Connect with us

Fintech

The Balance Sheet of the Swiss Fintech Sector Is Mixed

The Swiss fintech sector saw a 10.5% increase in the number of companies in 2023, totaling 483, despite a decline in investment. Sustainable financing firms surged by nearly 50%, now constituting 10% of all Swiss fintech companies. However, venture capital investments dropped by 24.5%, indicating a potential economic slowdown. Zurich and Geneva remain prominent fintech hubs internationally.

Published

on

Swiss fintech

Despite a decline in investment in the Swiss fintech sector, the number of companies operating in financial technology (fintech) has increased over the past year. In 2023, the Swiss fintech sector counted 483 companies, 10.5% more than in the previous year, according to a study by the Lucerne University of Applied Sciences (HSLU).

Read more about the Swiss fintech sector and find the most important financial news of the day with our companion app Born2Invest, available for free for both Android and iOS devices. Don’t waste your time scrolling the internet, our team of seasoned writers

Since 2015, the number of the Swiss fintech companies has tripled

Growth was particularly strong in the area of ​​sustainable financing. Within a year, the proportion of these companies increased by almost half, so that they now make up 10% of all Fintech companies in Switzerland. According to the authors of the study, investors’ increasing interest in so-called “sustainable” investments has led to a significant upturn in this investment category.

However, financing for Fintech companies has weakened compared to the previous year. The volume of venture capital investments in this industry decreased from CHF 605 million in 2022 to CHF 457 million in 2023 (-24.5%), while the number of financing rounds fell by 19% from 84 to 68.

Nevertheless, the volume of funds mobilized in 2023, in the Swiss fintech sector, remains above the totals of 2019 (210 million), 2020 (259 million) and 2021 (446 million). It is currently difficult to say whether the current development is a structural decline or an economic slowdown that could be due to the rise in key interest rates.

In an international comparison, Zurich (3rd place) and Geneva (4th) continue to perform well, but both lost a place in the ranking of the most attractive cities for fintech companies. While Stockholm moved from fourth to second place between 2022 and 2023, Singapore remains the undisputed leader.

“Although the Swiss fintech industry has developed from a niche market into a significant provider of innovation for traditional financial service providers, the potential for optimizing the financial value chain has not yet been exhausted,” added Ankenbrand. Embedded finance, i.e. solutions for the seamless integration of financial services into various application areas, have only been implemented sporadically so far.

__

(Featured image by Leo_Visions via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in SME portal. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Sharon Harris is a feminist and a part-time nomad. She reports about businesses primarily involved in tech, CBD, and crypto. She started her career as a product manager at a Silicon Valley startup but now enjoys a new life as a personal finance geek and writer. Her primary aim is to provide readers with a new perspective on the overlapping world of finance and technology.