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October2018

Swissquote’s 44 % Increase in Profits: What Did the Bank Do?

Swissquote’s 44 % Increase in Profits: What Did the Bank Do?

The largest Swiss online bank Swissquote has experienced a rise in profits after entering the crypto market. In comparison to the same time period of 2017, this year, the bank’s profits are higher by 44%.

During the first six months of 2018, Swissquote has got a profit of 25.7 million CHF (around $26.1 million USD). It is important to note that the expected profit was 23.2 million CHF.

The increase in profits came as a result of Swissquote’s offer to allow clients to use their trading accounts for exchange euros and U.S. dollars for BTCs. The bank has become the first one in Switzerland enabling crypto trading.

However, according to analysts, the profits will decrease in the second half of the year due to the crypto market’s current state.

Reducing risks connected to volatility risk-manadgement

In November 2017, Swissquote has created a solution that was aimed to curb the risks of losing money due to the Bitcoin’s volatility. For that purpose, the bank has launched a BTC certificate which would change the volatility by moving holdings between BTC wallets and U.S. dollar accounts.

The holdings are switched with the help of ML algorithm – it can make forecasts and predictions about the movement at the market in short term. Then, by increasing the amount of held cash during uncertain times, the volatility is reduced.

Also, in December 2017, Swissquote has added the support of ETH, BCH, LTC and XRP – it enhanced bank’s position at the crypto market.

This way, Swissquote gives its clients more ways of finances management and flexibility in choosing assets. It allows not only to reduce the risks of losing money but also to increase the amount of existing capital.

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