Fintech: Every 11th Fintech company comes from Switzerland25.11.2015 07:10
IG Bank Switzerland conducted an extensive study on the Swiss Fintech Industry with Swiss start-up founders and Fintech investors to analyze the current status and trend of Fintech industry in Switzerland in comparison to other countries in the world and its role in the future transformation of the financial sector. Results indicate that every 11th Fintech company out of 1’233 companies worldwide originates from Switzerland.
There are several discussions going on the issues facing the Fintech industry in Switzerland. A study by IG Bank Switzerland analyses the current status of Fintech startups in Switzerland in order to gain a clear understanding of the entire industry. Results were drawn from interviews with the most competent heads in Fintech scene Switzerland, Fintech startups and investors in Switzerland.
The study indicates that although every eleventh Fintech company originates from Switzerland, only of 0.7% of the global Fintech investments is invested in Swiss startups. This amount in comparison to America with $9’887 and neighboring country Germany with $331, is inconsiderable. Venture capital investment in Switzerland appears to be an insignificant sum not because investment in Fintech start-ups in Switzerland is not attractive, but because most of the Swiss start-ups are privately financed.
The graph indicates number of Fintech companies in Switzerland since 2007
From a broader perspective, there has been substantial growth in the Swiss Fintech industry since 2007. Today, there are over 100 Fintech startups in the country with 54% concentrated in Zürich and the rest in central and western Switzerland as well as Ticino. The Fintech companies were divided according to the following segments; Investment and Asset Management (20%), financial comparison portals (20%), Payment (18%), Crowdfunding (17%), Data Management (13%), Crypto currencies (8%) and Personal finance management (3%).
This continuous development can be attributed to the political and economic stability, as well as expertise in the country, the reputation as one of the world’s largest financial centers and the privacy protection policy, which creates trust from outside countries. These factors are ideal conditions and opportunities for Fintech startups to position and set standards, particularly, in the Data Security / Privacy, but also in Wealth Management, Finance and crypto crowdfunding.
Despite this growth and the positive success factors, there are still loopholes in the Swiss Fintech Industry that need to be considered in order to foster further development. Suggested factors include; promotion of seed-funding, establishment of a proactive financial market authority with a specialized innovation team, which timely consulting offers, promotion of entrepreneurship in schools and universities, simplifying market access in European countries for regulated Financial Services, Creating a platform which enables a modest marketing budget more Press presence and Improving the tax system in regards to employee participation, tax free capital gain and the Wealth tax for entrepreneurs.
(Graph source: Morris Feierabend
Digital Marketing & SEO)