Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Following a period of rapid digital innovation, the global digital banking market is now maturing, shifting from developing and implementing new features to reevaluating banking services and improving user experience (UX), a new Deloitte study found.

The Digital Banking Maturity 2024 report, released in October, surveyed 349 banks in 44 countries to understand the state of digital banking around the world and offer a comprehensive analysis of how banks are evolving in the digital era.

A shift toward redefining existing offerings

The report compares its findings with the previous 2022 edition, revealing a noticeable stagnation in the adoption of new functionalities in banking apps. Instead of focusing solely on introducing new functionalities, banks are now placing greater emphasis on refining existing features and enhancing the overall user experience, the study found.

This shift is particularly evident among “Digital Champions” – those excelling in digital innovation, seamless customer journeys and real-time services – which are redesigning customer interaction channels and expanding relationship ecosystems, especially in areas like investment services.

Overall, the study found that remote, digital onboarding is now common practice across the sector. However, Digital Champions are going the extra mile by adding user-centric features such as information on the application status, real-time validation and a “save and finish later” option.

According to the report, this strategy aims to generate outstanding value for customers, offering them with a full range of key banking operations and fulfilling all financial needs. It aligns with the growing importance of customer experience as a key differentiator.

The rise of super-apps

The report identifies another dominant approach that banking leaders are adopting. In this strategy, banks are focusing on adding many new functionalities and to provide comprehensive “super applications”. These platforms streamline end-to-end remote product offerings while enabling users to manage various aspects of their financial lives in one place.

According to the study, Digital Champions are largely leading this revolution, providing savings and investment solutions 2.5 times more frequently than their competitors. Additionally, many top players are integrating fully digital cash loans into their standard services, and an increasing number are extending their digital capabilities to mortgage products.

Some of these apps have gone a step further, expanding beyond traditional banks to include a range of features such as mobility services, insurance options, and real estate tools, enabling customers to manage various aspects of their lives via a single platform. By providing an all-in-one solution, these institutions aim to keep users engaged within the app for more than just financial tasks, enhancing customer loyalty and convenience.

According to the report, this approach has gained prominence in the Middle East and Asia, where Digital Champions are now offering such services 2.5 times more often than other banks, with significant differences seen in healthcare (6.5x) and public services (5.9x).

Real-estate, personal financial management to improve customer engagement

The research found that banks are also innovating in mortgage lending by introducing real estate marketplaces. These marketplaces are designed to facilitate home purchase, as part of the mortgage process and the only marketplace available, or they can make part of a bigger property-related ecosystem.

Banks are also actively seeking new methods to improve customer engagement, introducing personal financial management functionalities and enhancing financial knowledge and awareness. These strategies aim to increase the duration and frequency of mobile app usage. They also create cross-selling opportunities, further driving customer interaction and loyalty.

According to the report, Europe is the global leader in digital banking, with the highest number of Digital Champions at 17.

In the European neobank sector, the UK’s Revolut leads the market with 50 million customers, followed by Wise with 12.8 million, Bunq with 10 million customers, Monzo with 9.7 million, and N26 with 8 million, according to Statista.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Reuters Events has announced its “Future of Insurance Europe 2025” conference, set to take place on 7-8 May in Amsterdam.

The event will address key challenges and opportunities in the European insurance sector, including AI integration, risk management, and evolving customer demands.

The conference will bring together over 200 leaders from more than 35 countries.

Attendees can expect discussions and insights on topics such as AI, technology, inflation, risk, talent, strategy, and customer engagement.

Sessions will include panels, roundtables, workshops, hackathons, and presentations featuring prominent industry experts.

Key speakers include Arturo Lopez-Linares, Chief Claims Officer at AXA; Henrik Ryden, CEO Nordics at Marsh McLennan; and Barbara Lieich-Steiner, Chief Digital Officer at UNIQA.

Discussions will revolve around four key themes:

Digital Transformation & AI-Powered Innovation: Exploring technologies like generative AI and advanced analytics to revolutionise underwriting, claims processing, and customer service.

Customer-Centric Strategies & Product Development: Addressing ways to develop insurance products that are transparent, simple, and tailored to evolving customer needs.

Risk Management & Resilience: Examining strategies to mitigate emerging risks such as climate change and cyber threats while promoting sustainable solutions.

Talent & Workforce Evolution: Focusing on upskilling, attracting, and retaining talent, with AI playing a role in building dynamic workplaces.

The event brochure, which includes details and a €200 discount available until 20 December, can be accessed here.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Swiss-based cryptocurrency app Relai has secured US$12 million in funding to drive its expansion across Europe.

The investment was led by ego death capital with participation from Plan B Bitcoin Fund, Timechain, and Solit Group.

The heavily oversubscribed funding round will enable Relai to enhance its platform, streamline the Bitcoin buying process, and educate users on the benefits of the crypto as a savings tool.

Relai also shared its plans to obtain the Markets in Crypto-Assets Regulation (MiCA) license to gain access to a potential user base of 400 million.

The company has reported significant growth, with a 300% year-on-year increase in user adoption, and is on track to reach 1 million downloads by 2025.

Founded by Julian Liniger and Adem Bilican in 2020, Relai’s self-custody feature allows users to independently manage their Bitcoin while simplifying the buying process.

Jeff Booth, Founding Partner at ego death capital, said,

“Julian and Adem have built an incredible team and platform by focusing relentlessly on long-term value to users – helping them to both understand Bitcoin and to buy it safely and securely.

They are already a European leader and are well positioned to become a household name.”

Featured image credit: Edited from Freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

finpension ist 2024 stärker gewachsen als je zuvor. Die verwalteten Vermögen haben um mehr als eine Milliarde Franken auf über drei Milliarden Franken zugelegt.

Durch einen temporären Gebührenverzicht auf die neu lancierte Anlagelösung will finpension das Wachstum weiter an-kurbeln.

Dynamische Marktentwicklung mit erhöhter Wechselbereitschaft

finpension konnte im Jahr 2024 bereits mehr als 15’000 Eröffnungen registrieren. Damit hat sich das Wachstum gegenüber dem Vorjahr mehr als verdoppelt. finpension führt das erhöhte Wachstum einerseits auf die breitere Produktpalette zurück, andererseits auf eine höhere Wechselbereitschaft der Schweizer Bankkundinnen und -kunden. Um maximal von der erhöhten Dynamik am Markt zu profitieren, verzichtet finpension 2025 auf die Gebühr von 0.39 % der Anlagelösung fürs freie Vermögen.

Lösung zur Anlage von Kapitalbezügen aus der Vorsorge

Der Ursprung der Anlagelösung lag im Wunsch von bestehenden Kundinnen und Kunden, ihre Vorsorgegelder auch nach der Pensionierung durch finpension verwalten zu lassen. Das Angebot setzt auf kostengünstige ETF und eine tiefe Verwaltungsgebühr. Es ermöglicht auch den Vermögensaufbau mit einem Sparplan und die Geldanlage in Private Markets ab einem Franken.

Die Gebühr für diese Anlagelösung fürs freie Vermögen wird nun temporär auf 0.00 % reduziert. Die Fee-Holiday, wie ein Gebührenverzicht auf English genannt wird, gilt sowohl für alle Neukund:innen als auch für alle bestehenden Kund:innen.

Vom Nischenplayer zur All-Finanz-App- Banklizenz im 2025?

Bisher war finpension in der Vorsorge mit einer Wertschriftenlösung präsent. Seit dem Jahr 2024 bietet finpension auch ein Vorsorgekonto mit 100 % Cash an. Zudem konnte die Anlagelösung fürs freie, nicht in der Vorsorge gebundene Vermögen lanciert werden. Langfristiges Ziel von finpension ist eine All-Finanz-App, wozu auch Zahlungsdienstleistungen und das Hypothekengeschäft gehören. Dazu strebt finpension eine Banklizenz an.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

N26 announced the launch of Ready-Made Funds, a new offering added to its existing Stocks & ETFs trading.

Ready-Made Funds allow customers to select a multi-asset portfolio made up of Exchange-Traded Funds (ETFs) and Index Funds, managed by investment experts from BlackRock. These funds are allocated across equity, fixed income, and non-traditional investments and offer more diversification than investing in a single asset class. The range also allows customers to choose a fund option to match the risk level they are most comfortable with: Mindful, Balanced or Ambitious.

Simplifying Investment Decisions

Ready-Made Funds are the latest addition to N26’s trading offering and are designed to be easy, cost- and time-efficient. Users can select a fund based on their risk appetite and resulting estimated yearly return, directly within the N26 app. The funds offer three different target allocations, with varying risk and yield ranges, fully managed by investment experts. Users can seamlessly access their fund via the N26 app to monitor holdings, deposit or withdraw funds, manage investment plans, and view fund details.

Mayur Kamat, Chief Product Officer at N26, said:

“Investing in the capital markets is an increasingly important way to build wealth over the long term. With Ready-Made Funds, N26 customers can now embark on their investment journey in a couple of taps, backed by the expertise of seasoned professionals.”

This new product is available in Germany, Austria, Spain, Ireland, The Netherlands, Denmark, Finland, Norway, and Belgium and will be gradually made available to eligible customers over the next few days, starting from today. Ready-made funds are offered in cooperation with BlackRock, giving customers access to their global investment and multi-asset investing expertise.

Timo Toenges, EMEA Head of Digital Wealth at BlackRock said:

“We are delighted to work with N26 to bring Ready-Made Funds to their customers. These multi-asset funds are part of a simple investing process that make it easy and affordable to invest. With our global investment expertise, we aim to empower more Europeans to take their first steps into investing with confidence and ease, harnessing the benefits of different asset classes in a few taps.”

Until 1 April 2025, N26 will waive its fees for this new product for all eligible customers. Thereafter, Ready-Made Funds will be available for annual fees starting at just 0.29% of the total investment value.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

After 18 months of economic and geopolitical uncertainty, marked by recession fear, macroeconomic stability is making a comeback. This recovery is driving a resurgence in mergers and acquisitions (M&A) activity in the media sector.

The first half of 2024 recorded a 17% year-on-year (YoY) increase in deal volumes in the sector, climbing from 60 transactions to 70, according to a new report by Collingwood, a consulting and advisory firm specializing in the media sector. This growth was driven by Europe and the UK, which recorded 42 deals in H1 2024, up 35% YoY.

Events businesses, which specializes in conferences, trade shows, awards, and one-on-one meetings, emerged as the most active area for dealmaking in Europe in 2024 with 69 deals. The UK, in particular, players a central role in this surge, the report says, hosting several prominent and private equity-backed event organizers such as Clarion Events, CloserStill Media, Hyve Group, Informa, Nineteen Group, and RX Global.

Meanwhile, information businesses, which generate revenue from high-value content subscriptions and other recurring revenue models, also drove significant M&A activity in Europe, with 62 deals recorded compared to 42 in the US.

Though Europe and the UK led the media M&A landscape in H1 2024, the report notes that the US remained a principal market, particularly in the media vertical, which encompasses publishers that generate revenue from multichannel sponsorships, content marketing, and demand- and lead-generation services.

The US led globally with 70 media-specific transactions in 2024, ahead of Europe with 46 deals. The trend is driven in part by the country’s larger marketing market size, and the activities of private equity-backed consolidators like Endeavor and BridgeTower Media. These firm are looking to acquire business-to-business (B2B) digital marketing revenue platforms, the report says.

Key deals underscored this rebound in late 2024. Notably, media company Axel Springer sold its German finance platform, Finanzen.net and associated trading platform to private equity firm Inflexion for a staggering EUR 400 million, according to media reports. The transaction was one of the largest fintech deals in Germany this year.

In December, Dow Jones acquired London-based WorldECR for an undisclosed amount. WorldECR is a provider of news, data and analysis for compliance professionals. WorldECR will integrate with Dow Jones Risk and Compliance, which reported a 16% YoY increase in Q1 2025 earnings to US$81 million.

Information businesses remain most valuable, followed by media companies

According to the Collingwood report, valuation multiples this year remain broadly consistent across business models.

In 2024, information businesses continued to be considered the most valuable, with EBITDA (earnings before interest, taxes, depreciation and amortization) multiples typically standing between 13x and 16x. These high valuations stem from their recurring business models and high margins.

Media businesses followed, with multiples typically ranging between 8x and 12x. Modern and data-led media businesses stand in the higher end of this range, while traditional publishing or ad-led businesses are seen as riskier, exhibiting thus lower multiples.

Finally, events businesses are typically valued lower, at 7x to 11x EBITDA. However, they can command higher multiples if they host scaled trade shows, have a strong recurring business (e.g., high rebooking rates for trade shows) or exhibit international expansion opportunities.

Optimism ahead for 2025

Looking ahead to the remainder of 2024 and 2025, the media M&A landscape appears promising, the Collingwood report says. With inflation easing and interest rates beginning to fall, the cost of capital is decreasing, creating favorable conditions for dealmaking. In addition, political uncertainty is expected to diminish in 2025, further stabilizing the market, the report says.

Buyers are anticipating M&A activity to continue to increase over the next 18 months, moving back towards 2022 levels. The event vertical is expected to remain a focus point, driven by its profitability and growth potential.

According to a report by A Media Operator, major players such as Informa and EasyFairs, but also PE firms are actively pursuing strategic acquisitions and looking for smaller firms for consolidation.

Informa, a prominent British publishing and exhibitions group, has already spent some US$3 billion over the past few years on assets like Industry Dive, Tagus, Ascential, and others. However, the company still has the capacity for big acquisitions, the report says.

Meanwhile, EasyFairs, a Brussels-based international events company, secured PE investment earlier this year to launch new events, broaden its geographic and sector presence, and tap strategic M&A opportunities.

Questex is another information and events company reportedly on the lookout for acquisitions, media or events, seeking deals that would likely fall into the US$50 million to US$60 million range, according to the report.

BridgeTower Media, which specializes in B2B media and events, and HW Media, publisher of HousingWire, RealTrends and Reverse Mortgage Daily, are also said to be looking at M&A opportunities.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Retail investors are showing distinct behavioral patterns when trading cryptocurrencies compared to traditional assets such as gold and stocks. Traditionally, investors tend to sell their stocks and gold when prices rise.

In contrast, when cryptocurrency prices increase, retail investors are more likely to hold or buy more. This aligns with a “momentum-like” strategy, reflecting the belief that rising prices signal greater future adoption and value, a new research found.

The research, published in September by finance academics from the US and the UK, analyzed trading behaviors for cryptocurrencies and traditional assets, using a dataset of trades from 200,000 individual retail accounts on brokerage eToro between 2015 and 2019.

The analysis used the 200 most traded stocks on eToro, which account for over 91% of stock trading on the platform during the sample period. Similarly, it focused on the three most traded cryptocurrencies, namely bitcoin, ether, and ripple, which constitute over 78% of cryptocurrency trading during the sample period.

For stocks and gold, the research found contrarian tendencies, where retail investors actively rebalanced their portfolios when prices went up, and put money into stocks when the prices went down.

An analysis for the full set of traders in the dataset found that a 1% increase in stock prices was associated with a 1.2% decrease in the portfolio share due to rebalancing, translating to a 0.28% decrease in total portfolio share of stocks.

Similarly, in gold trading, a 1% increase in gold prices was associated with a 38.1% decrease in the portfolio share due to rebalancing, translating to a 37.3% decrease in total portfolio share of gold. This strong contrarian behavior is explained in part by gold returns having much lower volatility than other asset classes as well as the high leverage used by retail investors when trading gold.

Buy and Hold and Double Down on Surges

In contrast, cryptocurrency investors tend to hold onto their assets after large price movements. Some even double down on cryptocurrencies during price surges. An analysis of trading activity found that a 1% increase in prices is associated with a 0.67% increase in the total portfolio share of cryptocurrencies, reflecting this trend.

According to the report, these results are not the outcome of inattention, differential preferences for lottery-like assets, differences in fees, or the lack of cash flow information about cryptocurrencies. Instead, they reveal that retail investors are applying a model of cryptocurrency pricing in which positive returns increase the likelihood of future widespread adoption, which in turn leads them to update their price expectations in the direction of the price change.

Unlike traditional assets, where adoption is already well-established, cryptocurrencies are a nascent industry, with their value tied to expectations of future growth. This explains the contrarian behavior when trading cryptocurrencies compared to more established assets like stocks and commodities, and the momentum-like tendencies.

Booming crypto trading activity

Crypto trading has undergone drastic evolution over the past decade, shifting from being a niche market among tech enthusiasts to becoming a mainstream financial phenomenon influencing global markets.

Despite criticism on their speculative nature, extreme volatility, and lack of regulatory oversight, cryptocurrencies have gained significant traction among supporters.

The State of Cryptocurrency Ownership Worldwide in 2024 report estimates that the number of digital currency users reached 562 million people this year, up 34% increase from 420 million in 2023. This figure implies that 6.8% of the world’s population are now crypto owners, with crypto ownership rising by a compound annual growth rate (CAGR) of 99% between 2018 and 2023.

Institutional interest has also surged. A study by EY-Parthenon found that 94% of the 277 institutional investor decision-makers surveyed believe in the long-term value of blockchain and digital assets, with 79% considering them crucial for portfolio diversification.

38% of respondents said they had already committed between 1%-5% of funds to digital assets or crypto-related investments, and in the case of family offices, nearly half are in that allocation range. Traditional hedge funds are reaching for digital assets gains even more aggressively than their peers, with 22% allocating greater than 5% of funds.

Last month, crypto trading hit a new milestone, exceeding US$10 trillion across spot and derivatives markets for the first time in November, according to CCData, a data and index solutions provider specializing in the digital asset market.

Spot trading volume rose 128% month-on-month (MoM) to US$3.43 billion, marking the second-highest monthly total since the previous peak in May 2021. Derivatives trading volumes, meanwhile, surged 89.4% to US$6.99 trillion, surpassing the previous all-time high set in March 2024.

This surge was fueled by significant events including Donald Trump’s election victory, which spurred expectations of a pro-crypto regulatory shift. Since election day on November 05, the price of bitcoin climbed more than 40%, crossing the US$100,000 mark on December 06.

South Korea also played a key role in the global trading surge, driven by an altcoin frenzy. Aggregate trading volumes across major South Korean exchanges, including Upbit and Bithumb Korea, reached a record of US$254 billion, representing a 294% MoM increase. South Korea now accounts for 7.38% of the total spot trading volumes on centralized exchanges.

Institutional trading also soared, with CME’s aggregate trading volume hitting US$245 billion in November. Bitcoin futures volume rose by 72.2% to US$186 billion while ether futures volume increased by 122% to US$33.6 billion, a new all-time high for both the instruments.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The role of Google in the financial services industry has evolved significantly, shifting away from direct consumer-facing offerings to becoming a critical technology enabler for fintech startups and financial institutions, a new report by C-Innovation, a French fintech-focused research firm, says.

The analysis, released in November, explores Google’s expanding role in the financial services industry, focusing on how technologies such as Google Cloud, artificial intelligence (AI) tools, and Google Wallet, are empowering banks and fintech companies to swiftly innovate, scale and enhance customer experiences.

Google Cloud: supporting growth and improving efficiencies

The report highlights the growing influence of Google Cloud in the financial services industry. Google Cloud is a suite of cloud computing services offered by Google. It provides infrastructure, platforms, and software that allow businesses and developers to build, deploy, and scale applications, store and analyze data, and more.

In the financial services industry, Google Cloud allows banks and fintech startups to meet changing customer demands, scale their operations efficiently and manage large user bases without the need for substantial investments in IT infrastructure.

Meanwhile, Google Cloud’s AI tools are designed to improve operational efficiencies. Lending Doc AI, for example, is an AI-driven tool designed to streamline the processing of loan documents. The tool uses advanced machine learning (ML) to extract, classify and analyze data from complex documents like mortgages applications, tax forms, and financial statements.

Today, over 200 companies within the financial services sector rely on Google Cloud, cementing its position as a major force in the digital banking landscape. Notable customers include industry leaders such as Deutsche Bank, HSBC, BBVA, Revolut, Monzo, and Starling Bank.

The report highlights the case of Revolut, which uses Google Cloud’s infrastructure to enhance infrastructure scalability, automation and security. Through Google Compute Engine, Revolut has optimized its infrastructure, enabling automated deployments and updates that allow the company to scale in response to growing demand efficiently.

Revolut also makes use of Google Cloud APIs and automation tools to further streamline processes and improve scalability across its operations in over 35 countries.

Another example is the partnership between Google and GoHenry by Acorns, a fintech company focused on children’s financial education. This collaboration focuses on enhancing financial literacy through wearable technology, integrating GoHenry’s financial education tools with Google’s Fitbit Ace LTE.

It allows children under 13 to manage money safely using GoHenry debit cards linked to Google Wallet. Parents, meanwhile, can set spending limits and monitor transactions, providing kids with real-world financial responsibility in a controlled and secure environment.

Expanding Google Wallet capabilities for banks and fintech startups

The C-Innovation report also notes the expansion of Google Wallet, which now offers digital identity (ID) solutions alongside its traditional payment features. These products and features are providing new ways for digital banks to improve onboarding and facilitate cross-border services.

By enabling users to store digital versions of government-issued IDs, Google Wallet allows for seamless identity verification, simplifying the onboarding process for neobanks, reducing friction and enhancing user experience with secure biometric authentication.

While Google services offer significant benefits to financial services companies, including enhanced scalability, cost efficiency and operational effectiveness, C-Innovation cautions against the risks of deep integration into Google’s ecosystem, highlighting concerns including over-reliance on Google products, regulatory challenges, and privacy issues.

In addition to its business-to-business (B2B) services, Google also has a strong customer-facing presence in financial services.

Google Pay is a mobile payment service that powers in-app, online, and in-person contactless purchases on mobile devices, enabling users to make payments with Android phones, tablets, or watches. Launched in 2011, Google Pay has amassed approximately 150 million users worldwide, recording US$110 billion in transaction value in 2019. The service is available in over 60 countries and territories.

Google has also expanded its services through partnerships with banks and financial services providers. In India, Google is partnered with banks like Axis Bank and ICICI Bank to offer consumer and business loans. Google is also teamed up with Affirm and Zip, two major buy now, pay later (BNPL) players, to offer BNPL options to Google Pay users.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

In Europe, fintech has risen to prominence as a leading startup sector, with some of the continent’s biggest tech companies operating in the field.

These success stories have not only driven innovation but also cultivated some of Europe’s most active angel investors, who are now playing a critical role in nurturing the growth of their local ecosystems, according to a new report by Atomico, a London-based venture capital (VC) firm.

The 2024 edition of the State of European Tech report, released in November, looks at the evolution of the European tech ecosystem, the progresses made, but also the hurdles to overcome for sustained success.

According to the report, European companies valued at more than US$1 billion have proliferated in recent years, with the number of unicorns created in the past decade standing five times higher than pre-2015 levels. In particular, the finance sector led this surge, accounting for 24% of all unicorns formed in the past five years.

Fintech: a leading tech sector in Europe

Responses to a survey of industry stakeholders conducted for the report underscore this dominance, with fintech companies like Revolut, Klarna, Adyen and Wise standing out as emblematic of the growth of the European tech sector over the past ten years.

Revolut was named by 15% of respondents, ranking second after Spotify (26%). These companies are followed by Klarna and Adyen, with 110+ and 90+ mentions, respectively, underlining Europe’s characterization as a global centre of excellence for finance. Wise is another fintech company named, cited more than 50 times.

Revolut is a neobank and fintech company headquartered in London that offers banking services for retail customers and businesses, including currency exchange, debit and credit cards, virtual cards, Apple Pay, interest-bearing “vaults”, personal loans and buy now, pay later (BNPL), and stock trading.

Founded in 2015, the company serves over 45 million retail and 500,000 business customers globally, operates in more than 140 regions and supports over 25 currencies.

Recently, Revolut reached a US$45 billion valuation after a secondary share sale, making it worth more than some of Europe’s biggest banks, Reuters reported. In July, it was granted a UK banking license after a three-year wait, though with some restrictions.

Klarna is a leading global payments and shopping service, boasting 85 million active end-users, and more than 575,000 merchants in 26 countries. Founded in 2005 in Stockholm, Klarna offers direct payments, pay after delivery options and installment plans in a smooth one-click purchase experience.

Klarna achieved net income of SEK 216 million (US$19.8 million) in Q3, up 57% year-over-year (YoY) and marking the second profitable quarter for the company.

Klarna recently filed for an initial public offering (IPO) in the US. While no financial details have been provided, analysts in October put Klarna’s implied valuation at about US$14.6 billion.

Adyen is a Dutch payment company with the status of an acquiring bank that allows businesses to accept e-commerce, mobile, and point-of-sale (POS) payments. Founded in 2006, Adyen provides end-to-end payments capabilities, data-driven insights, and financial products in a single global solution, serving the likes of Meta, Uber, H&M, eBay, and Microsoft.

Adyen is listed on the stock exchange Euronext Amsterdam with a market capitalization of more than US$47 billion.

Finally, Wise, formerly known as TransferWise, is a global tech company, specializing in cross-border transactions. Serving both individuals and businesses, Wise allows its customers to hold 40 currencies, move money between countries and spend money abroad.

Launched in 2011, Wise is one of the world’s fastest growing, profitable tech companies, supporting around 12.8 million people and businesses, and processing approximately GBP 118.5 billion (US$151 billion) in cross-border transactions in its fiscal year 2024. Wise is listed on the London Stock Exchange under the ticker, WISE.

Fintech entrepreneurs shape the European tech ecosystem

Europe’s fintech success stories extend beyond operational growth to fostering local innovation. This manifests both in the number of investments Europe’s fintech founders make, but also their contribution to building their local market.

Taavet Hinrikus, co-founder of Wise, is currently the most active angel investor in Europe. Hinrikus has made more than 90 investments to date with roughly half based in either the UK or Estonia, Wise’s two key hubs.

Another prominent angel investor is Tom Blomfield, co-founder of GoCardless and Monzo based in the UK. Blomfield has made more than 40 investments to date, with 60% of these investments being based in the UK. He is the fourth most active angel investor in Europe.

Other fintech founders in the leaderboard include Maximilian Tayenthal, co-founder of N26, ranked 8th with more than 30 investments to date, and 68% of these investments being in Germany; and Stefan Jeschonnek, co-founder of SumUp, ranked 9th with more than 30 investments and 45% of these investments being in his home country of Germany.

Europe’s tech momentum

Europe has become a global leader in technology. The continent is now home to over 35,000 startups, a fourfold increase from fewer than 8,000 in 2015. Growth-stage companies, meanwhile, saw an eightfold increase to over 3,400.

The tech workforce has also expanded significantly, with 3.5 million people now employed in the sector. The vast majority of those employees have joined over the past decade with close to 3 million jobs created over that time frame. It’s growing at a 24% compounded annual growth rate, comparable to the US.

Total funding over the past decade is ten times higher than that of the previous decade, having soared from US$43 billion to US$426 billion. This year, investment levels are on track to reach around US$45 billion, three times as much as the US$15 billion recorded in 2015.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Mambu has announced the acquisition of Numeral, a French payment technology provider for banks and fintechs.

The acquisition strengthens Mambu’s position as an industry leader, in a move that underscores market confidence and growing demand for modern financial experiences.

With Numeral’s platform, Mambu is set to drive new value from wider audience segments that will increase its overall share of the market. It also offers a unique strategic fit to the foundation of the cloud banking leader’s long-term expansion efforts.

“This acquisition marks a considered move to deliver a more modern, comprehensive payment offering which is now an integrated part of Mambu’s product portfolio. Numeral’s advanced payments platform will enable us to address changing customer demands, strengthen existing product lines and expand our market reach, while offering businesses advanced capabilities to meet an extensive range of needs.”

Fernando Zandona, CEO at Mambu.

Speaking about why Numeral was the ‘right fit’ for Mambu, Zandona added:

“Numeral’s values, proven agility, and robust onboarding processes match perfectly with our growth mindset as a business. We look forward to welcoming their talented team as we unlock new growth opportunities together.”

Founded in 2021, Numeral is a fast-growing payment technology provider that offers financial institutions a universal gateway to connect to partner banks and access schemes and a modern payments hub to automate payment processing. The Paris-based firm processes more than €10 billion in payments annually and has established a strong presence in Europe, having expanded its operations to the UK last year.

The size of the market opportunity for bank payments is striking. In 2022, the value of bank payments in the Eurozone stood at €191 trillion, that is 58x more than card payments (€3.3 trillion). This vast global market is transforming rapidly, driven by the rise of instant payments as a catalyst for modernising core banking and payment platforms. With its robust bank integrations, a modular API and modern dashboard, Numeral’s platform will enable Mambu to capitalise on this market opportunity.

The cloud banking platform will also benefit from Numeral’s roster of partnerships with some of Europe’s leading banks, including BNP Paribas, Barclays, HSBC, and ABN AMRO.

“Payments are at the heart of how companies do business around the world, yet they remain trapped in systems designed decades ago, unfit for the ongoing instant payments revolution,”

said Numeral co-founder and CEO, Édouard Mandon.

“This is a problem that Mambu intimately understands having helped banks and financial institutions worldwide to migrate from rigid, traditional core systems to agile and adaptable cloud infrastructure. Bringing together our dedicated payments technology with Mambu’s leading cloud banking platform and global customer base, we can enable more companies to make their payments future-proof and ever-compliant while eliminating hidden payment complexity at scale.”

The integration of Mambu and Numeral’s advanced payment platform will enable banks, fintechs, and non-financial service firms to seamlessly manage end-to-end payment workflows, support multiple payment methods, and provide real-time transaction capabilities. This will drive greater operational efficiency, improved customer experiences, and accelerated time-to-market for innovative financial solutions.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

In the last two years, some large banks have been hit with very public, lengthy – over 10 hours – disruption of their digital banking services.

And that’s just the incidents we are aware of. Cases like these highlight the fears bankers may have in moving away from legacy systems in the name of innovation.

Such unreliability erodes customer trust, impacts revenue, and perhaps most importantly, raises the ire of regulators.

This fear factor also makes it harder for traditional banks to embrace going digital to fight neobanks and other digital-first financial institutions.

Thus, many bankers and C-suites take a conciliatory route to keep boards, customers, and regulators happy: small innovations here, a product-only digital makeover there.

Rarely, if ever, are legacy systems changed. Unfortunately, half-measures can only last so long in the uber-competitive BFSI space, especially with the increasing rollout of digital banking licenses across different Southeast Asian markets.

Huawei’s 4 Zeros to resilience

At the recent Singapore Fintech Festival 2024 (SFF), Huawei advocated that redefining financial resilience in the AI era be guided by Huawei’s 4 Zeros goal.

Jason Cao, CEO of Digital Finance Business Unit, Huawei, said legacy banks in China have already made the jump into the deep end, choosing the visionary route and making wholesale changes to their foundations from a business standpoint.

“Visionaries think that I have to do it, because if I don’t do it, my whole bank will lose capability for innovations.

This requires not only a particularly strong focus on technology but also a comprehensive focus on the legacy systems as a whole: hardware, software and also engineering middleware, database.

“So we take a holistic view of banks that want to make this change: we learn about the whole architecture, the business, and their business targets,”

he told Fintech News Singapore on the sidelines of SFF.

From legacy to software-defined banking

In China, over 80% of China’s top financial institutions have migrated critical applications and core banking from legacy to cloud infrastructures.

There’s the Postal Savings Bank of China (PSBC), which boasts 650 million customers. With Huawei’s architecture, PSBC has moved its legacy applications from a monolithic structure to cloud-native applications on a private cloud, delivering more than 5,000 microservices, reducing the rollout time of composable products from two weeks to T+1, and achieving a transaction volume of 67,000 transactions per second (TPS).
Cao said,

Cao said,

“We’ve also managed to help both traditional and neobanks build resilience with no legacy architecture, instead basing it on user journeys.

The Shenzhen-based China Merchants Bank removed its legacy system entirely and is now a software-defined bank with over 137 million credit card users and more than 188 million mobile banking customers. In 2022, it rolled out more than 50,000 products and five million functioning points, essentially turning them into a giant Internet company from a traditional bank.

“On the neobank side, Huawei’s solutions have helped ensure WeBank’s reliability: its system availability in 2023 was 99.999%, with daily transactions peaking at more than 1.1 billion, at an IT O&M cost per account of 30 US cents.

Our clients enjoy omni-channel secure service access, real-time interaction for better experience, core transaction and risk management, as well as SLA assurance through fast fault isolation,”

he added.

Huawei builds new resilience to surpass mainframes and achieve 99.999% availability by focusing on nine foundational technology domains: transactional databases, financial-grade platforms (PaaS), the R&D tool chain, cell-based architecture, software and hardware collaboration acceleration, chaos engineering, data security, lossless upgrade projects, and cloud native deterministic O&M.

With Southeast Asian traditional banks fighting for the piece of the digital banking pie with non-BFSI competitors as well as lithe neobanks and digital wallets, Huawei’s 4 Zeros resilience solution deliverables have also attracted customers like the Philippines’ UnionBank, which has more than 15 million customers.

In an impressive 35-day timeline, Huawei and its partner launched a cloud-based core banking system for UnionDigital Bank, enabling access to financial services for millions of unbanked Filipinos. Such a project usually requires three to six months to complete.

Global ecosystem partners

In a post-payments world, Huawei has upgraded its finance industry strategy, Cao said.

“We provide comprehensive solutions which combine hardware and software, so it’s an ecosystem to help customers. But now our customers want us to solve more complex issues, beyond simply replacing their legacy systems.

“So Huawei is growing its ecosystem by working with global partners, for example, like Temenos, a top player for core banking. On the other hand, we also work with a lot of regional leading fintech players in our ecosystem.

With our top partners from China, we launched the Huawei Financial Partner Go Global Program (FPGGP) in 2021.

Today there are more than 30 partners in FPGGP, and we want to introduce all these top-performing partners to the global market.

“While we have access to global customers, we don’t do applications. Our partners work on applications, we work on the platform.

Bringing our Chinese partners to the global market is just the first step – next we want to bring partners from across all the regions onto our global platform, giving them global access,”

Cao said.

To date, Huawei has served over 3,700 financial customers in more than 80 countries and regions, including 53 of the world’s top 100 banks. Huawei has also established strategic partnerships with more than 80 large banks, insurers, and securities companies across the globe, becoming their trusted partner in digital transformation.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Digital markets and tokenizations represent a potential avenue of growth for the rapidly evolving private credit market. Tokenization, in particular, is poised to address some of the underlying challenges inherent in private credit, while enhancing efficiency and enabling broader investor participation, a new report by S&P Global says.

The report, released in October 2024, explores how tokenization could unlock new opportunities in private credit by enabling fractional ownership on blockchain platforms, mitigating liquidity risks and addressing operational inefficiencies that deter many investors.

Private credit refers to a non-banking type of loan typically offered to companies but also individuals. In the private credit market, investors make loans to entities or individuals who may have trouble accessing credit from banks or the public markets. Because of the heightened risk, investors typically collect higher interest rates on private credit than they would earn on bonds or other debt investments.

Despite these prospects, many investors are still hesitate to participate because of inherent challenges related to private credit. A year-end 2023 survey by Coalition Greenwich found that a majority (70%) of the wealth and asset managers would have allocated more to private credit investments if it weren’t for liquidity risks and/or high management fees. Additionally, a substantial share (38%) of survey respondents cited concerns about transparency.

These issues are where tokenization offers transformative potential. Tokenization enables easier trading of fractionalized assets on digital marketplaces, making private credit more accessible by improving liquidity. Furthermore, the use of smart contracts reduce back-office costs and improve operational workflows. Finally, shared ledgers enabled by the use of blockchain technology enhance transparency and thus trust through real-time immutable records of records of ownership and transaction history.

Strong growth potential

Though still in its early stages, the tokenized private credit market is growing rapidly. According to S&P Global, there is currently about US$500 million of tokenized private credit globally, but that market has surged by 66% over the past 18 months.

With the broader private credit market currently standing at about US$1.7 trillion in investment globally, there remains significant room for growth, signaling a positive outlook for the market in the years to come.

Diving into the current state of the tokenized private credit market, the report notes that there are currently two main ways in which private credit is being tokenized: first, by tokenizing existing private credit funds like Hamilton Lane’s SCOPE fund, which includes corporate loans; or by creating tokenized debt directly on decentralized lending platforms.

Currently, decentralized platforms make up for the bunch of the tokenized private credit market. Centrifuge, for example, is a specialized blockchain designed for individuals and businesses to borrow against traditional financial assets from decentralized finance (DeFi)-based lenders. The platform had US$289 million of active loans outstanding as of July 26, 2024, focused on consumer asset backed securities (ABS), real-estate bridging loans, and trade finance.

London-based digital finance company Greengage has taken a different route, focusing instead on small and medium-sized enterprise (SME) financing. The company announced in July a partnership with Coinbase to issue tokenized private credit to provide e-money account services to SMEs.

Asset tokenization gains momentum

Asset tokenization, which refers to the process of digitalizing ownership rights to physical or intangible assets, is gaining traction across the financial services sector. By leveraging blockchain technology and smart contracts, tokenization allows financial institutions to improve efficiency through programmable, composable financial instruments. It also allows for increased liquidity through fractionalization, and unlocks new revenue streams with innovative financial products.

Formerly known as Onyx, Kinexys is the permissioned blockchain of banking giant JP Morgan. The platform allows users to trade tokenized assets like US Treasuries and mortgage-backed securities, and has exceeded US$1.5 trillion in notional value, processing an average of more than US$2 billion daily in transaction volume.

Similarly, Goldman Sachs launched in January 2023 its Digital Assets Platform in partnership with blockchain software provider Digital Asset. Using Digital Asset’s purpose-built Canton Network blockchain, Goldman Sachs’ platform facilitates the issuance, registration, settlement, and custody of various tokenized assets.

While the adoption of tokenization remains nascent, the tokenized assets market is gaining momentum. Roland Berger estimates that the tokenized assets market size reached US$400 billion in 2023. By 2030, asset tokenization is projected to grow to become a market worth at least US$10 billion, representing a 40-fold increase in the value of tokenized assets between 2022 and 2030.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Having surpassed the milestone of 100’000 customers, VIAC is expanding its offering with VIAC Invest, taking another step into the future of cost-effective wealth management.

With Invest, the Basel-based fintech is opening a new chapter and entering the private client sector. Until now, VIAC has primarily focused on retirement planning, managing assets of approximately CHF 4 billion. This has established VIAC as one of Switzerland’s leading digital investment platforms.

VIAC Invest broadens the existing service by offering fund savings plans for free savings. Similar to its retirement solutions, customers can use passive funds to create personalized savings or withdrawal plans. These plans are just as simple, flexible, and transparent as VIAC’s retirement offerings, with investments starting from as little as CHF 1. This provides a cost-effective, diversified investment option tailored to the needs of existing customers.

Launch Offers

To celebrate the launch of VIAC Invest, customers can invest without any administration fees until the end of 2025. In addition, they will receive a lifelong fee-free allowance of CHF 2’000. The first 25’000 customers will also receive a third welcome gift: a sign-up bonus of up to CHF 100.

Even after 2025, VIAC will continue to set new standards for automated fund savings with its low administration fee of just 0.25% per year.

«We are proud to have 100’000 customers who trust us. With VIAC Invest, we want to offer them an even broader range of opportunities to save for their future»,

says Daniel Peter, co-founder of VIAC.

«Our goal is to revolutionize everyday banking and provide everyone with the tools they need to achieve their financial goals».

VIAC Invest is available immediately via the app.

More information about the new fund savings plans can be found at viac.ch/en/products/invest/

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Zug-based startup Splint Invest has raised CHF 2.5 million from its Pre-Funding Round with 815 investors, exceeding its target and cancelling the planned public campaign. To date, the company has raised a total of CHF 4 million to pursue its European growth.

