The path to Open Finance: How Swiss banks are approaching data sharing in a voluntary setting

Topic
This study investigates whether Swiss banks are engaging in Open Finance initiatives and which strategic considerations guide their participation in the absence of a regulatory mandate. It sheds light on the specific use cases being prioritized and analyzes the strategic motivations, perceived risks, and internal decision-making processes shaping their participation in this emerging area of digital finance.

Relevance
Open Finance is transforming the financial landscape by enabling consumers to securely share their data with third-party providers. This unlocks access to more personalized services, increases transparency, and empowers individuals to make better financial decisions. While the UK and EU drive adoption through regulation, Switzerland relies on a market-driven model where participation by banks remains entirely voluntary. This raises a crucial question: why would banks open up if they are not required to do so? Understanding what drives or hinders this shift is essential for anyone looking to innovate, form partnerships, or compete in Switzerland’s financial sector. In this environment, incentives rather than regulatory obligations determine the pace and direction of progress.

Results
Swiss banks remain cautious about Open Finance. Adoption is advancing in corporate banking and wealth management, driven by client demand and clear commercial incentives. In contrast, retail participation remains limited due to competitive concerns and a lack of compelling use cases. Rather than adopting a broad innovation strategy, banks engage selectively and pragmatically.

To explain this behavior, our study introduces a structured four-step decision funnel:

• Banks respond to external pressures (client demand, peer moves, regulatory anticipation)
• They assess strategic fit with their business priorities, focusing on positive business case and client value
• They evaluate key risks, including loss of the client interface, security concerns, or integration complexity
• They impose strict conditions to mitigate these risks, such as conducting fintech due diligence, relying on specific connectivity platforms and applying flexible pricing models

Implications for practitioners
The decision funnel serves as a practical tool for navigating Open Finance in Switzerland’s market-driven environment.

• Banks can use it to structure internal evaluation processes, align departments, and accelerate go/no-go decisions on Open Finance initiatives. Additionally, hesitant or passive banks gain a clear, step-by-step framework to explore opportunities in a structured and risk-managed way.
• Fintechs benefit from a better understanding of how banks assess proposals, allowing them to design use cases that align with client needs, strategic fit, and risk expectations. The fact that banks are already sharing data, albeit selectively, should encourage fintechs to innovate and bring forward compelling, high-impact solutions.
• Regulators can use the funnel to identify where bottlenecks typically occur and craft targeted, proportionate measures if voluntary progress stalls.

Methods
This study is based on ten semi-structured interviews with key experts involved in Open Finance in Switzerland. Participants included representatives from five major Swiss banks, with roles in strategy, digital channels, innovation, and product management, all directly engaged in evaluating or implementing data-sharing initiatives. The sample also included two fintechs whose business models rely on accessing bank data through Open Finance, two industry associations, and one executive from a Swiss connectivity platform. All interviews were conducted remotely using a structured guide adapted to each role. This method provided detailed, practice-oriented insights into how financial institutions in Switzerland approach voluntary participation in Open Finance.