Survey of Swiss public shows trust in digital investment offerings is growing
- New representative study reveals strong potential for digital investment products
- Many investors already invest their money digitally or express an interest in digital investing
- Digital investors in Switzerland favor hybrid digital wealth management solutions
- Established financial services providers have an advantage in terms of trust
- Vontobel expects to see increased demand for digital offerings due to the growing need for investments
The number of fintech firms in Switzerland has almost doubled over the last five years. Around 150 fintechs provide services in the area of investment management. However, potential Swiss users of digital investment opportunities trust the solutions offered by established financial services providers more than those of fintechs. The hybrid model – comprising a digital tool with an established banking provider in the background – has especially strong potential, as the majority of investors don’t wish to give up the support of a personal advisor. These are the findings of the study conducted by the Institute of Financial Services Zug IFZ of the Lucerne University of Applied Sciences and Arts. It was commissioned by Raiffeisen and Vontobel to carry out a survey of more than 1,200 members of the Swiss public aged between 18 and 79 across all regions of Switzerland. The average age of digital investment products users was found to be 50 years, although Swiss respondents aged over 65 are best informed about digital investing. The study also revealed that women are less well informed about these offerings than men. The topic is growing more important due to the low interest rate environment and the increasing need for pension provision. Although many of the survey participants were generally not well versed about wealth management, one quarter of Swiss respondents already invests digitally or could imagine using such products in the future. More than half of all investors was not familiar with specific digital investment products. The Lucerne University of Applied Sciences and Arts believes that this area offers significant potential for the coming years. Digital investment products could become standard offerings at many banks in the next few years.