PostFinance, the national postal service of Switzerland’s baking subsidiary, has collaborated with the online trading platform Swissquote to launch a stock and crypto investment app.
Introduced at a virtual event on May 11, Yuh (pronounced “yoo”) is a mobile app that enables users to save and pay funds and invest in various assets. In terms of crypto investments, the app enables access to 13 cryptocurrencies. Besides cryptos, the app offers access to over 100 of the top global stocks, including Nike, Apple, and Tesla, ETFs, and Trending Themes.
“We want to make life as easy as possible for people,” according to the CEO of Yuh Markus Schwab. “With Yuh we place the entire financial world in the palm of their hands. Everyone should be free to decide when, where and how they manage their money,” he added.
Swissquote provides the financial services offered in the Yuh app. The funds are deposited at Swissquote Bank Ltd in Switzerland. Users are protected by the Swiss banking and financial laws and a CHF 100k bankruptcy protection.
PostFinance announced the collaboration last year, according to SWI. The collaboration came at a time when the bank was losing clients and revenue.
Yuh has a “low-to-no-fees” principle, according to the announcement: “no fees wherever possible, and low fees if these have to be charged – with full transparency at all times.” The app doesn’t have any account management and P2P transfer fees.
The transaction fee is 0.5% for buying or selling equities and 1% for cryptos, while the custody fee is 0 for both types of investments. Yuh may charge additional management fees for ETFs and trending things. The transaction fee for currency exchanges depends on the currency pairs. For major currencies, the fee is less than 1% of the transaction amount.
Yuh also has its own crypto token called Swissqoin (SWQ). SWQ is an ERC-20 token backed by a reserve of Swiss francs.
Users can earn the token by using the different features of the app. For a deposit of CHF 500, users receive 500 SWQ. Users also earn for referrals – both the referrer and referee get 500 SWQ. For trades, users get 10 SWQ per trade and 2 SWQ per Mastercard payment.
The current value of the token is 0.01 CHF. Yuh recalculates this value every month as it reinvests 10% of subscription revenue into the crypto token. The price of SWQ is calculated by the quantity of Swissqoins and the CHF value of the reserve. At the launch, there were a total of 200 million SWQs and 2 million CHF on the reserve account, resulting in a Swissqoin value of CHF 0.01.
PostFinaance has over a century of banking experience. In 2020, the customer base of the bank reduced from 2.74 million to 2.69 million, and profits reduced from CHF 246 million to CHF 131 million, reported SWI.