SWITZERLAND Trends and Developments Contributed by: Kilian Schärli, Reto Luthiger, Andrea Trost and Diana Lafita, MLL Legal
Overview of the Swiss Fintech Market Thanks to its well-established banking, insur - ance and asset management industry, highly specialised workforce, stable and robust econ - omy – with low inflation and a strong currency – and flexible and stable political system, Swit - zerland has excellent market conditions to foster innovation in the financial sector. Hence, Switzerland has adopted an innovative and fintech-friendly regulatory framework over the past ten years to boost the development of Swiss fintech business models, which have now reached a great level of maturity. In the Swiss financial market, there is no longer a clear sepa - ration between traditional financial services and fintech models. Almost every financial service offering has undergone a deep technological transformation. The canton of Zug, which is home to the “Cryp- to Valley” , has attracted numerous international players in the crypto and blockchain space due to its business-friendly environment, clear regu - latory framework and competitive tax system. This has created an ecosystem of companies, foundations, associations and networks of indi - viduals and research institutions that not only compete, but also co-operate and exchange information to accelerate innovation in the cryp - to area. In 2024, the Crypto Valley was home to 17 unicorns in the blockchain industry, with a valuation exceeding USD1 billion. The Main Fintech Technologies and Applications Offered in Switzerland and Their Regulatory Framework The main technologies that thrive in the financial services sector are: • digitalisation and online services; • blockchain and Web3 applications; and
• artificial intelligence (AI). The following sections provide key examples and outline the regulatory framework. Digitalisation of financial services The fintech transformation has been driven by a shift to digital and online services and appli - cations, including instant and contactless pay - ment systems, which are now widely used by both retail and businesses. Traditional banks and financial intermediaries have largely maintained their market share by progressively and stead - ily transforming their services into personalised online offerings. Online banking and financial services applications In Switzerland, online applications that cater to various financial needs, ranging from mobile banking apps to investment platforms, have become the standard channels for individuals and companies to access banking and other financial services. For example, UBS, Raiffeisen, and many other Swiss and foreign banks offer mobile apps that allow their users to manage bank accounts, make transfers, view account statements and more. In asset management, Swissquote leads the market as the most prominent platform provid - ing online trading services, investment solutions and wealth management. True Wealth, Find - ependent, Inyova, Selma Finance and VIAC are Swiss wealth management platforms that use exchange-traded funds (ETFs) to create diversi - fied, low-cost portfolios. Another notable app, Yuh, is a digital investment platform providing users with the ability to invest in stocks, ETFs and other financial instruments through an easy- to-use interface. SwissBorg, primarily focused on cryptocurrencies, offers smart portfolio man -
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