MARK Investment Holding, the brains behind this platform, has announced that it has secured CHF 4 million in pre-funding and crowd-investing campaign.

The pre-funding round raised CHF 2.5 million from 815 investors, sufficiently above the target which leads to the planned public campaign being cancelled.

With over 200 assets to invest in on its platform, it already counts over 15,000 investors, one-third of which are from the EU. Over EUR 21 million has been invested in tokenized shares (Splints). The company is expecting a revenue increase of 280% annually relative to last year, so it is likely that it will continue to grow rapidly.

The web-based savings platform Splint Invest successfully closed a CHF 1.5 million financing round with business angels and new investors. So far, the company has secured a total of CHF 8.3 million in funding, from recognized investors like Lukas Speiser, Jürg Schwarzenbach, and Patrick Mollet, as well as investment companies Haute Capital Partners and Kick Fund.

Featured image credit: Splint Invest team: Dmitry Patuk (Head of Growth & Co-Owner), Djuro Kojic (Head of Product), Mario von Bergen (Head of Investments & Co-Founder), and Aurelio Perucca (CEO & Co-Founder)

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Juniper Research revealed the 10 trends that are poised to transform the financial landscape in 2025.

Each year, Juniper Research’s team of market experts identify the key trends that will drive the fintech market for the year ahead.

Juniper Research‘s VP of Fintech Market Research, Nick Maynard, commented:

“Fintech and payments is changing rapidly, with alternative payment methods gaining popularity, fraud presenting a bigger challenge than ever, and regulations evolving quickly. As such, Juniper Research predicts that 2025 will see dramatic shifts, with these 10 trends representing the most impactful developments.”

Top Ten Fintech & Payments Trends 2025

1.  Apple NFC to Boost Competition in Digital Wallets
2. Virtual Cards to Revolutionise B2B Expenses and Procurement
3.  Behavioural Biometrics Driving Shift to Passive ID Verification
4. eCommerce Merchants to Adopt ‘Glocal’ Payments
5. Regtech to Accelerate Amid BaaS (Banking-as-a-Service) Compliance Challenges
6. Banks to Invest in PSD3 and PSR1 Readiness
7. Capital One’s Acquisition of Discover to Challenge Visa & Mastercard
8. Wero and Instant Payments Harmonisation to Transform European Payments
9. AI Hype to Diminish as Fraud and Identity Drive Innovation
10. Sustainable Fintech Becomes Key Differentiator for Banks

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Während vielen Jahren waren Sparpläne eine Nische. Inzwischen bieten auch Neobanken Sparpläne an.

Zudem sind Mindestgebühren bei vielen traditionellen Banken inzwischen Geschichte. moneyland.ch hat die aktuellen Sparplan-Angebote von 36 Anbietern aus der Schweiz unter die Lupe genommen .

Mit einem ETF- oder Fondssparplan können Sparerinnen und Sparer regelmässig einzahlen und so Schritt für Schritt in den Aktienmarkt investieren. Ein Sparplan richtet sich an Kundinnen und Kunden, die zum Beispiel jeden Monat einen Betrag investieren wollen.

Während vielen Jahren haben insbesondere etablierte Banken einen Sparplan angeboten. Viele Angebote waren unattraktiv, da die Fondssparpläne teure Strategiefonds enthielten. Für den Kauf von Anteilen sowie für die Depotführung fielen hohe Mindestgebühren an. Das hat sich inzwischen geändert: Nur noch relativ wenige Banken verrechnen Mindestgebühren.

«In letzter Zeit ist viel frischer Wind in den Markt gekommen»,

sagt Ralf Beyeler, Experte von moneyland.ch. So bieten inzwischen auch die Smartphone-Banken Neon, Radicant und Yuh sowie Online-Broker wie Saxo Bank und Swissquote Sparpläne an. Manche Anbieter, zum Beispiel Swissquote und Yuh, ermöglichen den Kauf von Bruchteilen eines Anteils – sogenanntes Fractional Trading. Auch bei Robo-Advisors sind Sparpläne erhältlich.

Die Vorsorge-App Viac hat den Start eines Sparplanes angekündigt, wobei die Konditionen bisher noch nicht bekannt sind. Bei Alpian wird es noch in diesem Jahr möglich sein, automatisch regelmässig in ETF zu investieren. Nicht immer haben die Produkte den Begriff Sparplan im Namen. Doch die Funktionsweise ist ähnlich: In regelmässigen Abständen wird ein definierter Betrag in Fonds oder ETF investiert.

Unterschiedliche Tarifsysteme

Die verschiedenen Anbieter setzen auf verschiedene Gebühren, was einen Vergleich der verschiedenen Angebote komplexer macht. Bei allen untersuchten Sparplänen müssen die Sparerinnen und Sparer die Produktkosten der Fonds und ETF übernehmen, die in der Regel als TER ausgewiesen werden. Zudem verrechnen alle Anbieter die Umsatzabgabe weiter. Bei vielen Anbietern kommt die Mehrwertsteuer zusätzlich hinzu. Nur ganz wenige Anbieter betonen ausdrücklich, dass die Mehrwertsteuer enthalten ist.

Einige Anbieter verrechnen eine Gebühr für den Kauf und/oder den Verkauf von Anteilen. Bei den Anbietern, die eine solche Gebühr verrechnen, beträgt diese bis zu 1.5 Prozent. Es wird jedoch keine Mindestgebühr verrechnet. Ein anderes System wendet Swissquote an, die eine Pauschale von mindestens 3 Franken pro Transaktion verrechnet. Viele Anbieter wie zum Beispiel Raiffeisen, Berner Kantonalbank und Valiant verrechnen eine Depotgebühr von meist 0.2 bis 0.5 Prozent. Bei den teuersten Anbietern beträgt die Depotgebühr 1 Prozent.

Immer mehr Anbieter setzen statt auf Courtagen für Kauf und Verkauf sowie die Depotgebühr auf eine einzige Pauschalgebühr. Darin sind die Transaktions- und Depotgebühren bereits enthalten. Je nach Anbieter beträgt die Pauschalgebühr bis zu 0.9 Prozent.

Eine wichtige Rolle spielen auch die über einen Sparplan angebotenen Fonds und ETF.

«Zu empfehlen ist eine breit diversifizierte Anlagestrategie mit Aktien in aller Welt. Dies ist mit einem ETF oder Indexfonds auf einen Welt-ETF, aber zum Beispiel auch mit einer Anlagestrategie von einem Robo-Advisor möglich», erklärt Ralf Beyeler. «Voraussetzung ist jedoch, dass man noch ruhig schlafen kann, wenn der Wert der Anlagen sinkt. Kann man das nicht, so ist ein solcher Aktien-Sparplan keine optimale Anlagemöglichkeit»,

ergänzt Ralf Beyeler.

Es ist unbedingt empfehlenswert, auf die Kosten der Fonds oder ETF zu achten. Diese werden oft als TER angegeben. Bei den günstigsten im Rahmen eines Sparplans angebotenen Produkten beträgt die TER 0.03 Prozent, bei den teuersten sind es über 2 Prozent. Aufgepasst: Bei Produkten mit niedrigen TER handelt es sich teils um Geldmarkt- oder Obligationenfonds, die fürs Aktiensparen nicht geeignet sind.

Kostensimulation von moneyland.ch zeigt grosse Unterschiede

Um trotz der unterschiedlichen Gebührensysteme einen Vergleich vorzunehmen, hat moneyland.ch eine Kostensimulation erstellt. Für die Kostensimulation wurde angenommen, dass eine Kundin oder ein Kunde während zehn Jahren jeden Monat 200 Franken einzahlt. Nach zehn Jahren kündigt die Kundin oder der Kunde den Sparplan, verkauft die ETF oder Fonds und lässt sich den Betrag überweisen.

Die Kostensimulation wird als Bandbreite angegeben, mit den günstigsten sowie teuersten Kosten eines Sparplans. Insbesondere aufgrund der Gebühren eines Fonds oder ETF gibt es grössere Unterschiede, ausserdem kennen manche Anbieter je nach Fonds unterschiedliche Konditionen bei der Courtage, der Depotgebühr oder der Pauschalgebühr. moneyland.ch hat die Bandbreite zwischen dem teuersten und dem günstigsten Fonds berechnet, aber für die Kostensimulation nicht berücksichtigt, welche Art von Fonds im Sparplan enthalten ist.

Die Kostensimulation ist eine Vereinfachung, so wurde der Wertzuwachs nicht berücksichtigt. Da die Gebühren oft auf dem Wert basieren, sind die Gebühren effektiv noch höher. Ebenfalls ignoriert wurden Mindestbeträge bei der Ersteinzahlung.

Das sind die günstigsten Aktien-Sparpläne

Der günstigste Aktien-Sparplan wird von der Saxo Bank für Kundinnen und Kunden angeboten, die der Saxo Bank die aktive Wertpapierleihe erlauben. Über die Zeit von zehn Jahren fallen für den Sparplan mit einem ETF auf den S&P-500-Index mit 500 US-amerikanischen Aktien Kosten von 80 Franken an. Bei der Variante ohne Wertpapierleihe sind es hingegen 346 Franken. Würden Anlegerinnen und Anleger in einen geografisch breit diversifizierten ETF auf den Welt-Index MSCI World investieren, würden sich die Kosten auf 261 Franken mit Wertpapierleihe und 527 Franken ohne Wertpapierleihe belaufen.

Die weiteren Plätze auf dem Podest belegen die Smartphone-Banken Neon (193 Franken) und Yuh (325 Franken). Bei beiden Anbietern besteht der Sparplan aus jeweils einem ETF auf den S&P-500-Index mit 500 amerikanischen Aktien. Der Sparplan mit dem günstigsten weltweit diversifizierten ETF umfasst sowohl bei Neon als auch bei Yuh jeweils einen ETF auf den FTSE All-World. Die Kosten betragen dabei 301 Franken (Neon) respektive 386 Franken (Yuh).

Die Kosten für den günstigsten Sparplan sind bei Avadis und der Basellandschaftlichen Kantonalbank zwar geringer. «Aber die im Sparplan enthaltenen Geldmarkt- und Obligationen-Fonds sind für den Vermögensaufbau nicht geeignet», merkt Ralf Beyeler an. Beide Anbieter bieten auch Fonds mit Anlagen in Aktien an, diese sind jedoch wesentlich teurer.

Interessant ist auch der Blick auf die Bandbreite der Angebote der drei günstigsten Anbieter: Bei Saxo kann der Sparplan bis zu 1592 Franken kosten, bei Neon bis zu 1402 Franken und bei Yuh bis zu 1365 Franken. Dies zeigt einmal mehr, dass es je nach ETF grosse Unterschiede gibt.

Bei einigen Anbietern kosten die Sparpläne mit einem teuren Fonds mehr als 3000 Franken für zehn Jahre. Das teuerste Angebot kostet 4263 Franken.

So schneiden traditionelle Banken ab

In der Sparplan-Analyse von moneyland.ch wurden die Angebote von 19 traditionellen Banken berücksichtigt.

Der günstigste Sparplan einer traditionellen Schweizer Bank mit einem Aktienfonds kommt von Raiffeisen. Über zehn Jahre gerechnet entstehen für den Sparplan mit einem Indexfonds auf den S&P-500-Index Kosten von 636 Franken. Mit einem Fonds auf den weltweit diversifizierten MSCI World kostet der Sparplan von Raiffeisen 733 Franken.

Oft beinhalten die günstigsten Sparplan-Angebote bei einem Anbieter einen Geldmarkt- oder Obligationenfonds. Bei Postfinance beispielsweise umfasst der günstigste Fondssparplan einen Geldmarktfonds mit einer TER von 0.13 Prozent, der günstigste Aktienfonds ist mit einer TER von 0.6 Prozent erheblich teurer. Die Mehrkosten entsprechen in unserer Kostensimulation über zehn Jahre insgesamt 569 Franken.

Der Blick auf die Sparplan-Angebote der grössten Schweizer Banken zeigt folgende Bandbreiten für die Kostensimulation über zehn Jahre:

Eine ausführliche Tabelle mit sämtlichen untersuchten Banken ist als PDF verfügbar. Sie können sich die Tabelle als PDF in der Box unterhalb des Artikels kostenlos zustellen lassen.

So teuer sind Sparpläne bei Smartphone-Banken und Robo-Advisors

In der Analyse hat moneyland.ch auch die Sparpläne von vier Smartphone-Banken sowie sieben Robo-Advisors untersucht. Bei Neon können die Kundinnen und Kunden für den Sparplan aus 98 ETF auswählen, bei Yuh aus 81 ETF und Tracker-Zertifikaten. Das ist eine vergleichsweise grosse Auswahl für einen Schweizer Sparplan. Sowohl Neon wie Yuh werben damit, dass Anlegerinnen und Anleger ausgewählte ETF im Rahmen des Sparplans ohne Gebühren kaufen können. Beim Verkauf fallen jedoch die üblichen Gebühren an.

Bei der Wahl eines günstigen ETF gehören Neon und Yuh zu den günstigsten Anbietern. Beide Anbieter haben allerdings auch vergleichsweise teure ETF mit einer TER von knapp unter einem Prozent im Angebot. Die Kosten für zehn Jahre Sparplan gemäss Kostensimulation betragen bei Neon zwischen 193 und 1402 Franken, bei Yuh zwischen 325 und 1365 Franken.

Alpian und Radicant entsprechen bei den Sparplänen eher dem Dienstleistungsangebot von Robo-Advisors. Diese erstellen eine individuelle Anlagestrategie, in der Regel basierend auf ETF und allenfalls Indexfonds. Oder anders gesagt: Die Anbieter stellen für die Kundinnen und Kunden individuell einen Korb mit verschiedenen ETF zusammen.

«Typische Sparplan-Kundinnen und -Kunden investieren jeden Monat einen Teil ihres Einkommens in Aktien. Viele Angebote von Robo-Advisors richten sich jedoch nicht an diese Kundinnen und Kunden»,

erklärt Ralf Beyeler. Denn manche Robo-Advisors verlangen eine Mindesteinlage von über 1000 Franken, je nach Anbieter gar bis zu 8500 Franken. Damit sprechen diese Anbieter ein Kundensegment an, das neben dem Notgroschen bereits etwas gespart hat, diese Ersparnisse in Aktien investieren und zudem regelmässig in einen Sparplan einzahlen möchte.

* Hypothetische Berechnung ohne Berücksichtigung der Mindesteinlage.

Drei Online-Broker bieten Sparpläne an

Die drei Online-Broker Cash – Banking by Bank Zwei Plus, Saxo Bank und Swissquote bieten Sparpläne an. Konkurrent Cornèrtrader wird im Verlaufe des Jahres 2025 mit einem entsprechenden Angebot starten.

Die Online-Broker haben eine vergleichsweise hohe Auswahl an unterschiedlichen Produkten, in die Kundinnen und Kunden im Rahmen eines Sparplanes investieren können. Bei der Saxo Bank sind es über 100 ETF und bei Swissquote sind es 94 ETF. Swissquote bietet zudem die Möglichkeit, regelmässig in 298 Aktien, 44 Kryptowährungen und 38 Themes-Trading- Produkte zu investieren. Cornèrtrader gab an, ab 2025 insgesamt über 5000 ETF anbieten zu wollen.

Bei der Analyse fallen die grossen Kostenunterschiede zwischen den verschiedenen Anbietern auf. Saxo Bank ist mit Kosten von 80 bis 1326 Franken (mit Wertpapierleihe) beziehungsweise 346 bis 1592 Franken (ohne Wertpapierleihe) für zehn Jahre gemäss Kostensimulation günstiger als Swissquote (1205 bis 2343 Franken) und Cash – Banking by Bank Zwei Plus (1976 bis 4263 Franken). Ein Grund dafür sind die verglichen mit der Konkurrenz relativ hohen Depotgebühren, bei Swissquote sind es mindestens 80 Franken im Jahr. Bei Swissquote ist der Sparplan kein eigenes Produkt und dürfte damit eher Kundinnen und Kunden ansprechen, die Online-Trading nutzen und zusätzlich noch regelmässig Wertschriften kaufen möchten.

Titel-Bild Nachweis: Bearbeitet von freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The Zurich-based private bank Maerki Baumann is to establish a Technology Advisory Board headed up by Marc P. Bernegger from 1 January 2025.

The new expert body, which will also include PD Dr Alexander Ilic and Sandra Tobler, will focus on strategic topics related to technology.

This step has been guided by the family-owned company’s belief that disruptive technologies and new companies such as fintech firms will have a major impact on the financial and banking industries going forwards. The Technology Advisory Board will actively support the private bank’s Board of Directors and Executive Board in the further development, digitisation and innovation of its business model.

Technologies such as artificial intelligence, blockchain and robotics are increasingly permeating the economy and society in general. Their potential to trigger change will be felt in all sectors of the economy and will also see the market for financial services, in particular, undergo a fundamental transformation.

This development is likely to see a shift in the competitive landscape, with new business models, such as those of fintech firms, becoming established.

The Board of Directors and Executive Board have entrusted Marc P. Bernegger with responsibility for Maerki Baumann’s Technology Advisory Board.

Marc P. Bernegger has been a founder, board member and managing director of numerous technology-focussed companies for over 20 years. In the recent past, he has been active as a successful entrepreneur in the areas of blockchain, crypto and longevity.

In his role as Head of the Technology Advisory Board, Marc P. Bernegger will report to the Chairman of the Board of Directors, Hans G. Syz-Witmer, and the Chief Executive Officer, Dr Stephan A. Zwahlen, of Maerki Baumann. The new committee will advise the two management bodies as well as various key individuals at the private bank on strategic issues relating to technology.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Quirin private bank has been using the digital wealth platform from the Swiss wealth and insurtech company 3rd-eyes analytics for its client advisory services since June 2024.

With the help of 3rd-eyes, the financial goals and wishes of Quirin private bank’s clients can not only be calculated, but above all visualised and optimised.

‘3rd-eyes convinced us because their software can depict exactly what we want to experience with our clients during the advisory process. We provide a visual answer to the question: Can I achieve my personal financial goals and wishes? This has impressed us and has been very well received by our customers,’

comments Karl Matthäus Schmidt, CEO of Quirin private bank, on the collaboration.

‘The interactive planning solution – implemented by us as the Q-Navigator – ensures that customers can simultaneously view the development of their assets in different constellations. This motivates them to scrutinise their own goals and wishes and actively shape their own financial journey.’

Wealth development is calculated by 3rd-eyes using a modern asset liability management (ALM) methodology that considers all assets, liabilities, cash flows, goals and market conditions. With the 3rd-eyes software, the individual wealth development of each client can be calculated for the first time in 1,000 realistic capital market and inflation scenarios. In addition, the achievability of personal goals is simulated and optimised.

Due to the pleasing success of the project and the high level of acceptance of the 3rd-eyes software, Quirin Privatbank also acquired a financial stake in the Swiss wealth tech company, which is headquartered in Zurich. In addition, Karl Matthäus Schmidt, CEO of Quirin private bank, and Stefan Schulz, CFO of the Quirin subsidiary ‘quirion’ and member of the extended management of Quirin private bank, joined the board of directors of the Swiss company.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Die siebte Ausgabe der Studie „Digitalisierung & Kundenerfahrung im Schweizer Retailbanking 2024” von Colombus Consulting zeigt, dass die Retail-Banken auch 2024 weiter in digitale Medien investieren.

Die mobilen Apps werden immer aktueller und beliebter, die sozialen Netzwerke generieren mehr Engagement, und die Budgets für digitales Marketing steigen um 23 % auf über 58 Mio. Schweizer Franken pro Jahr. Das Web steht dem in nichts nach, da Tools zur Optimierung der Kundenerfahrung oder Chatbots eingesetzt werden, aber die Aufmerksamkeit für digitale Verantwortung oder ethische KI noch gering ist.

Ein seit zwei Jahren unverändertes Podium

Die gleichen Banken bilden auch 2024 das Spitzentrio: UBS, PostFinance, Raiffeisen. Durch das Ausscheiden von Credit Suisse aus dem Panel und die Fortschritte von Swissquote in den Bereichen Web und mobile Apps kann die digitale Bank diesem Trio dicht auf den Fersen bleiben. Andere Banken machen Fortschritte wie Yuh und die
Migros Bank, die in unserer Rangliste auf Platz 7 bzw. 8 stehen.

Die Anstrengungen im digitalen Bereich lassen sich in allen Kanälen feststellen. Das Publikum wächst insgesamt um 13,5 % (fast 30 Millionen Besuche pro Monat), die Investitionen in das digitale Marketing bleiben stark (+23 %, d.h. mehr als 58 Millionen Schweizer Franken pro Jahr), der NPS der mobilen Apps wächst um 5 Punkte (67 %) und das Engagement in den sozialen Netzwerken steigt um 64 % auf insgesamt fast 100.000 Interaktionen pro Monat.

Das Web angetrieben von Kundenerlebnissen und digitalen Produkten

Die Optimierung des Kundenerlebnisses bleibt das A und O mit der Einführung neuer Webanalyse-Tools in diesem Sinne bei der FKB, N26 und Neon oder der Entwicklung des direkten Kontakts über Chatbot bei der BKB und Neon. Die Digitalisierung erfolgt auch über naturgemäss digitale Angebote und den nunmehr möglichen Zugang zu Kryptowährungen bei PostFinance und ZKB, in der gleichen Reihe wie die Kantonalbanken von Luzern, St. Gallen und Zug, mithilfe von Partnerschaften mit Akteuren, die auf diese Art von Vermögenswerten spezialisiert sind (Sygnum Bank und Crypto Finance AG).

Mobile Apps werden beliebter und zu mehr Sicherheitsdiensten Die mobilen Apps der Banken sind in diesem Jahr ein grosser Erfolg. Der NPS steigt um 5 Punkte auf 67 % und auch die Anzahl der Aktualisierungen pro Bank steigt mit durchschnittlich 30 Aktualisierungen, 6 mehr als im Jahr 2023. Es gibt jedoch weiterhin eine Spaltung zwischen Neo-Banken und traditionellen Banken (64 Updates gegenüber 24). Die innovativsten neuen Dienstleistungen werden von der Neobank Revolut dank der automatischen Steuerung von Investitionen und eines verbesserten Schutzes gegen den Diebstahl von Telefonen angeboten. Swissquote setzt ebenfalls auf Sicherheit mit einer 2-Faktor-Authentifizierung für die Validierung der sensibelsten Transaktionen.

Soziale Netzwerke: Engagement getragen von Instagram und LinkedIn

Die Reichweite der sozialen Netzwerke ist in diesem Jahr geringer: Die Zahl der Abonnenten ist um 26 % (insgesamt 2 Millionen) gesunken, was auf das Fehlen von Credit Suisse und FlowBank im Panel sowie auf den Rückgang von Facebook zurückzuführen ist.

Das Engagement ist auf dem Vormarsch und wächst um 64 %, vor allem dank Instagram und LinkedIn, und erreicht fast 100.000 Interaktionen pro Monat. Die Inhalte sind sichtbarer und ermutigen die Abonnenten, sie zu liken, zu kommentieren oder zu teilen, vor allem dank des Influencer-Marketings von UBS mit dem F1-Team und dem Fahrer George Russel. Raiffeisen wendet sich mit einer eigenen Instagram-Seite und einem aktiven und engagierten TikTok-Konto, das mehr als 700.000 oder sogar 800.000 Aufrufe für einige Videos generiert, an die jüngsten und netzwerkaktiven Zielgruppen.

Erobert (generative) KI die Schweizer Banken?

Während Privatbanken wie Pictet und Vontobel kürzlich mit auf generativer KI basierenden Assistenten zur Optimierung ihrer internen Produktivität und Kundeninteraktionen den Weg geebnet haben, zieht die UBS über ihren KI-Assistenten, der in den letzten 12 Monaten intern entwickelt wurde, um Unternehmensdaten im Rahmen von Fusionen und Übernahmen zu analysieren, nach.

Temenos, ein Schweizer Anbieter von Banking-Lösungen, bietet nun eine Reihe von Lösungen an, die mit generativer KI angereichert sind. Seine Kundenbanken können damit einzigartige Informationen und Berichte generieren oder auch Produkte in Echtzeit nach Kundenpräferenzen erstellen, um die grundlegenden Bankaktivitäten und die kritischsten Geschäftsfunktionen zu unterstützen.

In der gleichen Logik haben andere allgemeine Anbieter wie Oracle, Salesforce und Microsoft ihre Lösungen mit generativen KI-Modulen angereichert, um die verfügbaren Funktionen zu erweitern und gleichzeitig eine starke Geschäftslogik beizubehalten.

Digitale Verantwortung noch im Werden

Der bereits im letzten Jahr in unseren digitalen Index aufgenommene digitale Verantwortung misst die Umweltauswirkungen der Websseiten der Panelbanken, indem er deren Komplexität, Gewicht und Ressourcenoptimierung analysiert. Die im Jahr 2023 festgestellten halbherzigen Ergebnisse bleiben auch 2024 mit einem nahezu unveränderten EcoIndex-Durchschnitt von 36/100 noch aktuell.

Swissquote bleibt mit einem ausgezeichneten Ergebnis von 95/100 Punkten allein an der Spitze. Die CA Next Bank und LUKB haben sich gut entwickelt, ohne jedoch die 50/100 zu überschreiten, und die schlechtere Bewertung von Akteuren wie BCV, N26 und Yuh konnte nicht ausgeglichen werden. Es bleibt abzuwarten, ob die Banken in den kommenden Monaten die digitale Verantwortung stärker in den Mittelpunkt ihrer digitalen Strategie stellen werden.

Auf dem Weg zu einer ethischeren und verantwortungsvolleren Art Banken?

Die Themen rund um die Ethik und die Verantwortung der Banken entwickeln sich an allen Fronten, insbesondere auf regulatorischer Ebene in Europa (und zweifellos langfristig auch in der Schweiz), wobei die CSRD (Corporate Sustainability Reporting Directive) und das KI-Gesetz an erster Stelle stehen.

Zur Erinnerung: Die CSRD verlangt von den Unternehmen eine detaillierte nichtfinanzielle Berichterstattung über ihre Auswirkungen auf Umwelt, Soziales und Governance und damit die Verpflichtung, auf diesen Achsen zu handeln, und das KI-Gesetz verlangt, dass KI-Systeme nach Risikoniveaus klassifiziert werden, mit Verpflichtungen je nach ihrer Nutzung. Die Schweizer Banken sind nicht alle im gleichen Boot: die internationalen Banken mit einer europäischen Ausrichtung, die daher diese Richtlinien befolgen müssen, und die anderen, die eher lokal ausgerichtet sind, aber letztendlich davon betroffen sein werden.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

BX Digital announced the planned appointment of Lidia Kurt as its new Chief Executive Officer.

BX Digital is a sister company of the Swiss exchange BX Swiss and part of the Boerse Stuttgart Group.

BX Digital aims to create a transparent, accessible and liquid market for digital assets based on blockchain technology in Switzerland.

“With the appointment of Lidia Kurt, we intend to continue on our dynamic path,”

says Lucas Bruggeman, Chairman of the Board of Directors of BX Digital.

“We have the ambition of becoming the first licensed DLT trading system in Switzerland. The application has been submitted to FINMA.”

Lidia Kurt holds a PhD in Finance from the University of St. Gallen, is the author of the book Digital Assets and Tokenisation and has extensive expertise at the interface of financial systems and innovative technologies. Since founding vision& in 2017, she has been working as a consultant for digital assets and has successfully supported numerous tokenisation projects. Previously, she was Managing Partner of a quantitative finance consultancy and gained valuable experience at J.P. Morgan and Swiss Re in Zurich, London, and Hong Kong.

Since 2021, she has been involved at Boerse Stuttgart Group on Blockchain specific topics as an external consultant.

“I am looking forward revolutionising financial market structures with BX Digital at the forefront, opening up new avenues for efficiency and innovation,”

says Lidia Kurt.

“The possibility of trading digital assets such as tokenised shares, bonds and certificates on a regulated secondary market for the first time in the future is groundbreaking for the financial centre.”

Transactions can be processed within minutes via a public blockchain, without the need for centralised financial intermediaries such as central securities depositories or clearing houses.

“As Boerse Stuttgart Group, we are pioneers in the field of digital assets and with BX Digital we want to shape the future European market infrastructure for tokenised securities. We are therefore delighted that Lidia Kurt will contribute her extensive expertise and experience to the management of BX Digital and thus contribute to our success.”

added Dr. Matthias Voelkel, CEO of Boerse Stuttgart Group.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Inflexion, an European mid-market private equity firm, announced that it has agreed an investment in Finanzen.net Group, a digital broker and market leading financial information portal in the DACH region, alongside the founders.

According to a Reuters report the company value could be around 400 millions Euro.

The investment is being made by Inflexion’s Buyout Fund VI and is the second investment in the DACH region after Tierarzt Plus Partner since Inflexion opened its office in Frankfurt earlier this year.

The Group consists of three divisions: high-growth low-cost digital investment platform, also known as a neobroker, called Zero, a capital markets information platform called Finanzen.net, and a trading software platform for semi-professional retail investors called TraderFox. The business will be acquired from Axel Springer, a leading transatlantic media company.

Inflexion will work with Finanzen.net Group’s founders and management to carve-out the business as a standalone integrated company and drive future growth. In particular, Inflexion will support the launch of additional saver and investing products.

Inflexion has a strong track record in carving out businesses from large corporates, and this will be the sixth carve-out in four years following investments into Marlowe (GRC), GlobalData Healthcare, Curinos, aosphere and Giacom.

This transaction exemplifies the power of collaboration between regions and sectors, with our Frankfurt team working with our Financial Services specialists in London, leveraging the full capabilities of Inflexion, including our extensive experience in supporting carve-outs. Such collaboration will be pivotal in driving the future growth of Finanzen.net, as we aim to create a leading digital investment platform in the DACH region.

Florencia Kassai, Managing Partner and Head of Buyout Fund, Inflexion

The goal is clear: We want to develop Zero in connection with the financial news business into the broker of choice for investing, trading and saving. More than ever, the focus of Finanzen will be on delivering innovative technological solutions for capital markets. I am thrilled that with Inflexion we are partnering with a successful investor who will support us in executing on this strategy with investments in products and technology. Special thanks are due to the excellent Finanzen team and our shareholder Axel Springer who provided us with entrepreneurial freedom, thereby creating the conditions under which we have been able to open this new chapter of our growth story.

Maximilian von Richthofen, CEO, Finanzen.net Group

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

In 2023, Switzerland’s marketplace lending witnessed a significant contraction, with the volume of new debt capital issued on online platforms falling by 10.8% year-over-year (YoY) to approximately CHF 18.6 billion, a joint report by the Lucerne School of Business and the Swiss Marketplace Lending Association (SMLA) says.

The Marketplace Lending Report Switzerland 2024, released in October, provides a comprehensive analysis of online debt financing trends for corporations, public entities, and private individuals in Switzerland. It focuses on online platforms directly connecting lenders and borrowers, offering an overview of the current state and emerging trends within the Swiss marketplace lending landscape.

This year’s report reveals a decline in marketplace lending volumes, with key subsegments of the markets, including crowdlending and mortgage financing, facing the steepest drops.

In 2023, crowdlending plummeted by 20% YoY to CHF 389.1 million in new loans, down from CHF 497.5 million in 2022. Similarly, mortgage loans brokered on platforms and financed by institutional and professional investors fell by 20%, falling from CHF 6.2 billion in 2022 to CHF 5 billion in 2023.

Meanwhile, the subsegment of loans and bonds targeting mid-sized and large corporations, as well as public and near-public entities, showcased the most resilience, declining by just 6.7% YoY to CHF 13.2 billion.

Crowdlending: a market led by real estate but in decline

Within crowdlending, real estate continued to lead the subsegment, generating CHF 203.9 million in 2023 and accounting for 52.4% of the market. The sum, however, represents a major YoY decline of 27.9% from CHF 282.7 million in 2022.

That volume mainly consisted of loans to companies in the real estate development business, many of which were issued as short-term credits, later redeemed by banks.

Business crowdlending was the second-largest subsegment, contributing CHF 132.8 million or 34.1% of the market. While it saw a milder drop of 6.4% YoY, this performance reflects ongoing interest despite broader market pressures.

At the end of 2023, 16 crowdlending platforms were active in Switzerland, with increased involvement by banks and insurance companies, as well as market consolidation, the study found.

Lend acquired Lendico from PostFinance in 2019, and in a reciprocal move, PostFinance acquired a stake in Lend; Basellandschaftliche Kantonalbank is a strategic investor in Swisspeers; and Funders is a platform launched by Luzerner Kantonalbank in 2016.

Mortgage loans witness first decline in a decade

In 2023, the mortgage brokerage subsegment recorded its first decline in ten years, reaching approximately CHF 5 billion, down from CHF 6.2 billion in 2022.

The report anticipates that in 2024, some platforms will exit the business-to-consumer (B2C) mortgage market, with further consolidation expected moving forward. This will be driven by a number of factors, including a lower growth rate than expected, as well as relatively low margins per transactions, it says.

At the end of 2023, 12 different platforms operated in the mortgage vertical, serving a professional investor base of banks, insurance companies and pension funds as lenders.

Key players included UBS key4 mortgages, through which UBS offers its own mortgages and mortgages from third parties, and BrokerMarket from Thurgauer Kantonalbank, which operates as an intermediary platform connecting mortgage borrowers with lenders through mortgage brokers. Several independent mortgage brokerage firms were also present, including RealAdvisor, Resolve, topHypo ,Hypohaus, PropertyCaptain and Hypo Advisors.

Loans and bonds for public entities and corporations

Finally, loans and bonds for entities and corporations, another key subsegment in the Swiss marketplace lending landscape, remained a dominant force within the sector in 2023, capturing a 71% share of the market with CHF 13.2 billion in new loans issued.

This section includes two types of loans or private placements: firstly, the online market for loans to public or near-public entities; and secondly, the market for loans to mid-sized and large corporations. Investors in both subsegments are banks and institutional and professional investors, such as asset managers, family offices and pension funds.

Two market participants were currently active in this segment in Switzerland in late 2023. Loanboox, launched in 2016, has grown rapidly in the loan market for public entities with now more than 3,000 transactions and CHF 30 billion in volume closed. Cosmofunding, meanwhile, is a platform launched in 2018 by Bank Vontobel. The company focuses on public and corporate borrowers.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The regulatory landscape for cryptocurrencies has undergone significant transformation in 2024, with the European Union (EU) leading the charge through landmark initiatives such as the Markets in Cryptoassets (MiCA) regulation, but also guidelines on stablecoins as well as updates to the so-called “travel rule” for crypto transfers, a new report by Elliptic, a British blockchain analytics firm, says.

These efforts represent some of the most significant crypto regulatory advancements of the year, highlighting the EU’s pioneering role on the global stage, and setting the stage for regulatory trends in other regions.

MiCA: a groundbreaking regulation

The report, released in September 2024, highlights MiCA as a pivotal step in the global regulation of cryptocurrencies. The regulation, which aims to harmonize crypto regulations across the EU, marks the first comprehensive framework introduced by a major global economy.

A major component of MiCA is the licensing requirement for cryptoasset service providers (CASPs), which obligates them to adhere to strict market conduct, consumer protection and prudential standards.

Once licensed by a national supervisory authority in one EU member state, a CASP is allowed to extend its services across the entire bloc, creating significant business opportunities.

The rollout of MiCA is being conducted in phases. Provisions on stablecoins took effect on June 30, 2024, while the remaining parts of the regulation will start to apply on December 30, 2024.

Updates on the “travel rule”

Another key regulatory development in 2024 was the EU’s updates to its travel rule to cover crypto transfers.

The travel rule refers to regulations that require financial institutions to share information about the sender and receiver of financial transactions. It’s designed to combat money laundering, terrorism financing and other illicit financial activities.

The new guidelines, released by the European Banking Authority (EBA) in July 2024, specify the informations required to accompany every crypto transfer, regardless of their amount. They also outline steps for payment service providers and CASPs to address missing or incomplete details, and establish measures for managing non-compliant transfers.

The update aims to ensure a consistent EU-wide approach to tracing transfers for anti-money laundering and counter-terrorism financing (AML/CTF) purposes, taking effect from December 30, 2024, and replacing earlier guidance.

Stablecoin rules

Finally, stablecoins, because of their growing importance in the crypto ecosystem, have come under increased regulatory scrutiny.

Under MiCA, stablecoin issuers are required to obtain approval from relevant member state authorities before offering their tokens within the EU, or when offering stablecoins pegged to the euro or other member state currency.

They must maintain adequate reserves with a one-to-one ratio and partly in the form of deposits. They must also provide redemption rights to token holders at any time and free of charge, and must have a registered office in the EU.

Outside of the EU, other jurisdictions have also released stablecoin regulations over the past year. In Switzerland, the Financial Market Supervisory Authority published on July 26, new guidance, clarifying the obligations of stablecoin issuers.

The guidance, which emphasizes AML/CFT compliance and default guarantees, requires issuers to determine whether their tokens qualify as deposits or investment schemes and comply with banking license requirements if applicable.

New challenges for industry players

Although these regulatory developments are providing greater clarity for businesses operating within the crypto space, they also introduce new compliance challenges to industry stakeholders.

Critics argue that MiCA could increase costs for providers and create significant burdens for startups and smaller players, raising barriers to entry and stifling innovation.

Meeting the new standards may prove challenging for some companies as they involve costly licensing applications, adjustments to the business operations to meet the requirements of the license, including capital and AML and compliance functions, as well as ongoing obligations for monitoring and reporting, KPMG warns.

This dynamic is expected to give larger companies with substantial financial resources a competitive edge, enabling them to acquire, at a discount, smaller crypto companies unable to comply with the new legislation.

Such consolidations are already taking place. In July, British crypto trading platform Iconomi acquired Triaconta, a Dutch crypto investment platform to grow and develop in the Netherlands and wider EU market. In September, Kraken, a leading American crypto exchange, completed its acquisition of BCM, one of the Netherlands’ oldest and most renowned registered crypto brokers.

In addition, some companies are navigating these challenges by choosing jurisdictions with less stringent regulatory environments. For example, OKX, one of the world’s largest crypto exchanges by trading volume, selected Malta over France as its EU hub, citing “more lenient … compliance”. Similarly, Israeli broker eToro chose Cyprus as its EU hub where it secured a CASP registration in September 2023.

The Elliptic report, titled Global Crypto Regulation Landscape 2024, provides an update on regulatory progress related to cryptoassets. It highlights key trends and advancements in 2024 so far, offering a detailed overview of global and regional developments in crypto regulations.

Featured image credit: image via freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Sifted, a tech media brand backed by the Financial Times (FT), has released its annual ranking of Germany’s fastest-growing startups, showcasing the resilience and dynamism of the country’s tech ecosystem.

The Sifted 50: Germany Leaderboard, released in September, ranks the 50 startups with the strongest revenue growth in the country over the past three financial years. These companies have achieved remarkable revenue growth despite double-digit inflation and sharply rising interest rates.

This year’s average two-year revenue compound annual growth rate (CAGR) stands at a remarkable 162.08%, with the top three companies surpassing the 500% CAGR mark.

Geographically, Berlin leads as the hub for innovation, with 22 of the top 50 companies based in the capital, followed by Munich with nine and Cologne and Hamburg with three each.

Combined, these 50 companies have raised EUR 6.98 billion in funding and generated revenues of EUR 3.03 billion over the past three financial years.

This year, fintech dominates the leaderboard, with 12 companies offering cutting-edge solutions in areas including personal finance, expense management and regtech. This underscores fintech’s prominence in Germany.

Today, we look at the 12 fintech companies that made it into this year’s Sifted 50: Germany Leaderboard, highlighting their value propositions and recent achievements.

