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Swiss fintech sector grows again

Swiss fintech sector grows again

Tokyo (SCCIJ) – The Swiss fintech sector is back on the growth track. According to the latest fintech study by the Lucerne University of Applied Sciences and Arts, the number of fintech companies grew by 14% in 2022 compared to the previous year. Investment management and banking infrastructure recorded the largest increase.

Swiss fintech sector grows again

The Lucerne University of Applied Sciences and Arts publishes the annual IFZ FinTech Study (© HSLU).

Focus on sustainability

After a decline of around five percent in 2021, the Swiss fintech sector returned to its usual upward trajectory. At the end of 2022, it counted a total of 437 companies, an increase of 14% compared to the previous year (see figures below).

A trend towards sustainability is also evident. By the end of 2022, about 7% of all Swiss FinTech companies had a strategic focus on sustainable products and services. The main area are solutions to support data and analytical insights for sustainability assessments in the financial sector, followed by so-called green FinTech companies, most of which are directed at combating climate change.

Swiss fintech sector grows again

Overview of the Swiss fintech sector (© HSLU).

A Swiss strength

Since the first fintech hub ranking in 2017, Singapore has had the best conditions for such companies. This lead was further extended in 2022. The two Swiss cities of Zurich and Geneva, together with Stockholm, form the first chasing group, but with a striking distance to the leader from Southeast Asia.

Moreover, a location’s framework conditions and the size of its local fintech sector are directly correlated, even after adjusting for country-specific effects. Venture capital and joint venture activities are most strongly linked to the size of a fintech sector, suggesting that the environment for investment and cooperation plays an important role in its formation.

Swiss fintech sector grows again

International ranking of fintech hubs (© HSLU).

Financing trends

While financing activities in the FinTech sector declined worldwide last year and the amounts of venture capital, token sales, acquisitions and IPOs decreased, Switzerland showed a comparatively more positive and stable development. In 2022, Swiss FinTech companies counted a total of 84 financing rounds. This corresponds to a total volume of CHF 605 million.

Compared to the previous year, this means that while the number of financing rounds decreased slightly in 2022, the amounts invested increased by 36%. However, the study also highlights the challenges: “Although Switzerland was able to largely escape the global downward trend, access to financing for Swiss FinTech companies was also perceived as more difficult on average,” says study director Thomas Ankenbrand.

Text: HSLU (Edited by SCCIJ)

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