Four Cantonal Banks Partner with Avaloq to Modernize Mobile Banking

WHY THIS MATTERS

The joint mobile banking modernization initiative by four prominent Swiss cantonal banks—Basellandschaftliche Kantonalbank (BLKB), Basler Kantonalbank (BKB) along with its subsidiary Bank Cler, St. Galler Kantonalbank (SGKB), and Thurgauer Kantonalbank (TKB)—highlights a strategic shift toward consortium-style technology procurement among regional lenders. Locally rooted retail banks across Europe face an existential challenge: they must provide sophisticated, high-performance digital apps to retain tech-savvy clients, but doing so independently carries massive development costs that can strain mid-tier balance sheets. By forming a collective technology alliance, these cantonal banks leverage their combined scale to drastically reduce the capital required for front-end overhauls. This approach allows them to deploy competitive, modern wealth management and day-to-day transaction tools while preserving the unique regional identities that underpin their retail banking models.

The initiative is the result of close collaboration among four cantonal banks to jointly assess and select technology partners that best support their digitalization strategies while enhancing client experience. The project will see the banks migrate to Avaloq’s new mobile banking capabilities through a phased approach. 

The new mobile app developed by Avaloq improves usability, performance and flexibility, while providing a stable foundation for future development. It includes trading and portfolio management, configurable dashboards, real-time notifications, Apple and Google Pay integration, credit card management and allows the banks to independently add features over time.

Beyond the technology rollout, the project is intended to serve as a blueprint for stronger collaboration among cantonal banks. By sharing experience and aligning innovation efforts, participating banks aim to strengthen digital capabilities and sustainably enhance the client experience. 

Manuel Niederkofler, Head of IT at Thurgauer Kantonalbank, representing the community of cantonal banks, said: “This initiative demonstrates how collaboration among cantonal banks can support the digitalization of banking and improve client experience. We selected Avaloq for this project based on its proven track record in core banking, sustained investment in research and development, and its Swiss roots, as well as a collaborative approach to innovation for the long-term benefit for our clients.” 

Christian Haux, Managing Director for Switzerland and Liechtenstein at Avaloq, said: “We are proud to be the chosen technology partner for this initiative, working closely with cantonal banks to develop and deploy a mobile banking solution aligned with the needs of their clients in Switzerland. With rising expectations for intuitive digital services and self-service, mobile banking has become a clear priority for financial institutions, and we are committed to ensuring that our clients can offer a modern, user-friendly mobile banking experience.” 

FF NEWS TAKE

Avaloq is cementing its dominance in the Swiss core-banking and digital advisory ecosystem by securing a major mobile overhaul contract to migrate roughly one million combined clients across the four cantonal institutions. The project transforms traditional retail front-ends into highly scalable financial control nodes by rolling out an updated, modular application architecture. Rather than relying on rigid, hard-coded software updates, the new mobile platform features open, configurable dashboards, integrated Apple Pay and Google Pay engines, real-time transaction tracking, and direct trading and portfolio management tools. Managed via a phased rollout overseen by a joint committee led by TKB Head of IT Manuel Niederkofler and Avaloq Switzerland Managing Director Christian Haux, this framework sets a clear operational blueprint for how independent regional banks can pool resources to build modern, regulatory-compliant digital software layers at scale.