Anybill (+328.17% revenue CAGR)

Founded in 2019, Anybill allows retailers of all sizes to issue receipts digitally, directly at checkout. The solution integrates with merchant apps, wallets, banking, and payment apps, bridging gaps in payment infrastructure.

Anybill, which is based in Munich, has secured EUR 5 million in funding, and recorded a two-year revenue CAGR of 328.17%. The figure makes it the 6th fastest-growing German startups of the past two years, according to Sifted.

Finanzguru (+168.67% revenue CAGR)

Launched in 2018, Finanzguru is a financial assistant app that leverages artificial intelligence (AI). The platform allows users to manage all of their banking accounts and contracts in one place, and provides them with advice on insurance and financial products based on a digital analysis of their banking data.

Operated by Frankfurt am Main-based dwins, Finanzguru claims more than 1.5 million registered users, making it the largest bank-independent financial app in the German market. The company achieved a revenue CAGR of 168.67% these past two years, making it the 15th fastest-growing startup in Germany.

HeyData  (+144.9% revenue CAGR)

Established in 2020, HeyData is a leading compliance startup headquartered in Berlin. The company provides an all-in-one compliance solution, helping more than 1,500 small and medium-sized enterprises (SMEs) and startups manage their data protection and compliance requirements.

HeyData secured a EUR 3.3 million seed funding round in September 2022 to fund its product expansion and venture into new markets. The company achieved a revenue CAGR of 144.9% during the prior two years, making it the 18th fastest-growing startup in Germany.

Circula (+140.48% revenue CAGR)

Founded in 2017, Circula is a leading expense management solution for SMEs in Europe. The platform helps businesses manage employee expenses, such as travel costs, out-of-pocket expenses, and benefits. It automates the process of submitting and approving expense reports, and seamlessly integrates with existing enterprise resource planning (ERP), accounting and human resources (HR) software.

Circula claims 2,000+ business customers. The company has secured US$25 million in venture capital (VC) to date, and recorded a revenue CAGR of 140.48% in the last two years, making it the 20th fastest-growing German startup.

Hawk (+105.74% revenue CAGR)

Founded in Munich in 2018, Hawk uses explainable artificial intelligence (AI) to revolutionize anti-money laundering (AML) and regulatory compliance for financial institutions. The company’s technology combines AML transaction monitoring, payment screening, know-your-customer (KYC), and fraud detection to provide comprehensive tools that help institutions fight financial crime effectively while saving costs.

Hawk, which works with leading financial institutions and partners such as Moss, Mambu, Visa, and LexisNexis, has raised US$27 million in funding. The company recorded a revenue CAGR of 105.74% in the last two years, making it the 25th fastest-growing German startup.

Bezahl (+102.96% revenue CAGR)

Bezahl is a digital payment management platform for car dealerships. The platform automates, digitizes and simplifies the entire receivables process, from payment request to 100% data quality for automated posting in accounting systems.

Operated by Aufinity Group, a company founded in 2018 and based in Cologne, Bezahl claims it has already won more than 80% of the top 100 German car dealers and is now starting its internationalization in Europe. In the last two years, Bezahl achieved a revenue CAGR of 102.96%, making it the 26th fastest-growing startup in Germany.

Secjur (+84.8% revenue CAGR)

Founded in 2018, Secjur is a Hamburg-based company that provides an automated compliance platform using AI technology. The company’s platform, known as the Digital Compliance Office (DCO), helps businesses streamline compliance processes in areas such as data security, AML and whistleblowing.

Secjur has already gained significant traction with partnerships established with the likes of Mercedes Benz, Samsung and Tomorrow Bank. The startup secured EUR 5.5 million in December 2022. It recorded a revenue CAGR of 84.8 in the last two years, making it the 33rd fastest-growing German startup.

Timeless (+76.27% revenue CAGR)

Timeless is a wealthtech startup specialized in unique collectibles such as art, watches, classic cars, and whiskies. Through its digital platform and the use of blockchain technology, Timeless enables fractional investments starting at just EUR 50, allowing individuals to benefit from the value appreciation of these tangible assets.

Timeless, a brand of New Horizon, a company based in Berlin and founded in 2018, claims it has tokenized over 600 collectibles to date, totaling more than EUR 27 million in value. The company achieved a revenue CAGR of 76.27% in the last two years, making it the 35th fastest-growing startup in Germany.

Spotixx (+73.21% revenue CAGR)

Founded in 2019, Spotixx specializes in AI-driven solutions for financial crime detection. The company’s advanced solutions help banks effectively address the challenges of fraud and money laundering.

With safeAML, a large-scale project developed in collaboration with industry partners, Spotixx connects banking data to create a powerful tool in the fight against financial crime. At the same time, its add-on products AMALIA and FREDDY bring AML- and fraud monitoring into the AI-era, enhancing banks’ existing systems with advanced AI capabilities.

Spotixx achieved a revenue CAGR of 73.21% in the last two years, making it the 38th fastest-growing startup in Germany.

ProNoblis (+66.4% revenue CAGR)

Founded in 2013, ProNoblis is a SME financing company based in Berlin. The company’s core product is a buy now, pay later (BNPL) solution for business-to-business (B2B) clients that helps SMEs financing the purchase of goods.

ProNoblis leverages a strong distribution network, strategic partnerships, and AI-driven technology to deliver scalable, automated financial solutions through its flagship product, CreditEngine. CreditEngine is a digital platform that offers a fully automated credit process with a three-minute decision time, self-service features, and AI-powered rating.

ProNoblis achieved a revenue CAGR of 66.4% in the last two years, making it the 41st fastest-growing startup in Germany.

Prestatech (+41.42% revenue CAGR)

Founded in 2021, Prestatech is a cloud-based platform that provides modern underwriting solutions for lenders and innovative embedded finance products for commercial players. Through its platform, Prestatech offers banks API solutions based on AI, algorithms and big data. The services focus on end-to-end digital credit processes.

Prestatech is currently active with major European players including Fabrick and Banca AideXa. The startup achieved a revenue CAGR of 41.42% in the last two years, making it the 46th fastest-growing startup in Germany.

Pair Finance (+35.32% revenue CAGR)

Founded in 2016 and headquartered in Berlin, Pair Finance s a leading fintech for digital debt collection and receivables management. The company is transforming the debt collection industry with its sustainable, digital, efficient, and customer-centric approach. Using AI, behavioral psychology and data science, Pair Finance is setting a new standard in debt collection that supports businesses and consumers alike.

Pair Finance, which claims more than 500 business customers, achieved a revenue CAGR of 35.32% in the last two years, making it the 49th fastest-growing startup in Germany.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Die Bedeutung von Kryptowährungen hat in den letzten Jahren stark zugenommen.

In der Schweiz investieren 11 Prozent der Bevölkerung in Krypto-Anlagen. Die meisten Personen tun dies aus Interesse und Neugier mit verhältnismässig kleinen Beträgen – und weniger aus Rendite- oder Diversifikationsgründen.

Mit der zunehmenden Verbreitung von Kryptowährungen bieten immer mehr Banken den Handel mit digitalen Anlagen über das E-Banking und Mobile Banking an. In einer Studie hat die Hochschule Luzern (HSLU) im Auftrag von PostFinance untersucht, wer in Krypto-Anlagen investiert und aus welchen Gründen dies geschieht.

Es ist die erste umfassende und repräsentative Studie zum Thema Krypto-Anlagen von Privatpersonen in der Schweiz.

Hohe Bekanntheit – moderates Interesse

Das Interesse an Krypto-Anlagen ist in der Schweizer Bevölkerung insgesamt mässig. Rund 8 Prozent sind eher stark oder sehr stark daran interessiert, wobei das Interesse bei jüngeren Generationen, bei Männern und bei Personen mit hohem Einkommen stärker ausgeprägt ist (Abbildung 1).

Gleichzeitig kennt die Mehrheit der in der Schweiz lebenden Personen inzwischen zumindest die bekanntesten Kryptowährungen wie Bitcoin (87 Prozent) und Ether (35 Prozent) (Abbildung 2). Trotzdem haben 82 Prozent der Bevölkerung noch nie in Krypto-Anlagen investiert.

Nur wenige handeln aktiv und mit grösseren Beträgen

Krypto-Anlagen geniessen zwar in den Medien hohe Aufmerksamkeit, wie Studienautor Prof. Dr. Andreas Dietrich von der HSLU sagt.

«Das erweckt den Eindruck, dass viele in der Schweiz wohnhafte Personen aktiv in diesem Markt investieren oder handeln.»

In Wirklichkeit besitzen aktuell nur 11 Prozent der Bevölkerung Krypto-Anlagen. Von dieser Gruppe handelt nur etwa jede siebte Person aktiv oder mit grösseren Beträgen. Dietrich:

«Dies bedeutet, dass Krypto-Anlagen insgesamt derzeit wohl lediglich für etwa 1 bis 2 Prozent der Bevölkerung eine hohe Bedeutung haben.»

Neugier statt Rendite und Diversifikation

Die Mehrheit der Krypto-Investorinnen und -Investoren engagieren sich mit kleinen Beträgen in dieser
Anlageform. Dies deutet laut Andreas Dietrich darauf hin, dass viele Investitionen einen eher experimentellen Charakter haben. So halten 31 Prozent der Befragten weniger als CHF 1’000 in Krypto-Vermögen. Als Hauptmotiv für diese Investitionen nennen die Anlegerinnen und Anleger vor allem die Neugierde (Abbildung 2).

Die populärsten Kyrpto Handelsplatformen in der Schweiz: Revolut, Swissquote und Binance

Die Nutzung von Renditechancen und die Diversifikation des Portfolios sind nicht unwichtig, spielen aber insgesamt für viele Investorinnen und Investoren (noch) eine untergeordnete Rolle. Die bei Krypto-Anlegerinnen und Anlegern populärsten Anbieter für den Handel von Krypto-Anlagen sind Revolut, Swissquote und Binance.

Wachstumspotenzial von Krypto-Anlagen

Die potenziellen Krypto-Anlegerinnen und -Anleger lassen sich in drei Gruppen unterteilen: Jene, die aktuell in Krypto-Anlagen investieren, jene, die es noch nie getan haben und Ehemalige, die es momentan nicht mehr tun. Die Analyse zeigt, dass es herausfordernd ist, Neukunden zu gewinnen, die bisher keinen Kontakt mit Krypto-Anlagen hatten.

Aus Sicht von Andreas Dietrich liegt das grösste Potenzial für Finanzdienstleister bei den bestehenden Investorinnen und Investoren über den Ausbau ihrer Investments. Es ist aber auch möglich, dass die Befragten das langfristige Potenzial selbst unterschätzen. Dazu sagt Dietrich:

«Die Integration von Krypto-Anlagen in die Angebote etablierter Schweizer Banken verdeutlicht den wachsenden Einfluss dieser Anlageklasse. Durch den einfachen Zugang über das E- und Mobile-Banking wird die Verbreitung von Krypto-Anlagen in der Bevölkerung weiter steigen.»

Ein Hinweis auf das Potenzial zeigt sich auch darin, dass Wertschriften-Anlegerinnen und -Anleger deutlich häufiger in Krypto-Anlagen investieren als Personen, die nicht in Wertschriften anlegen.

Gemäss der Studie legen 18 Prozent der Wertschriften- Anlegerinnen und Anleger in Krypto-Anlagen an. Damit sind diese Krypto-Anlagen zwar weniger bedeutend als klassische Anlagekategorien wie Aktien, Fonds oder Obligationen. Es wird aber deutlich häufiger in Krypto-Anlagen investiert als in Derivate (z.B. Optionen).

Titel-Bild Nachweis: Bearbeitet von freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The London Stock Exchange Group (LSEG) has partnered with IDVerse to strengthen its digital identity verification services.

LSEG aims to combat the growing threat of digital deception, including synthetic media and deepfakes.

This collaboration will integrate IDVerse’s advanced technology, including its fully automated “Zero Bias AI,” which leverages regenerative AI, into LSEG’s existing spectrum of risk solutions.

This AI-powered tool aims to provide accurate identity verification while minimising potential bias based on race, age, and gender.

The partnership will focus on improving the speed and reliability of document and biometric checks, addressing issues of accessibility and fraud prevention.

This is crucial in today’s rapidly evolving digital landscape where IDVerse reports that one in four fraud attempts now involve some form of digital deception.

Both companies emphasise the importance of creating interoperable systems that can be customised to meet the specific needs of each customer.

This offers a next-generation workflow without compromising on security or user experience.

By enhancing digital identity verification, LSEG and IDVerse aim to improve access to vital services while ensuring legal and regulatory compliance for global operations and maintaining trust and security.

Daniel Flowe, Head of Digital Identity at LSEG, said,

“Onboarding IDVerse complements LSEG’s identity verification capabilities and adds yet another means of low-friction, high assurance identity verification for our customers. IDVerse’s ability to scale across a huge variety of geographies and customer verification use cases allows us to offer our customers a future-proofed solution to digital identity verification.

To give our customers confidence, we extensively tested IDVerse’s interoperability, performance, and agility to ensure that it matched our existing best-in-class standards. This combination gives us a truly next generation workflow to bring to market.”

John Myers, CEO, IDVerse added,

“The pace of evolution in digital deception that identity platforms like LSEG required a tool that adapts to new fraud vectors whilst giving a great customer experience to good customers. This is illustrated by IDVerse now experiencing 1 in 4 fraud attempts involving digital deception.

The partnership with LSEG allows businesses to remain open to new opportunities whilst adapting to a changing world. Their spectrum of risk solutions, all from one trusted partner, helps organisations efficiently navigate risks, avoid reputational damage, reduce fraud and ensure legal and regulatory compliance around the globe”.

Featured image credit: Edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Twelve Swiss companies representing various aspects of the Swiss financial system will participate in the Singapore Fintech Festival 2024 (SFF 2024), held from 6 to 8 November at the Singapore Expo.

This marks the eighth year of Swiss presence at the festival, organized under the Swiss Pavilion by Switzerland Global Enterprise (S-GE) and the Swiss Business Hub South East Asia + Pacific.

The Swiss delegation aims to demonstrate the strengths of their fintech industry, emphasizing Switzerland’s reputation for trustworthiness, quality, and innovation.

SFF 2024 will focus on six key themes, including the Roadmap for AI & Quantum, Blueprint for Digital Assets, Next-Gen Transactions, Sustainability in Action, Bridging the Financial Gap, and Talent of Tomorrow.

The event is expected to attract global leaders from government, finance, investment, and technology sectors.

Returning participants are aiming to build on their existing presence in Singapore and the broader ASEAN market.

Switzerland’s financial sector is recognized for blending tradition with innovation, contributing to its standing as a global leader in financial services.

The country has retained its top-ranked position in the 2024 Global Innovation Index by WIPO, marking 14 consecutive years of leadership in innovation.

S-GE, acting on behalf of the Swiss Confederation and cantons since 1927, supports more than 5,500 Swiss companies in expanding internationally each year.

It also facilitates foreign companies’ investments in Switzerland through its global network, including the Swiss Business Hub South East Asia + Pacific.

Renee Koh, Deputy Head of Swiss Business Hub South East Asia + Pacific said,

“The steadfast support from Swiss financial institutions and fintech companies at SFF 2024 underscores our commitment to bringing innovative Swiss enterprises to Singapore, empowering them to establish a strategic foothold in Southeast Asia.

Swiss solutions are globally acclaimed for their robust, time-tested reliability and strict adherence to regulatory frameworks. This proven excellence positions Swiss companies as invaluable partners for Asian market players, providing a clear competitive edge in navigating the region’s complex and dynamic environments”.

Featured image credit: Edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Swissquote announced the launch of its new fractional trading feature, along with a new “Saving Plan” order type.

These innovations are designed to meet the growing demand for flexible and affordable investment options, enabling investors to build a diversified portfolio over time, regardless of their budget.

In today’s market, many investors seek the possibility to invest smaller amounts across a broad range of assets, spreading risk and enhancing potential returns. Until now, Swissquote’s platform supported only the trading of full shares, which limited clients to strategies constrained by share prices rather than their available cash. This new feature allows investors to purchase fractions of the most popular stocks, ETFs, cryptocurrencies and Themes Trading products, providing them with the opportunity to invest any amount and gradually build a robust portfolio.

Jan De Schepper, Chief Sales and Marketing Officer at Swissquote, emphasised the significance of these advancements:

“Our mission at Swissquote has always been to democratise investing and empower our clients with the tools they need to achieve their financial goals. With the introduction of fractional trading and the new “Saving Plan”, we are offering our clients unprecedented flexibility and control over their investments. This solution not only meets the market demand but sets a new standard in the industry.”

Swissquote’s “Saving Plan” allows clients to set up recurring investments with the freedom to adjust them based on their available funds, ensuring they can maintain their desired level of diversification.

Investing starts as of today at the reduced price of CHF 3 per trade for shares, making fractional trading an accessible and attractive option for all investors.

These platform upgrades and the new reduced pricing are now available to all Swissquote clients.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Artificial intelligence (AI) is taking center stage in banks’ digital transformation plans as financial institutions seek to improve customer experiences and operational efficiencies. According to a new study conducted by Publicis Sapient, a leading American digital consulting company, banks are spending 29% of their investments in customer experience digital transformation on machine learning (ML), AI and generative AI (genAI). Banks are also placing AI as their biggest focus for digital transformation over the next three years.

These findings come from the Global Banking Benchmark Study 2024, which surveyed more than 1,000 senior retail and commercial banking leaders in early 2024. The study, which sought to explore the maturity of banks’ digital transformation initiatives, reveals that banks are actively exploring AI’s potential, with executives highlighting data and AI as the most critical areas for digital transformation, followed by genAI for internal use.

Interestingly, developing existing talent is executives’ third most common functional focus for digital transformation, suggesting that executives are equally focused on the human side of the human-machine equation and recognize the need to prepare their employees to work with AI.

The study also found strong interest from banks in deploying genAI across both internal and customer-facing use cases. 61% of respondents want to use genAI to streamline transaction-related functions such as credit analysis, underwriting, and contract management. Additionally, 55% are focused on deploying genAI for employee and internal functions such as developer tools, search capabilities, and virtual assistants. Meanwhile, 49% are targeting customer-facing roles, such as marketing and customer service.

The study, which categorized banks into four groups based on their digital transformation maturity, found that the top performers, labelled “Transformation Leaders”, are at the forefront of AI adoption. These banks allocate 34% of their digital transformation budget to AI, ML, and genAI, a proportion that’s 6% more than the least mature banks, or “Laggards”, and which stands above the industry average.

Transformation Leaders aren’t just spending more on AI, ML and genAI, they are spending differently. 44%  prioritize AI tools for internal use, while just 25% of Laggards do. Moreover, 84% of Transformation Leaders agree that it’s better to take time to develop custom-made AI tools rather than save time by using third-party solutions, compared to just 70% of Laggards.

Transformation Leaders are also laying the groundwork to support AI integration. These players are heavily investing in key areas such as cloud infrastructure and migration, data and analytics, and organizational culture changes.

Despite the clear commitment to AI and digital transformation, banks are facing growing challenges. The study found that the process of digital transformation has become more difficult over the past years, with respondents citing regulatory challenges, the lack of operational agility, and outdated legacy technology as their top barriers in the past 12 months.

Budget constraints are another significant obstacle. In 2024, 32% of banking executives cited budget limitations as a key hurdle to digital transformation, up from 19% in 2022.

But despite these challenges, the outlook for AI adoption in the banking sector remains strong. Gartner predicts that by 2026, more than 80% of banks will have adopted genAI, driven by the technology’s potential to improve efficiencies, customer service and risk management. McKinsey and Company estimates that across the global banking sector, genAI could add between US$200 billion and US$340 billion in value annually, or 2.8 to 4.7% of total industry revenues, largely through increased productivity.

Featured image credit: freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

In Switzerland, financial institutions are increasingly recognizing the long-term potential of blockchain and integrating the technology into their growth strategies.

According to a new study by the University of St. Gallen, in collaboration with vision& and mintminds, more than 80% of Swiss banks are either planning to develop and actively expanding their blockchain offerings, with a particular focus on cryptocurrencies.

Conducted between April to June 2024, the study polled 19 banks in Switzerland, including retail (47%), private banks (37%), universal (11%) and investment banks (5%) to understand the blockchain strategies, priorities, and challenges these institutions face as they integrate blockchain technology, cryptocurrencies and tokenized assets.

The research found that over 60% of banks in Switzerland are pursuing concrete plans related to cryptocurrencies, with half of these institutions considering the development and expansion of their crypto offerings as highly prioritized. This underscores growing interest and acceptance of cryptocurrencies within the traditional banking sector, the report says.

A focus on crypto custodian, trading and ETP products

When looking at planned crypto offerings, the study found that approximately 60% of banks are either looking to implement or have already implemented custodial services, underscoring the importance of these offerings in the crypto space.

Trading services, which allow for the buying and selling for cryptocurrencies, are another critical component of the crypto industry, prioritized by around 60% of banks.

Exchange-traded products (ETPs) and certificates, which are financial instruments that track the value of cryptocurrencies and which can be traded on traditional stock exchanges, are also perceived by Swiss banks as critical. Around 60% of respondents intend to offer these products, highlighting ETPs as an attractive alternative for investors to participate in the crypto space.

Cryptocurrencies are still in the early stages of market development. Currently, only 0.53% of total assets under management (AuM) are invested in the asset class. While this figure may appear low at first glance, it is significant. Many Swiss banks have only recently introduced their crypto offerings, suggesting substantial interest in the asset class and considerable growth potential, the report says.

The rise of tokenized assets

Swiss banks are also showing strong interest in tokenized assets. These are physical or digital assets that have been converted into digital tokens on a blockchain, making them easier to trade, divide and track.

According to the study, 47% of the Swiss banks polled are planning to develop a tokenized asset offering, reflecting a clear interest and confidence in the future of this technology. However, most banks remain in the nascent stages of implementing tokenized asset offerings, indicating that many institutions are just starting to familiarize themselves with the technology and its application possibilities.

Industry stakeholders are optimistic about the prospects of tokenization due to its transformative benefits, including increased liquidity, transparency, and efficiency. Global consulting firm Boston Consulting Group (BCG) and digital exchange ADDX forecast that asset tokenization will expand into a US$16.1 trillion business opportunity by 2030, driven by greater access to private markets, improved liquidity, and increased recognition by monetary authorities.

Blockchain strategy

The study conducted by the University of St. Gallen revealed that nearly 60% of the banks surveyed have already developed or are working on a blockchain strategy. This includes 16% of institutions that rank blockchain topics as highly prioritized. Almost all banks with an existing strategy have management support and launched their first blockchain offering in 2023 or earlier.

When asked about their motivations for adopting blockchain, more than 40% of the institutions said they viewed the technology primarily as an innovation driver. Additionally, 21% of the institutions are investing in blockchain as a growth driver, pursuing an offensive strategy and expecting strong growth in managed assets and customer numbers. In contrast, nearly 11% of all banks are adopting a defensive approach, investing in blockchain as a means against customer losses and withdrawals of managed assets.

Swiss banks are also exploring more advanced applications of blockchain technology, with 58% reporting active efforts in this area. Their primary motivation is a general willingness to innovate.

The study also found that larger banks and those with more employees involved in blockchain projects are more likely to integrate advanced blockchain applications into their business strategies. This implies that bigger banks with more resources tend to be further along in implementing blockchain.

Featured image credit: edited from freepik here and here

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Das Schweizer Fintech Relio, das als Anbieter von Geschäftskonten mit Schweizer IBAN bekannt ist, lanciert internationale Transaktionen, Fremdwährungen (FX) und Multi-Währungs-Konten.

Der erweiterte Service profitiert von der fortschrittlichen AML- und Compliance-Technologie von Relio, welche das Monitoring von Transaktionen anhand von über 100 Datenpunkten auf jeden Kunden zuschneidet und so einen reibungslosen und effizienten grenzüberschreitenden Zahlungsverkehr gewährleistet.

Globales Business, Schweizer Zuverlässigkeit.

Vor einem Jahr lancierte Relio, als eines von nur fünf Instituten mit einer Fintech-Lizenz der FINMA, voll digitale Geschäftskonten für Freelancer, KMU, Start-ups und Firmenkunden.

Dieses Angebot umfasste Schweizer IBANs und CHF-Konten für Inlandszahlungen. Nun erweitert Relio seine Funktionen mit internationalen Zahlungen, Fremdwährungen und Multi-Währungs-Konten. Zum Start unterstützt der Service CHF, EUR sowie GBP und ermöglicht Transaktionen in über 40 Länder. Weitere Währungen und Länder werden demnächst hinzugefügt.

Maximale Compliance und minimale Reibung.

Grenzüberschreitende Transaktionen sind oft mit komplexen regulatorischen Anforderungen verbunden, die von den Finanzinstituten verlangen, die Rechtmässigkeit der Geldflüsse zu überprüfen, die Herkunft der Gelder zu dokumentieren und den Zweck der Transaktionen nachzuvollziehen. Typischerweise sehen sich Unternehmen bei internationalen Zahlungen mit Verzögerungen und Unterbrechungen konfrontiert, die auf regulatorische Herausforderungen und falsch positive Compliance-Warnungen zurückzuführen sind.

Relio will mit seiner neu entwickelten Technologie die Compliance im internationalen Zahlungsverkehr neu definieren. Die Plattform automatisiert viele AML- und Compliance-Workflows und sammelt über 100 Datenpunkte während des Kunden-Onboardings, um sowohl einfache als auch komplexe Geschäftsmodelle zu unterstützen.

Das automatisierte Compliance-System von Relio beschleunigt die Kontoeröffnung und nutzt die gesammelten Daten für die Transaktionsüberwachung, um dem individuellen Geschäftsprofil eines jeden Kunden gerecht zu werden.

Dieser datengesteuerte Ansatz verbessert die Erkennung verdächtiger Aktivitäten bei gleichzeitiger Minimierung von falsch-positiven Meldungen und sorgt für eine reibungslose, schnelle und zuverlässige Abwicklung. Das Ergebnis ist, dass sowohl die Kunden als auch Relio erheblich weniger Zeit und Ressourcen für die Einhaltung der Vorschriften im grenzüberschreitenden Zahlungsverkehr aufwenden müssen.

Titelbild Nachweis: Bearbeitet von freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Swiss retail banks expect technology to increase competition but not as dramatically as anticipated.

A new study by auditing and consulting firm EY, in collaboration with the University of St. Gallen, reveals that while incumbents are aware that bigtechs, neobanks and fintech companies are driving innovation, they remain confident that their ability to maintain strong customer relationships and deliver high-quality advice will help them retain a competitive edge.

The “Retail Banking 2035” report, released in September 2024, shares insights from 33 retail banks in Switzerland on ten key areas thesis about the future of retail banking. It identifies the most important challenges and opportunities facing the industry through 2035.

Impact of technology is overestimated

The research found that Swiss retail banks expect technological innovations to intensify competition in the medium term. However, the short-term impact of cutting-edge technologies such as artificial intelligence (AI), blockchain and quantum computing are largely overestimated.

Swiss retail banks believe that for a new technology to have a significant impact, it must align with customers. However, these needs are not expected to change dramatically in the next ten to fifteen years. Employees and customers also have to want to use this new technology, the respondents said.

Taking the example of AI, the respondents said that while the technology has received a lot of hype, it is still perceived as merely a tool for increasing efficiency and improving chatbots, with applications like robo-advisors receiving mixed success.

Traditional banks’ strengths over newcomers

Despite the rise of fintech, Swiss banks believe they still maintain several advantages over competitors. These advantages, which include capital strength, brand trust, a diverse product offering and long-established customer relationships, position incumbents well against fintech companies and neobanks, whose market penetration remains limited due to smaller customer bases and challenges in scaling their business models.

The respondents argue that while Switzerland has seen a sharp increase in fintech companies, which grew from less than 200 players in 2016 to nearly 500 in 2023, the experience with these new providers has not been very dramatic so far.

Moreover, fintech companies have not been able to revolutionize the business. If anything, they are actually moving steadily in the direction of the traditional banks.

Finally, Swiss retail banks expect that the vast majority of local customers will continue to seek personal advice in the future, especially during key life events such as buying a home, saving for a pension or wills and inheritance. This means that traditional banks will maintain an edge over new market entrants.

Minimal threat from bigtechs, retailers and telcos

When it comes to bigtechs, Swiss retail banks feel that the country’s small size and peculiarities, such as its four national languages, many cantons and different cultures, represent significant challenges for the likes of Apple and Google.

Additionally, banking regulations and the high level of trust that Swiss customers place in domestic financial institutions make it difficult for bigtech companies to compete directly.

Swiss retail banks are also unconcerned about competition from domestic retailers and telecom companies. Although these players have access to vast amounts of customer data and the tools to use these data to offer financial services through open banking, they would not be able to maintain accounts or lend due to regulatory restrictions. This would limit their potential and ability to compete in the sector.

If competition from outside the banking industry is to intensify, Swiss banks believe insurers are their most likely threat. This is because insurance advisors traditionally have a closer relationship with their customers than bank advisors, giving them an edge in personal interactions and trust.

Overall, Swiss retail banks perceive their biggest competition as coming from within the industry itself. According to the respondents, this is because all of the retail banks in the country are pursuing technological upgrades, and that none of them has achieved groundbreaking results so far. For example, the introduction of digital pension solutions prompted competitors to respond with similar solutions designed to boost volumes. However, in the end, no one saw an increase in volumes.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Die radicant bank und das von der UBS finanzierte Treuhand Fintech Numarics streben den Zusammenschluss an und haben entsprechende Verträge unterzeichnet.

Vorbehaltlich der Zustimmung der zuständigen Behörden wird durch diesen Zusammenschluss ein umfassendes Angebot geschaffen, welches die nahtlose Integration von Finanzdienstleistungen und digitalen Lösungen in den Alltag von Privatpersonen und KMU ermöglicht.

Künftig will man gemeinsam unter dem Namen radicant auftreten.

Durch den Zusammenschluss entsteht eine integrierte Banking- und Administrations-Plattform für Private und Unternehmenskunden. Bestehende Dienstleistungen und Produkte von radicant im Bereich Banking, Investment und Vorsorge für Privatkunden werden durch eine umfassende digitale Administrationslösung von Numarics erweitert.

Gleichzeitig wird das Administrations- und Treuhand-Angebot der Numarics für Geschäftskunden durch ein digitales Bankkonto ergänzt, wodurch ein durchgängiges Angebot entsteht, welches sich vor allem an kleinere und mittlere Unternehmen richtet.

Ganzheitliches Finanzangebot für Privat- und KMU-Kunden

«Wir machen mit dem geplanten Zusammenschluss den nächsten grossen Schritt hin zu einem ganzheitlichen Finanzangebot»,

sagt Anton Stadelmann.

«Privat- und KMU-Kunden werden von einem digitalen Dokumentenmanagementsystem und digitalen Lösungen profitieren können. Das reduziert die Zeit, die sie heute noch für administrative Aufgaben benötigen, auf ein absolutes Minimum. Wir wollen Banking noch smarter machen.»

«Mit der Integration von Bankfeatures in unsere Administrationsprozesse werden wir einen wichtigen Schritt in Richtung Automatisierung und vollintegriertes, digitales Ökosystem schaffen.»,

sagt Kristian Kabashi, Mitgründer von Numarics, und ergänzt:

«Der Vorteil dabei ist, dass sich die Unternehmenskunden ganz auf ihr Kerngeschäft konzentrieren können. Das führt zu einer spürbaren Erleichterung im Alltag und im Geschäftsleben.»

Designierter CEO des neuen Unternehmens wird Anton Stadelmann

Die Basellandschaftliche Kantonalbank (BLKB) bleibt Mehrheitsaktionärin, neben den bisherigen Finanzinvestoren von Numarics, wie Founderful, FiveT, SeedX, Davidson Capital sowie der UBS.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Die Schweizer Banken arbeiten an Open Banking. Der Bundesrat sieht sogar Fortschritte bei Umsetzung.

Doch die Menschen in der Schweiz spüren davon noch nichts. Das hat damit zu tun, dass «die Ziele […] noch nicht vollständig erreicht sind», so der Bundesrat. Schade eigentlich, denn die Möglichkeiten von Open Banking könnten für Bankkunden einen echten Mehrwert bieten – vor allem, wenn sie mit den Möglichkeiten von KI kombiniert werden.

Bankkunden arbeiten für die Banken

Heute haben Schweizerinnen und Schweizer im Durchschnitt zwei Bankbeziehungen. Ob das für sie immer die besten Bankbeziehungen sind, ist fraglich. Denn Bankkundinnen und -kunden bezahlen oft zu viel Gebühren und erhalten zu wenig Zinsen. Das hat hauptsächlich damit zu tun, dass sie die Konditionen der Banken nicht kennen – auch der Hausbank nicht.

Schweizer Bankkunden «verschenken» so rund 13.4 Milliarden Franken pro Jahr. Allein bei Sparkonten (2.5 Mrd.) und Privatkonto/Debitkarte (2 Mrd.) – also Produkten, die jeder hat – sind das rund 500 Franken pro Einwohner. Schweizerinnen und Schweizer arbeiten also im Durchschnitt eineinhalb Tage, um bei ihrer Bank nicht die besten Konditionen zu haben.

Und trotzdem wechseln sie ihre Bankbeziehung nicht. Warum nicht? Weil sie den Aufwand scheuen. Nicht nur den Aufwand für die Kontoeröffnung, sondern auch den Aufwand, das Geld zu verwalten: «Wäge dem Bitzeli…»

idibeko – mein Traum

Open Banking kombiniert mit künstlicher Intelligenz hat das Potential, den Markt zu verändern. Stellen Sie sich folgendes Szenario vor:

Alle meine Bankkonten sind über Open Banking mit dem (fiktiven) Service «idibeko» («immer die besten Konditionen) verbunden. idibeko kennt die Konditionen (Zinsen, Rückzugsbedingungen etc.) aller meiner Konten – und die aller anderen Banken. Da idibeko Zugriff auf alle meine Konten hat, kann es meinen Liquiditätsbedarf analysieren und eine entsprechende Planung erstellen.

Basierend auf dieser Analyse schlägt idibeko immer die beste Anlagemöglichkeit für meine Finanzen vor. Die Umschichtungsvorschläge können per Knopfdruck akzeptiert werden – die Umsetzung übernimmt idibeko.

Wenn idibeko ein besseres Produkt bei einer Bank findet, bei der ich noch kein Konto habe, bietet idibeko mir direkt die Kontoeröffnung an. Dank der neuen e-ID kann idibeko in Zukunft (vielleicht) die Kontoeröffnung selbst übernehmen und die Überweisung vornehmen, sobald das Konto verfügbar ist.

Da idebko die Rückzugsbedingungen aller Konten kennt, muss ich nur noch einen Bruchteil auf einem (unverzinsten) Privatkonto halten. Denn wenn ich mal mehr Liquidität brauche, zieht idibeko die benötigte Summe von den verschiedenen Banken und Konten zusammen – so dass keine Rückzugslimite verletzt wird.

Damit idibeko nicht einfach macht, was es will, kann ich Limiten und Wünsche definieren. Einfach als Freitext. Zum Beispiel so: «Ich möchte nicht mehr als 100’000 Kunden bei einer Bank angelegt haben. Verteile das Geld so, dass ich jederzeit 50’000 abheben kann. Berücksichtige nur reine Schweizer Banken. Bei der Bank xy möchte ich nie ein Konto.»

Gut für Bankkunden – und für Banken?

idibeko wird unweigerlich die Arbeit der Banken verändern.

Banken, die heute zusätzliche Kundengelder benötigen, müssen sich heute intensiv um diese bemühen. Es reicht nicht, einfach die Zinsen zu erhöhen. Potenzielle Kunden müssen erst einmal vom Angebot erfahren. Es muss Werbung gemacht werden. Vergleichsplattformen müssen die neuen Konditionen publizieren – bei neuen Konten, ist das nicht immer so einfach, wie es tönt. Kunden müssen in Einzelgesprächen beraten und überzeugt werden.

Ein Kampf gegen die Trägheit der Kunden.

Mit idibeko wird das anders. Einfach die Konditionen etwas erhöhen und idibeko optimiert die Verteilung auf die verschiedenen Konten und Banken. Neugeld fliesst schnell und zuverlässig rein – bis eine andere Bank noch bessere Konditionen bietet.

Ja, das wird das Bankgeschäft verändern. Einfach die Zinsen senken und darauf wetten, dass die Kunden träge sind und das Geld nicht abziehen, wird nicht mehr funktionieren. Zinsanpassungen müssen wohlüberlegt sein. Nach oben und nach unten.

Auch für die Bankkunden brechen neue Zeiten an. Endlich kriegen sie etwas ihr Erspartes.

Der alte Slogan «Lass dein Geld für dich arbeiten» wird endlich Wirklichkeit.

Dieser Blog Post erschien zuerst auf dem Blog von Claudio Gisler

Titel-Bild Nachweis: Bearbeitet von Freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Fraud is surging in Europe’s financial services sector, with both the scale and sophistication of attacks growing on the back of advancements in artificial intelligence (AI).

A survey by Signicat, involving 1,206 fraud decision-makers at financial institutions across seven European countries, reveals that 76% of respondents believe fraud is now a bigger threat than three years ago, and 66% specifically view AI-driven identity fraud as a greater concern.

The study, conducted by Censuswide in March and April 2024, found that while fraud is increasing overall, some types of fraud are becoming more popular. Deepfakes and impersonalization, in particular, have emerged among the top three most common types of identify fraud reported by financial institutions.

This trend aligns with Signicat’s own experience in detecting deepfake fraud. In 2021, deepfakes accounted for a mere 0.1% of fraud attempts. However, the figure has soared to 6.5% in 2024, marking a staggering 2,137% increase over the period. This sharp increase in deepfake attempted fraud is part of a broader trend, with overall fraud attempts tracked by Signicat rising by 80% over the past three years.

The rise of deepfakes

More specifically, the research found that deepfakes have risen to become the most prevalent threat in eID fraud. These schemes aim to undermine national digital identity systems either by taking over an existing account or creating a false identity.

eID systems are digital platforms that allow individuals or organizations to prove their identity online, securely and efficiently. These systems are designed to verify a person’s identity electronically, enabling them to access various services, both public and private, without needing physical documents.

While eID are effective against many types of fraud, some criminals are able to subvert these systems, leveraging AI to sample voices and video with striking accuracy to deceive organizations or individuals. For example, a deepfake might prompt a victim to authorize payments where no ID check is required on the fraudster’s end, leaving eIDs ineffective in such scenarios. Deepfakes can also be used to direct victims to fake eID verification sites to steal logins or as part of a “man-in-the-middle” attack.

60% of fraud executives polled for the Signicat study stated that eID fraud is a bigger threat today than three years ago, compared to 74% saying the same of fraud in general. This suggests that while eIDs are helping slow the growth of fraud, they are not enough to fully stop it.

The cost of AI-driven fraud

Overall, findings from the Signicat survey reveal that criminals are increasingly relying AI to conduct fraud. An estimated 42.5% of detected fraud attempts now use AI, the study found, with 29% of them considered successful. For some respondents, that rate is even higher, with one in nine sharing an estimated AI usage in fraud attempts as high as 70% for their organization.

These AI-driven frauds are becoming an increasingly expensive challenge. Respondents estimate that, of the revenue loss to fraud, 38% was due to AI-driven identity fraud. This suggests that, while AI-driven identity fraud is not yet more successful than other means of identity fraud, it is more lucrative and used for more sophisticated, high-value scams.

A separate analysis by Deloitte’s Center for Financial Services predicts that generative AI (genAI) could enable fraud losses to reach US$40 billion in the US alone by 2027, rising at a compound annual growth rate of 32% between 2023 and 2027. This growth is expected to be fueled by advancements in genAI, which will enable the creation of highly realistic images and videos that can convincingly impersonate individuals.

