Top in Innovation, Switzerland Sees Maturing of Fintechs

Switzerland’s Fintechs Are Mostly in Cryptocurrency and Blockchain and Investment Management:

While Switzerland is known for its superlative banking system, it is also placed on the top in the Global Innovation Index. The country has seen transformative developments in digitization of its banking and financial services sector. It is an established fact that nearly 10% of all fintech business in Europe is based in Switzerland, and most of it in Zurich. In global terms, every 10th fintech startup was founded in Switzerland. Investments in Swiss fintech enterprises total around CHF 15 billion. There are 300 plus fintech companies in the country and a majority of them belong to 2 significant categories - cryptocurrency and blockchain and investment management.

There are over 100 startups engaged in developing cryptocurrency and blockchain systems. Switzerland’s Federal Council recognizes blockchain as an industry and the existing laws in the country are conducive for its growth. There is a distinct geographic area, called Zug, which is described as the Crypto Valley as most of the blockchain startups are located here.

Investment management is also an area where several startups are engaged in developing newer and efficient systems. There are 75 noteworthy startups in this field and there are also called wealthtechs. They offer technology-enabled tools for the HNIs, like full-service brokerage alternatives, automated and semiautomated robo-advisors, self-service investment platforms, asset class specific marketplaces and tools to keep up with the changing dynamics in wealth management.

Besides these 2 sectors, there are successful startups in crowdfunding which focus on offering loans to private persons and companies, students, SMEs and other institutional borrowers.

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