The Swiss fintech industry continues to grow, while the traditional banking sector continues to stagnate.
Swiss fintech industry continues to grow
In particular, the development of the fintech industry and the classic financial industry in 2018 were the focus of the investigation. Above all, the positioning of classic banks vis-à-vis the fintech industry was examined by the researchers.
The fintech sector has seen significant growth over the past year. There are now more than 356 active companies in Switzerland, which means that the industry has grown by more than 62 percent. Above all, there was a rise in risk capital in the market, while the volume of the cryptographic asset class declined significantly due to the correction. The report also highlights that the fintech industry is undergoing continuous development. By contrast, the classic financial sector is showing a decline. These negative trends are particularly noticeable in the number of companies and staff employed. The report highlights that fintechs are faster and more efficient in developing and implementing new technologies.
Banks have to face change
The classic banks, in particular, have to face the changes in the industry in order to remain relevant on the market. The banking industry’s share of Swiss GDP also continues to decline. This development is mainly due to new business models that replace some established services.
The report also highlights that distributed ledger technology companies and a crypto-based business model are experiencing strong growth. Above all, the industry-friendly regulation of new technologies within Switzerland is boosting the growth of the industry.
About the regulation of the blockchain sector
In March 2019, Ueli Maurer, President of Switzerland, announced that the regulation of the blockchain sector must be swift and focused. Above all, Maurer emphasizes that the Swiss authorities are looking for new ways to maintain the leading role in the blockchain sector – the country wants to be two steps ahead of the competition. Furthermore, the Swiss Federal Assembly stated that the Federal Council should approve the existing regulations for cryptocurrencies in a timely manner. The regulation aims to define the role of financial supervision in the crypto and blockchain markets.
Also published on Medium.