Businesses embrace technology to address evolving fraud landscape

Results from the Signicat study show that financial services providers are aware of the threat of AI. Over three-quarters of the businesses polled have specialist teams dedicated to the issue of AI-driven identity fraud, are upgrading their fraud prevention technology stack, and expect to have more budget to do so.

However, despite this awareness, just under a quarter of respondents have actually started implementing measures. Most are planning to do so in the next year. Smaller organizations are actually further behind, with only 18% having mitigation in place already. This indicates a delay in deploying necessary defenses against AI-driven identity fraud.

Financial services companies are also adopting advanced technologies to combat this evolving threat. JP Morgan, for example, uses the AI to reduce fraud, streamline payment validations, and improve overall customer satisfaction.

Additionally, companies are partnering with tech firms to enhance their fraud detection capabilities. For example, Microsoft has partnered with risk assessment firm Moody’s to develop enhanced risk, data, analytics, research and collaboration solutions powered by genAI.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Fabrick, an Italian Open Finance operating company is expanding its geographical footprint by partnering with TerraPay, a company simplifying global money movement.

Initially focused on the Italian market, this partnership will enable businesses to access a unified platform that streamlines payment processes, reduce operational costs, and ensure compliance with regulatory requirements.

It represents a significant milestone in Fabrick’s international growth and consolidation strategy, building on its strong presence in Italy, Spain, and the United Kingdom.

Following the recent acquisition of finAPI, which enabled Fabrick to enter the strategically important DACH region, Fabrick has continued to solidify its position at the forefront of Europe’s digital payments landscape.

With TerraPay’s extensive global network spanning 7.5 billion bank accounts, 12 billion cards and 2.4 billion digital wallets across 145 countries and by leveraging Fabrick’s Banking-as-a-Service platform model, the two are creating a unified platform with tailored offerings that streamline payment processes, enhance security, and elevate the customer experience for businesses and financial institutions. Moreover, TerraPay’s global infrastructure aligns with Fabrick’s mission to support Open Finance across different domains, including cross-border payments.

TerraPay, regulated by the FCA, the Bank of Italy, and in 30 other jurisdictions globally, excels in international anti-money laundering (AML) and fraud prevention regulations, while Fabrick offers deep knowledge of Italian and EU compliance standards. Hence, both have a shared expertise in navigating the complexities of their respective regulatory environments.

Paolo Zaccardi, CEO and Co-Founder of Fabrick, stated:

“We are delighted to announce our partnership with TerraPay, providing us with a gateway to the world’s most extensive cross-border payments network. By integrating TerraPay’s vast global reach with our innovative solutions, we not only enhance our service offerings but also reinforce Fabrick’s broader strategy of global expansion”.

“This move therefore signifies an important step forward in consolidating our presence in key international markets, enabling us to deliver a comprehensive suite of payment services tailored to the rapidly evolving needs of the financial services sector worldwide, enabling businesses internationally to navigate the complexities of cross-border payments with greater efficiency and security”.

Ani Sane, Co-Founder and Chief Business Officer at TerraPay, stated:

“Our collaboration with Fabrick marks a significant milestone in our efforts to expand our footprint in Europe. By combining our expertise in payment infrastructure with Fabrick’s innovative approach to banking services, we are poised to deliver our value proposition to help Italian and European enterprises and banks to streamline complexity of cross border payment.”

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Apple is changing its payments strategy, stepping away from managing balance sheet-based financial products and focusing more on strengthening its iOS ecosystem and proprietary products.

These changes will transform the competitive landscape, benefiting third-party wallets, BNPL providers and merchants, a new report by the Boston Consulting Group (BCG) says.

The report, released in September, explores Apple’s recent fintech announcements and examines their implications for different markets and players. In particular, it highlights the termination of Apple’s buy now, pay later (BNPL) service, Apple Pay Later, the end of the firm’s partnership with Goldman Sachs, and the opening of its near field communication (NFC) chip and secure element application programming interfaces (APIs) to developers in select regions.

These moves are all part of Apple’s strategy to strengthen its ecosystem and avoid direct involvement in financial products that carry significant risk.

Apple’s BNPL Change

Apple discontinued in June 2024 Apple Pay Later, a BNPL solution that allowed users to pay off purchases of as much as US$1,000 over four installments. Instead, the firm has introduced installment payment options via Apple Wallet in partnership with financial institutions such as Synchrony, Citi, and Affirm in the US, and banks like ANZ in Australia and HSBC and Monzo in the UK. These moves marked Apple’s retreat from offering financial services in-house, likely due to the challenges of overseeing balance sheet-based products, opting instead to integrate BNPL services via third-party providers.

BCG predicts that BNPL players will be the biggest winners of the change since integrating into Apple Wallet means they will gain access to a massive customer base. For example, Affirm’s merchant acceptance is projected to grow from about 290,000 to about 10 million, BCG says.

Another major announcement this year was the opening of Apple’s NFC chip in the European Union in compliance with the Digital Markets Act. The firm proactively did so in seven additional countries: the US, Canada, Australia, New Zealand, the UK, Japan and Brazil. The move will allow developers in these markets access to key elements of Apple Wallet’s infrastructure. This will likely foster greater collaboration with third-party financial providers, significantly altering the digital wallet landscape by increasing competition.

According to BCG, leading paytech and e-commerce companies like PayPal, Cash App and Shopify are expected to benefit from the newly democratized NFC landscape. PayPal, a longstanding leader in e-commerce digital wallets, and Cash App, a popular digital wallet service by Block, will have the opportunity to expand its reach in offline transactions.

BCG also expects many merchants to add NFC payment functionality to their proprietary apps and partner with lenders to offer BNPL options within their wallets, enhancing consumer loyalty through in-app reward and personalized offers.

Most large merchants have enabled contactless payments in their stores but have hesitated to integrate payments with their standalone apps, reflecting the need to invest in new acceptance infrastructure such as QR codes at point of sale (POS). However, the ability to drive consumer loyalty through in-app rewards, personalized offers, and seamless checkout experiences will push many retailers to launch digital wallets and integrate NFC payment functionality as these help them drive both increased consumer engagement and operational efficiencies.

Besides benefiting third-party wallets, BNPL players, and merchants, BCG expects Apple’s recent moves to benefit payment networks like Visa and Mastercard. This new landscape will entrench their presence in card payments and set them up to dominate POS installment payments over time, the firm says.

Featured image credit: edited from Apple

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Venturelab announced the seventh edition of the Venture Leaders Fintech roadshow with a selection of ten ambitious Swiss fintech startups ready to increase their presence and boost their growth on the international stage.

From December 2nd to 6th, the 10 startups will represent Swiss innovation at Fintech Connect in London and will pitch to investors.

After reviewing 50 applications, a jury of investors and financial experts selected ten fintech startups to join the Venture Leaders Fintech 2024 selection.

The roadshow will take the Swiss National Fintech Team to London for investor pitch sessions and customer meetings; the entrepreneurs will also participate in the Fintech Connect conference to meet banking leaders and expand their network. The roadshow is organized by Venturelab in partnership with Swissnex, and supported by EPFL, ETH Zürich, and Walder Wyss.

This year’s Venture Leaders Fintech entrepreneurs join an impressive group of Fintech alumni including high-flying startups such as:

Crypto Finance (acquired by Deutsche Börse), eCollect (acquired by Intrum), Imburse (acquired by Duck Creek Technologies), Qumram (acquired by Dynatrace), Lend, Sonect, TP24, and many more.

Meet the 10 Swiss Fintechs Joining the Swiss National Startup Team in 2024:

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

21.co, the parent company of 21Shares – one of the world’s largest issuers of crypto exchange traded products (ETPs), and Crypto.com announced that they have entered into a strategic partnership.

Central to the partnership, 21.co Wrapped Bitcoin (21BTC) will source Bitcoin liquidity from Crypto.com, leveraging the exchange’s liquidity. Looking ahead, 21.co and Crypto.com intend to build on the strategic partnership, with future announcements in the pipeline.

“We are thrilled to integrate 21BTC with Crypto.com, enhancing user access to crypto and marking the starting point of a long-term, strategic partnership. As two leaders in digital asset innovation, know-how and operations, the 21.co–Crypto.com partnership creates a powerful combination,”

said Eliezer Ndinga, Head of Strategy and Business Development, Digital Assets at 21.co.

“Crypto.com is one of the world’s largest digital assets exchanges serving over 100 million users globally. As one of the world’s largest issuers of crypto ETPs, 21.co brings asset management best practices and operational excellence to the world of wrapped assets.”

“This partnership is a strong demonstration of how our exceptional liquidity can support the innovations of companies like 21.co and how Crypto.com is constantly aiming to better serve our existing customers,”

said Eric Anziani, President and COO of Crypto.com.

“21.co is a proven global crypto company, driving innovation across multiple ETP, ETF and tokenization projects. By coming together, we will offer retail and institutional crypto traders the liquidity solutions they need in the market of today and tomorrow.”

Featured image credit: Eliezer Ndinga, Head of Strategy and Business Development, Digital Assets at 21.co and Eric Anziani, President and COO of Crypto.com. Edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

2024 continues to be a challenging year for European fintech companies, with funding levels experiencing a significant decline.

In H1 2024, European fintech companies raised EUR 2.9 billion (US$3.2 billion), representing a 24% decline from EUR 3.8 billion (US$4.2 billion) in the same period the prior year, according to a new report by Finch Capital, a Dutch growth capital firm. The number of deals also fell, declining by 19% to 443 rounds.

Valuations remained under pressure, as flat and down rounds accounted for 25.2% of all deals in H1 2024, up from 19.7% in H1 2023. This trend further reflects the challenging fundraising environment.

Regional trends

In H1 2024, the UK remained the dominant player in the European fintech landscape, accounting for 65% of capital raise, up from 58% in H1 2023. Meanwhile, fintech sectors in the Netherlands and the Nordics showed resilience, with funding levels remaining stable despite broader market difficulties.

2024 is also seeing more emphasis on profitability than revenue growth, a trend that’s driving the development of a thriving low- to mid-market mergers and acquisitions (M&A) ecosystem in Europe. Notably, the share of Europe on global M&A deals under EUR 500 million (US$549 million) rivaled the US in size in H1 2024 at 32%. In contrast, the US share of similar exits has shrunk over the past years, declining from 49% in 2021 to 35% in H1 2024.

Digital banks: the bright spot for European fintech

Despite the challenging fundraising climate, digital banks are emerging as a standout area in the European fintech sector this year. According to Finch Capital, banking was the favored fintech verticals in H1 2024, attracting the majority of capital despite being ranked fifth in terms of deal count. This indicates that large rounds led much of the sector’s funding activity.

According to Finch Capital, large rounds of fundraising in the banking sector over the past year have been driven by record profits by challenger banks. Top challenger banks in the UK generated nearly GBP 800 million (US$1 billion) in profit in 2023 compared to just GBP 28 million (US$37 million) in 2022. These strong financial performances have made the UK a hub for fintech funding, with success stories like Revolut, Monzo and Atom Bank contributing to this trend.

Monzo, for example, has raised north of US$610 million in 2024. Monzo claims it is the 7th largest bank in the UK, boasting more than 10 million customers. The digital bank achieved its first full year of profitability in 2024, reporting a pre-tax profit of GBP 15.4 million (US$20.5 million) for the financial year ending March 31, 2024. Monzo is now looking to expand its presence internationally, particularly in the US.

Atom Bank also delivered its first year of operating profit in fiscal year 2023, with operating profit rising to GBP 27 million (US$35.4 million), up from GBP 4 million (US$5.2 million) last year. Founded in 2014, Atom Bank was the first online bank to be granted a full UK regulatory license. Between 2018 and 2023, the bank’s customer base increased significantly, reaching 224,000 in March 2023.

Revolut, meanwhile, delivered record profits and revenue growth in 2023, with group revenue increasing by 95% from US$1.1 billion in 2022 to US$2.2 billion. Profit before tax was US$545 million, and net profit grew to US$428 million, up from US$7 million in 2022. Revolut operates in more than 40 markets globally and claims more than 45 million customers, making it one of the most prominent digital banks in the world.

Outlook for 2025: AI drives growth, BNPL rebounds

Looking ahead to 2025, Finch Capital anticipates several key trends that will shape the European fintech landscape.

In particular, the firm expects continued adoption of artificial intelligence (AI), especially in the insurance sector. According to research, four out of five actuaries are now using AI to improve risk analysis and pricing models and 65% of executives say they will invest more than US$10 million in AI in the next 3 years. This technology is expected to make the industry more efficient.

Another emerging trend is the resurgence of buy now, pay later (BNPL). At the beginning, BNPL was largely restricted to e-commerce. However, the payment method is now gaining traction in physical stores such as grocery stores, restaurants as well as gas stations. Furthermore, improvement in risk management, driven by AI, have helped BNPL firms enhance their lending standards, improving profitability among BNPL players, Finch Capital says.

Swedish BNPL giant Klarna, for example, said in August that it posted a profit in H1 2024, reporting an adjusted operating profit of SEK 673 million (US$66.1 million) in the six months through June 2024, up from a loss of SEK 456 million (US$44 million) in the same period a year ago. Revenue, meanwhile, grew 27% year-on-year to SEK 13.3 billion (US$1.3 billion). Founded in 2005, Klarna is a leading BNPL player boasting over 31 million monthly active users.

Finch Capital also notes that the fintech sector is beginning to see signs of recovery in the job market. Incumbents, in particular, have been hiring en masse, with HSBC, Mastercard and American Express adding more than 700 employees to their engineering teams over the past 12 months. Among digital leaders, Stripe and Revolut were the most active in hiring, expanding their engineering teams by 457 and 320 employees, respectively, during the same period.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

In Q2 2024, global enterprise fintech secured a total of US$4.6 billion in venture capital (VC) funding across 315 deals, a 27.1% year-on-year increase and 2.2% growth quarter-on-quarter, breaking the downward trend of the previous two quarters, data from PitchBook show.

This increase was driven by larger deal sizes. In H1 2024, enterprise fintech companies logged a median VC deal size of US$5 million, up 11.3% from 2023’s median of US$4.5 million. Notably, late-stage deals experienced a 20.1% jump in median deal size to US$9.9 million.

Other stages, however, decreased from their 2023 median, with pre-seed and seed declining 22.8% to US$2.2 million, early-stage VC falling 6.2% to US$5 million, and venture growth decreasing 31.5% to US$17 million.

In Q2 2024, capital markets and CFO stack led VC funding activity. Capital market startups closed 35 transactions, securing a total of US$1.6 billion, or 34.8% of all enterprise fintech deals during the period. The vertical recorded some of the quarter’s largest enterprise fintech rounds including Clear Street’s US$685 million Series B, AlphaSense’s US$650 million acquisition financing to purchase competitor firm Tegus, and Finbourne’s US$70 million Series B.

CFO stack followed capital markets, securing the second highest deal value in Q2 2024 at US$1.2 billion (26%) across 76 transactions. Notable deals included Kapital’s US$165 million Series B, Ramp’s US$150 million Series D2, and FloQast’s US$100 million Series E.

Enterprise fintech exits and M&A

Despite somewhat of a rebound in VC funding, exits and mergers and acquisitions (M&A) in the enterprise fintech space remained subdue, with only US$1 billion of recorded exit value across 33 deals in Q2 2024.

Notable acquisitions during the quarter included AlphaSense’s US$930 million acquisition of Tegus, Aurionpro Solutions’ acquisition of a majority stake in Arya.ai for US$16.5 million, Digits’ acquisition of Basis, Stripe’s acquisition of Sumatra, Paystand’s acquisition of Teampay, and Toggle AI’s acquisition of Atom Finance.

Noteworthy deals also took place for public companies, such as Nuvei’s all-cash take-private deal by private equity (PE) firm Advent International, Shift4’s acquisition of a majority stake in point-of-sale (POS) payments company Vectron Systems, and Global Payments’ acquisition of UK-based payment service provider Takepayments.

Only one initial public offering (IPO) occurred in Q2 2024. It involved Trust Fintech, a bank technology provider, which listed on the National Stock Exchange of India and recorded an exit value of US$21.3 million.

BaaS, AI, crypto payments as top enterprise fintech verticals

The PitchBook report also highlights some of the key trends driving enterprise fintech in Q2 2024. First, banking-as-a-service (BaaS) continued to dominate headlines during the quarter amid heightened regulatory scrutiny following the collapse of BaaS platform Synapse.

Synapse filed for Chapter 11 bankruptcy in April 2024 after a combination of internal mismanagement, failed partnerships, and broader market challenges led to the company’s downfall. The collapse impacted nearly 100 fintech companies and millions of customers, TechCrunch reported, leaving around US$160 million in deposits inaccessible and raising concerns about the stability of the BaaS model and the fintech industry’s heavy reliance on a few service providers.

Despite these setbacks, fintech companies continued to explore BaaS in Q2 2024: FIS launched in May its BaaS platform, Atelio; Equals Money, a payment solutions provider, introduced in June a new BaaS product; Atmos Financial expanded its relationship with banking partner Five Star Bank in June to explore BaaS opportunities; and Velmie announced in May a partnership with Unlimit to bring together Velmie’s platform with Unlimit’s cutting-edge BaaS offering.

Artificial intelligence (AI) is another top trend outlined by PitchBook, with fintech leaders and banks continuing to explore generative AI (genAI) applications in Q2 2024. In May, Visa introduced its new Visa Account Attack Intelligence (VAAI) tool, which uses genAI to detect and prevent enumeration attacks in card-not-present transactions. That same month, JP Morgan unveiled its IndexGPT tool, which provides an automated approach to curating thematic investment baskets.

Finally, crypto payments gained notable traction in Q2 2024 as leading payment players embraced blockchain solutions. In April, Stripe announced it would begin supporting global stablecoin payments using Circle’s USDC. That same month, Block, the company behind Square, Cash App and other services, announced a new program allowing merchants using Square’s solutions to convert a percentage of their daily sales to bitcoin, TechCrunch reported. The firm also unveiled plans to expand its bitcoin mining ambitions from designing chips to developing a full bitcoin mining system.

In Q2 2024, enterprise fintech startups continued to capture the majority share of VC deal value in the fintech sector, making up 51.9% of total VC, according to PitchBook.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

ETF investors are familiar with the problem: finding out which individual securities are included in an investment instrument can only be done with great difficulty using factsheets and supplementary data tables.

Identifying overlaps in a portfolio used to be extremely time-consuming. True Wealth is now changing that.

True Wealth launches the «ETF Lookthrough». This tool allows clients to look through ETFs and index funds: The individual securities held in their portfolio, i.e. stocks and bonds, can be viewed instantly, displayed with just a few mouse clicks and searched.

This unique functionality is not only available to invested clients, but also to all other interested visitors to the website who would like to test True Wealth with a free virtual portfolio.

With the ETF-Lookthrough, True Wealth is once again setting a higher standard in asset management: «Trust and transparency are crucial for our clients. With this new function, we are giving them a tool to better understand the composition of their portfolio,»

explains Felix Niederer, CEO of True Wealth.

No distinction is made between investments in free (untied) assets and Pillar 3a. In addition to ETFs, index funds are also taken into account. For a more meaningful view of the investment risk, shares and bonds from the same issuer are shown in aggregated form.

The aspect of home bias, for example the tendency of some Swiss investors to invest disproportionately in Swiss stocks, is now also apparent to everyone with the tool. For example, the fact that an SMI investment primarily holds three local champions from the food and pharmaceutical sectors (Nestlé, Roche and Novartis).

The question of how much of your own assets are at risk in the event of a company insolvency (across the shares and bonds issued by the company) is also revealing. The tool also shows this optionally in a holistic view that combines free assets and Pillar 3a.

A simplified view of the review down to individual issuers can be seen here in the sample portfolio.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

In H1 2024, mergers and acquisitions (M&A) activity in the tech-enabled media and marketing sectors continued to rise, with a 7% year-on-year (YoY) increase in volume, according to data from Ciesco, a London-based M&A advisory firm specializing in the tech, media, healthcare and sustainability sectors.

This trend is expected to accelerate in the second half of the year, a sentiment that’s echoed by Collingwood, a consulting and advisory firm specializing in the media sector. Collingwood anticipates a surge in demand for live events and an increasing need for access to trusted information, fueling M&A activity in the sector.

In H1 2024, 1,129 transactions were announced in the technology and media sectors, representing a 7% YoY increase in deal activity and a 9% increase compared to H1 2022, Ciesco reports. This growth demonstrates a rebound in M&A deals after years of subdued activity.

During the period, traditional media saw the highest YoY increase in buyer interest, followed by agency services, and, events and experiential. Conversely, customer relationship management, digital agency and martech experienced the biggest YoY decline.

Key trends and predictions

Ciesco outlines several key trends shaping the tech-enabled media and marketing sector this year. In particular, it highlights that AI advancements are transforming areas such as enterprise data management, content production, forecasting and customer experience. These technologies are enhancing efficiency and driving innovation in the sector.

Ciesco also highlights the booming influencer marketing industry which has been fostering personalized, authentic engagement between brands and consumers. This sector has proven resilient amid economic uncertainty and an increasingly crowded space, with spending rising roughly 3.5 times faster in 2023 than social ad spending, according to Emarketer’s July 2023 forecast.

Finally, spending on events and experiential marketing is experiencing a strong post-COVID-19 resurgence. A recent study by experiential marketing agency Gradient reveals that 80% of the 750+ senior brand marketers polled have increased their experiential marketing budgets so that they now account for 10-30% of their overall marketing spend. This surge underscores the growing emphasis on immersive marketing strategies and creating memorable, engaging experiences for consumers.

Echoing Ciesco, Collingwood notes that demand for live events is rebounding as both audiences and sponsors continue to place value on the capacity of live events to help them learn, network, and ultimately forge business partnerships. This has spurred increased M&A activity in the events segment representing over 50% of 2023 transactions.

Another trend outlined by Collingwood is the increasing focus on sophisticated marketing services. There is strong interest in businesses that offer advanced client and sponsor propositions, with a shift towards demand generation driven by high-quality content, it says.

Finally, Collingwood notes the growing need for access to trusted, high-quality information, especially in the business-to-business market, highlighting opportunities to leverage quality content to engage audiences, and address currently underserved audience needs. Key areas where information gaps exist include regulatory information, information on industry best practices, information and suppliers and information on emerging technologies.

Notable media deals announced so far this year:

• In June, Keleops, a leading European online tech media company, announced its acquisition of Gizmodo, a renowned tech media company. This acquisition, previously under the ownership of G/O Media and Boston-based private equity firm Great Hill Partners, aims to bolster Keleops’ position in tech journalism and expand its reach within the industry and internationally.
• In July, Britain’s Informa announced that it had reached a deal to buy Ascential, a company specializing in events, intelligence and advisory services for the marketing and fintech industries, for GBP 1.2 billion (US$1.6 billion) in cash. This acquisition is significant because, while the media industry struggles to generate revenue from advertising, live events like those hosted by Ascential are a bright spot for growth. Ascential is one of the last large-scale events companies, running prestigious event series such as Lions and Money20/20.
• In August, Red Ventures, an American digital media and marketing firm, announced that it was selling its tech news and reviews site CNET to Ziff Davis, a publicly-traded digital marketing behemoth, in a deal valued at over US$100 million, sources told Axios. The development marked a surprising twist for CNET, which had previously bought Ziff Davis, then a tech magazine company, in a deal worth US$1.6 billion more than 20 years ago. Founded in 1994, CNET is an American media website that publishes reviews, news, articles, blogs, podcasts and videos on global technology and consumer electronics.
• American news website Axios signed in August 2022 a deal to sell to its most recent lead investor, Cox Enterprises. The cash deal valued the company at US$525 million and included an additional new investment of US$25 million in Axios’ media arm to help the company expand across its local, national and subscription news products. Axios is a news website founded in 2016 by former Politico journalists Jim VandeHei, Mike Allen, and Roy Schwartz. It’s known for its concise and reader-friendly format, designed to deliver important information quickly and efficiently.
• In January Thomson Reuters has acquired World Business Media, a London-based provider of subscription-based, cross-platform editorial coverage for the (re)insurance industry.
• In February, US asset manager Franklin Templeton announced a funding round for Blockhead, a Singapore-based digital asset media firm. Blockhead said it will use the proceeds to support the growth and development of blockchain technology and digital assets, and to evolve its business model to become a leading digital asset research platform in the region. Launched in 2022, Blockhead currently operates a news publication covering global stories from the blockchain and digital assets industry, with an Asian focus.

Despite the robust M&A activity, 2024 has also seen notable media closures:

• In June, Fintech Nexus, a fintech media company previously known as LendIt, said that it was shutting down after 11 years of operation and filing for bankruptcy. The company was launched in 2013 to foster collaboration in the online lending industry and quickly grew to host large fintech events across the US, the UK, Europe, China and Latin America. However, external challenges, including the COVID-19 pandemic and the fintech funding downturn, led to financial difficulties, culminating in the sale of its events business 2023 and now a full closure.
• London-based fintech news website Altfi announced in January that it was shutting down after ten years of operation, citing “severe headwinds over the last 18 months.” Set up in 2013 by finance journalist David Stevenson, a columnist at the Financial Times (FT), Altfi provided market-leading news, opinion, insights and events for the alternative finance and fintech community. It organized a series of corporate events in the UK, including the AltFi Lending Summit, the AltFi Awards and the Money Talks webinars.
• In the Philippines, television network CNN Philippines officially ceased operations on January 31, citing “serious financial losses” which was “worsened by the COVID-19 pandemic,” inside sources told Philstar.com.

Read also:

Fintech, Tech and Crypto Media Sector Shows Resilience with Notable Strategic Acquisitions and Funding Rounds in 2023 – Fintech Schweiz Digital Finance News – FintechNewsCH

Fintech and Finance Firms Snap Up Media Companies to Gain Audience – Fintech Schweiz Digital Finance News – FintechNewsCH

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Summa Equity, a Stockholm-based private equity firm, has acquired NetGuardians, a Swiss-based provider in AI-driven fraud prevention and anti-money laundering solutions.

This opens an opportunity for a collaboration between NetGuardians and Intix, another Summa portfolio company specializing in Know Your Transaction (KYT) data management.

The new group is poised to advance the financial security landscape by driving the development of next generation financial crime solutions.

NetGuardians has earned widespread recognition for its pioneering approach, underpinned by its proprietary 3D AI technology.

Building on this foundation, the synergy between NetGuardians fraud detection technology and Intix’s financial data management make sense.

Speaking on the new group, Gisle Glück Evensen, Partner at Summa commented:

“Money laundering and fraud pose significant challenges to the financial system and society through the harmful activities they support. The combination of Intix and NetGuardians represents the next generation of tools in the effort to combat these. We are very enthusiastic about the continuation of this journey.”

Speaking on the new group, Joël Winteregg, NetGuardians CEO and future group CEO commented:

“Today marks a transformative moment for Intix and NetGuardians. This strategic union provides a unique approach to addressing financial crime challenges, tackling issues from data pipeline and traceability to advanced AI analytics. We are not just expanding our reach but also deepening our commitment to secure, sustainable financial practices”.

Following the acquisition, Sergi Herrero, former Chair of Intix will assume the role of Chairman of the group. NetGuardians’ initial co-founders will play pivotal roles in this new venture and Raffael Maio will spearhead the group’s strategy. Both will be instrumental in shaping the development and strategic direction of the organization.

Featured image credit: Gisle Glück Evensen, Partner at Summa and Joel Winteregg, CEO, Co-Founder and CSO of NetGuardians. Edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Falling interest rates are posing challenges for digital banks, particularly in regions like Europe, the US, and Latin America.

These digital banks, which previously thrived on high margins from savings and loans, now face pressure on their profitability models as central banks worldwide begin lowering rates. In Europe, digital banks are responding to this shift by prioritizing product diversification and innovation to sustain growth, according to a new analysis by C-Innovation, a French fintech-focused research firm.

The report, released on September 23, explores how digital banks around the world have benefited from high interest rates and what the future holds as rates begin to fall. In Europe, it highlights that leading digital banks are implementing different strategies to adapt to this new environment, with some leveraging advanced technology to improve operational efficiency, while others opt instead to expand their product offerings to diversify revenue streams.

Following the global inflation surge that started in 2021, central banks around the world raised interest rates, often at unprecedented speed to bring inflation rates back to target. During this period of elevated interest rates, digital banks capitalized on the widening gap between the interest rates they offered on savings accounts and the higher rates they charged on loans, allowing them to generate considerably more revenues, significantly boosting profitability. They also took advantage of higher savings rates to offer more attractive returns than traditional banks, which drew in new customers, strengthened their customer base and increased their liquidity.

But in 2024, central bankers began the process of easing up on the aggressive stances they took to quell high inflation, lowering interest rates as inflation slows and falls within sight of their targets.

In Europe, the European Central Bank cut its main interest rate to 3.5% in September 2024, marking the second reduction this year following a move in June. Though economists believe rates may not return to their ultra-low levels of 0.25% seen before, C-Innovation argues that this new baseline of around 3% could still offer digital banks opportunities to capture decent margins.

EU digital banks introduce innovation offerings

Across the European Union (EU), digital banks are already adapting to this evolving landscape. Bunq, a Dutch neobank, is leading the way with innovative offerings such as Freedom of Choice, which allows users to control deposit investments, and MassInterest, which offers a 3.36% bonus rate to reward savers. Additionally, Bunq’s entry into the insurance market in May will allow it to diversifying its income streams and reduce reliance on interest margins.

Bunq boasts over 12.5 million customer, and total deposits of over EUR 8 billion. This year, it plans to increase its global headcount by over 70% to expand into new regions including the UK and the US, Bunq CEO and co-founder Ali Niknam told CNBC last month.

In Germany, N26 has expanded into investment products, offering services such as stock and exchange-traded fund trading, as well as portfolio management. This strategic move not only diversifies its revenue streams but also attracts a broader customer base, particularly those looking for easy access to financial markets, C-Innovation says. It also positions N26 as a more comprehensive financial platform that meets both banking and investment needs.

N26 has introduced several new products this year, including Joint Accounts, which allow N26 customers to manage both their personal finances and finances shared with a partner, as well as Instant Savings accounts, which offer customers in 13 European markets up to 4% interest on deposits.

N26 serves eight million customers across 24 European markets. The digital bank reported a 27% increase in revenues to more than EUR 300 million in 2023, and says it is on track to become profitable in the second half of 2024.

Klarna, the Swedish buy now, pay later (BNPL) giant, is a standout example of how digital banks are using advanced technology to stay ahead. The company has implemented solutions that leverage artificial intelligence (AI) to not only reduce operational costs and remain competitive as margins tighten, but also enhance customer experience in the increasingly competitive BNPL space.

These solutions include Kiki, Klarna’s bespoke internal AI assistant. In its first month, Kiki handled 2.3 million conversations, managing two-thirds of Klarna’s customer service interactions. It effectively performs the work of 700 full-time agents, matching human staff in customer satisfaction scores. Used by 87% of Klarna’s employees, Kiki responds to approximately 2,000 inquiries daily, significantly streamlining operations.

Klarna has also introduced an AI assistant for its 150 million customers via its app. This assistant is designed to enhance the shopping and payments experience and is capable of managing a range of tasks, including multilingual customer service, managing refunds and returns, and fostering healthy financial habits.

Digital banks in the UK put a focus on product diversification

In the UK, banks like Starling Bank, Revolut and Monzo are putting a strong focus on product diversification and innovation, allowing them to remain profitable in a lower-rate environment.

Revolut continues to offer a broad suite of services, including travel insurance, stock trading, and budgeting tools, which help diversify its revenue streams and reduce reliance on traditional banking margins. The digital bank has launched a number of new products this year, including Mobile Wallets, a remittance service; Revolut X, a stand-alone crypto trading platform; and Revolut BillPay, a new feature designed to help businesses manage and pay bills to suppliers in over 150 destinations with just a few clicks. It’s now working on a new stablecoin initiative as it seeks to expand its crypto offering.

Additionally, Revolut is pursuing cross-border expansion with plans to enter the Middle East by seeking licenses to operate in the United Arab Emirates (UAE) and Dubai. This expansion will enable Revolut to offer remittance services, tapping into a region with significant growth potential. By providing such diverse financial products and expanding globally, Revolut can better withstand interest rate fluctuations, offering value-added services that go beyond core banking.

Revolut, which operates in more than 40 markets globally, claims more than 45 million customers, making it one of the most prominent digital banks in the world.

Similarly, Monzo is positioning itself through product diversification. Recent moves include the launch of a pension consolidation product with BlackRock, which allows customers to combine pots, a free account for 6 to 15 year olds, an “industry-first” Call Status fraud prevention tool that prevents customers falling victim to impersonation scams, the Monzo Investments offering, and an instant-access savings account.

Like Revolut, this broad product range enables Monzo to reduce reliance on interest-based income by generating fee-based revenue from various financial services. Moreover, its Monzo for Under 16s offering allows it to cultivate future loyalty, which will be crucial in maintaining a solid customer base as interest margins shrink, C-Innovation says.

Monzo claims it is the 7th largest bank in the UK, boasting more than 10 million customers. The digital bank achieved its first full year of profitability in 2024, reporting a pre-tax profit of GBP 15.4 million (US$20.5 million) for the financial year ending March 31, 2024.

Starling Bank as well is diversifying its revenue streams, focusing heavily on its expansion into business banking and the provision of tailored services for small and medium-sized enterprises (SMEs). This helps cushion the effects of reduced lending margins.

The digital bank has also been franchising its software to other banks through a service called Engine, with recent partnerships in Australia with AMP and Romania with Salt Bank highlighting the bank’s commitment to scaling this technology​.

Starling Bank, which offers personal, business, and joint accounts through a mobile app, has 4.2 million customers and serves about 9% of the UK’s SME banking market. The digital bank has been profitable for three years now.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Selma Finance hat eine Crowdinvesting-Kampagne gestarted, mit der Möglichkeit Teil vom Schweizer Fintech-Unternehmen zu werden.

Seit letzter Woche Mittwoch läuft Selmas Crowdinvesting-Kampagne. Schon nach 25 Minuten war bereits die 500 000 Euro Marke erreicht.

Nach nur einer Stunde hatte die Kampagne 608’810 Euro eingesammelt. Über Nacht hat sich diese Summe dann nochmals verdoppelt, teilt das Unternehmen mit.

Knapp 24h nach Start der Kampagne waren 1.2 Millionen Euro zusammengekommen. Stand 14:30 Uhr am 30.09.2024 hat die Kampagne über 1.42 Millionen Euro eingesammelt. Aufgrund der weiterhin hohen Nachfrage hat Selma sich dazu entschlossen, nun das ursprüngliche Kampagnenziel anzupassen und die 1.5 Millionen Euro anzupeilen.

Mit den Mitteln wird die digitale Vermögensverwalterin Selma AI weiterentwickeln, das Angebot erweitern und die Position von Selma Finance als führende Finanzberaterin der Schweiz stärken.

“Unser Vorteil gegenüber anderen Schweizer Fintech-Unternehmen ist, dass unser Kerngeschäft bereits profitabel betrieben werden könnte. Mit unserer Crowdinvesting-Kampagne wollen wir nun Menschen einbinden, die an unsere Vision einer demokratisierten und technologiegestützten Finanzberatung glauben und in unsere Weiterentwicklung investieren wollen“,

erklärt Patrik Schär, CEO von Selma.

so Patrik Schär.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

More than 40 private sector financial firms, convened by the Institute of International Finance, will join the Bank for International Settlements and a group of leading central banks in Project Agorá to explore how tokenisation can enhance wholesale cross-border payments.

The BIS and the IIF selected a diverse set of firms from applicants that met the eligibility requirements and other criteria laid out in the public call for participation.

Participating firms must be regulated in a participating jurisdiction as a commercial bank, payment services provider, or financial market infrastructure company; be significantly involved in cross-border payments; and have innovation expertise. These firms represent a diversity of private sector partners in terms of business models, institution size, expertise and geography.

Participating private sector institutions are: (in bolt the Swiss one’s)

• Amina Bank
• Banco Santander
• Banorte
• Banque Cantonale Vaudoise
• Basler Kantonalbank
• BBVA
• BNP Paribas
• BNY
• CaixaBank
• Citi
• Crédit Agricole CIB
• Deutsche Bank AG
• Eurex Clearing AG
• Euroclear S.A./N.V.
• FNBO
• Groupe BPCE
• Hana Bank
• HSBC
• IBK
• Intercam Banco
• JPMorgan Chase Bank N.A.
• KB Kookmin Bank
• Lloyds Banking Group
• Mastercard
• Mizuho Bank
• Monex
• MUFG Bank Ltd.
• NatWest Group
• NongHyup Bank
• PostFinance Ltd.
• SBI Shinsei Bank Ltd.
• Shinhan Bank
• SIX Digital Exchange (SDX)
• Standard Chartered
• Sumitomo Mitsui Banking Corporation
• Swift
• Sygnum Bank
• TD Bank N.A.
• UBS
• Visa
• Woori Bank

Project Agorá will now begin the design phase of the project.

Project Agorá (Greek for “marketplace”) is structured as a public-private collaboration. It brings together seven central banks: Bank of France (representing the Eurosystem), Bank of Japan, Bank of Korea, Bank of Mexico, Swiss National Bank, Bank of England and the Federal Reserve Bank of New York. They will work in partnership with the selected financial firms, and the IIF will act as the private sector convener.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

By 2029, account-to-account (A2A) payments are projected to reach 186 billion transactions, marking a staggering 209% from 60 billion in 2024, new estimates by Juniper Research show. This growth is expected to be driven by advances in instant payment rails and open banking technologies, which are reshaping the payment landscape.

A2A payments refer to the direct transfer of funds from one bank account to another, without the need for intermediaries such as card networks or third-party payment processors. These transactions typically rely on traditional bank payment systems such as ACH (Automated Clearing House) in the US or SEPA (Single Euro Payments Area) in Europe, bypassing credit card and third-party payment platforms.

A2A payments have increased in popularity in recent years due to their cost-effectiveness, security, and speed. In 2023, they accounted for 7% of global e-commerce payments last year, according to the Global Payments Report 2024 by Worldpay. Countries including Finland, Malaysia, the Netherlands, and Nigeria led the way in adoption, with A2A payments standing as the leading payment method for e-commerce transactions.

Juniper Research predicts that A2A payments will continue to grow through 2028, fueled by the widespread adoption of open banking initiatives across governing bodies worldwide. Asia-Pacific (APAC) is projected to make up for the bunch of these transactions, accounting for more than half of all A2A consumer transactions by then, outpacing both the Americas and Europe.

Real-time payments and open banking fuel the growth of A2A transactions

The rise of A2A payments has been largely propelled by the development of instant payment rails, Juniper Research says. Historically, traditional A2A payments faced delays in fund transfers, often taking several business days through systems like SEPA. However, real-time payment systems such as the UK’s Faster Payments and the US’s RTP (Real-Time Payments) allow for instantaneous or near-instantaneous transfers between bank accounts. This speed has made A2A payments highly appealing for situations where speed is crucial, such as paying bills, transferring money between individuals, or settling business invoices, leading to increased adoption.

While instant payment rails are crucial to the rise of A2A payments, the report notes that open banking is also playing a significant role by providing the secure infrastructure that allows banks and financial institutions to share data with third-party providers.

Open banking enables third-party providers to initiate payments directly from consumers’ bank accounts, allowing for the development of innovative solutions, including payment initiation services (PIS). These third-party services facilitate the initiation of payments directly from a customer’s bank account, offering more seamless payment experiences, particularly in e-commerce.

The adoption of open banking has seen steady growth in recent years, especially in Europe. In the UK, open banking penetration reached 13% of digitally active consumers by January 2024, with small businesses reporting an even higher rate of 18%, according to the UK’s Open Banking Limited (OBL). The agency estimates that there are now 10 million active users of open banking-powered financial tools and payment apps in the UK.

