top of page
LogoZ_edited_edited.png

HERITON CAPITAL

AI Instead of Paper Files: How Swiss Banks Use Artificial Intelligence to Verify Documents When Opening Accounts

  • Writer: Zener Group
    Zener Group
  • Jan 21
  • 3 min read

Switzerland’s banking system has long been associated with conservatism, manual checks, and rigorous compliance. Yet even this global benchmark of financial stability has entered a new phase: the active use of artificial intelligence (AI)—especially in one of the most sensitive areas of banking operations, document verification and client onboarding.



The reason is straightforward. Regulatory pressure is increasing, KYC and AML requirements are expanding, and the traditional, manual review of documents no longer scales in a global financial environment.


Why Swiss Banks Are Turning to AI


Although Switzerland is not a member of the European Union, its banks operate globally and must comply with strict international standards, including:

  • Anti–Money Laundering (AML) regulations

  • Know Your Customer (KYC) requirements

  • Automatic Exchange of Information (AEOI / CRS)


At the same time:

  • the number of required documents per client has increased,

  • international client structures have become more complex,

  • regulators expect faster, more consistent controls.

AI has emerged as a solution that allows banks to speed up onboarding, reduce operational risk, and improve compliance accuracy.


Source (FINMA)


Where AI Is Used in the Account Opening Process


1. Document Verification


AI-powered systems are now routinely used to analyse:

  • passports and national ID cards,

  • proof-of-address documents,

  • corporate documentation,

  • source-of-funds declarations.


Algorithms can:

  • detect forged or altered documents,

  • identify inconsistencies across files,

  • cross-check data against sanctions and PEP databases,

  • automatically flag high-risk cases for human review.


This significantly reduces processing time and minimizes human error.

Source (McKinsey)


2. Biometric Identity Checks


For remote onboarding, Swiss banks increasingly rely on:

  • facial recognition,

  • “liveness” detection (to ensure a real person is present),

  • biometric comparison between live images and identity documents.

These technologies are especially important for digital banks and international clients who never visit a branch in person.

Source (Swiss Bankers Association):https://www.swissbanking.ch/en/topics/digitalisation

3. Risk Profiling and Ongoing Monitoring

AI is not limited to the moment of onboarding. It is also used to:

  • assess client risk profiles,

  • detect unusual behavioural patterns,

  • trigger enhanced due diligence when risk levels change.

As a result, compliance becomes continuous rather than one-off.


Source (BIS)


Who Is Implementing These Solutions


Swiss banks—from global institutions to private banks—work closely with RegTech and AI providers.


Commonly used solutions include:

  • Onfido

  • Jumio

  • Trulioo

  • Feedzai


In parallel, major institutions such as UBS and other private banks have developed internal AI-based compliance platforms tailored to Swiss regulatory standards.


Source (Deloitte):


What This Means for Clients


Benefits

  • Faster account opening (days instead of weeks),

  • Less paperwork and fewer in-person meetings,

  • Remote onboarding for international clients,

  • Clearer and more consistent compliance requirements.


Challenges

  • More data collected and analysed,

  • Increased scrutiny of client profiles,

  • Automated rejections with limited explanations,

  • Greater difficulty for “non-standard” cases.

AI does not eliminate human decision-making—but the first gate is now algorithmic.


Legal and Ethical Framework


In Switzerland, the use of AI in banking is subject to strict oversight by FINMA.


Key principles include:

  • explainability of AI models,

  • accountability of banks for automated decisions,

  • strong data-protection requirements.


Banks must be able to:

  • understand how AI systems reach conclusions,

  • justify refusals or escalations,

  • ensure compliance with privacy and governance rules.



Why Switzerland Is a Natural Hub for AI-Driven Compliance


Switzerland combines:

  • strict regulatory supervision,

  • high technological maturity,

  • a strong RegTech ecosystem,

  • a large and diverse international client base.


This makes the country a testing ground for the future of banking compliance, where AI is becoming the standard rather than an experiment.


Conclusion


The use of artificial intelligence in Swiss account opening procedures is not a relaxation of rules—it is their technological intensification.


AI:

  • Accelerates onboarding,

  • Reduces compliance risk,

  • Increases transparency,

  • Reshapes the client experience.


The Swiss model demonstrates a broader truth:in a world of rising regulation, the winners are not those who weaken controls, but those who automate them intelligently.


If you’d like, I can next:

  • Write an article on why banks increasingly refuse to open accounts and what clients can do,

  • Create an infographic “How AI Verifies a Banking Client”,

  • Or adapt this piece specifically for HNWI, startups, or international businesses.


bottom of page