The identification of customers through digital channels is already legally possible in Germany. The Swiss regulator plans to enable similar procedures for the domestic financial market.

Swiss law stipulates that financial intermediaries have to ask their customers to send signed documents by mail or even appear in person for the opening of a business relationship.

The financial market regulator Finma has now launched a consultation process for a rule change, allowing for instance banks and insurers to engage with a prospective customer via video link or via the internet, the authority said in a statement today.

Adapting to Change

The possibility envisaged in the new rule is called «Digital Onboarding» in the industry lingo.

Finma with the proposed change adapts to the increase in offers of digital services in the financial industry. Customers increasingly use mobile devices for financial transactions. In many instances the law still demands the physical presentation of documents or even the presence of the customer. Finma wants to change this.

The consultation of the industry lasts until January 18, 2016. Finma wants to introduce the new rules in March 2016.