In Europe, about 5% of digital consumers in France, Spain, Italy, and Germany had used open banking in 2022, according to Rolands Mesters, CEO of open banking provider Nordigen.

Globally, Juniper Research estimates that there were a little less than 100 million open banking payments users in 2023. By 2027, that number is projected to reach 400 million, and by 2028, it could approach 600 million.

Europe: A leader in open banking

Europe is recognized as a pioneer and leader in open banking due to proactive regulation, technological innovation and the collaborative financial ecosystem that has emerged in the region.

The bloc introduced in 2015 the Revised Payment Services Directive (PSD2), a regulatory framework designed to foster competition and innovation in the financial services industry. It mandated that banks open their customers’ financial data to authorized third-party providers with the customer’s consent, effectively kickstarting the open banking movement.

The European Union (EU) is now working on an open finance framework, expanding the access and reuse of customer data across a broader range of financial services, including loans, investments, savings, pension schemes, real-estate and even crypto-assets. The European Commission (EC) put forward the legislative proposal in June 2023. The proposal is now going through the legislative process, including discussions and approvals by the European Parliament and the Council of the EU.

These initiatives are part of the EU’s Digital Finance Strategy, a development plan adopted in September 2020 aimed at modernizing the European financial sector by embracing digital transformation. Other key initiatives under the plan include the Regulation on Markets in Crypto-assets (MiCA), the Digital Identity Framework, and the Instant Payments Regulation.

The Instant Payments Regulation, which entered into force in April 2024, requires banks and payment service providers to offer instant payment services in euros, ensuring that transactions are processed within seconds, 24 hours a day, all year round. It also mandates that instant payments must be offered to customers at the same cost as standard transfers.

Though instant payments bring about a number of benefits for both consumers and businesses, the EC estimates that only 11 % of all money transfers in euro are instant. One in three EU payment service providers does not offer them, and some 70 million payment accounts in the euro area do not allow their holders to use instant transfers.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Pelt8, a Switzerland based sustainability reporting solution provider, has entered into a strategic partnership with the consulting firm EBP.

Additionally, Tenity and SICTIC investors have joined the round as follow-on investors.

This collaboration aims to significantly strengthen the reporting and sustainability efforts of medium and large companies in Switzerland and internationally. To reinforce this commitment, EBP has acquired a minority stake in Pelt8.

The partnership comes at a critical time, with increasing market-driven and regulatory pressure on corporate sustainability. Pelt8’s comprehensive solution supports all sustainability reporting standards. Currently, the Swiss Federal Council is consulting on extending reporting requirements that are in line with new EU CSRD requirements. If passed, it is estimated that an additional 3,000 Swiss companies will need to report on their sustainability by 2027.

Julian Osborne, CEO of Pelt8, expressed his enthusiasm:

“We are thrilled about our partnership with EBP. With a very similar impact-driven culture, their extensive experience and expertise in sustainability consulting significantly enhance our ability to reach our clients’ sustainability goals.”

Christoph Zulauf, CEO of EBP Switzerland, emphasizes:

“Pelt8’s solution and team perfectly complement our Corporate Sustainability Consulting offering. The partnership with a young SustainabilityTech company marks the beginning of a new chapter for EBP.”

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Swiss equity token specialist Aktionariat AG and securities firm Taurus SA announced a new partnership.

Aktionariat’s tokenization tools and Taurus Digital Exchange (TDX) organized trading facility are natural complements. Under the newly announced partnership, Taurus will support selected shares tokenized with Aktionariat on the Ethereum blockchain and Aktionariat will offer client companies a smooth path towards being admitted to trading on TDX as they grow in market capitalization and match admission criteria.

This collaboration brings together Aktionariat’s expertise in tokenizing Swiss companies’ equity with Taurus’ institutional-grade trading technology. It aims to increase liquidity and unlock value for tokenized SMEs and their shareholders by providing access to TDX’s network of banks, professional investors, and retail clients.

Murat Ögat, CEO of Aktionariat, said:

“Our mission is to enable companies to leverage the power of blockchain-based financing. While we already offer tools to enable the sale and limited informal trading of security tokens, there is a lack of licensed marketplaces for security tokens. Taurus fills this gap with its digital marketplace. Having a smooth path to access this market will provide value to our clients and also strengthen the usefulness of our offering for their investors.”

Victor Busson, CMO at Taurus, commented:

“By combining Aktionariat’s expertise with our TDX marketplace, we’re helping to create a robust ecosystem for issuers and investors alike. This collaboration demonstrates how tokenization can increase liquidity and accessibility for the private capital market. We’re particularly excited about the potential for companies like RealUnit to leverage our platform, showcasing the tangible benefits of tokenization for both issuers and investors.”

Among the first tokenized SMEs expected to be admitted for trading on TDX following this partnership is RealUnit Schweiz AG, an investment company focused on real assets, with several additional companies expected to follow in 2025 as the ecosystem of tokenized SMEs expands. RealUnit tokenized its shares with Aktionariat in April 2022 and used its tools to allow investors to hold them using any Ethereum-based crypto wallet. Investors could choose between classic bearer shares and registered shares as tokens – a first in the Swiss capital market.

Dani Stüssi, CEO of RealUnit Schweiz AG, said:

“As one of the first Swiss companies to offer tokenized instruments, we’re excited to be at the forefront of this partnership between Aktionariat and Taurus. Being admitted to trade on TDX is a natural next step in our journey to increase accessibility and liquidity for our investors. This move aligns perfectly with our mission of opening up access to actively managed real asset investments.”

The collaboration is expected to go live in November, enabling the first Aktionariat-tokenized SMEs to begin trading on TDX.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The European Investment Bank (EIB) is providing €220 million in financing to Nexi Group, an Italy based PayTech company, to support innovation in the digital payments sector.

The agreement was announced in Milano by EIB Vice-President Gelsomina Vigliotti and Nexi Group CFO Bernardo Mingrone.

Nexi will use the EIB funds to develop and manage projects aimed at modernising digital payments in Europe, and to finance specific initiatives that leverage the expertise of Nexi Digital, a European technological innovation hub created in collaboration with Reply, an Italian company and European leader in digital transformation.

The identified projects are fully aligned with Nexi Group’s environmental, social, and governance (ESG) objectives, which have already been communicated to the market. These include promoting digital payment innovation across Europe, creating jobs for young people and in disadvantaged areas, and enhancing environmental sustainability by optimizing data centres and developing cloud-based activities.

This is the first EIB loan granted to a publicly listed company in the digital payments sector, underscoring Nexi’s commitment to advancing the digital and technological transition.

EIB Vice-President Gelsomina Vigliotti commented:

“This operation represents a major step forward in the development of Europe-wide digital payment solutions, helping to reduce the use of cash and prevent fraud and tax evasion. This operation highlights the EIB’s commitment to promoting digitalisation and innovation in businesses and public sector organisations, which are key elements of the National Recovery and Resilience Plan.”

Nexi Group CFO Bernardo Mingrone added:

“We are proud that the European Investment Bank has recognised our ongoing commitment to the development of innovative products and services promoting digital payment reliability and security, two key requirements for rolling out these services in the European countries where we operate. This agreement is further confirmation that even major players like the EIB recognise Nexi’s vital role in developing and supporting digitalisation in Europe.”

Featured image credit: EIB Vice-President Gelsomina Vigliotti

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Visa announced it has signed a definitive agreement to acquire Featurespace, a developer of real-time artificial intelligence (AI) payments protection technology that prevents and mitigates payments fraud and financial crime risks.

The acquisition of London based Featurespace will complement and strengthen Visa’s portfolio of fraud detection and risk-scoring solutions used by clients around the world to grow and protect their businesses.

Although Visa did not disclose the acquisition’s value, a recent report from SkyNews, citing sources, estimated it to be around $935 million.

Since its inception out of Cambridge University’s engineering department, Featurespace has developed innovative algorithmic-based solutions to analyze transaction data and detect even the most elusive fraud cases.

Antony Cahill, Global Head of Value-added Services at Visa, said:

“Providing our clients with solutions that can adapt to and anticipate the changing threat landscape is of the utmost importance. Featurespace’s strong foundation in AI will enhance our existing product portfolio and enable us to address our clients’ most complex and pressing challenges. We look forward to welcoming the Featurespace team to Visa.”

The combined expertise of Visa and Featurespace will enable clients to manage fraud in real-time and further protect the payments ecosystem using AI-fueled solutions. This investment builds on Visa’s commitment to ecosystem security. In the last five years alone, Visa has invested billions of dollars in technology, including to reduce fraud and enhance network security.

Dave Excell, Founder of Featurespace, added:

“Over the past 12 years we have served the financial services industry, building a company that has gone from strength to strength, and we are thrilled to become a part of Visa. With Visa, we can bring the innovation, integrity and purpose of our platform and our team to more payment service providers and ultimately, stop more people from becoming victims of financial crime.”

The transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals. The transaction is expected to close in fiscal year 2025 and will provide significant benefits to financial institutions, consumers, and the wider payments industry.

Featured image credit: Antony Cahill, Global Head of Value-added Services at Visa and Dave Excell, Founder of Featurespace

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Innovation mentors support SMEs by conducting an initial analysis of their innovative idea as well as helping them understand their potential and find research partners.

They are very familiar with innovation support offers in Switzerland and can help their customers apply and develop their idea.

The mentors also facilitate access for Swiss SMEs to the skills and technologies available at Swiss universities and colleges. Thanks to their extensive network, they enable SMEs to find partners to carry out innovation projects.

To work as a mentor, the following qualities are essential:

• Be able to provide sound advice to innovative companies;
• Benefit from extensive experience in defining and implementing product, service and process development strategies;
• Be able to recognise the critical success factors of an innovation project and support partners in defining the project;
• Benefit from a strong network at national, cantonal and regional level, in particular with Swiss universities and colleges, as well as with innovation support and economic promotion organisations.

You can find more details on the Innosuisse’ profiles in their legal basis.

When it comes to selections, a diverse and inclusive balance is essential to the mentor pool, especially with regard to gender parity, diversity of ages and languages. This is why female applicants are particularly encouraged to apply if interested.

This call for applications is an opportunity:

• To support Swiss SMEs on their innovation path;
• Make valuable contacts and expand your network by supporting exciting projects;
• Actively contribute to shaping the future of business and research.

Apply by 30 November 2024 here 

Only complete applications, submitted will be considered. The required documents are as follows:

• CV;
• Cover letter;
• Declaration of possible conflicts of interest, including:
• professional activities;
• activities in management and supervisory bodies, as well as advisory boards and similar bodies of Swiss
• and foreign corporations, institutions and foundations under private and public law;
• advisory or expert activities;
• permanent consulting or advisory activities for Swiss or foreign interest groups.

Accreditation Process

Following an oral interview in December 2024, the Innovation Council will select the successful candidates and announce its decision in February 2025. The chosen mentors will begin their work in June 2025.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Between 2015 and 2023, more than US$350 billion of venture capital (VC) funding was invested in the fintech sector globally, with the US and Canada alone accounting for 39% of total fintech funding.

North America also has much higher funding per capita than other regions, highlighting the concentration of fintech funding activity.

But in recent years, fintech funding in the Middle East and North Africa (MENA) and Latin America and the Caribbean (LAC) has experienced significant growth on the back of booming fintech innovation and soaring adoption of digital financial services.

Despite this growth, there is still a mismatch between fintech funding and future growth potential in these regions, representing a significant opportunity for investors worldwide, a new paper by the World Economic Forum (WEF) says.

The whitepaper, released on September 04 and produced in collaboration with McKinsey and Company, examines global fintech funding trends and delves into where fintech funding gaps exist.

It highlights the surge in fintech funding that regions including MENA and LAC have recorded over the past few years. Between 2015 and 2023, LAC saw the highest funding compound annual growth rate (CAGR) across all major regions, reaching 37%. MENA, meanwhile, recorded the second highest CAGR with 33%, while the volume of fintech VC funding in the region more than tripled from US$600 million to US$1.9 billion between 2020 and 2023.

According to the paper, rising fintech funding activity in MENA and LAC has been driven by booming adoption of digital financial services. In LAC, there were more than 300 million users of digital payments and more than 30 million users of digital banks in 2021, mostly concentrated in Brazil and Mexico.

In MENA, this growth was driven by a series of successful fundraisings by regional fintech leaders, including the birth of three unicorns in 2023: buy now, pay later (BNPL) companies Tabby and Tamara, both from Saudi Arabia, and microfinance and payment startup MNT-Halan from Egypt.

These companies have managed to garner significant customer bases of 14 million users for Tabby, 10 million for Tamara, and seven million for MNT-Halan. The MENA region has a young, educated and growing population and some of the world’s highest mobile, internet and smartphone penetration rates, making the region for a fertile ground for financial innovation.

An untapped opportunity

When looking at fintech funding between 2020 and 2023 and comparing it to estimated future revenue by region, the WEF paper notes that fintech funding was not distributed according to future growth potential in different region.

Between 2020 and 2023, Europe and North America received more fintech funding than their projected 2028 revenue, with Europe getting 109% and North America 180% of expected future earnings. In contrast, regions like Asia-Pacific (APAC), LAC and MENA received much less, only 67%, 70%, and 63% of their anticipated future fintech revenue, respectively.

These findings suggest that global VC funding does not align with the emerging growth opportunities. This is despite forecasts that emerging regions such as APAC, LAC and MENA are projected to account for a significant share of the global fintech revenue by 2028 at 30%, 9% and 6%, respectively.

This mismatch between fintech funding and future growth potential means that regions like LAC and MENA are currently underfunded, even though they are expected to see substantial growth in the coming years. This presents a significant opportunity for for investors.

Closing the funding gaps

Finally, the WEF paper formulates a series of recommendations to close these funding gaps, outlining five pathways. The first pathway involves investing in digital public infrastructure by developing core building blocks centered on digital identity, payments, data sharing and emerging technologies.

The second pathway involves enhancing regulatory clarity and encouraging regional collaboration. This includes improving certainty and clarity in banking regulation, launching initiatives such as regulatory sandboxes, and encouraging interoperability and regulatory standardization.

The third pathway involves nurturing talent by establishing local hubs for global talent, and strengthening support networks including incubation and acceleration programs, and innovation hubs.

The fourth pathway involves developing local financing capabilities by broadening the investor base beyond traditional VC funds to include corporate venture capital (CVC), minority equity investment from incumbent banks, sovereign wealth funds with growth equity expertise, and family offices. Governments can also play an important role in fostering innovation by deploying policy instruments to boost effective investment returns and attract more capital from investors to fund various industries.

Finally, the fifth pathway involves encouraging sustainable fintech growth strategies by leveraging emerging technologies such as artificial intelligence (AI) and demonstrating a clear path to profitability.

This article first appeared on fintechnews.ae

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Die Luzerner Kantonalbank (LUKB) bietet ab dem 1. Oktober 2024 ihren Kunden die Ein- und Auslieferung für die Kryptowährungen Bitcoin und Ethereum an.

Bereits im Juni 2024 hat die LUKB einen Kryptoanlageplan auf den Markt gebracht und ergänzend zu Bitcoin, Ethereum und USD Coin neu auch Investitionen in die Kryptowährungen Chainlink und Polygon ermöglicht.

Ab dem 1. Oktober 2024 können Kunden der LUKB ihre Kryptowährungen Bitcoin und Ethereum aus anderen Wallets in ihr Wertschriftendepot bei der LUKB übertragen. Die LUKB wird diese Dienstleistung schrittweise einführen. Sie ergänzt damit das bestehende Angebot im Bereich des Handels und der Verwahrung von Kryptowährungen.

Kryptoanlageplan seit Juni 2024

Der bereits im Juni 2024 lancierte Kryptoanlageplan ermöglicht ein regelmässiges und automatisiertes Investieren in Kryptowährungen bereits ab einem Betrag von 10 Franken. Der Kauf von Kryptowährungen erfolgt automatisiert und auf Wunsch der Kundschaft per Dauerauftrag. Der Kryptoanlageplan ist nahtlos in das Kernbankensystem und das E-Banking der LUKB integriert.

Ausbau der Kryptowährungen

Ergänzend zu den bisher verfügbaren Kryptowährungen Bitcoin, Ethereum und USD Coin hat die LUKB ebenfalls im Juni 2024 ihr Angebot um Chainlink und Polygon erweitert.

ISAE zertifizierte Verwahrung

Die LUKB setzt bei der Verwahrung von Kryptowährungen auf anerkannte Sicherheitsstandards. Die Verwahrung der eingelieferten Kryptowährungen erfolgt in einer ISAE 3000 zertifizierten Infrastruktur. Für die Kunden besteht somit Gewähr, dass ihre Kryptowährungen bei der LUKB sicher verwahrt sind.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

In 2023, cryptocurrency fraud continued to surge globally as rising adoption of digital currencies attracted scammers seeking to exploit the hype and target credulous users.

Last year, the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3) received a record of 69,468 crypto-related complaints, a 33.6% increase from 2022’s ~52,000, new data released by the division show. Losses soared by a whopping 45% year-over-year (YoY) to an all-time high of US$5.6 billion.

Though crypto fraud represented only 10% of total financial fraud complains in 2023, it accounted for nearly 50% of total fraud losses, highlighting the disproportionately severe financial impact of these schemes compared to traditional fraud.

Investment fraud emerges as top crypto fraud type

Investment fraud fueled much of the rise in crypto-related scams, emerging as the most reported crypto scheme in 2023. Last year, it accounted for nearly half of all complaints received and a staggering 71% of the losses associated with these complaints.

The increasing popularity of cryptocurrencies, driven by the potential for high returns and belief in blockchain’s future, is attracting fraudsters. As cryptocurrencies are increasingly perceived as viable alternatives to traditional investments, and with major companies enhancing the market’s legitimacy, scammers are exploiting this trend, taking advantage of the hype, investors’ lack of experience, and the anonymity of blockchain transactions to deceive unsuspecting individuals with promises of high returns and minimal risks.

In 2023, losses from crypto-related investment fraud schemes reported to the IC3 skyrocketed from US$2.57 billion in 2022 to US$3.96 billion, a 53% increase, with many victims accumulating massive debt to cover losses from these fraudulent investments.

While various schemes were used to defraud individuals last year, the IC3 has identified a particularly prominent method that emerged in 2023. These schemes were socially engineered and involved criminals using dating applications, social media platforms, professional networking sites, or encrypted messaging apps to establish relationships with their targets. Once trust was established, the criminals introduced the topic of cryptocurrency investment and convinced their targets to invest through fraudulent websites or apps controlled by them.

The IC3 also warns of the risk of false job advertisements linked to labor trafficking at scam compounds overseas. These compounds hold workers against their will and use intimidation to force the workers to participate in scam operations.

In these schemes, criminals would post false job advertisements on social media and online employment sites to target people, primarily in Asia, offering a wide range of opportunities across tech support, call center customer service, and beauty salon technicians. These opportunities would include enticing salaries, lucrative benefits as well as coverage for travel experiences and accommodation.

However, upon arrival in the foreign country, victims would find their passports and travel documents confiscated, facing threats and coercion to comply with their captors.

These cyber scam centers are primarily located across Southeast Asia, mainly in the poorer states of Cambodia, Laos, and Myanmar, and are operated by well-connected organized criminal groups, largely originating from China. They are often staffed by thousands of people, most of whom the criminal groups have illegally trafficked and forced to work in inhumane and abusive conditions.

The UN High Commissioner for Human Rights estimates that more than 200,000 people have been trafficked into Myanmar and Cambodia to execute these online scams.

Crypto kiosks and recovery as rising trends

In addition to crypto investment fraud, the IC3 report also highlights the rise of crypto kiosks scams. Crypto kiosks are ATM-like devices or electronic terminals that allow users to exchange cash and cryptocurrency. They enable a more anonymous transaction than depositing the cash at a financial institution, making them attractive to criminals.

Typically, criminals would instruct victims to use these kiosks to send funds, providing detailed guidance on withdrawing cash, locating a kiosk, and completing the transaction. These scams frequently involve QR codes, allowing the victim to send cryptocurrency directly to the criminal’s intended destination.

According to IC3 data, the use of cryptocurrency kiosks to perpetrate fraudulent activity is increasing. In 2023, the division received more than 5,500 complaints reporting the use of cryptocurrency kiosks, with losses over US$189 million. Top crime types involving crypto kiosks in 2023 were tech support (46%), extortion (17%) and government impersonation (10%), all of which were among the top fraud complaints for the year.

Crypto recovery schemes are another rising form of fraud, often emerging as the next iteration of a fraud scheme.

In these schemes, criminals would pose as representatives from businesses offering crypto tracing services, falsely claiming they can recover lost funds.

They would typically contact individuals who lost money from the scheme via social media or messaging platforms or advertise their fraudulent cryptocurrency recovery services in the comment sections of online news articles and videos about crypto; among online search results for cryptocurrency; or on social media.

These fraudsters would charge an up-front fee and either cease communication after receiving an initial deposit or produce an incomplete or inaccurate tracing report and request additional fees to recover funds. To appear legitimate, they may also falsely claim affiliation with law enforcement or legal services.

Global crypto activity continues to grow this year, driven by the launch of bitcoin and ether exchange-traded funds (ETFs) in the US, rising adoption in developing economies and a rebound in crypto prices.

Data from Chainalysis show that between Q4 2023 and Q1 2024, the total value of global crypto activity rose substantially, reaching higher levels than those of 2021 during the crypto bull market. This growth was mainly fueled by lower-middle income countries, with nations in Central and Southern Asia, as well as Oceania (CSAO) recording the strongest increase crypto adoption.

The launch of spot bitcoin and ether exchange-traded funds (ETFs) in the US this year also played a key role in boosting adoption. A recent Gemini survey reveals that 37% of US cryptocurrency owners now hold some of their crypto through an ETF. Moreover, 13% of respondents own cryptocurrencies exclusively through an ETF, underscoring the role of these instruments in driving growth within the sector and improving accessibility.

The price of bitcoin increased substantially in 2023, soaring by a staggering 153% from about US$17,000 in January to about US$43,000 by the end of the year.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

SmartStream, a financial transaction management solution provider, has launched version 9 of its Air platform, offering enhanced data automation and intelligence capabilities.

The new release aims to enhance data management across front-to-back office operations in financial institutions.

Key features of version 9 include the Air Data and Air Cash modules, both utilising AI and machine learning technologies.

Air Data automates various tasks such as data cross-checking, error detection, and trade record comparison.

It also enhances internal data quality by identifying inconsistencies.

The Air Cash module focuses on simplifying cash reconciliations, even handling complex scenarios.

The platform prioritises security, adhering to DORA and PCI compliance standards.

Built on SaaS technology, it is designed to be globally accessible, scalable, and cost-effective.

Andreas Burner, Chief Technology Officer, SmartStream, said,

“Today, companies are overwhelmed by large amounts of complex or unstructured data, which often impedes their ability to gain critical operational and commercial insights. Version 9 transforms data into a strategic asset, enabling customers to enrich their data with greater ease.

Through observational learning, it offers intelligent suggestions of how best to gain valuable insights from data – significantly boosting competitiveness. The introduction of low-code / no code environment makes it easy to deploy, operate and scale”.

Featured image credit: Edited from Freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

IN Groupe, a French identity solutions provider, has entered exclusive negotiations to acquire IDEMIA Smart Identity, a key division of IDEMIA Group.

The acquisition would create a new entity with over €1 billion in sales, bolstering IN Groupe’s presence in Europe, the Middle East, Africa, Latin America, and Asia.

The combined capabilities would provide enhanced access to critical segments of the identity value chain, including chip design and advanced software, crucial for secure identity documents.

This acquisition aligns with IN Groupe’s growth strategy, addressing the increasing demand for secure identity solutions, the trend towards digitalization, and the rise of European standards in the digital identity ecosystem.

The French state, IN Groupe’s sole shareholder, supports the acquisition.

The transaction, subject to regulatory approvals and consultations, is expected to close in 2025.

Agnès Diallo, CEO of IN Groupe, said,

“We are looking forward to joining forces with IDEMIA Smart Identity to create a new global leading player for advanced and secure identity solutions. This is a unique and transformative milestone for IN Groupe.

It is fully aligned with our strategy to consolidate our position in physical and digital identity at a global scale to better serve our clients. IDEMIA Smart Identity’s teams, technologies and solutions, perfectly complement our own capabilities and I firmly believe that coming together would strongly benefit our customers.”

Pierre Barrial, CEO of IDEMIA Group, said,

“We are reaching a decisive milestone with this project to sell IDEMIA Smart Identity, one of the leading providers of secure identity solutions, to create a market leading player.

With €2.5 billion in revenue, 12,500 employees, and 4,000 customers with its Secure Transactions and Public Security divisions, IDEMIA Group would embark on a new chapter in its history and remain focused on delivering mission critical solutions powered by biometrics and cryptography addressing specific market segments, and accelerating its future growth”.

Featured image credit: Edited from Freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Die von PostFinance und Swissquote lancierte Smartphone-App Yuh ist mittlerweile die am zweithäufigsten genutzte Smartphone-Bank der Schweiz.

Rund 3.5 Jahre nach ihrer Einführung nutzen bereits über 250’000 Menschen die App. Für den IFZ Retail Banking Blog wurden mir verschiedene interessante Kennzahlen zur Nutzung und zu den Nutzerinnen und Nutzern von Yuh zur Verfügung gestellt.

Die Nutzerbasis von über 250’000 Personen verteilt sich auf verschiedene Altersgruppen. 45 Prozent der App-Nutzer sind jünger als 35 Jahre, und 72 Prozent sind jünger als 45 Jahre (siehe Abbildung 1). Zum Vergleich: Das Median-Alter in der Schweiz beträgt rund 46 Jahre. Das bedeutet, dass 50 Prozent der Bevölkerung jünger und 50 Prozent älter als 46 Jahre alt sind.

Neben dem tendenziell eher jüngeren Publikum zeigt sich auch eine klare Tendenz in der Geschlechterverteilung: 70 Prozent der Nutzer sind männlich, während 30 Prozent weiblich sind. Gemäss Angaben von Yuh konnte der Frauenanteil aber gesteigert werden. Laut Angaben von Yuh konnte der Frauenanteil jedoch gesteigert werden. Lag dieser zu Beginn noch bei nur 20 Prozent, so konnte er inzwischen erhöht werden.

Kontostand von CHF 8’900

Die Verteilung der Nutzer nach Regionen entspricht weitgehend der Bevölkerungsdichte in den einzelnen Kantonen. In Zürich beispielsweise, dem bevölkerungsreichsten Kanton, finden sich 18% der Yuh-Nutzerinnen und -Nutzer, was auch dem Anteil an der Gesamtbevölkerung der Schweiz entspricht. Es ist jedoch eine leichte Tendenz erkennbar, dass Yuh in urbanen Kantonen (bspw. Basel, Genf) etwas stärker vertreten ist als in ländlichen Gebieten.

Die Yuh-Nutzerinnen und -Nutzer verfügen im Durchschnitt über einen Kontostand von CHF 8’900. Rund 60 Prozent der Kundinnen und Kunden nutzen die innerhalb der App angebotenen Sparprojekte.

Nutzung der App, 75’000 Unique User

Die Yuh-Nutzerinnen und -Nutzer zeigen eine bemerkenswert hohe Aktivität. Im Durchschnitt loggen sie sich mehrere Male pro Monat in die App ein.

Aktuellen Daten zufolge sind täglich 75’000 unique Nutzer aktiv, während 155’000 die App mindestens einmal pro Woche nutzen. Innerhalb der letzten 30 Tage haben sich sogar 220’000 Nutzerinnen und Nutzer mindestens einmal in die App eingeloggt, was einer – aus meiner Sicht – beeindruckenden Aktivitätsrate von 88 Prozent entspricht.

Krypto-Investoren und Handelsaktivitäten

Eine beachtliche Anzahl von 38 Prozent aller Yuh-Nutzerinnen und -Nutzer, also 95’000 Personen, investiert derzeit via Yuh in Kryptowährungen. Unter diesen Investierenden sind 88 Prozent männlich. Der durchschnittliche Handelsbetrag für Kryptowährungen liegt bei etwa CHF 375 pro Transaktion.

In einer Studie, welche wir im November im Rahmen der IFZ Retail Banking Konferenz veröffentlichen werden, werden wir aufzeigen, dass diese hohe Zahl deutlich überdurchschnittlich ist für die Schweizer Bevölkerung. Offensichtlich ist es also Yuh gelungen, viele Krypto-Interessierte als Kundinnen und Kunden zu gewinnen.

Insgesamt halten 50 Prozent der Yuh-Nutzer Wertschriften wie Aktien, ETFs und Kryptowährungen, wobei auch hier der männliche Anteil mit 87 Prozent überwiegt. Das durchschnittliche Depotvolumen beträgt CHF 5’600.
Yuh nutzt als einzige mir bekannte Bank die Möglichkeit von sogenannten «Fractional Shares» in der Breite (willBe bietet das auch an, aber nur für einzeln Aktien).

Das bedeutet, dass Kundinnen und Kunden einen Bruchteil einer Aktie oder eines ETFs erwerben können, wodurch sie anteilig auch Dividenden erhalten. Dabei agiert Yuh als Käufer und fungiert als eine Art Treuhänder für die Kundschaft. Beim Erwerb von «Teilaktien» erhalten die Kundinnen und Kunden jedoch kein Stimmrecht und werden nicht ins Aktienregister eingetragen.

Die technische Umsetzung solcher Lösungen ist zwar komplex, aber sie sind stark auf die Bedürfnisse von Retailkundinnen und -kunden ausgerichtet, wie die Zahlen von Yuh zeigen: Laut Yuh entfallen beeindruckende 50 Prozent aller Trades auf Fractional Shares.

Fazit

Yuh etabliert sich zunehmend als wichtige Finanzplattform in der Schweiz und zieht dabei eine breite und diverse Nutzerschaft an. Die hohe Aktivität der Kundschaft und das wachsende Interesse an innovativen Investmentmöglichkeiten wie Kryptowährungen und Fractional Shares zeigen auf, warum die App möglicherweise erfolgreicher ist als andere Angebote.

Die Benutzerbasis ist geografisch breit gestreut, zeigt aber eine Tendenz zu eher jungen, urbanen und männlichen Nutzern. Das durchschnittliche Kundenvermögen bei Yuh ist auf den ersten Blick noch eher tief. Einerseits kann dies mit der Altersstruktur zusammenhängen (Gut 72% der Yuh-Kundschaft sind unter dem Schweizer Median-Alter). Als Zweites wird Yuh wohl häufig (noch) als Zweitbank genutzt. Zudem sind Vermögenswerte von unter CHF 10’000 bei vielen klassischen Retailkunden ebenfalls nicht ungewöhnlich..

Mit Blick auf den hohen Anteil von Trades mit Fractional Shares wird ein klares Kundenbedürfnis deutlich:

Warum bieten andere Banken diesen Service nicht an?

Dieser Artikel erschien zuerst auf dem HSLU-Retailbanking-Blog

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

London Stock Exchange Group (LSEG) has announced the launch of DataScope Warehouse.

This is a cloud-based solution designed to provide enterprise clients with easy access to its extensive fixed income and equity data.

The platform supports Structured Query Language (SQL), allowing users to query LSEG’s Pricing and Reference database.

It also enables collaboration by offering access to LSEG’s data through various cloud partners.

The service offers immediate access to a comprehensive range of data, including global equities, derivatives, bank loans, and funds, sourced from more than 180 exchanges worldwide, including emerging markets.

LSEG’s Pricing Data Service covers over 2.8 million fixed income securities and derivatives, providing independent, transparent pricing.

Its Reference Data offers global coverage of over 80 million active and matured financial instruments across a broad spectrum of asset classes.

Initially available on the Snowflake cloud infrastructure, DataScope Warehouse will expand to other cloud providers through 2025.

Kristin Hochstein, Global Head of Pricing and Reference Services commented,

“Our customers are looking for flexible solutions that allow them to consume as much data as they need exactly when they need it.

The launch of DataScope Warehouse will be key in enabling our customers to spend less time on data remediation and more on discovering insights and boosting productivity in their businesses.

Featured image credit: Edited from Freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Ualá, Brubank and Naranja X dominate the Argentinian digital banking sector, collectively serving 16.44 million customers and holding an 88% share of the market, a new analysis by C-Innovation, a French fintech-focused research firm, reveals.

These digital banks have managed to establish themselves as key pillars of the digital banking ecosystem, carving out substantial user bases by focusing on innovation, financial inclusion, and customer-centric services, the report says. Their growth has been driven by strategic product offerings, user-friendly platforms, and the ability to meet the evolving needs of Argentine consumers.

Ualá, one of Argentina’s leading fintech players, offers a comprehensive financial platform that includes prepaid cards, personal loans and bill payment services. Its user-friendly app and focus on financial inclusion make it particularly popular among younger consumers and those previously underserved by traditional banks. Ualá serves 6 million customers, recording a 13% year-over-year (YoY) growth between 2023 and 2024.

Ualá has heavily relied on a mergers and acquisitions (M&A) to grow and broaden its product offerings. The acquisition and rebranding of Wilobank to Uilo Bank have expanded Ualá’s service offerings, integrating traditional banking into its digital ecosystem. Additionally, Ualá’s acquisitions of Empretienda, an e-commerce platform for entrepreneurs, and Ceibo Créditos, a fintech company specializing in credit services, have further strengthened the company’s market position.

Brubank, launched in 2018, provides a wide range of banking services, including savings accounts, loans, and investment options. Its seamless digital experience and no-fee model have attracted a broad customer base, particularly among tech-savvy individuals seeking an alternative to traditional banking. Brubank serves 5.81 million customers, recording a 14% YoY growth between 2023 and 2024.

Finally, Naranja X, originally known for its credit cards, has evolved into a full-fledged digital bank offering accounts, loans, and investment products. The company has leveraged its strong brand legacy and established customer relationships to tap cross-sell opportunities and boost its growth. Naranja X serves 4.63 million customers, recording a 84% YoY growth between 2023 and 2024.

Argentina’s digital banking landscape

Ualá, Brubank and Naranja X are among the seven licensed digital banking bands in Argentina, along with Banco Del Sol, IUDÚ, Openbank, and Uilo Bank (formerly Wilobank).

Mercado Pago is another leading neobanking company mentioned in the report, though without a formal banking license. Mercado Pago began in 2003 as a payment solution within the Mercado Libre e-commerce platform before evolving into a leading neobanking player in Argentina and across the broader LatAm. The company now serves 7 million customers in Argentina and 49 million users across the broader LatAm region, offering a broad range of financial services, including a digital wallet, QR code payments, prepaid cards, loans and investment services.

One of the greatest strengths of Mercado Pago is its seamless integration within the Mercado Libre ecosystem. This integration allows it to leverage Mercado Libre’s extensive user base and tap cross-selling opportunities that other digital banks cannot easily replicate. This helps boost customer loyalty and provides a steady stream of transactional data, which can then be used to refine and expand its product offerings.

Mercado Pago’s global reach, combined with its deep penetration in Argentina, positions it as a strong competitor in the market

Foreign leaders eye Argentinian market

Argentina’s already crowded digital banking sector is bracing for heightened competition with the potential entry of Revolut and Nubank. The arrival of these global giants is expected to reshape the market landscape by introducing substantial resources, cutting-edge products, and valuable experience from other regions. This shift could challenge the dominance of local players and bring new dynamics to the competitive environment, C-Innovation says.

Revolut, which has already established a strong presence in Europe and parts of LatAm, is now targeting Argentina as a key market for expansion. Earlier this year, it launched a search for “head of expansion” to lead its efforts in the country, including establishing a local team and navigating regulatory approvals.

C-Innovation expects that Revolut’s entry will disrupt the Argentinian market. The company’s offerings, which include multi-currency accounts, international remittances, and cryptocurrency trading, surpass those of local neobanks, giving it a competitive edge. Furthermore, Revolut’s profitability in 2023 gives it the financial muscle needed to invest in advertising and market penetration, making it a strong competitor in Argentina.

Nubank, the largest digital bank in LatAm, entered Argentina in 2019 but withdrew shortly after due to the challenging macroeconomic environment. However, in a recent interview, Cristina Junqueira, co-founder and chief growth officer of Nubank, stated that the company might reconsider re-entering Argentina if the macroeconomic conditions improve.

She emphasized that while Argentina is a significant market with a large population eager for better financial services, the country’s economic instability remains a major hurdle. Should Nubank decide to re-enter the market, its deep understanding of LatAm and its ability to tailor products to local needs could give it an edge over newer entrants like Revolut, C-Innovation says.

Nubank serves more than 100 million customers across Brazil, Mexico, and Colombia, providing a fully digital bank account, credit cards, investment products, a digital wallet, and more.

This article first appeared on fintechnews.am

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Boerse Stuttgart Digital is the crypto infrastructure partner of DZ BANK, representing the German cooperative banking group – one of the largest banking groups in Europe and the second largest one in Germany.

Leveraging Boerse Stuttgart Digital’s regulated institutional crypto infrastructure solutions, DZ BANK will enable 700 cooperative banks to offer their retail customers to trade cryptocurrencies and to securely store them in licensed fiduciary custody.

The implementation of the technical and operational set-up has already started. The first banks are to be connected as early as this year, with a phased roll-out and a first testing phase for selected retail customers.

“We offer Boerse Stuttgart Digital’s proven and fully regulated crypto trading and custody infrastructure to financial institutions across Europe. This is especially interesting for financial institutions which put a particular focus on professionalism, security, reliability, and trust – as does DZ BANK. Our infrastructure solutions are retail-customer-oriented, this is the towering strength of our group”,

says Dr Matthias Voelkel, CEO of Boerse Stuttgart Group

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Commerzbank and Crypto Finance, a subsidiary of Deutsche Börse, are now offering Commerzbank’s corporate clients in Germany crypto assets. The joint service will initially focus on bitcoin and ether, targeting selected existing Commerzbank corporate clients in Germany.

Under this strategic partnership, Commerzbank will manage the custody of digital assets, while Crypto Finance will ensure their secure trading.

Combined Expertise for New Digital Markets

In November 2023, Commerzbank became the first German universal bank to obtain a crypto custody licence under §1 Abs. 1a Satz 1 Nr. 6 of the German Banking Act (KWG). This licence enables the Bank to offer a broad range of services in the field of digital assets, particularly crypto assets. The Bank can now provide a regulatory-compliant and reliable platform for crypto custody based on blockchain technology.

As a pioneer in digital assets, Crypto Finance has been enabling institutional clients to enter the crypto sector since 2017 through regulated and secure trading and custody services. Established as a FINMA-regulated provider of crypto asset solutions in Switzerland, Crypto Finance has recently expanded its presence in Germany by obtaining four licences from the Federal Financial Supervisory Authority (BaFin). This expansion allows the company to offer crypto services to all institutional clients in Germany.

“Our offering in digital assets, enables our corporate clients to seize the opportunities presented by bitcoin and ether for the first time,”

explained Gernot Kleckner, Divisional Board Member Capital Markets in the Corporate Clients segment at Commerzbank, about the partnership.

“We are a reliable and competent partner for our corporate clients in these future markets. Our joint solution represents the highest level of security in the trading and custody of crypto assets, which is also a standard we also share with the Deutsche Börse Group.”

“The partnership with Commerzbank is an important milestone for Crypto Finance as it enables us to offer more companies and institutions in Germany access to regulated crypto services,”

said Stijn Vander Straeten, Chief Executive Officer of Crypto Finance.

“With a solution tailored to Commerzbank, we are reinforcing our commitment to offering secure digital asset solutions across Europe. We are very much looking forward to the collaboration and to supporting the growing demand for institutional crypto services in Germany and the EU.”

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Das ETF-Anlage-Startup findependent hat nun über 15’000 Kundinnen und Kunden für die Geldanlage App begeistern können.

