The Swiss fintech sector has increased significantly over the last four years, with a strong uptick in 2017 and 2018. There are currently 80 fintech companies in the market, or more than 60% of the total number. The number of new startups has remained flat over the past two years, but the existing ones have evolved and expanded their capitalization, pointing to an industry maturation. However, recent M&A deals and company closures have been scarce, suggesting a levelling-off in the Swiss FinTech market.
Several factors have helped Switzerland’s fintech industry thrive. Political stability and the efficiency of government agencies are key factors. Other factors, such as access to venture capital and university graduates with a background in science and technology, make Swiss cities a good place to start a fintech business. During the past three years, the number of startups has risen steadily. By the end of 2017, there were 220 active FinTech companies in the country, up 17% from the previous year.
The Swiss fintech industry is also unique in its ability to adapt to regulatory changes. The Swiss banking regulators have long been supportive of the growth of the FinTech sector, and the industry is growing at a rapid pace. As more companies seek to compete with banks, the country has a wealth of talent available. In addition to a strong financial system, the Swiss financial sector is a leader in innovation.