The way people choose a bank is changing. In the past, a bank’s location was a major factor, with many people picking a bank based on its proximity to their home or office. However, with the rise of online banking, this is no longer the case. A saver in Milan can now open an account with a Swiss online bank without ever having to visit Zurich.
Remote identification and international payments have made it possible for people to manage their finances across borders without having to establish a traditional banking relationship in every country. This has led to a shift in what people look for when choosing a bank, with factors such as currency support and regulatory framework becoming more important than location.
The End of Proximity
For most of the last century, people picked banks based on their location. A branch near the office or a teller who knew your name was often the deciding factor. However, with the advent of remote identification and international payments, this is no longer the case.
This shift has been driven by several innovations, including remote identification, which allows people to open accounts without having to show up in person. International payments that once took days to clear now take hours or even minutes, making it easier for people to manage their finances across borders.
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A New Kind of Banking
This has opened up new options for everyday clients, who can now compare institutions across countries based on factors such as currency support, fee structures, and reputation.
One example of this is Dukascopy Bank, a Swiss-licensed bank that allows clients to open accounts, hold multiple currencies, and trade online, without ever having to visit Switzerland in person. This is a small but telling illustration of how a license rooted in one of the world’s most heavily supervised banking systems can now travel far beyond its own borders, carried entirely through a screen.
As people become more comfortable with online banking, they are beginning to realize that location is no longer the most important factor when choosing a bank. Instead, they are looking for banks that offer a range of currencies, competitive fee structures, and a strong regulatory framework. This shift is likely to continue, as more and more people become comfortable with managing their finances online.
European Regulators Validate Remote Verification
That acceptance has eliminated a major incentive for customers to keep accounts at nearby branches. Historically, cross-border transfers moved through several correspondent banks, each adding fees and delays. Because of that friction, people preferred to store money where they spent it.
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Today the question is less about a physical branch and more about how many currencies an account supports. It also focuses on which regulator backs the institution. Switzerland remains a reference point, with FINMA maintaining the strict oversight that built the country’s banking reputation. Institutions that once relied on in-person private banking have shifted much of that service to digital channels. They have done so while preserving the regulatory foundation that ensures trust.
A Wider Set of Choices
However, this freedom comes with new responsibilities. Instead of forming a judgment based on a bank’s location or lobby, clients now have to read licensing documents, understand which supervisory body stands behind an institution, and figure out how deposit protection actually works when a bank operates across borders. This is a different kind of due diligence, one that requires people to be more informed and proactive when it comes to managing their finances.
A New Map of Banking
The centre of gravity in banking has shifted, from a map of branch addresses to a map of licenses and jurisdictions. For more and more people, especially those who travel, work, and spend money across borders, this is the map that actually matters. It’s a map that’s drawn by the regulatory frameworks and licensing agreements that govern the banking industry, rather than by the physical location of bank branches.