Das verwaltete Vermögen stieg gar um 140% auf 150 Millionen Franken.

findependent wächst in allen Teilen der Schweiz schnell und in den letzten 12 Monaten besonders rasant in der Romandie und beim weiblichen Teil (+140%) der Anlegergemeinde.

Das Durchschnittsalter aller Nutzerinnen und Nutzer der findependent Anlage-App liegt bei 39 Jahren. Starke prozentuale Zuwächse zeigen auch die 18 bis 25jährigen (+160%) und die Altersgruppe der “Neupensionäre” (+224%) rund um das offizielle Rentenalter.

Die Summe der verwalteten Vermögen hat per Anfang September erstmals die Marke von 150 Millionen Franken überschritten. Der Grossteil (90%) des Wachstums der vergangenen 12 Monate stammt aus neu anvertrauten Geldern. Dieses Wachstum ermöglichte findependent eine verbesserte Preisgestaltung bei den Vermögensver- waltungs- und Depotgebühren.

“Wir wollten diesen Preisvorteil an unsere Kundinnen und Kunden weitergeben, schliesslich sind sie es, die dieses Wachstum erst ermöglicht haben”,

verrät Matthias Bryner, Gründer und CEO von findependent.

“Im Laufe des Frühlings haben wir daher ein weiteres Mal die Gebühren gesenkt, auch wenn wir schon vorher der günstigste digitale Vermögensverwalter der Schweiz waren”,

so Bryner.

Neuer Head of Operation

Aufgrund des starken Kundenwachstums schafft findependent zudem neu die Stelle des Head of Operations. Per Oktober 2024 wird Tobias Katzfuss in dieser Rolle zum findependent Team stossen. Er verfügt über langjährige Bankerfahrung und war in verschiedenen Operations- und Business Development Rollen im Institutional Clients Bereich der Credit Suisse und zuletzt im Group Integration Office der UBS tätig.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

In 2024, global cryptocurrency activity continues to grow, with developing economies leading in crypto ownership.

Adoption of the new asset class is increasing worldwide, driven in part by the launch of bitcoin and ether exchange-traded funds (ETFs) in the US, which has boosted adoption, particularly in institutional transfers and higher-income regions.

However, regulatory concerns remain a key obstacle, especially in the US and UK, though Europe is taking steps to address these challenges with the Markets in Crypto-Assets (MiCA) regulation.

Global crypto activity on the rise

Global crypto activity has continued to rise this year despite market volatility. Between Q4 2023 and Q1 2024, the total value of global crypto activity rose substantially, reaching higher levels than those of 2021 during the crypto bull market, data from Chainalysis show.

The report says that while growth in crypto adoption was driven primarily by lower-middle income countries in 2023, this year has seen growth across countries of all income levels, supported by positive developments.

Chainalysis’ findings echo those of a new Triple A Technologies research. According to the “State of Cryptocurrency Ownership Worldwide in 2024″ report, the global user base of digital currencies has reached 562 million people this year, up 34% increase from 420 million in 2023. This figure suggests that 6.8% of the world’s population are now crypto owners, with crypto ownership rising by a compound annual growth rate (CAGR) of 99% between 2018 and 2023.

Central and Southern Asia and Oceania dominates crypto adoption

This year, adoption of cryptocurrencies has been the strongest in Central and Southern Asia, along with Oceania (CSAO). The region dominates Chainalysis’s “2024 Global Crypto Adoption Index”, with seven of the top 20 countries located in CSAO. These countries are India (#1), Indonesia (#3), Vietnam (#5), the Philippines (#8) Pakistan (#9), Thailand (#16) and Cambodia (#17), all of which have demonstrated strong activity in both cryptocurrency trading and decentralized finance (DeFi) between 2023 and 2024.

The Global Crypto Adoption Index is based on four sub-indexes, each measuring different aspects of cryptocurrency usage. It ranks a total of 151 countries based on factors like transaction volume, population size, and purchasing power.

Developing economies lead crypto ownership

Developing economies currently lead in crypto adoption, with the United Arab Emirates (UAE), Singapore (24.4%), Turkey (19.3%), Argentina (18.9%), Thailand (17.6%) and Brazil (17.5%) showing the high levels of crypto ownership, according to Gemini’s 2024 “Global State of Crypto” report.

The high penetration of cryptocurrencies in developing economies is often due to limited access to traditional banking, high remittance costs, inflation, and currency instability. These digital assets offer an attractive alternative for saving, transferring money, and accessing financial services, especially in regions with weak financial infrastructure. Additionally, the younger, tech-savvy population in these countries is more open to adopting new digital solutions.

ETF brings growth through accessibility

The launch of spot bitcoin and ether ETFs in the US in January and July 2024, respectively, has been among the key drivers of increased crypto adoption this year. According to the Chainalysis report, the development marked a significant milestone for the broader crypto industry, and spurred significant growth in crypto activity across all regions, particularly in institutional-sized transfers and in higher-income regions like North America and Western Europe.

In the US, 37% of cryptocurrency owners surveyed by Gemini in 2024 reported holding some of their crypto through an ETF, underscoring the role of these instruments in driving growth within the sector. Notably, 13% of respondents said they own crypto exclusively through an ETF, indicating that many investors entered the market via ETFs when they were introduced this year.

The introduction of spot bitcoin ETFs earlier in 2024 generated considerable enthusiasm. Within the first month of trading, daily trading volume totaled nearly US$8 billion, marking a 63.8% increase from the previous peak of US$4.7 billion on January 11, 2024, the first day of trading, and reflecting strong interest from investors in this new asset class.

Investors remain bullish on crypto

This year, consumer attitudes around crypto has remained positive among owners and past owners. According to the Gemini survey, 57% of current crypto owners feel comfortable making crypto a significant part of their investment portfolios. Furthermore, 27% of past crypto owners expressed similar sentiments, indicating that many may re-enter the market.

Institutional investors are also showing increasing interest in digital assets. A study by EY-Parthenon found that 94% of the 277 institutional investor decision-makers surveyed believe in the long-term value of blockchain and digital assets, with 79% considering them crucial for portfolio diversification.

Additionally, 38% of these respondents said they had already committed between 1%-5% of funds to digital assets or crypto-related investments, and in the case of family offices, nearly half are in that allocation range. Traditional hedge funds are reaching for digital assets gains even more aggressively than their peers, with 22% allocating greater than 5% of funds.

Regulatory concerns as a barrier

Despite increased crypto activity and rising adoption among both retail and institutional investors, regulatory concerns remain a significant barrier.

In 2024, a higher percentage of respondents in the US, UK, and Singapore cited regulatory uncertainty as a key obstacle to investing in cryptocurrencies compared to 2022, according to the Gemini survey.

These results align with the findings of the EY-Parthenon survey which found that while half of firms are interested in investing in tokenized assets, 28% don’t plan to invest until 2026 or later, and 30% are waiting for regulatory clarification before moving forward.

The European Union (EU) has taken a major step toward addressing these concerns, approving in June 2023 the MiCA regulation. MiCA, set to be applicable from December 30, 2024, will introduce uniform market rules for crypto-assets across the EU, providing a more robust and transparent legal framework that is expected to foster further crypto adoption and investment in Europe.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Consumers from around the world are increasingly favoring digital payments over cash, fueling a surge in cashless transactions. A new report by Capgemini Research Institute reveals that non-cash transaction volumes worldwide reached 1,411.3 billion in 2023, up 17% from 1,202.8 billion in 2022.

Even established regions like Europe experienced significant growth, with non-cash transactions rising by 15.6% between 2022 and 2023 to reach 361.1 billion.

The World Payments Report 2025, released on September 10, forecasts sustained growth in cashless transactions. Global digital payments are expected to rise at a compound annual growth rate (CAGR) of 15% from 2023 to 2028, reaching a total of 2,838 billion transactions. In Europe, cashless payments are set to grow by a CAGR of 12% over the same period and reach 637.1 billion.

A heterogeneous region

In Europe, cashless transactions are primarily composed of card transactions, credit transfers and direct debit, which accounted for 66%, 17% and 8% of non-cash transactions in 2023, respectively.

However, the report notes that the landscape is evolving as consumers increasingly adopt alternative payment methods like instant payments and e-money, including digital wallets. The pan-European instant payment scheme, SEPA Instant Credit Transfer (SCT Instant), was launched in 2017 and by Q1 2024, 17.3% of all SEPA credit transfers were instant, the report says. Instant payments made up 4% of payment transactions in 2023, while digital wallets accounted for 5% of payment transactions, data from the report show.

Despite SEPA harmonization efforts, the European payments landscape remains fragmented with nearly 30 retail payment systems active in the eurozone as of H1 2023.

Furthermore, customer preferences vary greatly across countries. In Germany and the Netherlands, users tend to favor bank transfers such as iDeal in the Netherlands, while in France, customers prefer local card schemes. Mobile wallets, such as the unicorn Satispay in Italy or Bizum in Spain, are gaining popularity and adoption.

Banking consortium launches digital wallet Wero

To address Europe’s fragmented payment landscape, the European Payments Initiative (EPI) started rolling out this year Wero, a new mobile wallet. Leveraging SCT Inst, Wero enables instant payments across the eurozone, aiming to simplify digital payments and promote the EU’s strategic financial autonomy.

Wero allows users to send and receive money instantly using phone numbers, QR codes, or email addresses. Initially focused on person-to-person payments using phone numbers, QR codes, or email, Wero plans to expand by 2025 to support payments for small businesses, online merchants, and recurring bills, with in-store payments and additional features arriving by 2026.

Industry observers say Wero will offer European banks a competitive alternative to bigtech wallets like Apple Pay and Google Pay, enhancing their ability to compete in the digital payments market. The solution will also streamline Europe’s diverse payment systems under one brand, improving user experience and fostering cohesion across the continent.

Wero was launched in Germany and Belgium in July. France will follow this autumn, with the Netherlands and Luxembourg joining later in 2024.

EPI is an initiative launched in 2021 by 16 European banks and financial services institutions. These institutions include BBVA, BNP Paribas, Groupe BPCE, Deutsche Bank and ING. EPI’s members currently represent more than 70% of retail banking customers in Belgium, France, and Germany.

Government initiatives fuel the rise of cashless transactions

In Europe, the rise of cashless payments has largely been driven by government policies designed to create a more connected financial ecosystem in Europe.

One key initiative for 2024 is the One-Leg-Out (OLO) Instant Credit Transfer (OCT Inst) service. Launched by the European Payments Council in November 2023, OCT Inst is a cross-currency payment system designed for processing international instant credit transfers between accounts. The service aims to speed up international payments, increase cost transparency, and improve payment traceability.

2024 also saw the launch of the Instant Payment Regulation (IPR). The regulation, which entered into force in April 2024, mandates that all eurozone payment providers must be able to receive instant payments by January 2025 and send them by October 2025. Non-eurozone markets have until 2027 to comply. Any fees for these instant payments must be the same as or lower than those for standard credit transfers. The IPR aims to ensure instant payment availability, standardization, fair pricing, and enhanced security across Europe.

Another key initiative is the Payment Service Directive 2 (PSD2). Introduced in 2018, PSD2 marked a pivotal regulatory step by mandating consent-driven access to payment and account data for third-party providers, laying the groundwork for open banking.

Open banking boosts cashless payments by allowing banks to securely share customer information with other financial services. This fosters innovation and competition in payment solutions, creating more options for easy and secure payments.

The European Union (EU) is now overhauling PSD2 with the Payment Services Directive 3 (PSD3). This directive, slated for publication in late 2024 or early 2025, will introduce more stringent customer authentication rules and tighten control over access to payment systems and account information.

Complementing PSD3, the commission also proposed a regulation on a framework for financial data access (FIDA) in June 2023. This initiative seeks to promote open finance and data-driven financial services by granting consumers greater control over their financial data.

Digital B2B transactions on the rise

Besides retail payments, business-to-business (B2B) payments are also in the midst of a digital revolution, driven by widespread digitalization among companies and fintech innovations catering to both small businesses and large corporations.

This surge is further being propelled by the explosive growth of B2B online marketplaces. In 2023, there were nearly 750 online marketplaces globally, and projections for 2025 exceed 1,000, the report says.

In 2023, B2B non-cash payment transactions totaled 51.6 billion in Europe, up from 46.5 billion in 2022. This trend is expected to continue with a 10.8% year-over-year increase in 2024 and an 11.4% CAGR from 2023 to 2028. By 2028, Europe is projected to become the largest market for B2B non-cash payments, representing 32.3% of global transactions with an estimated 89.9 billion transactions.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

To assess the feasibility and potential benefits of a deposit token in Switzerland, the Swiss Banking association members PostFinance, Sygnum, and UBS have signed a Memorandum of Understanding(MoU).

This MoU demonstrates their commitment to designing and implementing an initial Deposit Token PoC, focusing on two main use cases in the areas of peer-to-peer payments and digital assets settlement.

The MoU outlines the shared objectives of conducting the PoC during the course of 2025 and addresses the resulting inter-institutional technical and legal challenges.

The joint work aims to provide a non-binding evaluation for all interested financial market participants on how such a deposit token design may be implemented, potentially leading to a nationwide rollout of the Swiss franc deposit token.

However, a successful PoC will not prejudge a decision on a rollout.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Der St.Galler Kantonsrat hat am Montag einem Sonderkredit von 10 Mio. Schweizer Franken zum Ausbau der Startup-Förderung zugestimmt.

5.4 Mio. davon werden eingesetzt für den «HSG START Accelerator». Dieser ist ein Gemeinschaftsprojekt der Universität St.Gallen (HSG) zusammen mit dem Switzerland Innovation Park Ost und START Global.

Die restlichen 4.6 Millionen Franken sollen die bestehende Stiftung «Startfeld» stärken.

Der «HSG START Accelerator» ist als Stiftung organisiert, die im Juni 2024 gegründet wurde. Er soll das führende Accelerator-Programm Europas werden und starke, technologieorientierte Startups auf ihrem Wachstumskurs begleiten.

Das Programm bereitet die nationalen und internationalen Jungunternehmen gezielt auf die Wachstumsphase vor. Es hilft ihnen mittels intensiver Coachings und Vernetzung, ihre Überlebenschancen und ihre Attraktivität zu erhöhen, insbesondere für Risikokapital-Investor:innen. Die Stiftung hinter dem Accelerator soll künftig selbsttragend sein.

HSG und kantonale Standortförderung entwickelten Strategie

Der Kanton St.Gallen stärkt mit diesem Parlamentsentscheid weiter seine Attraktivität als Standort für innovative Jungunternehmen. Die Idee des Accelerators basiert auf einer Startup-Strategie, die der HSG-Startup-Experte Prof. Dr. Dietmar Grichnik und ein Team des Center for Entrepreneurship (CfE-HSG) entwickelt haben. Dies geschah im engen Austausch mit der Standortförderung des Kantons St.Gallen, die die Strategieentwicklung in Auftrag gegeben hatte.

Basierend auf dieser Strategie wurden die HSG Entrepreneurial Journey Programme im neuen Prorektorat Innovation & Qualität entwickelt. Diese Programme sollen an der HSG Innovationen auslösen, Ideen inkubieren und skalieren und diese auf den Markt bringen. Die erste Förder- und Transferstrategie wurde auf den Weg gebracht.

Neben der HSG trägt START Global den Accelerator mit. Diese Organisation wird in Freiwilligenarbeit von rund 100 HSG-Studierenden geleitet. Diese organisieren jährlich in den Hallen der Olma Messen den START Summit, Europas grösste Gründerkonferenz.

Der dritte Partner, der Switzerland Innovation Park Ost, ist eine gemeinsame Initiative von öffentlichen Institutionen, Wissenschaft und Privatwirtschaft. Er ist Teil des Netzwerks Switzerland Innovation, das sechs Haupstandorte in der Schweiz unterhält und auf einem gesetzlichen Auftrag des Bundesrates basiert.

Featured image credit: edited from freepik.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Whizkey, a global software design and consulting firm, is considering expansion plans in Switzerland.

The company is exploring potential office openings in Zürich and Geneva as part of its plan to strengthen its footprint in Europe, with the Zürich office potentially serving as Whizkey’s European hub, while Geneva would support regional development.

Switzerland’s reputation as a financial and technological hub makes it a strategic location for Whizkey’s next phase of growth.

Aligned with Switzerland’s sustainability goals, Whizkey plans to incorporate environmentally friendly practices into its operations if the expansion proceeds.

Founded over a decade ago by Abdulaziz Alamiri and Harsh Hirani, Whizkey has partnered with clients worldwide, reaching over 3.3 million people and generating more than US$400 million in client revenue.

Specialising in AI, Robotic Process Automation (RPA), and Blockchain, Whizkey creates tailored software solutions across industries.

Whizkey operates globally, with key partnerships in the UAE, Africa, North America, and Europe, and is now expanding into the United States.

Leading Whizkey’s client-focused approach is Rishmeen Ronak Chashmawala, who manages the entire client journey from solution development to execution, ensuring the delivery of technology solutions that meet diverse client needs.

Abdulaziz Alamiri, Chief Operations Officer, WhizKey said,

“We’ve always believed in aligning our business goals with markets that share our values, and Switzerland feels like a natural fit for our next step.

We’re excited about the opportunities to innovate in such a forward-thinking environment and bring our most creative solutions to life.”

In addition to these expansion plans, Whizkey is developing Cogniver, a product designed to enhance the ERP landscape by using AI and automation to help businesses improve efficiency and streamline operations.

Whizkey’s exploration of new locations reflects its broader global strategy, as it continues to focus on advanced technology solutions in fintech and other sectors.

Featured image credit: Edited from Freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Landesbank Baden-Württemberg (LBBW), Germany’s largest state bank, has selected Fenergo, to provide a new cloud-based client onboarding system to enhance its compliance processes.

Fenergo will support LBBW’s business in Europe (excluding Germany), the United Kingdom and Asia and thus around 1,500 institutional and corporate customers.

With total assets of €324 billion, LBBW is Germany’s largest Landesbank. The bank selected Fenergo to enhance automation of its compliance processes and increase operational efficiencies. This will strengthen the bank’s reputation and competitiveness as part of its international growth.

Ruth Ormsby, Managing Director of EMEA at Fenergo, says:

“The cooperation with LBBW is an important milestone for Fenergo as we expand our footprint in Germany. Our mission is to support local financial institutions (FIs) on the path to digital transformation by applying our deep experience gained from transforming the world’s most well-known and largest FIs.”

“Many German banks are focused on modernising compliance solutions especially for client onboarding and customer lifecycle management,” continued Ormsby. “Fenergo enables firms to digitalise and automate onboarding and compliance processes throughout the client lifecycle to increase operational efficiencies, improve customer experience and ensure regulatory obligations are met, thus avoiding costly penalties.”

Jonathan Bashforth, Head of Compliance EMEA at LBBW, adds:

“We expect Fenergo’s solutions to increase efficiency in the areas of onboarding and customer data management. Thanks to the higher degree of automation, we can implement regulatory changes faster while delivering more streamlined customer onboarding journeys and thus achieve greater customer satisfaction.”

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

In 2024, crypto venture capital (VC) fundraising is showing signs of recovery, with fund raised so far this year on pace to exceed 2023’s total of US$2.6 billion for 49 funds, new data released by PitchBook show.

As of July 30, 2024, US$2.2 billion had been secured across 24 funds and numerous large funds are still actively being raised. This will contribute to larger fundraising totals in the next 12-18 months and reveals a positive outlook for VC fundraising for the rest of the year, the PitchBook report says.

Crypto VC fundraising had a tough year 2023 after reaching an all-time high of US$23.7 billion raised in 2022. The sum was almost double the US$14.8 billion amassed in 2021 and surpassed the aggregate sum of the previous eight years, which totaled US$22.7 billion.

However, the spike in fundraising in 2022 was followed by a steep decline in 2023, with fundraising volumes plummeting by a staggering 88.9%.

In 2024, the market began to rebound, owing to a number of factors. First, the total crypto market cap recovered, reaching 93% of its previous cycle’s high in March 2024. Second, a number of projects funded during the 2020-2022 boom matured and are now entering more advanced stages of development, offering more attractive investment opportunities.

In addition, negative sentiment within the crypto industry has subsided this year, driven by the adoption of digital assets by trusted, traditional financial institutions such as BlackRock, Fidelity Investments, and Franklin Templeton.

In January 2024, the US Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs from asset managers including BlackRock, Invesco and Fidelity Investments, marking a significant milestone for the broader crypto industry. These regulated investment funds, now traded on traditional securities exchanges, allow investors to gain exposure to bitcoin without directly owning the cryptocurrency, thereby broadening access for everyday investors and further integrating digital assets into mainstream finance.

Fund sizes increase though megafunds lack

Highlighting trends in crypto VC fundraising, PitchBook notes that the size of investment funds in the crypto industry has evolved throughout the years. Initially, smaller funds dominated the young and nascent market. After 2020, as the market developed, larger funds started emerging with midsized funds worth US$100 million to US$500 million beginning to increase in number.

Between 2022 and 2023, fund sizes declined because of the market slump, PitchBook data show. They rebounded between 2023 and July 2024, growing by a remarkable 76% from a median fund size of US$25 million to US$41.3 million.

The report notes that while the trend of creating megafunds worth US$1 billion or more has slowed since 2023, large funds are still entering the market. These include the Pantera Fund V, which seeks to raise more than US$1 billion to offer investors exposure across a wide spectrum of blockchain-based assets.

PitchBook expects that a number of these new funds will have broader investment mandates beyond crypto, blockchain, and Web3 in order to deploy their capital more effectively and mitigate the risk of over concentration in a still nascent sector. For example, crypto-native manager Paradigm, closed in June the largest fund so far this cycle, securing US$850 million to invest in early-stage crypto projects but also artificial intelligence (AI).

PitchBook also highlights the sustained dominance of emerging managers in the crypto VC fundraising landscape. In 2024, emerging managers, which are defined as firms that have launched fewer than four funds, continue to lead in terms of the number of funds raised.

Since 2016, these managers have raised between 77% to 87% of the crypto VC funds annually, a dominance which stems from the fact that many crypto-focused firms are relatively new.

2022 and 2023 trends

Crypto VC fundraising surged in 2022 to record-breaking levels. Several key factors contributed to this growth. First, the prolonged low-interest-rate environment punctuated by pandemic era federal stimulus led to a fundraising spike in the broader VC markets. This, combined with the extraordinary growth in the tech sector during the pandemic, fueled strong interest in emerging technologies, including blockchain and crypto.

But in 2023, crypto VC fundraising declined substantially, owing to the lack of liquidity events, particularly the slowdown in token launches in the second half of 2022 and much of 2023, as well as the significant devaluation of tokens distributed during the 2021-2022 token-launch boom.

Another contributing factor was the heightened regulatory scrutiny following the collapse of high-profile projects and platforms such as FTX, Celsius, and BlockFi, which led to a risk-off sentiment among

investors. Additionally, the global macroeconomic environment began to shift, with rising interest rates and inflation concerns making capital more expensive and harder to raise.

Market capitalization of cryptocurrencies peaked at approximatively US$3 trillion in November 2021, but by December 2022, it had dropped to a two-year low of under US$800 billion, data from Coinmarketcap show. Since then, the market has rebounded and now stands at around US$2 trillion.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Siemens has again issued a digital bond in accordance with Germany’s Electronic Securities Act (Gesetz über elektronische Wertpapiere, eWpG).

This follows the successful issuance of its first digital bond last year. In issuing the bond, the company is supporting the trials by the Eurosystem and the Bundesbank in particular, that are aimed at testing blockchain technology for the digital financial market.

“Since the successful issuance of our first digital bond on a blockchain, we have been rigorously focusing on the further development of this forward-looking technology. By issuing another digital bond, we are demonstrating once again our spirit of innovation and underscoring our aim to continuously drive digital solutions for the financial markets. Siemens remains a pioneer in the application of the latest technologies on the capital and securities markets,”

said Ralf P. Thomas, Chief Financial Officer of Siemens AG.

“Automated processing within a few minutes shows the enormous potential of this new technology and confirms our strategy of playing a leading role in continuously shaping the digital transformation. We are proud to be an active driver of further developments in this area and of the further digitalization of the capital markets. Thanks to our successful collaboration with our project partners, we have reached another key milestone,”

added Peter Rathgeb, Corporate Treasurer of Siemens AG.

The current bond has a volume of €300 million and a maturity of one year. The securities transaction was settled via the private permissioned blockchain of SWIAT, and the Trigger Solution provided by the Bundesbank, making it possible to settle a Siemens bond for the first time in a fully automated manner, within minutes and in central bank money.

Settlement in Minutes

In the transaction, Siemens leveraged its valuable experience with last year’s first-time €60 million digital bond issuance, which had still required a two-day settlement period. As a result, this time the settlement risk was almost fully eliminated for all parties involved.

DekaBank acted as bond registrar for the transaction. BayernLB, DekaBank, DZ BANK, Helaba and LBBW invested in the securities. Deutsche Bank ensured settlement for Siemens in central bank money via the Bundesbank Trigger Solution.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Die private Vorsorge ist ein Wachstumsmarkt, dessen Entwicklung mit Hilfe von digitalen Lösungen noch weiter an Fahrt gewinnen dürfte.

In dem (durchschnittlich) kleinvolumigen Markt der wertpapiergebundenen Säule 3a scheint eine hoch standardisierte, digitalisierte und dennoch individualisierbare Lösung der richtige Weg in die Zukunft zu sein.

Entsprechend erlebt die digitale Vorsorge in den letzten Jahren (volumenmässig) einen deutlichen Aufwärtstrend, der sich durch wachsende Nutzerzahlen und steigende Anlagevolumen bemerkbar macht. Ein Produkt, das sich in diesem Markt erfolgreich positioniert hat, ist „Frankly“ von der Zürcher Kantonalbank.

Ich habe nachgefragt, wie die aktuellen Entwicklungen aussehen und welche Nutzergruppen die App heute ansprechen. In diesem Blogbeitrag beleuchte ich die Nutzerstrukturen.

Frankly wurde im März 2020 eingeführt und betreut nach etwa 4.5 Jahren (per Ende August 2024) bereits 108’000 aktive Kundinnen und Kunden mit einem verwalteten Vermögen von über CHF 3.3 Milliarden.

Seit dem Jahresstart 2024 konnte Frankly weitere 13’000 Neukundinnen und Neukunden gewinnen.

Das verwaltete Volumen hat seit Jahresbeginn um CHF 800 Millionen zugenommen. Frankly bietet derzeit eine Säule 3a-Lösung sowie Freizügigkeitskonten an.

Der ehemalige CEO Martin Scholl hat gegenüber diesem Blog in einem Interview im Jahr 2021 gesagt, dass Frankly langfristig (innerhalb von fünf bis acht Jahren) ein Ziel von CHF 10 Milliarden an verwalteten Vermögen erreichen will. Rund drei Jahre später ist ein Drittel dieser Zielmarke erreicht. Damit scheint man auf Kurs zu sein.

Das durchschnittliche Vorsorgevermögen der Kundschaft beträgt rund CHF 30’500. Mit einem Durchschnittsalter von 39 Jahren zeigt sich, dass noch immer eher jüngere Kundengruppen die Vorteile digitaler Lösungen für ihre langfristige finanzielle Planung zu schätzen wissen. Insgesamt sind knapp 60 Prozent der Frankly-Kundschaft jünger als 40 Jahre (vgl. Abbildung 1).

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Over the past 30 years, the number of ultra-high-net-worth individuals (UHNWIs) around the world have surged, driven by the technology industry boom, the expansion of financial markets, real estate price rises, globalization and the growth in emerging market economies.

The Global Wealth Report 2024 by UBS attributes much of this increase to entrepreneurial activity. Specifically, UBS’s Billionaires Ambitions Report reveals that two-thirds (65%) of new billionaires  who emerged during 2022 and 2023 accumulated their wealth through organic means.

Tech founders, including those behind giants like Google, Amazon and Facebook, have become some of the world’s wealthiest individuals. By creating platforms and products that billions of people use daily, they generate unprecedented revenue and profit, amassing immense fortunes often outpacing traditional industries.

As of July 2024, seven of the top ten billionaires globally were tech entrepreneurs, data from Statista show. Elon Musk, co-founder of Tesla and SpaceX, led the ranking with a net worth of US$242.6 billion, followed by Amazon’s Jeff Bezos, with US$211.6 billion. Oracle’s Larry Ellison ranked fourth with US$176.3 billion, followed by Facebook’s Mark Zuckerberg at US$174.5 billion, and Google’s Larry Page at US$152.2 billion.

New data from UBS also reveal a broader increase in global wealth, with more individuals reaching higher wealth brackets. In 2023, 14 individuals were at the top of the wealth pyramid, collectively owning nearly US$2 trillion. The group, though extremely wealthy, was not the smallest in terms of the number of people. The next tier comprised 12 individuals with wealth ranging from US$50 billion to US$100 billion.

Below this tier is a much larger group of over 2,600 individuals who had wealth ranging from US$1 billion to US$50 billion. Below this is the band that spans between US$1 million to US$1 billion and which comprised roughly 58 million people.

Emerging economies drive wealth growth

In 2023, global wealth rebounded from its 3% contraction the previous year, growing by 4.2%. This growth was driven by increases in Europe, the Middle East and Africa (EMEA) at 4.8%, as well as Asia-Pacific (APAC) at 4.4%.

Although global wealth has been on a steady upwards trajectory since 2008, the pace of growth differs from one region to another. APAC, for example, has experienced the fastest growth in overall wealth, up nearly 177% over the past 15 years. The Americas come in second, at nearly 146%, while the EMEA lags far behind at just under 44%.

Euroclear attributes the substantial growth in private wealth in APAC to a significant transfer of wealth to a younger generation. It notes that this new generation of high-net-worth individuals (HNWIs) is tech-savvy, mobile-oriented, and seeks innovative solutions, a shift which requires the development of advanced digital platforms and modern technological infrastructure.

The role of genAI

For Accenture, generative artificial intelligence (genAI) is poised to play a significant role in the future of wealth management in Asia, promising to enhance efficiencies across the value chain and enabling highly personalized client interactions at scale. Accenture’s analysis of six key genAI use cases suggests that the technology could bring hundreds of millions of dollars in profit uplift from cost optimization and productivity gains over a three year period, resulting in a total profit increase of 3.5 times.

Early adopters are already integrating genAI into their services and operations. Wells Fargo is using genAI to improve customer interactions, making them more personalized and engaging; Morgan Stanley has introduced AI @ Morgan Stanley Assistant, a new internal AI model for research tasks; and JPMorgan has unveiled Moneyball, a genAI tool that helps portfolio managers make better investment decisions.

The potential of DLT

Boston Consulting Group (BCG) recommends a broader approach to digital transformation in wealth management, emphasizing the importance of incorporating additional cutting-edge technologies beyond AI.

Among these, distributed ledger technology (DLT) stands out for its ability to record transactions across multiple participants in a decentralized ledger, visible to all participants. The BCG notes that a number of market players are already leveraging the technology to improve efficiencies and tap new growth opportunities.

For example, Northern Trust, an American financial services company, has implemented DLT to enhance the transparency and efficiency of private equity fund administration; Tokenbridge, a UK-based company founded by financial services veterans, uses DLT to tokenize investments, reducing friction and lowering embedded costs; and FundsDLT, a Luxembourg-based company owned by the Deutsche Börse Group, leverages blockchain to automate various processes in fund management, streamlining operations and cutting costs for wealth managers.

Wealth forecasts

UBS has an optimistic outlook on global wealth, expecting continued growth in wealth per adult in almost all key markets. This year, the firm expects the share of emerging markets in global wealth to surpass 30%, a proportion which it projects will rise to nearly 32% by 2028.

The percentage of adults in the lowest wealth bracket will decrease over the next five years, while the number of adults with wealth of over US$1 million is set to rise in 52 out of the 56 markets studied.

Taiwan is projected to experience the most significant growth in the number of USD millionaires, with an estimated 47% increase from 2023 to 2028. While UBS anticipates that some of this sharp rise will be driven by organic wealth growth, particularly from Taiwan’s thriving microchip industry benefiting from the AI boom, a significant portion is expected to come from the immigration of wealthy foreigners.

Finally, roughly US$83 trillion in wealth is expected to be passed on within the next two decades, equivalent to the total value of global economic activity in a single year. A notable amount of this wealth will move horizontally between spouses first, before moving to the next generation, while just over 10%, about US$9 trillion, is expected to be passed on horizontally first, most of it in the Americas.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

France’s fintech sector is the third-largest in Europe, boasting a robust and rapidly expanding ecosystem.

In 2023, the country’s fintech user base surpassed 73 million, generating over US$1.5 billion in revenue, according to data from Statista.

France ranks just behind the UK and Germany, which recorded 98.5 million users with US$3.36 billion in revenue, and 84.27 million users with US$2.9 billion in revenue, respectively.

Within this dynamic and fast-growing sector, several ventures have emerged as category leaders, recording substantial growth and garnering investor attention.

Today, we look at some of France’s most successful and fastest-growing fintech startups in 2024, highlighting their value propositions, recent achievements and growth strategies.

Top 10 Fintech Startups in France

Qonto

Founded in 2016, Qonto is a leading European business finance solution provider. The company simplifies day-to-day banking for small and medium-sized enterprises (SMEs) and freelancers by offering an online business account integrated with various financial tools, including invoicing, bookkeeping, and spend management. The company’s goal is to become the preferred business finance solution for 1 million European SMEs and freelancers by the end of 2025.

Qonto serves over 500,000 customers, operates in France, Germany, Italy, and Spain, and employs more than 1,600 people. It is currently ranked as the fifth most valuable tech startup in France, with a valuation of US$5 billion, according to CB Insights. The startup has raised EUR 622 million from well-established investors such as Tiger Global, KKR and Insight Partners, and is reportedly working on an initial public offering (IPO) planned for 2025.

Most recently, Qonto launched its first in-house financing solution, further enhancing its product offering. The development marked a significant milestone for Qonto, which had previously relied on strategic partnerships for customer financing. The new short-term financing option, launched in March 2024, utilizes Qonto’s existing payment services license and is accessible through the company’s mobile and web apps. It complements the financing platform launched in 2023 through strategic partnerships, offering customers a comprehensive range of financing solutions, including amounts up to EUR 10 million.

Alma

Founded in 2018, Alma is a European leader in buy now, pay later (BNPL) payment solutions, dedicated to creating a more balanced and sustainable approach to commerce. The company focuses on developing financial products that empower merchants to increase sales and customer loyalty while enabling consumers to make more responsible purchasing decisions without the risk of over-indebtedness. Its tech solutions are designed to be accessible, easy to implement, and to reduce purchase friction.

For merchants, Alma offers installment and deferred payment options that can generate up to 20% additional sales revenue while maintaining customer satisfaction and loyalty, the startup says. For consumers, the BNPL platform allows for an enhanced customer experience.

As the leading BNPL provider in France, Alma is rapidly expanding across Europe, now processing payments in 10 countries. Over the past five years, more than 17,000 merchants have chosen Alma’s innovative solutions, and the company has served over 3.6 million consumers. Alma is recognized as part of the French Tech 120 and one of the most promising technology companies in France.

To date, Alma has secured EUR 185 million in equity funding, according to TechCrunch.

Ledger

Founded in 2014, Ledger is a world leader in the area of digital asset security. Ledger’s products, which include connected devices like the Ledger Stax, Nano S Plus, and Nano X hardware wallets, as well as the Ledger Live companion app, are used by over 6 million customers across 180 countries and in more than 10 languages. The company’s technology safeguards more than 20% of the world’s cryptocurrency assets, making it a critical player in the digital asset space.

Beyond consumer products, Ledger has expanded its offerings to include Ledger Enterprise, a comprehensive digital asset custody and security solution for institutional investors and financial entities. This platform supports trading, buying, spending, earning, and managing non-fungible tokens (NFTs), solidifying Ledger’s position as a global platform for digital assets and Web3.

In addition to its hardware and software solutions, Ledger offers educational resources through Ledger Academy and Quest, helping users to navigate the digital asset landscape safely and confidently.

Ledger is headquartered in Paris and Vierzon, and has offices in London, New York, and Singapore. To date, Ledger has sold more than 6 million devices globally and has garnered the trust of over 100 financial institutions and commercial brands. The startup has raised over US$574 million in funding and, according to CB Insights, is valued at US$1.47 billion.

Younited Credit

Younited Credit is a leading provider of instant credit in Europe, renowned for its continuous innovation, disruptive technology and exceptional user experience. The company offers an integrated instant credit solution within the customer journey, providing a seamless interface for payment or credit transactions, whether online or in-store. Its credit offerings extend up to EUR 50,000 with repayment terms of up to 84 months, all delivered instantly.

Operating in France, Italy, Spain, Portugal, and Germany, Younited Credit generates nearly EUR 2 billion in annual gross merchandise value (GMV). Since its founding, nearly a million consumers have accessed instant, simple, and transparent credit through the platform to finance a variety of needs, such as home renovations, holidays, purchasing new smartphones, or other personal projects.

Younited Credit is fully authorized as a Credit Institution and Investment Services Provider by the Autorité de Contrôle Prudentiel et de Résolution (ACPR) and the Autorité des Marchés Financiers (AMF) since September 23, 2011. The company has raised more than US$508 million in funding and is valued at US$1.16 billion, according to CB Insights.

Alan

Founded in 2016, Alan is an all-in-one health partner for businesses and freelancers, offering tailored health services focused on both physical and mental well-being to its members. The company leverages technology to provide a simple, transparent, and unique insurance offering. It was the first new health insurance provider to be licensed by the Banque de France and the ACPR since 1986.

Alan offers a comprehensive health services offering that includes customized prevention plans, augmented reality for ordering glasses, access to doctors and healthcare professionals seven days a week through a virtual clinic, and psychological support. The company is known for its swift service, with a response time of just 2 minutes and 90% of healthcare expenses reimbursed on the same day, 80% of them within an hour.

Alan operates across France, Spain, and Belgium, serving more than 25,000 businesses, 13,000 freelancers, and a total of 500,000 end-customers. It reports an annual recurring revenue (ARR) of EUR 350 million and a growth of ARR of more than 38% in 2023. More than 5,000 new clients, such as Celio, Clinitex, Duracell, Mantu, and Sia Partners, chose the platform last year.

Alan has raised EUR 440 million since its inception and was valued at over EUR 2.7 billion during its Series E funding round in 2022.

Spendesk

Spendesk is a comprehensive spend management platform designed to save businesses time and money by streamlining and connecting all aspects of company spending. The platform integrates everyday technologies, incorporates built-in automation, and features an intuitive approval process, enabling employees to manage expenditures efficiently while providing finance leaders with complete visibility over the entire company’s spend.

Founded with a vision to simplify financial operations, Spendesk is trusted by thousands of companies and serves over 200,000 users across France, the UK, Germany, and Spain. The company operates offices in Paris, London, Berlin, and Madrid, emphasizing community at the core of its operations. In addition to its spend management platform, Spendesk also runs a global community of finance leaders called CFO Connect which boasts more than 12,000 members.

Spendesk also provides payment solutions through a subsidiary called Spendesk Financial Services. This entity operates independently and is authorized by the ACPR to provide payment services across the European Economic Area (EEA), supporting the company’s operations with agile and secure financial services.

To date, Spendesk has raised over US$300 million in funding and is valued at US$1.5 billion, according to CB Insights.

Shift Technology

Founded in 2014, Shift Technology is a leading provider of artificial intelligence (AI)-powered decisioning solutions designed to enhance the global insurance industry. The company’s products enable insurers to optimize and automate critical decisions throughout the policy lifecycle, from underwriting to claims processing.

