In the eyes of some, fintech will replace traditional banking, and companies that don't adapt will disappear. These tend to be people who see Switzerland lagging dangerously far behind in the development of the new technologies. But is this true or is Switzerland on the contrary a rising fintech star?
Those who have a rather euphoric view about fintech's possibilities tend to be the same who say Switzerland's fledgling fintech industry is hopelessly running behind booming centers in New York, London, Berlin and Singapore. The reason given for this calamity is a lack of infrastructure and development programs.
Some bankers, however, think the whole talk about fintech is more or less gobbledygook and consider the suggestion that traditional banking is on its way out completely over the top. They don't see much need to invest in the technology or to change their business models.
Pity for the Nerds
They also have little more than pity for the fintech nerds. The fact that fintech plays a rather marginal role on the Swiss financial market so far in their opinion has much to do with the fact that little has been achieved.
Digital marketing agency Blueglass together with IG Bank Switzerland assessed the fintech industry in Switzerland and put the graphics at the exclusive disposal of finews.ch.
The conclusion: in terms of risk capital, Switzerland is provincial. The 8 million francs, 0.7 percent of the global investment capital, are disproportionately small compared to the size of Switzerland's financial market. Still, the lack of investment hasn't prevented the fintechies from developing a vibrant scene.
Conclusion: The number of newly founded fintech companies has increased dramatically for the past years. In three years, the total tripled.
More than half of the companies settled in Zurich, the home of the Federal Institute of Technology ETH. The university is a rich source of IT specialists and programmers. The number of banks in Zurich obviously also attracts fintech companies, which aren't simply considered as rival companies but also service partners.
Switzerland has 111 fintech firms, a number that is surprisingly good in a worldwide perspective. According to the study, Switzerland is home to every 11th fintech company. The inexistent risk capital doesn't seem to be a hinder for the development of the industry, which obviously uses other sources of financing.
