Geneva and Zurich are among top three fintech hubs in the world

According to a study of the Lucerne University of Applied Sciences and Arts, Switzerland offers excellent conditions for the fintech sector. The analysis of 27 business centers led to a ranking, in which Zurich and Geneva occupy the second and third place, shortly behind frontrunner Singapore.

Switzerland is an international fintech hub

Among the indicators that were taken into account are the political stability, efficiency of administrative bodies, access to credit and venture capital, number of university graduates in the fields of science and technology, as well as access and implementation of information and communications technology.

Switzerland-based fintech companies have a global strategy

«The Swiss fintech scene continued to grow in 2016», says Thomas Ankenbrand, project manager of the «IFZ FinTech Study 2017». In the past year, 190 fintech companies conducted their business in Switzerland […]. This amounts to an increase of 17% compared to 2015. Approximately 60% of the companies pursue an international business-to-business strategy.”

The researchers have come to the conclusion that, for the most part, fintech companies cooperate with banks or act as their suppliers. «Fintech companies tend to support banks in their digitalization efforts and thus act as an innovative spearhead rather than directly competing with them», explains Ankenbrand.

Fintech firms rethink their business models

Additionally, the revenue models of fintech companies have shifted towards license fees and SaaS (Software-as-a-Service) in the past year, as is quite common for technology-based business models. The typical business models of established financial enterprises either have little relevance for fintech companies (interest and trading operations), or are losing relevance (commissionbusiness).

Source: Fintechnews Singapore