Profit Surge Amid Crypto Boom
Swissquote, the Swiss online banking service provider, recently reported a staggering 44 percent growth in profits for the first half of 2018. What’s the secret ingredient, you ask? A juicy dollop of crypto enthusiasm served straight from the Bitcoin kitchen. Yes, that’s right! According to local news outlet Finews, the surge can be chiefly attributed to the ‘crypto boom’ that set the financial world ablaze earlier in the year.
Pioneers of Crypto Trading
Let’s not forget, back in July 2017, Swissquote made headlines by unofficially becoming the ‘
first European online bank’ to roll out Bitcoin trading accounts for clients. Talk about being a trendsetter! This move encouraged other Swiss financial institutions to jump aboard the crypto bandwagon. For instance, Falcon Private Bank tried to sneak in right before Swissquote, offering clients direct access to Bitcoin and altcoin trading thanks to their partnership with Bitcoin Suisse AG.
Growing Demand That Rocks the Charts
The figures tell the tale of a growing appetite for crypto products. During Q1 2018, Swissquote’s meteoric rise was driven by what they termed ‘brisk demand’—aka people throwing fiat at anything that looked like cryptocurrency. The bank reported a profit of 25.7 million CHF (about $26 million), easily outperforming analysts’ expectations by a cool 2.5 million CHF. If only my bank account could meet expectations like that!
Customer Engagement Hits New Levels
Swissquote didn’t just stop at profitability; they welcomed 16,278 new customer accounts in the first half of 2018. And guess what? Each customer was racking up an average of 11.8 transactions. That’s a significant leap from just one transaction per account the previous year. Apparently, crypto trading is a bit more addictive than scrolling through social media!
The Crypto Product Expansion
Riding the wave of success, Swissquote has continually expanded its crypto investment offerings. Since their initial Bitcoin launch, they’ve added support for four major cryptocurrencies and even rolled out an Exchange Traded Product (ETP) that tracks a multi-cryptocurrency index. Their ETP is now listed on the Six Swiss Exchange, making it even easier for investors to dive into the crypto pool without needing to swim in turbulent waters.
The Race to Become the First
In a surreal twist, other Swiss banks are entering the crypto sphere. Just recently, Hypothekarbank Lenzburg became the ‘first Swiss bank’ to provide business accounts tailored for blockchain and cryptocurrency companies, after consulting with the local regulator, FINMA. Who knew the race to be the first could be quite so crowded? Imagine the trophy for the ‘First into Crypto’ category at the annual Swiss Banking Awards!
