IFZ FinTech Study 2022: Insights into the Dynamics of Swiss FinTech Sector
Every year, the Institute of Financial Services (IFZ) at the Lucerne University of Applied Sciences and Arts publishes "IFZ FinTech Study". As Synpulse, we are extremely happy to be a sponsor of this year`s edition.
For the seventh time, the study provides a comprehensive overview of the Swiss FinTech sector. In recent years, this has grown from a niche market into an influential sector that offers innovative solutions to the financial industry. The current IFZ study shows to what extent this positive trend has continued. Read our article to have a little glimpse of the study and download the full report to find out more.
FinTech in Switzerland: Fewer Companies, More Volume
The number of Swiss FinTech companies shrank in 2021 for the first time since 2015. However, a more detailed analysis of the sector shows that the existing firms have grown. This year's FinTech study by the Lucerne University of Applied Sciences and Arts focuses on the Swiss Fintech ecosystem and provides insights into the dynamics of the market.
The development of the Swiss FinTech sector has only known one direction in recent years: upwards. After the size of the sector, measured by the number of active Swiss FinTech companies, increased year after year in the past, a decline is now being recorded for the first time for the year 2021. At the end of 2021, Switzerland was home to 384 FinTech companies, which corresponds to a decline of 21 companies compared to the previous year, or a minus of around five percent from a relative perspective.
Despite this negative development at first glance, there are also positive trends with regard to the companies' business models. For example, the median number of employees and the median total funding of Swiss FinTech companies increased last year. This is after these key figures stagnated or even declined last year. In addition, venture capital activity in the Swiss FinTech sector reached a record level in 2021, both in terms of the number of financing rounds and the volume.
Hub Ranking: Swiss FinTech Still Ranks High
The FinTech Hub Ranking of the IFZ study evaluates locations worldwide with regard to their political, legal, economic, technological and social framework conditions for FinTech companies. The result: Zurich and Geneva are in top positions in an international comparison. First five locations were able to defend their place with respect to the last year. This also shows that the Swiss locations are still ahead of cities such as New York, London and San Francisco.
This year’s IFZ FinTech Study highlights the most relevant and current developments in the Swiss FinTech sector. What does the current FinTech landscape in Switzerland look like? Will the Metaverse help blockchain technology make a breakthrough? How will Swiss banks and FinTech companies exploit the potential of Open Finance in Wealth Management? Will sustainability be the new normal? The answers to these questions and many others are now available in the latest edition of the study.