After four years of operations for the finance app Yuh, Swissquote is acquiring the 50-percent stake of joint venture partner PostFinance. This will allow the company to set a clear course, navigate more precisely, and drive its expansion strategy with even greater focus and efficiency.
The decision was made jointly by all three partners, according to a press release. From Swissquote's perspective, Yuh is an ideal addition to its own offering. In addition, the new parent company now manages over one million accounts. PostFinance, for its part, will concentrate on its strategic core competencies in a challenging market environment and strengthen the relevant business areas of its own company. However, everything will remain the same for users, as a Yuh spokesperson confirmed to CVJ.CH upon request.
Cryptocurrencies as a key pillar of expansion
Yuh is a neo bank with additional trading options that has attracted over 340,000 users since its launch in spring 2021. To mark its third anniversary, the financial app recently shared some key milestones it had reached in a communication. These figures underscore that cryptocurrencies are important growth drivers for neo banks. Around 38 percent of Yuh users invest in cryptocurrencies, and in total, 50 percent of users hold securities such as stocks, ETFs, and digital assets - with an average portfolio volume of CHF 5'600. These remarkably high shares contribute significantly to the app’s profitability. Accordingly, cryptocurrencies remain part of Yuh’s expansion strategy.
"We are continuously expanding our crypto offering. From an initial 10 coins, our portfolio has now grown to a total of 50 cryptocurrencies. In our development efforts, we primarily focus on the needs of our community." – Yuh spokesperson, in response to CVJ.CH
Consolidation among leading providers
The Yuh acquisition is part of a broader consolidation trend in the fintech and crypto markets. Global competitor Robinhood announced its acquisition of crypto exchange Bitstamp a year ago and is also expanding aggressively into the Web3 space. While demand for crypto services within financial apps is growing rapidly, building the necessary infrastructure is time-consuming. The increase in mergers and acquisitions (M&A) reflects a maturing market.
At the same time, pressure from crypto exchanges is growing. Some leading platforms such as Coinbase and Kraken are planning to expand into stock trading. Those unable to seamlessly combine traditional and digital offerings risk losing market share.