Credit Suisse will compete with rival challenger banks by launching an app-only banking service.

The app will offer a variety of online banking tools, free foreign exchange transactions, mortgage loans and a fully digital wealth management service, according to a Finextra report.

The app launch comes with a virtual debit card for e-commerce transactions, but if customers want a physical card there will be a monthly fee charged.

Credit Suisse recently announced plans to close a quarter of its branches. The bank is responding to customer preference for apps and online banking after reviewing data that shows over a two-year period, online banking had grown by approximately 40%, and the use of mobile banking more than doubled.

The actual launch date of the online app service will run parallel to a planned revamp of the bank's remaining physical outlets, according to the report. These 'future-oriented' branch concept will cater to clients with more complex advisory needs and include digital bar' offering one-to-one sessions with specialists via video conferencing and event zones to attract startups.