Digitalisation of banking business

In expanding its digital channels and services, within the scope of its omni-channel strategy, the LLB Group is investing a total of around CHF 30 million in innovation and IT projects up to the end of 2020. The goal is to combine the physical and digital contact points such as bank branches, telephony, mobile banking, web portal, online banking and LLB Quotes, into a seamless client experience.

Expansion of online services

In February 2017, we introduced new mobile banking apps with touch ID for LLB and Bank Linth – designed in accordance with the latest security and technological standards.

By summer 2017, the LLB Group had completely revised the content and technology of its websites for LLB and Bank Linth including the seamless integration of its Online Banking (see chapter “Retail & Corporate Banking”).

We have decided in favour of photoTAN technology to facilitate authentication. It operates in line with the latest research in user-friendliness and data encryption, and complies with the highest security standards. It incorporates a completely responsive design and clients can access LLB / BLL online banking services on our web portal from their smartphones, tablets or desktop computers. These modifications provide us with an excellent basis on which to continually expand and refine our online services and make them even more attractive for our clients.

During the year under report, the number of online banking agreements with LLB rose by 5.6 percent to 26’596, and those with Bank Linth by 3.2 percent to 18’894.

The number of mobile banking registrations with LLB increased by 39 percent to 8’754, and those with Bank Linth by 35.4 percent to 4’214.

Efficient payment systems in Switzerland

Our new Online Banking has already enabled us to carry out important adjustments to payment systems so that they conform to European standards.

With the introduction of the Single Euro Payments Area (SEPA) in 2014, cashless payment transfers were standardised in Europe. By 2020, Switzerland – and therefore Liechtenstein in parallel – will change over to the ISO 20022 international standard for the electronic exchange of data in the financial services industry. The platforms of the banks, SIX Paynet, and Post Finance are to be amalgamated. Instead of ten different payment slips, in future there will be one QR payment code.

The changeover will mainly affect the IT interfaces between financial institutes as well as all companies having interconnected payment transfer systems. In 2017, the LLB Group carried out intensive preparations for the simplification and automation of payment processes.

Support for corporate clients

The LLB Group has about 2’000 such clients as well as large clubs, associations and public institutions, which must modify their systems. It supports its corporate clients in digitalising their processes by means of efficient interfaces such as “LLB / BLL Connect” and the “Electronic Banking Internet Communication Standard” (EBICS). Our clients have been using the EBICS standard since 2016; the updated Connect interface will be available from mid-2018.

E-bill / QR-bill

LLB and Bank Linth plan to introduce E-bills provisionally during the second quarter of 2018. This will enable invoices to appear directly in the SIX LEON portal, where they can be checked and approved for payment. The last large-scale changeover will commence at the beginning of 2019. Here too, the LLB Group is supporting its corporate clients in digitalising their processes so that they send the new QR-bill with payment part to their end clients.

New rules in the EU payment transfers market

The harmonisation and digitalisation of the European payment transfers market represents an important subject for LLB. As an EEA member state, Liechtenstein will implement the EU PSD II payment services directive in 2018. The new regulations take into consideration the stricter data protection requirements and the security of electronic payments.

PSD II allows new payment service providers such as FinTech companies access to the market, which should increase competition and strengthen innovation. The directive stipulates that banks must permit third-party providers access to clients’ accounts if clients desire this. A direct interaction with the bank at which the account is held is no longer necessary. At LLB the necessary adjustments to enable the implementation of PSD II are planned for 2018.

Innovation partnerships and management

In future, the collaboration between banks, IT service providers and FinTech companies in developing the “digital bank” will play an essential role. Back in 2016, the LLB Group utilised just such a strategic innovation partnership to introduce an investment advisory model on the market under the designation “LLB Invest / Bank Linth Invest”. In 2017, we also collaborated with various external business partners.

Internal digitalisation

In order to enhance its agility, innovative power and client experience in the digital age, the LLB Group has set digitalisation, both inside and outside the company, as a strategic priority. Since 2017, the development of modern workplace and communications technologies has been at the forefront of the Group’s plans. The “team@work“ Group project planned aims to improve collaboration, the exchange of knowledge and the way information is processed.

This comprehensive analysis of requirements is based on an online survey of all employees, on employee workshops, as well as interviews with specialists and local representatives. The objective is to draft an appropriate strategy, possible solutions and a roadmap for the digital workplace of the future by mid-2018.