of 2021.
Last month, PostFinance decided to segregate its core business and lay off employees to save costs. This move is also part of its Speed Up strategy.
PostFinance divided its core business into four business areas: payment solutions, retail banking, digital first banking and platform business.
The company also reduced its headcount by nearly 130.