Shift Technology employs sophisticated AI technologies to assist insurers in mitigating fraud and risk, enhancing operational efficiency, and delivering exceptional customer experiences. The company’s offerings include fraud detection software that leverages AI and machine learning algorithms to analyze extensive datasets, identify patterns, and flag potentially fraudulent claims. Additionally, its claims automation solutions streamline various aspects of the claims process, accelerating handling times, improving accuracy, and reducing the overall time required to settle claims. These solutions are utilized by leading insurers in property and casualty, travel, health, workers’ compensation, and life insurance sectors across more than 25 countries.

Headquartered in Paris, Shift Technology also has offices in major cities including Boston, Frankfurt, Tokyo, Singapore, London, Madrid, Toronto, Mexico City, and São Paulo. To date, the company has raised US$320 million in funding and is valued at US$1 billion, according to CB Insights.

Shift Technology has been recognized for its impact on the insurance industry, being named to the 2022 Fintech Global Insurtech 250, the 2022 CB Insights Insurtech 50, and the 2021 Digital Insurance Agenda Top 100 Insurtechs to Watch.

Swile

Founded in 2018, Swile specializes in digital solutions for employee benefits, such as meal vouchers and gift cards. The company provides a super-app for employees and an accompanying payment card.

The Swile Card is an all-in-one card that consolidates meal vouchers, gift vouchers, and mobility benefits onto a single smart card. Compatible with Apple and Google Pay, the Swile Card simplifies transactions and allows users to link their bank card to cover any excess amount beyond the daily limit.

Additionally, the Swile App fosters team cohesion by enabling employees to send praise, organize social events, and manage collections. The app also features gamified surveys and a powerful analytics tool to gauge and enhance team engagement.

Swile stands out as one of the largest players in France’s employee benefits industry, handling EUR 3 billion in transaction volume annually. It operates in France and Brazil, supporting over 5.5 million users and collaborating with 85,000 companies, including prominent names such as Carrefour, JCDecaux, PSG, and Spotify.

To date, Swile has raised over US$328 million in funding, according to CB Insights, and is one of France’s tech unicorns.

Lydia

Founded in 2013, Lydia is a leader in peer-to-peer (P2P) payments. The company provides a platform for users to send and receive money, pay bills, and manage their finances through a mobile app. It’s known for its user-friendly interface and its focus on simplifying financial transactions for its users.

Lydia has gained popularity in France and has expanded its services to other countries, including Spain and Germany. It claims more than eight million users.

In May 2024, Lydia launched a new strategic initiative by introducing a challenger bank called Sumeria. This move is accompanied by a significant investment of EUR 100 million and plans to hire 400 new employees over the next three years. The new strategic direction involves repositioning the Lydia app solely for P2P payment transfers between friends and contacts, while the broader banking services will be provided through Sumeria.

Sumeria will offer a comprehensive suite of banking services, including current accounts, joint accounts, savings, credit, and investments, along with a dedicated IBAN and a Visa debit card. To enhance customer experience, Sumeria will also open a bank branch in Paris, designed to provide personalized support similar to the Apple Store’s Genius Bar. The company aims for Sumeria to attract five million customers within the next three years.

Lydia has raised a total of EUR 235 million to date, including a US$100 million Series C round in 2021, which contributed to its unicorn status.

PayFit

Founded in 2015, PayFit is a company dedicated to simplifying payroll management and human resources (HR) processes for SMEs. The company has developed a fast, intuitive, and automated software-as-a-service (SaaS) solution designed to help business owners and HR professionals save time and money.

PayFit’s platform automates the payroll process, including calculations, deductions, and payments, and handles various HR functions, such as employee onboarding, time tracking, and leave management. The solution is designed to be intuitive and easy to use, allowing business owners and HR professionals to efficiently manage their payroll and HR processes without needing extensive technical knowledge. The platform also integrates with other business systems and tools, facilitating seamless data exchange and reducing the need for manual data entry.

Initially established in France, PayFit has rapidly expanded its presence to Spain and the UK, now serving over 6,500 companies, including notable names like Biocoop, Heetch, and Gymlib.

As of now, PayFit has secured more than $497 million in funding and holds a valuation of US$2.1 billion, according to CB Insights.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

11 fintechs made it to this year’s  TOP 100 Swiss Startup list, an award organized by Venturelab.

The 2024 ranking features in total 100 Startups, Yokoy is once again the highest ranking fintech.

Highest fintech newcomer this year is Calvin Risk on rank 44.

Of the 11 fintechs 5 were repeats from the 2023 startup ranking and 6 were newcomers.

Meet the 11 Swiss fintechs that made the TOP 100 Swiss Startups 2024 list:

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

True Wealth continues to record strong and consistent growth and reaches another mileston.e

The ETF digital wealth management managed CHF 1.5 billion in client assets in its direct business as of 31.8.2024. This corresponds to growth of 47 percent within twelve months.

True Wealth, founded over 10 years ago.

Client assets under management increased by CHF 481 million within 12 months, which corresponds to growth of 47%. The net inflow of client assets amounted to CHF 365 million, while a positive investment result further boosted growth.

The number of client relationships also increased by 48% in the same period (31.8.2023 to 31.8.2024), from 17’600 to 26’000.

«The steady growth is an expression of the high level of trust in True Wealth as an asset manager,»

says Felix Niederer, founder and CEO of True Wealth, explaining the company’s sustained success. Innovations in the product portfolio and proximity to clients are further reasons for the strong growth.

The accelerating trend towards drawing Pillar 2 (occupational pension provision) as a lump sum instead of a retirement pension is also making itself felt.

«We are taking this as an opportunity to develop practical digital concepts to meet this need. With a remaining life expectancy of over 20 years at the age of 65, online asset management that offers a return on capital with an individually defined capital withdrawal rate is a suitable solution. We now offer a practical payout plan for this client group,»

explains Niederer.

Featured image credit: Felix Niederer, founder and CEO of True Wealth. Edited from Truewealth 

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Ab dem 4. September 2024 können Kundinnen und Kunden über die Zürcher Kantonalbank Kryptowährungen rund um die Uhr direkt im ZKB eBanking oder ZKB Mobile Banking Crypto handeln.

Die Bestände der Kryptowährungen werden dabei in die bestehende Depotsicht integriert. Vorerst stehen Bitcoin und Ethereum zur Auswahl.

Crypto Verwahrung

Kryptowährungen nutzen die Blockchain. Mit den Chancen und Risiken dieser Technologie beschäftigt sich die Zürcher Kantonalbank schon seit Längerem.

2021 war die Bank beispielsweise an der Emission der weltweit ersten digitalen Anleihe an der SIX Digital Exchange beteiligt, 2023 wickelte sie als Joint Lead Managerin im Rahmen eines Pilotprojekts der Schweizerischen Nationalbank die Ausgabe digitaler Anleihen mit digitalem Zentralbankgeld ab.

«Unser neu lanciertes Angebot im Bereich der Kryptowährungen bietet eine hohe Sicherheit und erlaubt die Integration von weiteren Währungen und Anwendungen»,

sagt Alexandra Scriba, Leiterin Institutional Clients & Multinationals bei der Zürcher Kantonalbank.

«Bei den Kryptowährungen übernimmt die Zürcher Kantonalbank die kritische Funktion der sicheren Verwahrung der Private Keys. Kundinnen und Kunden sowie Drittbanken benötigen somit kein eigenes Wallet und müssen sich deshalb nicht um die Verwahrung ihrer eigenen Private Keys kümmern. Beides übernimmt die Zürcher Kantonalbank.»

Angebot steht auch Drittbanken offen, Thurgauer KB erste Partnerbank

Die Business-to-Business-Lösung der Zürcher Kantonalbank eröffnet Schweizer Banken die Möglichkeit, ihren Kundinnen und Kunden den Handel und die sichere Verwahrung von Kryptowährungen anzubieten.

Mit der Thurgauer Kantonalbank nutzt eine erste Partnerbank diese den Drittbanken zugängliche Dienstleistung bereits. Der Handel der Aufträge erfolgt über die Crypto Finance , ein Tochterunternehmen der Deutschen Börse Gruppe.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Tornado Cash, a decentralized smart contract protocol built on the Ethereum blockchain, was sanctioned in 2022 by the US Treasury’s Office of Foreign Assets Control (OFAC) for its role in laundering over US$7 billion worth of illicit funds since 2019.

The sanctions initially led to a drop in Tornado Cash use, weakening its ability to provide anonymity. However, transactions on the platform continue, reflecting the mixed effectiveness of sanctions on decentralized networks and highlighting the challenges in regulating these systems, a new research paper by the Swiss National Bank (SNB) says.

The SNB working paper, released in August 2024, assesses the impact of OFAC sanctions on Ethereum communities and actors, with a particular focus on Tornado Cash.

Tornado Cash is a cryptocurrency mixer operating on the Ethereum blockchain that facilitates anonymous transactions by obscuring the origins, destinations, and counterparties of funds, without attempting to identify their source. The service receives various transactions, mixes them, and then transmits them to their intended recipients. While its primary purpose is to enhance privacy, it has also been used by illicit actors to launder stolen funds.

In August 2022, Tornado Cash was sanctioned by the US OFAC for money laundering. This includes over US$455 million stolen by the Lazarus Group, a North Korea state-sponsored hacking group. These sanctions were significant because they marked the first time a decentralized, non-custodial entity had been targeted, raising questions about the effectiveness of such regulatory actions.

The SNB study analyzed the immediate and lasting impact of these sanctions on Tornado Cash, noting a sharp decline in the value of its governance token, TORN, which dropped by 60% within the few days of the announcements.

There was also a significant decrease in Tornado Cash’s transaction volumes post-sanctions, with a drop in average weekly transactions by 72%.

Deposit volumes fell by 74%, from an average of 1,184 weekly deposits before the sanctions to approximately 307 weekly deposits afterward. Similarly, withdrawal volumes declined by 69%, from an average of 1,093 weekly withdrawals to about 341 weekly withdrawals. These reductions a significant decline in user engagement.

User diversity, measured by the number of unique addresses interacting with Tornado Cash, also dropped significantly, following patterns observed with transaction volumes. This suggests a lasting impact on the protocol’s usage and the privacy it offers.

Despite the initial decline, the SNB paper notes that the net flows into Tornado Cash contracts eventually recovered, with the number of Ethereum blocks containing Tornado Cash transactions increasing over time. Moreover, the proportion of non-cooperative blocks (those including Tornado Cash transactions) generally rose over time, suggesting continued support from network participants.

This is despite the fact that priority fees (extra fees paid by users to prioritize their transactions) are consistently lower for non-cooperative blocks compared to cooperative ones. This indicates that economic motives are not the primary driver behind the decision to cooperate with sanctions and that non-cooperation is often motivated by philosophical beliefs.

Decentralized blockchain-based crypto mixers like Tornado Cash present unique challenges for regulatory enforcement. These services use smart contracts that autonomously run on the blockchain, providing high levels of anonymity and privacy, and their global accessibility and distributed infrastructure make them resilient to enforcement efforts.

To this day, Tornado Cash remains operational and continues to be used for money laundering, experts report. According to blockchain analytics firm Elliptic, more than US$100 million in ether from the HTX/HECO heist of November 2023 has been laundered through the platform since March 13, 2024. Elliptic attributes this theft to the Lazarus Group, based on various attributes of the hack and the subsequent movement of funds.

Cryptocurrencies are increasingly being used to obscure the origins and movement of illicitly obtained funds. Blockchain analysis firm Chainalysis estimates that nearly US$100 billion has been transferred from known illicit wallets to conversion services since 2019. The highest amount recorded was in 2022, with US$30 billion identified.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

As of September 2024, Edouard Papaux will take over the role of Managing Director Financial Technology at the  software company Netcetera.

Together with the division, he will further develop Netcetera’s services in Financial Technology, Real Estate, and Pensions to successfully accompany customers on their journey into the digital future.

Edouard brings a broad background in the financial services sector as well as a proven experience in sales management and leading transformation projects to this role.

He has been Head of Business Development & Sales at Viseca Card Services for the past five years, reporting directly to the CEO. Prior to that, he was Director of Business Development & Innovation at the real estate company Crowdhouse and Management Consultant Digital & Strategy at the management and technology consultancy BearingPoint. He also holds a Master of Arts in Business Innovation from the University of St. Gallen (HSG).

Carsten Wengel, CEO Netcetera, on the new appointment:

“I am very much looking forward to working with Edouard Papaux and am convinced that he will successfully develop the Financial Technology division and our services together with the entire team. Financial Technology has been part of Netcetera’s core business since the beginning and we want to expand this area further. With our forward-looking software, we support our customers in reacting proactively and quickly to changing business and market requirements, thus setting themselves apart from the competition.”

Featured image credit: Edouard Papaux, Managing Director Financial Technology at Netcetera

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The Accelerator Program for Sustainable Finance by Commerzbank in collaboration with Tenity and neosfer selected their first 10 Sustainable Finance Startups. 

With Pelt8, also one Swiss Startup made the cut.

This initiative aims to evaluate and accelerate a potential collaboration with Commerzbank through an organized and efficient process in Frankfurt.

The selected startups represent a diverse range of innovative approaches. Each brings a unique solution in various sustainability areas such as biodiversity/climate data, real estate/renovation management, supplier management, and corporate mobility. 

Bettina Storck, Head of Group Sustainability Management at Commerzbank, says:

“Sustainability is an integral part of our strategy, our aim is to become a net zero bank by 2050 at the latest. Both new ideas and innovative approaches help us advance this topic, particularly in the area of sustainable finance. We’re pleased to support the Joint Innovation Accelerator Program for Sustainable Finance and look forward to collaborating with the selected start-ups to bring expertise and innovation together.”

This program includes sessions and events uniquely tailored to enable collaborations, from open exchanges, to use case definition, PoC roadmap preparation, PoC validation, fundraising, growth hacking, as well as pitch training. The program will conclude with Demo Day on 30 October 2024 at the Impact Festival in Frankfurt.

Meet the 10 selected sustainable finance startups:

IKOSIA | Germany

Improving energy efficiency for greater sustainability.They offer an all-in-one platform for comprehensive renovation measures.

VREED | Germany

Vreed makes digital technologies applicable to everyone involved in the real estate market and brings digital building twins to life.

Novo | Germany 

Novo provides an overview of where a building stands today in terms of energy efficiency and where it can be taken in the future.

Deedster | Sweden 

Accelerates business by connecting and engaging audiences and employees with sustainability data, insights and actions.

Carployee (Pave Commute) | Austria 

An app for employees that recognizes and rewards sustainable commuting. It can be used to find carpools, participate in team challenges, and celebrate colleagues.

KIRI | UK

The mission of Kiri is to accelerate the adoption of sustainable behaviours and drastically change the approach to sustainability by creating a community of forward-thinking consumers and brands. 

Veridion | Romania

Veridion offers comprehensive business data enrichment for private companies, delivering accurate classification and real-time insights for procurement, insurance, market intelligence, and more.

EIVEE | Denmark

EIVEE calculates CO2 emissions with market-leading precision across scope 1, 2 and 3. They deliver industry-leading data quality for company’s entire carbon footprint.

Pelt8 | Switzerland

Pelt8 is providing a platform helping companies move away from excel spreadsheets to save time and money with their sustainability data collection and reporting.

Fuchs&Eule | Germany

Fuchs &Eule encourage as many homeowners as possible to make their homes energy efficient. To achieve this, they combine energy expertise with digital innovation, believing that now is the time to act to combat the climate crisis

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Swiss Fintech company Yapeal has appointed Michael Eidel as the new Chief Executive Officer.

the same time, the company announced the successful completion of a financing round, attracting new investors and strengthening the board of directors. With the increase in capital, Yapeal can advance its strategic realignment and growth phase with full force.

Michael Eidel brings experience from listed financial institutions and technology companies. Most recently, he served as CEO at a financial technology company in Australia, where he drove the strategic repositioning and expansion of the company and successfully introduced an innovative technology platform for corporate clients to the market. Other positions in his career included leadership roles in commercial banks and board mandates at FinTechs in Australia and Switzerland. Michael Eidel already played a role in shaping Yapeal’s strategic realignment over the past year.

Michael Eidel succeeds Thomas Hilgendorff, one of the co-founders of Yapeal, who will continue to serve as Chief Commercial Officer in the company. In this role, Thomas Hilgendorff will focus on commercial business development and the expansion of strategic partnerships.

“We are very pleased to welcome Michael Eidel as the new CEO of Yapeal,”

said Werner Vontobel, Chairman of the Board of Yapeal.

“With his extensive international experience in the financial and technology sectors, he will play a crucial role in driving forward our strategic realignment and future growth of Yapeal.”

“I am excited to join the Yapeal team and lead the company successfully into the future with
the great employees,”

said Michael Eidel on his appointment.

“Together, we will focus consistently on the growing market for Embedded Finance solutions tailored to corporate customers and their end customers. The strategic alignment based on Yapeal’s unique Digital-First platform will enable us to accelerate our growth and take a leading role in the Swiss Embedded Finance market in the medium term.”

At the same time, the company announced the successful completion of a financing round with existing and new investors. This enables Yapeal to consistently implement its strategic realignment and focused growth strategy in the rapidly growing market for Embedded Finance solutions for corporate customers and their end customers.
Existing strategic investor and ERP provider Abacus reinvested in the financing round.

Dominik Bollier, Christoph Burkhard, and Markus Granziol have joined as new anchor investors. Dominik Bollier and Christoph Burkhard were also elected to the board of directors of Yapeal.

Featured image credit: Michael Eidel, Chief Executive Officer of Yapeal. Edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The Tenity Zurich Fintech Accelerator Program kicked off this week in Zurich, with 13 startups selected from over 130 applications .

This specialized pre-seed program is designed for ambitious founders ready to refine their groundbreaking fintech solutions and accelerate their growth by accessing Tenity’s global network of partners, mentors, and investors.

The startups impressed Tenity throughout the application process, which concluded with in-person Selection Days in Zurich.

Over the next four months, these startups will engage in an intensive program featuring workshops and events focused on product-market fit, marketing, and fundraising. Besides receiving personalized support from the Tenity team, participants will benefit from the extensive Tenity ecosystem, which includes over 300 alumni from its fintech-focused programs, more than 200 mentors, and a vast network of 200+ investors.

The program will conclude with a Demo Day event on 05.12.2024 where the startups will showcase their progress and pitch to an audience of investors, corporate partners, and industry leaders. Tenity remains committed to fostering innovation in the fintech sector and supporting startups that have the potential to make a significant impact.

Applications are now open for our Spring 2025 Tenity Fintech Accelerators in Singapore, Zurich, and Tallinn.

13 Fintech startups of Zurich Fintech Accelerator Program Batch 13:

Six out of them are from Switzerland.

BILLD | Italy

BILLD is a green fintech startup, which provides a disruptive digital receipt service collecting Offline Market BigData through AI.

‍Settlr | Switzerland

Settlr aims to solve post-trade issues, not just make the process more efficient. The company achieves this through a unique combination of deep domain knowledge and cutting-edge technology, including AI.

‍Depoformance AG | Switzerland

This investment system for rental deposits allows tenants to profitably invest their deposits. This results in an increase in the deposit amount, to the landlord’s advantage through capitalization.

ComplyTaxonomy.EU | Netherlands

Helping financial institutions collect data on their customers required under new sustainability regulations.

Quanted | UK

Quanted develop cutting-edge AI tooling that enhances asset managers’ strategy profitability by uncovering hidden correlations in the market. Our proprietary explainable AI provides 0-100% confidence scores for each trade before it’s executed, allowing our users to better manage risk, as well as detailing which factors contribute to successful outcomes.

Verdant Data | Switzerland

VD turns ESG metrics into actionable insights with process mining, AI, and real-time nudges, enabling organizations to achieve net-zero goals with precision, driving significant environmental impact.

Naera | Germany

The software enables risk-mitigated, cost-efficient and scalable financing of natural capital.

UpGrid | Switzerland

UpGrid offers a hassle-free green energy subscription for corporates and individuals, making energy sharing and trading accessible to new market segments by decoupling financial and physical flows.

BondAuction | Netherlands

BondAuction is a platform for the Primary Debt Capital Markets. It delivers efficiency and transparency for Issuers, Investors, and Underwriters.

Efides.io | Switzerland

Efides is developing a business application to help commodity trading companies finance food trades by automating due diligence.

TradrLab | UK

Test trading strategies in minutes without coding. TradrLab is a Trading Intelligence platform that makes generate, building and optimising trading strategies fast and simple.

Automated Data Inc. (ADI) | United States

This company equips people with the right capabilities to confidently connect and integrate their data, identify relationships across disparate datasets, and drive actionable insights.

Checksum | Switzerland

The checksum payment solution consists only of high-quality products that have been tried and tested over many years. This allows you to benefit from various advantages.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The digitalization of payments is progressing rapidly, and cash and cash supply are adapting to market changes.

In Switzerland, cash continues to be highly valued by large segments of the population. The decline in the number of bank and post office branches and ATMs is having an impact on the availability of cash.

Between 2015 and 2023, the number of bank branches fell from 3,100 to 2,600 and the number of post office branches from 1,500 to 800, while the number of ATMs fell from 7,200 at the beginning of 2020 to less than 6,400 today.

In the current situation, there is a risk that the cost of providing cash will rise, putting further pressure on banks as ATM operators and driving up the cost of providing the ATM infrastructure.

In order to ensure a sustainable, efficient and broad-based cash supply in Switzerland in the long term, new cooperation models are required. Against this backdrop, SIX and Diebold Nixdorf have decided to combine their expertise in cash supply and ATM operations. By combining expertise, technology and a broad partner network, the two companies are developing an innovative approach to market challenges and, together with partners such as Helveticor Ltd, are evaluating how to make cash logistics more sustainable and efficient.

Goals of the Collaboration

By working together, SIX and Diebold Nixdorf are covering the entire cash supply value chain to ensure continuous optimization of ATM operations in Switzerland. For ATM users, this means the usual secure and reliable cash transactions, while banks benefit from leaner processes. The aim is to achieve efficient cash management by offering all relevant operating and management services from a sole source.

Vision for Cash Supply in Switzerland

SIX and Diebold Nixdorf believe that ATM pooling is an indispensable contribution to an efficient, nationwide and reliable cash supply in Switzerland. With ATM pooling, the Swiss banks that operate ATMs will integrate them into a separately operated network. In particular, such a network would have the task of optimizing the operation of ATMs in terms of geographical coverage, operations and cash logistics in such a way that the Swiss banks can continue to guarantee their customers and ATM users comprehensive access to cash. ATM users will also benefit from state-of-the-art ATM technology and an expanded network.

The requirements for the implementation of ATM pooling will be discussed at an event in September with the Swiss banks as ATM operators.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

This summer, Switzerland has witnessed significant strides in its fintech sector, including the launch of instant payments, progress in the exploration of central bank digital currencies (CBDCs), and regulatory updates.

In this article, we provide an overview of these recent advancements, focusing on fintech innovations, regulatory changes, and evolving market dynamics, such as the growth of sustainable fintech and current funding challenges.

Instant payments launches in Switzerland

On August 20, 2024, Switzerland officially launched instant payments, marking a significant development in the modernization of the country’s financial sector.

Around 60 financial institutions are now able to receive and process instant payments, covering more than 95% of Swiss retail payment transactions. In the coming months, more banks will announce similar services, the Swiss National Bank (SNB) said, with all financial institutions in the country expected to be on board by the end of 2026.

Instant payments allow private individuals and companies to perform account-to-account transactions with immediate execution and final settlement in seconds. This payment method has been available in Europe since 2017 and in the US since 2023.

Swiss central bank advances CBDC experiment

At the beginning of June, the SNB became the world’s first central bank to carry out a monetary policy operation in a live production environment using distributed ledger technology (DLT). Specifically, the central bank successfully issued digital SNB Bills on the SIX Digital Exchange (SDX) with a token-based issuance volume of CHF 64 million and a term of one week.

The initiative was part of Project Helvetia, a joint experiment between the Bank for International Settlements, SIX and the SNB. Given the success of the pilot, the central bank said it will extend the project for at least two more years and to expand its scope. It hopes to see increased participation from additional financial institutions and aims to make wholesale CBDC available for a broader range of financial transactions.

FINMA publishes guidance on stablecoins

The Swiss Financial Market Supervisory Authority (FINMA) published on July 26 new guidance on the issuance of stablecoins. This guidance emphasizes the financial market laws that apply to projects aiming to issue stablecoins, including anti-money laundering (AML) regulations and minimum requirements for default guarantees.

FINMA has established technology-neutral minimum requirements for default guarantees, which also apply to stablecoins. In the event of a stablecoin issuer’s bankruptcy, each customer must have an individual claim against the Swiss bank providing the default guarantee. Customers must be informed about this guarantee, which must cover the total amount of all public deposits, including any accrued interest. The guidance also stipulates that depositors must be able to claim their guarantee quickly and without unnecessary complications.

Additionally, FINMA’s guidance underscores that stablecoins can fall under the AML Act due to their common use as a means of payment and their classification as deposits under banking law. Thus, issuers are subject to a number of obligations, including verifying the identity of stablecoin holders as customers and determining the identity of the beneficial owners.

Open finance: no government measures required at present

During a meeting on June 19, 2024, the Federal Department of Finance (FDF) updated the Federal Council on the latest developments in open finance in Switzerland, stating that the industry’s progress has been sufficient, eliminating the immediate need for government intervention and regulatory measures.

The FDF highlighted the multibanking initiative launched by means of a memorandum of understanding signed by 40 banks in May 2023. This development, which focuses on opening up access to data from private accounts, savings accounts and current accounts, demonstrates the banking sector’s strong commitment to open finance, even though the Federal Council’s goals for open finance such as establishing common standards, opening interfaces and achieving scalability, have not yet been fully realized, the FDF said.

Unlike in the European Union or the UK, there is no legal obligation in Switzerland for financial institutions to make financial data available to third-party providers at their clients’ request. Instead, the Federal Council expects the private sector, together with interested stakeholders, to adopt open finance principles and push ahead with the standardization and opening of interfaces on their own.

Swiss fintech funding remains depressed

The Swiss Venture Capital Report’s half-year update for 2024, published on July 16, reveals that investor interest in Swiss fintech startups waned in H1 2024. During the period, fintech startups in the country raised a mere CHF 79.2 million, down 58.5% year-on-year (YoY) from CHF 191 million in H1 2023. The number of financing rounds also saw a sharp decrease, falling from 30 in H1 2023 to just 13 in H1 2024, a decline of 56.7%.

In contrast, investment levels in startups in the verticals and biotech, and energy and cleantech improved significantly, reaching CHF 405.3 million (versus CHF 282.8 million in H1 2023) and CHF 160 million (versus CHF 137 million in H1 2023) in H1 2024, respectively.

The downturn in Swiss fintech funding aligns with global patterns. CB Insights’ State of Fintech Q2’24 Report, released on July 16, shows that global fintech funding totaled US$16.4 billion in H1 2024. This marks a 32% YoY decline from US$24.1 billion in H1 2023.

Switzerland ranks 2nd in 2024 European Fintech Index

Despite ongoing funding challenges, Switzerland remains a leading global fintech hub, ranking as the second most attractive location in Europe for fintech stakeholders in the 2024 European Fintech Index.

Switzerland outpaces the Netherlands, Estonia, and the UK, thanks to its conducive business environment and the appeal of its local market to fintech players. However, it ranks just 8th in Europe for “fintech attractiveness,” behind jurisdictions like Estonia and Luxembourg.

Previous research studies have highlighted the difficulties fintech companies face in the Swiss market, including funding challenges and limited international recognition. Moreover, with a population of just nine million, the local market is too small for startups to thrive, compelling young Swiss tech ventures to seek international expansion early in their development.

Access to well-educated workers is another key challenge. A 2024 study by UBS, Credit Suisse, and the Swiss ICT Investor Club reveals that 46% of the founders polled are finding it hard to fill vacancies with suitable candidates. Labor market challenges are more pronounced for startups in the growth and expansion phase, with 55% of struggling to recruit qualified employees, compared to 39% for startups in the pre-seed and seed stages.

Switzerland sees booming sustainable fintech industry

E.foresight, a Swiss banking think tank operated by telecommunications provider Swisscom, has released its Swiss Sustainable Fintech Map, highlighting the fintech companies in Switzerland that incorporate sustainability into their core business models, operations, and products.

The map shows that Switzerland is currently home to 49 companies that fall under the sustainable fintech category, providing the segment a share of 12% of the overall fintech ecosystem.

The figure implies that the Swiss sustainable fintech sector rose by 53% between 2023 and 2024, growing at a much faster pace than the fintech sector as a whole (16%) during the period, data from the 2024 IFZ Fintech Study by the Lucerne University of Applied Sciences and Arts’ Institute of Financial Services Zug (IFZ) show.

Moneyland.ch gets acquired

SMG Swiss Marketplace Group acquired in July a 100% of Moneyland.ch, a popular comparison platform in Switzerland. The acquisition aims to strengthen SMG Swiss Marketplace Group’s finance and insurance division and allow it to gain valuable comparison services for consumers.

Founded in 2013, Moneyland.ch is a financial comparison service. The platform provides users with tools and information to compare a wide range of financial products and services, such as bank accounts, credit cards, loans, insurance policies, investments, and telecommunications plans.

SMG Swiss Marketplace Group operates a network of online marketplaces. Its portfolio spans four business areas, namely real estate, automotive, general marketplaces and finance and insurance, and includes several well-known online platforms such as AutoScout24, FinanceScout24, Homegate, and Tutti.

Moneyland.ch will continue to operate independently and maintain its mission of providing unbiased financial product comparisons, calculators, and information to consumers in Switzerland. The Moneyland.ch brand, platform and team will remain unchanged, and founder Benjamin Manz will continue to act as managing director, the company said.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Instant payments were launched in the Swiss market on 20 August 2024.

Around 60 financial institutions are now able to receive and process instant payments, covering more than 95% of Swiss retail payment transactions. By end-2026 at the latest, all financial institutions active in retail payment transactions will be reachable. The first institutions have already launched retail offerings enabling customers to send instant payments.

In the coming months, further banks will announce similar services.

Instant Payments are 24/7  including Weekends

Instant payments allow private individuals and companies to perform account-to-account transactions with immediate execution and final settlement in seconds – 24 hours a day, 7 days a week (including public holidays).

This offers significant advantages for individuals, companies and commercial banks. Thanks to shorter settlement chains, risks are reduced and funds received are available immediately. For companies and commercial banks, instant payments expand opportunities for automating processes and linking with other services. Traditional transfers will still be possible.

The Swiss National Bank and SIX Interbank

Clearing Ltd anticipate that instant payments are likely to become established in Switzerland in the medium term and form the basis for further innovation in payment transactions.

The technical framework for this new type of payment was put in place with the successful go-live of the new generation of the central Swiss payment system in November 2023.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

In der Schweiz und Liechtenstein hat sich in den letzten Jahren ein diverses Ökosystem rund um Investitionen in Crypto Assets entwickelt.

Auch in den letzten zwölf Monaten ist dieses stetig gewachsen und hat an Vielfalt hinzugewonnen. Die Regionen Zug und Zürich beherbergen die grösste Anzahl von Unternehmen. Einen aktuellen Überblick gibt die neueste «Crypto Assets Study» der Hochschule Luzern.

Zwischen Juli 2023 und Juni 2024 haben sich die Preise und die Marktkapitalisierung von Bitcoin und anderen Crypto Assets erheblich erhöht. Auch das Schweizer und Liechtensteiner Ökosystem für entsprechende Investitionen ist gewachsen – sowohl, was Anbieter als auch was Produkte angeht.

Ende Juni zählten die beiden Länder insgesamt 359 Unternehmen, die Produkte und Dienstleistungen rund um Investitionen in Crypto Assets anboten. Das Crypto Valley konzentriert sich in Zug und Zürich – mit gewichtigen Ablegern in Liechtenstein, Genf, Tessin und Waadt (siehe Abbildung 1).

Vor allem Privatkunden scheinen Crypto Assets zu nutzen

Crypto Assets entwickeln sich als Ergänzung oder teilweise als Alternative im Finanzsystem. Was anfänglich ein Geheimtipp für Blockchain-Enthusiastinnen und -Enthusiasten war, erlangt nun eine breitere Akzeptanz – so besassen bereits im Jahr 2022 rund 10 Prozent der Schweizer Bevölkerung solche Vermögenswerte. Auffällig ist, dass Privatkundinnen und -kunden scheinbar öfter auf Crypto Assets setzen als institutionelle Investorinnen und Investoren, was bei Finanzinnovationen eher ungewöhnlich ist.

Vielfältiges Crypto Assets-Ökosystem in der Schweiz und Liechtenstein

Viele Crypto-Unternehmen konzentrieren sich auf Unternehmens- und institutionelle Kundinnen und Kunden. Entsprechend bedeutsam sind B2B-Geschäftsmodelle für das Crypto Assets-Ökosystem in der Schweiz und in Liechtenstein. Das Angebot ist vielfältig – mit einem Schwerpunkt auf zentralisierte Investmentdienstleistungen für direkte und indirekte Investitionen.

Unternehmen, die Dienstleistungen für Blockchain-basierte, dezentrale Lösungen anbieten, setzen primär auf Selbstverwahrungslösungen (sogenannte «Crypto Wallets»). Fast 90 Prozent der untersuchten Unternehmen sind nicht auf nationale Märkte beschränkt, sondern auch international tätig.

Steigende Tendenzen beim Handelsvolumen

Im ersten Halbjahr 2024 verzeichneten die Handelsvolumina für indirekte Crypto-Produkte an den traditionellen Schweizer Börsen wieder einen Aufwärtstrend, nachdem sie in den Jahren 2022 und 2023 auf einem relativ niedrigen Niveau stagnierten (siehe Abbildung 2). Insgesamt wurden in diesem Zeitraum rund 2 Milliarden Schweizer Franken umgesetzt. Gleichzeitig stiegen auch die Handelsvolumina aus der Schweiz für direkte Investitionen in Crypto Assets über Cryptobörsen.

Vielfältige Möglichkeiten und Risiken von Crypto Assets

Die Marktrisiken zeigen sich einerseits in den sehr volatilen Preisen. Andererseits bestehen zusätzliche operationelle Risiken sowie Liquiditäts- und Kreditrisiken entlang der gesamten Wertschöpfungskette. Diese variieren je nach Art der Investition. Sprich, ob direkt oder indirekt in Crypto Assets investiert wird, und ob dies dezentral über die Blockchain («Decentralized Finance», kurz «DeFi») oder über einen zentralisierten Anbieter geschieht.

Eine neu entwickelte Klassifizierungsmethode teilt Crypto Assets gemäss drei wesentlichen Kategorien ein: erstens das Design des Tokens, das festlegt, wie ein Crypto Asset technisch aufgebaut ist. Zweitens sind es die Eigenschaften des zugrunde liegenden Blockchain-Systems, auf dem das Asset basiert. Und drittens sind es die dynamischen Aspekte, wie das Crypto Asset im Markt verwendet wird. Die Marktteilnehmenden können damit die Eigenschaften von Crypto Assets strukturiert evaluieren und entsprechend ihren Präferenzen agieren.

Titel-Bild Nachweis: Bearbeitet von freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Relio bietet neu digitale Kapitaleinzahlungskonten an, die Geschäftskunden online eröffnen können.

In einer Pilotphase profitierten rund 50 Startups von der einfachen und schnellen Kontolösung für die Unternehmensgründung. Der neue Service erweitert das bestehende Angebot von Relio, das bisher operative Geschäftskonten umfasste. Relio verfügt über eine FinTech-Lizenz der FINMA und wird von namhaften Investoren wie der SIX Group, Betreiberin der Schweizer Börse, der TX Group, Eigentümerin von Tamedia, und dem High-Tech Gründerfonds (HTGF), einem der grössten deutschen Tech-VCs, unterstützt.

Der neue Weg zur digitalen Unternehmensgründung

Die Schweiz ist ein attraktiver Innovationsstandort mit über 50’000 Unternehmensgründungen im Jahr 2023. Doch der Enthusiasmus, ein Unternehmen zu gründen, wird oft durch die Bürokratie gebremst. Für die Gründung einer Gesellschaft mit beschränkter Haftung (GmbH) oder einer Aktiengesellschaft (AG) benötigen Unternehmerinnen und Unternehmer ein Kapitaleinzahlungskonto bei einer Bank, die mit einer Einzahlungsbestätigung belegt, dass mindestens CHF 20’000 für eine GmbH respektive CHF 50’000 für eine AG auf einem Sperrkonto hinterlegt wurden. Relio bietet Kundinnen und Kunden neu ein solches Kapitaleinzahlungskonto für die Firmengründung an.

Dies, nachdem das Eidgenössische Amt für das Handelsregister (EHRA) kürzlich eine Praxismitteilung veröffentlicht hat, die es Finanzinstituten mit einer FINMA Fintech-Lizenz erlaubt, Kapitaleinzahlungsbestätigungen auszustellen. Damit hat der Schweizer Regulator den Weg für innovative Akteure wie Relio geebnet, die Unternehmensgründungen in der Schweiz digitalisieren und erleichtern. Auch komplexere Business Cases oder Gesellschaften mit ausländischen wirtschaftlich Berechtigten und internationalen Geschäftsführern profitieren von diesem Angebot. Diese Gruppe wurde bisher von vielen Banken vernachlässigt, da diese den Mehraufwand in der Compliance meiden. Mit der eigens entwickelten Compliance-Technologie kann Relio auch dieses Segment optimal abdecken.

Erfolgreiche Pilotphase und neue Funktionen

Seit der Pilotphase im Juni haben rund 50 Start-ups das unkomplizierte Kapitaleinzahlungskonto genutzt und die ersten Relio-Kunden sind bereits im Handelsregister eingetragen.

“Viele Treuhänder und Anwälte sind mit dem Bedürfnis an uns herangetreten, Firmengründungen in einem digitalen Workflow abzuwickeln. Mit dem neuen Angebot schliessen wir diese Lücke für unsere Kunden und Partner”,

sagt Milos Stokic, Head of Marketing bei Relio.

Bald mit Online Kapitaleinzahlungsbestätigung

Die Lösung wird in Kürze um weitere Funktionen ergänzt. So bietet Relio demnächst die Möglichkeit, die Kapitaleinzahlungsbestätigung mit einer qualifizierten elektronischen Signatur (QES) vollständig digital auszustellen. Ebenso können Kundinnen und Kunden demnächst eine Nachliberierung oder eine Kapitalerhöhung mit dem gleichen Service durchführen. Für Treuhänder und Rechtsanwälte möchte Relio auch die Möglichkeit der treuhänderischen Konto-Eröffnung anbieten.

Bei der Produktentwicklung stand Relio in engem Austausch mit mehreren Schweizer Gründungsplattformen, die zusammen über 3’000 Firmengründungen pro Jahr abwickeln und künftig mit Relio zusammenarbeiten werden.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Ab heute können Instant-Zahlungen bei der Hypothekarbank Lenzburg kostenlos gesendet und empfangen werden.

«Wir sind überzeugt, dass die neue Technologie grosses Potenzial hat»,

sagt Bank-CEO Silvan Hilfiker.

Was in vielen europäischen und asiatischen Ländern schon fast normal ist, kommt nun auch in die Schweiz. Ab heute ist bei ausgewählten Banken der neue Überweisungsstandard Instant-Zahlung möglich. Alle grösseren Banken sind verpflichtet, ab heute Geldtransaktionen innerhalb von zehn Sekunden empfangen zu können. Das Versenden von Instant-Zahlungen wird hingegen nur von einigen wenigen Banken angeboten und ist teilweise gebührenpflichtig.

