The Balance Sheet of the Swiss Fintech Sector Is Mixed

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).

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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.

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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.

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