Thanks to excellent conditions, the fintech industry in Switzerland is growing dynamically, as a study shows. She finds clear words on the prospects for the banks: further development or irrelevance.
Martin Hess is Head of Economic Policy at the Swiss Bankers Association
The Institute for Financial Services Zug (IFZ) notes that the general conditions for fintechs in this country continue to be excellent. Switzerland is once again on the podium in the global ranking this year. Presented in February at IFZ’s annual conference, it is now open to the public. Overall, the analysis of the study is optimistic for the Swiss financial center.
Gone is the hype surrounding fintech. The industry is maturing, the wild start-up boom has subsided and the fintech license is a reality today. The prospect of making good business models different from the digital lucky knights benefits confidence in the location and the industry.
Big projects
The fintech activity is not just measured by the number of ICOs or the venture capital volume. Important factors include fintech “incubators”, conferences and award ceremonies, but also the availability of the right talent, media coverage and the existence of industry associations. They all contribute to a tightly knit and eclectic ecosystem.
Big projects such as crypto banks or fully automated exchanges would not be taken by the hand if we did not have the right skills and capital and would not have the political will for technology-friendly site conditions.
Switzerland shows innovative spirit
For example, global cloud service providers are also investing in Switzerland, and foreign companies want to have their sensitive data stored here. Switzerland shows innovative spirit.
Most recently, the Swiss Bankers Association (SBA) has published a guide to enable banks in Switzerland to securely migrate to the cloud. The SNB has also presented its ideas of a payment system in a time of fintechs and blockchain.
Banks as a source of inspiration
The banks themselves are an important driver of the fintech ecosystem. They have access to the end customers and enjoy their trust. They serve as anchor and bridgehead for innovative suppliers.
At a time when market conditions are putting pressure on profitability, they must quickly prepare for the era of new opportunities. These include the ongoing optimization and digitization of their business processes, an innovative customer experience and comprehensive IT security.
No news in front of the mouth
Fortunately, the fintech study dedicates an entire chapter to the positioning of banks in the New World. She does not mince words on the future prospects for traditional banking institutions. You have to choose between business customization or insignificance.
Development does not necessarily have to be disruptive. The deciding factor is the ability of the institutes to implement new technologies quickly and consistently in their operations. There are no excuses, because the framework conditions for the application of future technologies in Switzerland are excellent.
Also published on Medium.