A newly published research reveals that Switzerland’s fintech sector continues to strive while current financial organizations are languishing.
SwissBanking IFZ Fintech Study
The research has been named the IFZ FinTech Study 2019 and was published on April 1 by SwissBanking. The objective of the report, created by the Lucerne University of Applied Studies, was to emphasize the changes made in the fintech industry the previous year and to assess how banks placed themselves in conjunction with financial technology.
According to the research, Switzerland’s financial tech sector demonstrated considerable growth in the last year. The industry grew by about 62 percent, with 356 progressive companies by the end of 2018. Fintech was also more robust in terms of venture capital actions. However, the cryptographic asset markets had to undergo a significant update.
Fintech vs. Traditional Finance
The Lucerne University report also pointed out that the country’s fintech industry is developing at a regular rate as opposed to the typical financial market that’s currently seeing a steady decline in the number of employees and organizations. The report also highlighted that fintech groups move quicker and more efficiently with regards to the implementation and utilization of new technologies.
With regards to the country’s traditional financial organizations, banks are encouraged to evolve to keep up with technology and remain relevant. The study stated that the decline of the “Swiss financial industry to the total income of the Swiss economy is a consequence of the steadily decreasing relevance of traditional financial institutions.” It gave as an example the numerous business models introduced that resulted in some banking services to become obsolete.
The study also pointed out that crypto-based businesses and distributed ledger tech companies had an opportunity to develop due to the country’s supportive regulations.