Switzerland promotes Open Finance
On 16 December 2022, the Swiss government instructed the Federal Department of Finance to submit measures to it by June 2024 in the event that the financial sector does not commit sufficiently to opening up its interfaces.
Open Finance enables the exchange of financial data via standardised and secure data interfaces at the request of the clientele. For example, someone who has accounts with several banks could use the app of one of these banks or a fintech to access all accounts. Or financial data could be automatically combined with other data to calculate a carbon footprint, for example.
In contrast to other countries - for example the EU or the United Kingdom - there is currently no legal obligation in Switzerland for financial institutions to make financial data available to third-party providers at the request of their clients. At its meeting on 21 December, the Federal Council took note of the developments and future prospects of Open Finance in Switzerland. The commitment of the industry associations and various financial institutions is to be welcomed. Many promising projects have been launched in areas such as pension provision, asset management, payment transactions and multibanking. However, more concrete progress and more commitment are needed in opening up the data interfaces.
The Swiss Federal Council welcomes the goals that the Federal Department of Finance (FDF) has drawn up. They serve as a guideline for the work ahead and are intended to strengthen the digital self-determination of clients and promote innovation and competition in the Swiss financial centre. The Federal Council continues to assume that a market-based approach can work. In the event that the financial sector is not sufficiently committed to opening up its interfaces, the Federal Council has instructed the FDF to submit measures to it by June 2024.