What is Radicant - Sustainability

There are already many neo-banks in Switzerland: Neon, Zak, Yuh, etc. However, Radicant differentiates itself from the competition through its focus on sustainability. This is reflected in all aspects of the app: By using the card for payments, trees are planted, the CO2 footprint of your expenditures is calculated, and you can invest in sustainable funds. This is nice and all, but how does Radicant perform when it comes to core banking functions? Let’s take a closer look in this review.

Radicant Banking

This is the core function of Radicant. You get a Swiss bank account with free account management. By default, there is a free virtual debit card. For a one-time fee of 10 Swiss Francs, you can also order a physical debit card.

Radicant supports all common functions such as transfers, standing orders, and eBills. The app is clear and easy to use. A major advantage is the dedicated Radicant-Twint app. The most popular Swiss neo-bank, Neon, does not have its own app for Twint. There, you rely on the UBS-Twint app, which has significantly poorer integration for Neon customers. For example, there are relatively low reception limits.

Interest Rates

• Up to CHF 250,000: 1% per year
• Over CHF 250,000: 0.75% per year

There is no withdrawal limit.

Payments with the Radicant Card

• Payments in Switzerland and abroad are free, including in foreign currencies
• Cash withdrawals in Switzerland in CHF: 12 per year included, then CHF 2 per withdrawal
• Cash withdrawals abroad in foreign currencies: CHF 5 per withdrawal
• Apple Pay and Google Pay are supported

Conclusion

Overall, Radicant Banking offers all the features one would expect from a modern bank. The interest rates on the account are attractive, and the card can be used worldwide without additional costs. A downside is the high fee of CHF 5 for cash withdrawals abroad. Additionally, a separate savings account would be desirable.

Radicant Investing

Radicant’s investing offering is also fully focused on sustainability. They use their own impact rating process to evaluate companies. Companies are assessed based on their contribution to the Sustainable Development Goals (SDGs) defined by the UN.

As a customer, you can choose from the following funds, each pursuing different SDG goals:

• Basic Needs
• Health and Well-being
• Quality Education
• Gender Equality
• Clean Water and Sanitation
• Social Progress
• Climate Stability
• Healthy Ecosystems

These funds are actively managed and issued by Zürcher Kantonalbank. Additionally, Radicant has three of its own funds:

• Sustainable Swiss Equities
• Sustainable Global Bonds
• Sustainable Global Equities

Based on these funds and your desired risk profile, Radicant will then create an investing strategy for you.

Costs

There is a minimum investment of CHF 1,000. Until the end of 2024, Radicant is offering a 50% discount on the annual fee for the portfolio. But let’s look at the annual costs for investing:

Portfolio Value	Annual Fee	Annual Product Costs	Total
CHF 1,000 – 24,999	0.90%	0.4 – 0.47%	1.30 – 1.37%
CHF 25,000 – 99,999	0.80%	0.4 – 0.47%	1.20 – 1.27%
CHF 100,000 – 249,999	0.65%	0.4 – 0.47%	1.05 – 1.12%
From CHF 250,000	0.50%	0.4 – 0.47%	0.90 – 0.97%

Conclusion

The focus on sustainability makes Radicant Investing quite interesting. It is exciting that you can specifically choose which SDGs you want to support through your investments. However, these are actively managed funds. Accordingly, the costs are very high at an average of over one percent per year. Additionally, you are limited to sustainable funds.

Radicant Pillar 3a

Radicant has recently introduced a Pillar 3a account. However, the retirement savings account is currently not suitable for investments. It is a pure savings account. Currently, you receive 1.25% interest on deposited amounts. The fees are CHF 0. Soon, there will also be a Pillar 3a with sustainable investments.

Advantages of Radicant

• Modern, beautiful banking app
• All common banking functions well implemented
• Card well-suited for payments in Switzerland and abroad
• Dedicated Twint app
• Free account management

Disadvantages of Radicant

• High fee for cash withdrawals abroad
• No separate savings account
• High costs for investing

Conclusion

Radicant positions itself clearly as a sustainable neo-bank and offers interesting approaches both in banking and investing. The core functions of the account are solid and provide all the necessary features for everyday use. Particularly positive are the free account management and the ability to pay worldwide without fees. The interest rates on the account are attractive, but the fee for cash withdrawals abroad is quite high. A separate savings account is still missing.

In investing, Radicant scores with its sustainable approach and the ability to invest in funds that support specific UN SDGs. However, the costs for the actively managed funds are relatively high, which could be a disadvantage for cost-conscious investors. A high price is demanded for sustainability and active management of the funds.

The new Pillar 3a from Radicant is currently only available as a pure savings account. Therefore, options like VIAC or Frankly are significantly more attractive for investors looking to invest in Pillar 3a.

In summary, Radicant represents a modern and sustainable alternative to traditional banks, excelling in both app usability and sustainable investment strategy. However, there are areas that need improvement, especially regarding the cost structure and the expansion of the offerings.