Despite the fact that 2022 was a hard year for the banking industry, Swiss banks managed to keep afloat very well and retain their appeal to foreign customers in 2023 and continue this trend in 2024. Switzerland has always been a very important financial hub that played an essential role in international business, and its range of banking services and banking secrecy have always been on a very high level. If you are looking for a good Swiss bank to match your goals, you can assess the reliability of Swiss banks through a detailed ranking. This post is a brief overlook of banking in Switzerland in 2024.
Types of Swiss Banks
Here are the types of Swiss and international financial institutions available for non-residents:
- Private banks
- Large Swiss banks and branches of well-known international banks
- Major digital banks (also referred to as neo-banks) that provide convenient mobile apps to manage your accounts
- International banks of various sizes focused on different services
- Cantonal banks (these are state-owned commercial banks which constitute about 30% of the country’s banking institutions)
- Cooperative banks (Raiffeisen Group is an example)
You will find about 250 licensed banks in Switzerland, and the list of top institutions includes St, Safra Sarasin, UBS Group AG, Pictet Group, and others.
Bank’s High Rating: Advantages
Credit rating is a kind of assessment conducted by a reputable global organization to determine whether the bank is willing and capable of fulfilling its financial obligations. This is an important indicator that helps predict potential default or crisis and thus warns the account holders to shift investments to other institutions to reduce possible risks.
The bank’s credit rating not only shows its creditworthiness in fulfilling financial obligations but also the credit risk connected with its debt instruments, such as bonds and loans. So we highly recommend considering this indicator when you choose a foreign bank to entrust your capital to.
Best Swiss Banks for Asset Protection
Swiss cantonal, private, and regional banks differ by the size and the range of services. Banking secrecy is the hallmark of the Swiss financial sector, but it has been under great pressure from international regulators in recent years calling for more transparency. As a result, you can no longer expect to be an absolutely anonymous customer nowadays. However, Swiss banks are seeking ways to remain attractive to international customers under the circumstances, and they are shifting their focus toward asset management.
Switzerland still has laws regarding the privacy of banking information which impose high penalties (up to arrest and imprisonment) for confidential information disclosure. This is a key aspect that keeps the reputation of Swiss banks high as they strictly adhere to banking secrecy and discretion.
Here are the four banks that have been the largest ones in Switzerland for more than ten years and are included in the top 50 largest global banks in terms of total assets:
- UBS Group AG
- Credit Suisse Group AG
- Raiffeisen Gruppe Switzerland
- Zürcher Kantonalbank
And if you want to take a look at the 10 best banks in Switzerland, here they are:
- UBS Group
- Credit Suisse Group AG
- Raiffeisen Gruppe Switzerland
- Zürcher Kantonalbank
- Basler Kantonalbank
- Luzerner Kantonalbank
- Julius Baer Group
- EFG International
- Banque Cantonale Vaudoise
- Galler Kantonalbank
When you choose a bank to open a personal or a corporate account, please take into account the jurisdiction’s national policy, the way non-residents are treated, and the probability of adverse events.
Prestige of Swiss Accounts
Why do foreigners flock to Switzerland to open a bank account? Here are the most popular reasons for that:
- Economic stability. The Swiss government mainly relies on conservative economic policies, which helps to ensure a stable level of economic growth with minimal fluctuations. This approach not only promotes rapid economic growth but also reduces the possibility of currency fluctuations, inflation risks, and long-term recessions.
- Low financial risk. Swiss banks are generally regarded as low-risk institutions that provide a full guarantee of your deposit in case of bank failure on the condition that it does not exceed 100,000 Swiss francs.
- Top-level banking secrecy. Swiss banks are well-known across the world as the financial institutions that put confidentiality built on trust first. Swiss bankers regard the protection of their clients’ personal and financial details as a core professional value. No matter what diplomatic tensions or international sanctions may be at play, this principle remains their top priority.
Swiss Bank Accounts for Foreigners
Let’s take a look at several options that can be used by a foreigner who wishes to open a bank account in Switzerland. It should be noted at once that setting up a bank account in the country is not that easy as the minimum deposit requirements, as well as other terms and conditions, are quite stringent (you should have at least 250,000 Swiss francs to deposit). Here are the solutions available to foreigners:
- Neobanks (digital banks). This is the easiest option, and they offer really good conditions for foreigners who need a Swiss account in Swiss francs or other currencies.
- Local banks:
- Valiant is a bank we recommend to the residents of certain countries that have no borders with Switzerland (the services are provided in French and German).
- UBS will offer free debit cards, low fees, investment products, and a wide range of services you may be interested in.
- The banking services provided by PostFinance are very affordable.
- If you are not an EU resident (and especially if your country is under sanctions or is considered a high-risk one), opening a Swiss bank account may be hard.
Choosing the Right Bank and Opening a Swiss Account
The first thing you have to do before you choose a Swiss bank account that will be a perfect match is to think of your goals, objectives, and priorities. Are you going to open a personal or a corporate account? Will it be used for fast money transfers, broker’s services, or investment? You should know how you are going to use the account to shortlist the Swiss banks. Click on the above link to get more information – and welcome to Switzerland!
