The Swiss Internet service provider Swissquote announced on Tuesday it has been granted a licence to run an online bank by the Swiss Federal Banking Commission. It plans to launch its new Swissquote Bank in the first quarter of next year.

Swissquote will be one of the first purely Internet based banks working within Switzerland.

The group said in a statement that it would concentrate on providing electronic banking services with a special emphasis on online securities trading and distribution of mutual funds.

Swissquote Group holds 51 per cent of the capital and voting rights of Swissquote Bank. Switzerland's Rüd, Blass and Cie, a private bank owned by Zurich Financial Services, holds the remaining 49 per cent.

The chief executive of the new bank will be Alfred Moeckli, currently in charge of Swissquote's trading division.

The new bank will have a total staff of more than 35 persons working in Gland, canton Vaud, and in Zurich.

Swissquote said it had over 6,000 online clients who would be offered the opportunity to transfer their cash and securities accounts, which have until now been held by Rüd, Blass and Cie, to Swissquote Bank.

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