Die Hypothekarbank Lenzburg hingegen hat entschieden, Instant-Zahlungen kostenlos anzubieten. Kundinnen und Kunden profitieren in mehrerer Hinsicht: Instant-Zahlungen sind rund um die Uhr verfügbar, 7 Tage die Woche und 365 Tage im Jahr. Die zahlende Partei erhält sofort eine Zahlungsbestätigung und die begünstigte Partei verfügt sofort über das Geld. Keine der beiden Parteien geht ein Kreditrisiko ein, da Belastung und Gutschrift gleichzeitig und final erfolgen. Die Sicherheitsstandards von Instant-Zahlungen sind die gleichen wie bei herkömmlichen Geldüberweisungen.

In einer zunehmend digitalisierten Welt werde erwartet, dass Zahlungen sofort bei den Empfängerinnen und Empfängern ankommen.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The insurtech industry has witnessed a significant resurgence in 2024, with funding volume rising 44% in Q2 2024, the first initial public offerings (IPOs) since 2022 and a surge in deal activity across Europe, new data released by market intelligence platform CB Insights show.

The “State of Insurtech Q2 2024 Report,” released on August 06, offers an overview of the global insurtech landscape, focusing on equity funding activity in Q2 2024. The report highlights key investment trends, geographic activity, and exit activity during the quarter.

In Q2 2024, global insurtech funding outpaced the growth seen across the broader venture and fintech landscapes, rising to a remarkable US$1.3 billion. The figure represents the highest funding level since Q1 2023, marking a five-quarter high.

The growth in funding was primarily driven by a 50% increase in equity funding in property and casualty (P&C) insurtech, which rose from US$600 million in Q1 2024 to US$900 million in Q2 2024. Funding to life and health (L&H) insurtech startups also increased quarter-over-quarter (QoQ), rising from US$300 million to US$400 million. However, despite the rise in funding, both verticals recorded a decrease in the number of deals, with deal counts falling by 28% and 26% QoQ, respectively.

This indicates that deal sizes grew significantly, a trend further supported by a 25% increase in median insurtech deal size in H1 2024 compared to 2023, rising from US$4 million in 2023 to US$5 million in H1 2024.

Q2 2024 also saw the sector’s first IPOs since Q3 2024, with two listings. Digit Insurance, an India-based insurance provider, debuted on the National Stock Exchange in May 2024, and Rasan, a Saudi Arabia-based company focusing primarily on auto insurance sales and vehicle services, started trading on the Saudi Exchange in the same month.

Merger and acquisition (M&A) activity in the insurtech sector also rebounded, surging 150% QoQ from six in Q1 2024 to 15 in Q2 2024. A notable M&A transaction was the acquisition of Arya.ai, a deep learning and artificial intelligence (AI) startup, by Aurionpro Solutions.

Aurionpro Solutions is a technology solutions firm from India that serves the banking, mobility, payments, and government sectors. Aurionpro Solutions acquired a majority stake (67%) in Arya.ai through an all-cash deal, involving the purchase of shares from existing shareholders and the subscription of new equity capital in Arya.ai.

Looking at regional trends, the report shows that Europe’s influence in the global insurtech industry is increasing with the region’s share of insurtech deals reaching 35%, a record high.

Insurtech deal activity in the continent also surged, soaring 67% QoQ to about US$500 million and reaching a seven-quarter high. That rise was driven by two US$93 million deals for Iceye, a Finland-based provider of data from satellite imagery, and Vitesse, a UK-based claims payments processor. Deal counts, meanwhile, stayed steady, increasing slightly from 28 in Q1 2024 to 29 in Q2 2024.

Comparatively, the US saw insurtech deal count fall from 61 to 40. However, like Europe, VC funding volume increased in the US, surging from US$500 million in Q1 2024 to US$700 million.

Insurtech startups based in Asia raised a total of US$51 million in equity funding in Q2 2024, down from US$100 million in Q1 2024, data from CB Insights show. Notable deals secured this year include Qoala, an Indonesian startup that completed its US$47 million Series C funding round in March.

Featured image: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Apple is transitioning from a technology company to a key player in the fintech sector, driven by its diverse financial products, strategic initiatives and use of cutting-edge technologies.

A new analysis by C-Innovation, a French fintech-focused research firm, discusses the firm’s growing role in the financial services industry, delving into its range of financial products, recent strategic moves, and potential growth driven by the adoption of artificial intelligence (AI).

Apple’s financial services ecosystem

The report, released on July 17, explores how Apple has emerged as a leading force in the financial services industry with products like Apple Pay and Apple Card. These offerings have made a substantial impact, and changed how people pay, save, invest and take on debt, effectively cementing Apple’s position as a fintech leader. They comprise:

• Apple Wallet, a mobile app launched in 2012 as Passbook that allows users to store digital documents, debit cards, and most of Apple’s financial services, and which integrates with other Apple services and devices;
• Apple Pay, a mobile payment service introduced in 2014 in the US that allows users to make convenient contactless payments with their Apple devices in physical stores, online, and within apps;
• Apple Cash, a service that enables users to send and receive money via the Messages app launched in 2017;
• Apple Card, a credit card introduced in 2019 and developed in partnership with Goldman Sachs and Mastercard that offers cashback rewards on purchases, enhanced security measures, and more;
• Apple Tap to Pay, a software point-of-sale (softPOS) solution launched in 2022 that allows merchants to accept contactless payments directly through their Apple mobile devices without needing additional hardware;
• Apple Pay Later, a service launched in 2023 that allows users to split the cost of a purchase into multiple interest-free payments; and
• Apple Savings, a high-yield savings account launched in 2023 that’s integrated with the Apple Card and which allows users to save money and earn competitive interest rates.

Apple’s fintech products have gained a notable foothold in the market. For instance, Apple Card has garnered 12 million users, and estimates by Dutch consultancy and mergers and acquisitions advisory firm Flagship Advisory Partners suggest that Apple controlled a remarkable US$800 billion worth of payments in 2022.

Recent developments and strategic moves

Recent developments, including the proposed termination of the partnership with Goldman Sachs and the shutdown of Apple Pay Later, reflects Apple’s fintech strategy moving forward. This strategy focuses on bringing more financial services in-house to gain more control and flexibility, as well as exploring global opportunities that could guarantee it more profitability and penetration, the C-Innovation report says.

In November 2023, reports surfaced that Apple was considering ending its consumer banking partnership with Goldman Sachs, sourced briefed on the matter told the Wall Street Journal. This move followed reports of Apple working on “Project Breakout,” an initiative aimed at internalizing more financial services, including those currently offered with Goldman Sachs, such as Apple Savings and Apple Card.

Additionally, Apple has shut down its buy now, pay later (BNPL) business in the US, opting instead to partner with specialist providers. This approach allows Apple to minimize its risks, while collecting fees from these partners.

Apple Pay Later was discontinued in the US in June 2024, ahead of the launch of new Apple Pay features set to hit iPhones this fall. These features will allow Apple Pay users to make purchases as well as access installment loans from credit and debit cards withing the mobile app. The service will be available in countries including Australia, Spain, the UK and the US where users will be able to apply for loans through partners including ANZ, CaixaBank, HSBC, Monzo, Citi, and Affirm.

Entering the AI era

Apple is now stepping into the AI era with its new Apple Intelligence platform and collaborations with generative AI (genAI) providers like ChatGPT. This new direction is poised to place Apple on the verge of more groundbreaking innovations, with the transformative potential of genAI presenting significant opportunities in the fintech sector, the C-Innovation report says.

In June, Apple unveiled Apple Intelligence and a partnership with OpenAI to integrate ChatGPT into the iOS operating system, opening to new interesting scenarios. Apple Intelligence is an AI platform that combines generative models with personal context to provide users with highly relevant recommendations and insights.

The technology will introduce several new capabilities relating to language tasks and image creation, among other things, and is poised to have widespread impacts across the entire Apple ecosystem, including the firm’s financial services offering, C-Innovation says.

By using the vast amount of user data that Apple has garnered over the years, the firm is poised to revolutionize the banking industry and stay at the forefront of the rapidly evolving fintech landscape, it says. Overall, C-Innovation predicts that Apple Intelligence will usher in a new era for the company where genAI plays a crucial role in personalizing and enhancing user experiences.

Featured image: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The European Union (EU) lags behind the US in the development and strength of its venture capital (VC) industry.

This weak VC landscape is not only stifling productivity and economic growth within the EU but also hindering the bloc’s environmental ambitions and global competitiveness, a new working paper by the International Monetary Fund (IMF) says.

The paper, titled “Stepping Up Venture Capital to Finance Innovation in Europe” and released in July, examines the current state of the VC industry in the EU, highlighting the main obstacles to its development. It argues that building a robust and advanced VC ecosystem is crucial for fostering innovative startups and enhancing economic growth and productivity, and offers recommendations to support the growth of the VC industry in Europe.

A weak VC landscape

Over the past decade, VC investments in the EU have averaged 0.2% of gross domestic product (GDP) per year, significantly lower than the 0.7% average in the US. This difference is also reflected in the fact that US VC funds have raised US$800 billion more than EU funds for investing in innovative startups.

The EU’s weak VC industry negatively affects its competitiveness, growth prospects, and green ambitions. Several studies find that innovative, young fast-growing firms that go on to be “superstars” contribute disproportionately to aggregate jobs and growth. Such firms typically invest heavily in research and development (R&D) and information and communications technology (ICT), two key areas where the EU lags significantly behind the US.

Europe also trails behind the US in aggregate productivity, with real output per hour worked 26% points lower in the EU than it would be if it had kept pace with US productivity growth since 2000.

VC financing is also critical for developing new technologies and scaling up firms in the so-called “clean tech” sectors, which the EU in its Green Deal Industrial Plan has identified as strategically important. However, European VC investments in these sectors currently represent just a fraction of US levels.

EU’s weak VC landscape has also prompted many of the most successful EU startups to move elsewhere for financing, causing the EU to lose out on both the direct growth benefits and positive spillovers from these innovative firms.

For example, Miro, an enterprise software publisher from Russia, moved its headquarters to the US in 2019. The startup is valued at US$17.5 billion. Chainalysis is a blockchain analysis firm founded in 2014 in Copenhagen. The company is now headquartered in New York and is valued at US$8.6 billion. And Hugging Face, an artificial intelligence (AI) startup from France, is now headquartered in New York and is valued at US$4.5 billion.

Factors hindering VC activity

According to the IMF paper, several factors are contributing to the financing challenges faced by European startups. For one, the EU’s fragmented economic and financial markets are a major obstacle. The European financial system is predominantly bank-based, and banks are often ill-equipped to finance high-tech startups due to the lack of tangible collateral, the mismatch between bank risk models and the needs of fast-growing but initially unprofitable firms, and regulatory constraints that discourage riskier investments.

Additionally, European households tend to be more risk-averse compared to US households. They prefer to place a larger proportion of their savings in bank deposits rather than in equities, investment funds, or private pension schemes. This risk aversion contributes to a greater reliance on bank loans and unlisted equity for financing in Europe, whereas in the US, listed equity plays a more central role.

Another major hurdle is the fragmentation of Europe’s financial system. Cross-border integration in banking is lower today than before the global financial crisis, and capital markets remain fragmented, with pools of private capital confined to national boundaries. Most occupational pension schemes do not offer pension products across borders because of the differences in national social benefits and labor laws and the attendant costs, complexity, and operational risks. Pension funds and insurers also tend to exhibit strong home-country bias in their asset allocations.

Furthermore, regulatory, legal, and tax frictions impede cross-border investment and consolidation. Finally, long and complicated procedures for reclaiming withholding taxes discourage cross-border investment within the EU.

These constraints leave the EU with fewer and smaller VC funds than the US, with “exit” options for successful startups through initial public offerings (IPOs) or acquisitions being similarly constrained, the report says.

Fostering VC funding activity

The paper outlines several proposals for reforming the EU’s economic and financial policies, emphasizing the need for greater market integration across the bloc, targeted investments and regulatory adjustments.

First, it argues that the best solution to the EU’s scale, productivity and growth issues lies in fully integrating its market for goods, services, labor, and capital. Achieving a true single market would make it easier and less costly for the most productive firms to grow, find the necessary talent, reap economies of scale, and access deeper pools of capital, the paper says.

It also emphasizes the importance of investing in education, R&D, and ICT to foster innovative startups, citing Estonia as an example where an emphasis on digital skills in education along with public and private investment in digital infrastructure has helped create fertile ground for innovative startups to emerge and grow.

The paper further notes that startups require access to skilled employees and the flexibility to adapt as they grow. It recommends that EU policies should evaluate immigration and labor laws to ensure they do not hinder startups’ ability to attract talent or adjust their strategies. The paper also underscores the importance of stock options as a form of compensation for startup employees and calls for harmonized tax treatment of stock options across EU countries. Additionally, the development of portable private pension schemes across the EU would make it easier for firms to attract skilled workers from other EU countries.

In the financial sector, the paper identifies VC as a critical area for policy focus and suggests expanding public support for the VC industry. Reforms should consider tax incentives to stimulate VC investments, and national public financial institutions (PFIs) should play a more significant role by complementing private investments, it says. The paper also calls for closer partnerships between national PFIs and EU institutions like the European Investment Bank (EIB) and European Investment Fund (EIF) to strengthen local VC ecosystems and connect them with more developed hubs across the EU.

Regarding the regulatory framework, the document notes that while EU rules on VC are generally well-received, some fine-tuning may be necessary. For instance, the eligibility criteria for investors in large VC funds should be aligned with those for smaller funds to avoid unnecessary barriers. Furthermore, regulatory reforms in the insurance sector and for pension funds are needed to remove obstacles preventing them from investing in private equity and VC.

Finally, the paper recommends a broad review of EU laws and regulations affecting high-tech sectors to identify unintended consequences that may impede the growth of innovative firms. Recent regulations like the General Data Protection Regulation and the Digital Markets Act, for example, have generally improved competition in the digital sector. However, they may also create inconsistencies and complications for startups, the paper says.

Europe has consistently trailed behind the US in VC funding. In Q2 2024, European startups secured a total of US$14 billion in equity funding across 1,522 deals, a far cry from the US$39 billion and 2,419 transactions raised by tech startups in the US, data from CB Insights’ State of Venture Q2 2024 show.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The spread of global e-commerce businesses is one of the defining aspects of the modern world. The data speaks for itself: in 2023, worldwide e-commerce reached an immense 5.8 trillion U.S. dollars (source: Statista) in sales.

That’s why choosing a payment gateway that meets specific business requirements and securely handles sensitive customer data is a top priority for any e-commerce business.

In collaboration with FYST, a leading-edge fintech powerhouse of customized and secure payment solutions, let’s review 6 key factors to keep in mind while choosing a payment gateway for your online business.

What is a payment gateway and how does it work?

Before diving into the topic, let’s understand the payment gateway and how it works.

Payment gateways function like point-of-sale terminals in physical stores (except it happens online). This system is the cornerstone of electronic transaction processing: payment gateways process visitors’ card details once they enter them at your checkout store and make the transaction happen.

Top 6 factors to consider when choosing a payment gateway for your e-commerce business

According to a study, the global market revenue of payment gateways reached 31 billion U.S. dollars in 2023, and it’s expected to get to 161 billion dollars by 2032 (source: Market.us Scoop), so the competition between these payment solutions for businesses available in the market is enormous.

Therefore, choosing the payment gateway that best suits your business mightn’t be that straightforward. That’s why FYST has prepared the top 6 critical factors you need to consider in your payment gateway.

Security measures

Although 59% of customers expressed concern about the risk of online payment in 2022 compared to the previous years (source: Statista), most payment gateway solutions adhere to strict compliance with the Payment Card Industry Data Security Standard (PCI-DSS). Besides, make sure you choose the online payment gateway that comes with features like built-in fraud prevention, encryption, tokenization, and more.

Transaction fee

Most payment gateways charge a fee per transaction, which can increase your business’s cost. Therefore, consider payment solutions for e-commerce businesses with low transaction charges when choosing a payment gateway. Considering your volume of transactions also helps you reduce expenses, as there are online payment gateways that offer pricing based on your transaction volume.

Types of payments allowed

Choose a payment gateway that supports your target customer base, including debit and credit cards, digital wallets, and other relevant payment methods. If your e-commerce business targets a worldwide customer base, choose a payment gateway that supports multi-currencies and relevant international payment methods.

Integration with other systems

Consider how easy the payment gateway integrates with your existing software, website, mobile app, and other platforms. Otherwise, it may cause your online shopping platform to become glitchy, leading your customers to leave your website.

Transaction limits

Check for transaction limits while choosing your solution. Some payment gateways have a transaction limit on the amount it can process per month. If your e-commerce business is small, it may not be an issue. Otherwise, be certain that your selected payment gateway has no such transaction limits.

24/7 customer support

Ensure the payment gateway solution provider offers 24/7 customer support through various channels such as chat, mail, phone calls, etc. It’s one of the major concerns when choosing a payment gateway, as customers may panic if technical problems or other issues arise during their payment process.

Wrap up

With the myriad of payment gateway options in the market, choosing the best one for your business can be challenging. Because of many advantages and disadvantages to consider, making an informed decision in this domain isn’t always that straightforward.

By trusting fintech experts like FYST to handle the selection and integration of proven payment solutions, you can simplify and streamline the process and ensure you pick the best solution for your needs.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Following a short pilot phase, Coop has decided to no longer act as the operator of the Finance+ platform, as the demand did not meet expectations.

Furthermore, Coop informed that the environment has changed as a result of increased competition in the financial sector in recent months.

As one of several Finance+ partners, Coop will be withdrawing from the project. The exact date has not yet been determined. Glarner Kantonalbank also announced to withdraw from the project.

Coop claim to guarantees the continued operation of the Finance+ platform until further notice and will provide all services to their full extent. Follow-on solutions for customers are being assessed.

Coop Neobank am Start in der Schweiz – Fintech Schweiz Digital Finance News – FintechNewsCH

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Cryptocurrencies are increasingly being integrated into traditional finance, driven by both retail and institutional interest. Financial institutions are embracing tokenization and institutional investors are increasingly entering the cryptocurrency market.

Bitcoin, in particular, is emerging as a valuable diversification tool in wealth management, highlighted for its low correlation with traditional asset classes and its strong growth performance, a new report by Bitcoin Suisse, a Swiss crypto services provider, says.

The inaugural “Crypto Wealth Management Report”, released in July 2024, looks at the historic performance of bitcoin, showcasing the crypto’s position as a potential powerhouse within diversified portfolios. The report explores the key drivers behind the performance of bitcoin and the potential benefits of incorporating the cryptocurrency into wealth management strategies.

Banks embrace crypto

Following record highs in 2021 and a subsequent slump, cryptocurrency prices have risen significantly in recent months. This resurgence has prompted various retail banks in Switzerland to develop crypto offerings, adapting to changing market dynamics and customer preferences, the report says.

A recent study by the Lucerne University of Applied Sciences and Arts found that 28% of Swiss banks currently offer or plan to offer cryptocurrency investment opportunities. State-backed banks, such as the cantonal banks of Zug, St Gallen and Lucerne, as well as Postfinance, the banking arm of the Swiss Post Office, have recently launched their crypto offerings.

The Bitcoin Suisse report also highlights the broader potential of blockchain technology beyond cryptocurrencies, noting that projects involving tokenization have proliferated and witnessed remarkable traction. For example, BlackRock’s introduction of its tokenized treasury fund, the BlackRock USD Institutional Digital Liquidity Fund, achieved a market value of US$500 million just four months after its launch, according to CoinDesk. This surge is part of the broader growth of the tokenized treasury market, which has more than doubled this year, rising from US$780 million in January 2024 to US$1.8 billion in June 2024.

In Switzerland, the central bank has also been exploring the concept of a central bank digital currency (CBDC). In collaboration with the Bank for International Settlements the Swiss National Bank (SNB) has been actively involved in Project Helvetia, an initiative which began in 2020 and which aims to integrate wholesale CBDCs (wCBDCs) into existing financial systems.

Project Helvetia recently entered a new phase, with the SNB and the SIX Digital Exchange (SDX) expanding their exploration of settling tokenized securities through a wCBDC to other financial institutions and transaction types.

Institutional adoption on the rise

Adoption of cryptocurrencies has also increased among institutional investors. The world’s first bitcoin exchange-traded funds (ETFs), which debuted in the US in January 2024, have exceeded expectations, attracting US$12 billion in inflows within the first three months and almost US$300 billion in year-to-date trading volume. Globally, net flows into crypto exchange-traded products reached a record US$88.1 billion in assets under management (AUM) in Q1 2024.

Currently, bitcoin ETF flows largely stem from registered investment advisors, asset managers, hedge funds and family offices that have already established access. Bitcoin Suisse predicts that as more institutional consultants, corporations, pension funds, and sovereign wealth funds complete their due diligence, even more substantial capital flows will follow.

Bitcoin: a tool for diversification

Across the crypto market, bitcoin in particular is emerging as a powerful source of diversification. Bitcoin has low correlation with traditional asset classes, offering the lowest average correlation (0.04) to all relevant asset classes over a 12-month period, according to the report.

This low correlation makes the cryptocurrency a powerful tool for risk management and a diversification opportunity. By including bitcoin in a portfolio, wealth managers can potentially mitigate overall portfolio volatility while enhancing risk-adjusted returns, the report says.

Bitcoin has recorded remarkable growth. Since 2013, the cryptocurrency has dominated every other asset class in annual performance in nine out of twelve years, providing an annualized return of ~109% and an astounding cumulative return of ~470,000%, according to the report.

Many factors contribute to bitcoin’s remarkable performance. One key differentiator lies in its finite supply, capped at 21 million coins. This scarcity creates a unique economic long-term value proposition where demand is almost guaranteed to outpace supply in the long run, the report says.

Another key property of bitcoin is its function as a store of value. Mimicking gold, bitcoin serves as an inflation hedge, carries no credit or counterparty risks, mostly features an inverse relation to the dollar, and can serve as a source of trust, because its network is decentralized, permissionless, and immutable.

Finally, bitcoin resonates with the new generation of investors. These investors are typically more technologically savvy and comfortable with digital innovations. They also value autonomy and have a growing distrust of traditional financial institutions, making bitcoin’s decentralized nature particularly appealing.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Ant International, the global arm of China’s Ant Group, is expanding its presence in Europe by partnering with fintech companies and financial institutions to grow its merchant network, and sponsoring major sports events to grow brand recognition.

In a recent interview with FXC Intelligence, a data platform for cross-border payments, Douglas Feagin, president of Ant International, shared ambitious plans to expand the Alipay+ network in Europe with more digital wallets, banking institutions and merchants. Additionally, Ant International aims to strengthen the European presence of its other brands, including Ant to Merchant (Antom) and WorldFirst, promising enhanced access to the Asian market for prospective partners.

Expanding the Alipay+ network

Alipay+ is the company’s cross-border payment ecosystem that connects local digital banking apps and e-wallets to a single payment platform. The platform allows users to make payments in foreign countries using their local e-wallets, meaning that users do not need to switch to a different e-wallet when traveling or shopping internationally.

Currently, Alipay+ links 30 digital wallets, including Alipay itself in China, Kakao Pay in South Korea, GCash in the Philippines and TrueMoney in Thailand, serving a total of 1.5 billion end-users. 14 of these 30 digital wallets are integrated with European merchants, allowing seamless cross-border payments for their users.

To facilitate these integrations, Alipay+ collaborates with local acquirers, working with the likes of Barclays in the UK, and UniCredit in Italy to enable their merchants to accept payments from Alipay+ users. This integration allows businesses to reach a broader customer base, including international travelers and online shoppers.

Most recently, Ant International announced a wide-ranging partnership with French banking group BNP Paribas. Among other things, the collaboration will enable European merchants using the bank’s acquiring service to accept payments for 30 Alipay+ wallets.

Ant International has also inked a number of deals with European fintech companies these past couple of months, forging partnerships with the likes of Tinaba from Italy, Nexi from Germany and DNA Payments from the UK.

Feagin emphasized the company’s openness to incorporating more European institutions into the Alipay+ ecosystem, explaining that the aim is not only to serve Asian travelers but also to tap into opportunities to support European customers.

He envisions considerable growth moving forward, noting that European banks are increasingly introducing innovative fintech and digital services to reach different customer bases. This includes solutions tailored for younger customers or those preferring simpler, stored-value accounts instead of traditional bank accounts.

Currently, Alipay+ claims 400,000 European merchants within its network, a far cry from its 80 million merchants in China. These merchants range from luxury goods stores to local businesses and travel services like taxis. Recently, the company partnered with Freenow, a German mobility service, allowing customers of Alipay, AlipayHK and Touch n’ Go to book taxis in seven European countries including France, Germany and Italy.

Enhancing the footprint of Antom and WorldFirst in Europe

Ant International is also working on the expansion of its Antom brand in Europe. While Alipay+ focuses on offline customers, Antom supports online commerce by offering payment and digitalization services in 150 markets and over 100 currencies. It caters to major online marketplaces such as those offered by Alibaba, digital goods marketplaces, including gaming, entertainment, as well as online travel agents.

In Europe, Antom aims to increase merchant access to an increasingly lucrative Asian market, while also increasing cross-border payment options for e-wallet users in the continent. Most recently, the company bolstered its presence through the acquisition of MultiSafepay, a Amsterdam-based payment services provider serving over 18,000 small and medium-sized enterprises.

Finally, WorldFirst, a UK-founded company acquired by Ant International in 2019, will reinforce its standing in Europe by joining the Single Euro Payments Area (SEPA) scheme. The development, enabled by Ant International’s recent partnership with BNP Paribas, will enable WorldFirst’s clients to access payment schemes under SEPA in real-time and automate treasury payments to optimize their operations.

WorldFirst provides business-to-business payment solutions, including a multicurrency account and marketplace cross-border collections. The company has served one million customers worldwide and is connected to over 120 marketplaces.

Sports sponsorships to increase brand visibility

Alongside partnership announcements, Ant International also made headlines this year for its three-way sponsorship of the UEFA European Football Championship (Euro) 2024. The sponsorship, which heavily showcased Alipay+, Antom and WorldFirst branding across the tournament, led to increased brand recognition and transaction volumes in Europe.

Feagin noted that the partnership was an excellent opportunity for brand exposure, aligning with Ant International’s interests and broadening its audience.

Around the tournament, Feagin said Alipay+ saw increased flows in the host country of Germany. In its opening week, Ant International reported a 29% year-over-year increase in visitor spending via Alipay+ partner e-wallets in Europe and a 67% increase in transactions in Germany compared to the previous week.

The Euro is the primary association football tournament organized by the Union of European Football Associations (UEFA). It is one of the most prestigious football tournaments in the world, second only to the FIFA World Cup in terms of its significance and popularity within Europe. This year, Euro 2014 set records for TV audiences, achieving an estimated global cumulative audience in excess of 5 billion viewers.

Headquartered in Singapore, Ant International aims to support merchants worldwide through a comprehensive range of digital payment and financial services solutions. The company aims to become the “most trusted digital services connector”, thanks to its four key businesses and brands: Alipay+, Antom, WorldFirst and Anext Bank, a digital wholesale bank in Singapore.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Swiss fintech startups are losing favor with investors.

In H1 2024, investments in fintech startups in Switzerland fell by 58.5% year-on-year (YoY), plummeting from CHF 191 million in H1 2023 to CHF 79.2 million in H2 2024, according to the new Swiss Venture Capital report.

The number of financing rounds also saw a significant drop, declining from 30 in H1 2023 to just 13 in H1 2024, marking a 56.7% decrease.

The half-year 2024 update to the Swiss Venture Capital Report, released on July 16, reveals that fintech funding continued to decline in H1 2024, despite notable rounds like Sygnum Bank’s CHF 34.5 million round. That fall was much more pronounced in the fintech sector than the broader Swiss startup landscape. In H1 2024, approximately CHF 1.1 billion was raised across 138 financing rounds in Switzerland, a slight decline of about 10% in both figures compared with 2023.

This year, investors are shifting their focus to sectors like biotech, as well as energy and cleantech. In H1 2024, biotech startups generated CHF 405.3 million, the third highest amount ever, with four of the five largest financing rounds completed by these companies. This is a significant improvement compared to H1 2023, during which biotech startups secured CHF 282.8 million through 14 deals. Energy and cleantech startups, meanwhile, secured CHF 160 million across 27 rounds, up from CHF 137 million and 19 deals in H1 2023.

Large and later-stage deals decline

The continued decline in Swiss startup funding is primarily driven by the lack of large rounds. In H1 2024, the three biggest rounds in the country attracted only CHF 218 million, compared to CHF 331 million in H1 2023. This difference of CHF 113 million nearly matches the overall drop in total invested capital (CHF 121 million), indicating that funding for the majority of rounds outside the top three remained relatively stable in H1 2024, the report says.

Another sign of the reduced number of large rounds is the drop in later-stage deals, which fell from 45 in H1 2023 to 26 in H1 2024. The amount of capital invested in later stage startups also continued to decline, though at a much slower rate. This trend suggests that the selection process among startups is becoming more stringent as investors are more reluctant to provide interim financing to startups with less than convincing performance.

Similarly, seed stage funding experienced a continued decline in both invested capital and the number of rounds. This indicates that investors are shying away from the high risks associated with seed funding.

In contrast, early-stage investments performed surprisingly well in H1 2024, with total investment reaching CHF 344 million, up 60% YoY. The number of financing rounds also increased, rising from 43 in H1 2023 to 56 in H1 2024.

Valuations and exits

Looking at valuation and exit trends, the report shows that Swiss startups in the seed and early-stage phases that have secured investors are still achieving historically high valuations. In H1 2024, the average valuation for seed rounds stood at CHF 11 million, significantly higher than the CHF 6.9 million seen in the boom year of 2022. Early-stage financing valuations, meanwhile, averaged CHF 24 million, only slightly below the CHF 27 million valuation in H1 2022.

In contrast, later-stage rounds saw much lower valuations, averaging CHF 138 million in H1 2024. That’s a significant decline from the average of around CHF 350 million recorded in both H1 2023 and H1 2022.

The number of exits also remained low, totaling 20 transactions in H1 2024. According to the report, many of these exits were rescue operations, providing little impetus for a revival of the venture capital (VC) market.

Furthermore, strategic investments, which involve an older company acquiring an interest in a startup to collaborate with it, were also few. In H1 2024, just over 5 strategic investments were recorded, indicating that companies are not extensively taking advantage of the lower valuations to acquire innovative young companies.

Optimistic outlook

Despite the continued decline, investor sentiment remains optimistic. A survey of about 100 Swiss startup investors conducted by investor association SECA reveals that the vast majority of respondents anticipate an increase in both investment opportunities and the number of investments over the next 12 months.

In addition, they expect that opportunities for exiting portfolio startups will improve through the year, with 56% of respondents anticipating a rise of up to 25% in exit opportunities.

The survey also highlights that VCs still have significant uninvested capital available for the coming two to four years. On average, 50% of VCs have around 60% of their funds remaining for future investments.

Fintech funding activity in Switzerland mirrors global trends. CB Insights’ State of Fintech Q2’24 Report, released on July 16, shows that global fintech funding totaled US$16.4 billion in H1 2024. This marks a 32% YoY decline from US$24.1 billion in H1 2023.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The Swiss Financial Market Supervisory Authority (FINMA) has published new guidance on the issuance of stablecoins. This guidance emphasizes the financial market laws that apply to projects aiming to issue stablecoins, including anti-money laundering (AML) regulations and minimum requirements for default guarantees.

The new FINMA guidance, released on July 26, 2024, addresses the questions frequently arising regarding the issuance of stablecoins in Switzerland. It builds on an initial notes from 2019 that outlines how the regulator treats stablecoins under Swiss supervisory law.

The document defines stablecoins as a type of cryptocurrency designed to be a low-volatility means of payment on a blockchain. The primary goal of stablecoins is to provide the benefits of digital assets, such as fast transactions and blockchain transparency, while minimizing the price volatility that is characteristic of traditional cryptocurrencies like bitcoin and ether.

To achieve a stable value, issuers typically peg their tokens to a reserve of assets like a fiat currency. Consequently, this gives stablecoin holders a payment claim against the issuer at any time. These claims are generally categorized as either deposits under banking law or as collective investment schemes, and require a banking license.

However, in Switzerland, various stablecoin issuers are partnered with banks and use their default guarantees, obviating the need for a banking license. This creates risks for both the stablecoin holders and the banks, FINMA says.

Requirements for default guarantees

To protect depositors, FINMA has established minimum requirements for default guarantees. These requirements are designed to be technology-neutral and also apply when dealing with stablecoins.

Firstly, if a stablecoin issuer goes bankrupt, each customer must have their own claim against the Swiss bank issuing the default guarantee, and customers must be informed of the default guarantee. The default guarantee must cover at least the total of all public deposits including any interest earned by customers.

Furthermore, the provisions must allow depositors to easily and quickly claim the guarantee without complications.

To ensure customers can quickly claim the default guarantee, FINMA also requires that the claim be due at the time of the stablecoin issuer’s insolvency, meaning at the latest when bankruptcy proceedings are initiated, and not only when a certificate of loss is issued.

Overall, FINMA warns that while these requirements increase depositor protection, they do not match the protection level provided by a banking license, especially considering that stablecoin holders do not benefit from deposit protection under banking law. For banks, any irregularities at stablecoin issuers can cause reputational and legal risks, the regulator notes.

AML regulations

The guidance also emphasizes that stablecoins can fall under the AML Act. This is due to their usual intended purpose as a means of payments, and because they are classified as deposits under banking law, leading to a permanent business relationship within the meaning of AML legislation.

Therefore, stablecoin issuers are considered financial intermediaries for the purposes of AML legislation, imposing thus a number of obligations. Among other things, issuers must verify the identity of the stablecoin holder as the customer in accordance with the applicable obligations and establish the identity of the beneficial owner. If doubt arises in the course of the business relationship as to the identity of the customer or of the beneficial owner, the verification of identity or establishment of identity must be repeated.

FINMA highlights the increased risks of money laundering, terrorist financing, and sanction circumvention associated with stablecoins. This is because stablecoins share many of the features of cryptocurrencies, including the possibility for anonymous transfers via self-managed wallets and the global reach, the regulator says.

The rise of stablecoins

Stablecoins have proliferated in recent years, with several projects launched in Switzerland. In 2020, Sygnum launched its CHF-pegged settlement token, DCHF. The stablecoin, a key component of Sygnum’s digital asset ecosystem, enables real-time transfers, allowing for immediate transaction settlement and eliminating the need for intermediaries, thereby reducing complexity, costs, and counterparty risk.

Swiss Stablecoin, a startup founded in 2022 by former National Council and Council of States member Pascale Bruderer, is working on launching its own CHF stablecoin, the digital franc (CHFD). This stablecoin aims to simplify and improve the Swiss payment system, providing a regulated, widely accessible payment method that appeals to retailers, banks, and the Swiss population.

Globally, the top five stablecoins are Tether (USDT), USD Coin (USDC), Multi-Collateral Dai (DAI), Binance USD (BUSD) and USDP Dollar (USDP), according to a S&P Global analysis. As of June 2023, these tokens accounted for more than 90% of the US$125 billion market capitalization.

USDT and USDC were the two largest stablecoins by market capitalization, at US$83 billion and US$28 billion, respectively. Both are centralized, real-world assets collateralized stablecoins, meaning that each token is backed by US$1 in reserve assets.

DAI, which had a market capitalization of US$4.7 billion in June 2023, is a decentralized cryptocurrency pegged to the US dollar produced by the Maker protocol and managed by a decentralized autonomous organization (DAO), MakerDAO.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The Swiss Financial Market Supervisory Authority FINMA published guidance on the issuance of stablecoins.

In it, it comments on default guarantees, the associated risks and discloses its practice on stablecoins. It further draws attention to the increased risks in the area of money laundering.

In recent years, projects seeking to issue stablecoins have also gained in importance in Switzerland. They generally pursue the goal of providing a means of payment with low price volatility on a blockchain. FINMA has already commented on this in its supplement to the ICO guidelines for enquiries regarding the regulatory framework for initial coin offerings (ICOs) from September 2019.

In the guidance, FINMA provides information on aspects of financial market law that arise in relation to stablecoin projects and the impact of such projects on the supervised institutions.

In connection with stablecoin projects, FINMA draws attention to the increased risks in the areas of money laundering, terrorist financing and the circumvention of sanctions. These also result in reputational risks for the Swiss financial centre as a whole.

FINMA notes that various issuers of stablecoins in Switzerland use default guarantees from banks, which means that they often do not require a licence from FINMA under banking law. This creates risks for both the stablecoin holders and the banks providing the guarantee. In addition, FINMA provides information on its minimum requirements for default guarantees in order to protect depositors. These also apply when dealing with stablecoins.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Invest Hong Kong (InvestHK) has opened applications for the 7th edition of its fintech programme Global Fast Track (GFT) 2024, accepting submissions until 20 September.

The programme invites fintech companies from both local and international markets to pitch their ideas on global platforms, offering mentorship and business matchmaking to help unlock their potential.

The global finalists of the GFT’s pitching competition will compete in the grand finale at Hong Kong Fintech Week (HKFW).

This year’s programme includes new features aimed at strengthening Hong Kong’s position as the premier international fintech hub.

King Leung, Global Head of Financial Services, Fintech and Sustainability at InvestHK, said,

“The Global Fast Track has evolved into a fintech-friendly platform in the past few years. We have helped over 1,000 fintech companies from more than 50 economies to showcase their cutting-edge innovations and expedite their market entry in Hong Kong and beyond.

We are thrilled to build on this success and continue to offer unparalleled access to a global network with more than 100 investor and corporate champions, mentors, and industry leaders through GFT 2024.”

Enhanced Networking Opportunities

The new features of GFT 2024 include enhanced networking opportunities.

These opportunities encompass ongoing one-on-one meetings facilitated by the GFT matchmaking platform.

Additionally, the new Founders Champions Night will bring together successful homegrown champions from Hong Kong who have raised funds, been acquired, or expanded internationally, allowing them to network exclusively with GFT finalists.

More international champions, including investors and financial institutions from the Gulf Cooperation Council (GCC) region, will participate, fostering connectivity between the GCC region and Hong Kong.

The new Investor Network Night will enable companies to connect with key investors, presenting them with growth and funding opportunities.

Expanded Vertical Tracks for 2024

For 2024, GFT is expanding its featured verticals to include ESG/Green Fintech, Blockchain, and Insurance/HealthTech, alongside the established fintech and artificial intelligence tracks.

This expansion reflects the evolving trends in the financial services industry.

Semi-finalists from each track will be invited to Hong Kong to pitch their ideas in person during HKFW, with the grand finale scheduled for the second day.

This event offers fintech innovators a unique opportunity to present their ideas to thousands of attendees, including key corporations and investors seeking fintech solutions and investment prospects.

Past winners have hailed from diverse countries such as Canada, France, Israel, Mainland China, South Korea, Sweden, Switzerland, the United Kingdom, and the United States.

InvestHK will collaborate with Finoverse, the appointed co-organiser of GFT 2024, to elevate the programme to new heights.

Leung added,

“With the introduction of new features this year, we aim to further unlock the true potential of innovation within the fintech industry and provide a springboard for groundbreaking solutions to make a transformative impact.

I look forward to welcoming high-caliber applicants from around the world and the remarkable outcomes that will emerge from this programme.”

For details of the entire programme of GFT 2024 and the application process, please visit here.

Featured image credit: Edited from Freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The financial sector is on the edge of a major transformation powered by continuous technological advancements. At the recent Huawei HiFS Frontier Forum 2024 in Shenzhen, industry leaders discussed how cloud, network, storage, and computing infrastructures can strengthen financial systems’ resilience.

The forum’s theme, “Boost Resilience, Reshaping Smarter Finance Together,” encapsulates the industry’s collective ambition to navigate the challenges of an uncertain future through technological excellence and collaborative innovation.

This gathering comes at a pivotal moment. Traditional banking boundaries are dissolving, and the definition of financial services is evolving unprecedentedly.

The imperative for digital transformation

As we hurtle towards 2030, the financial landscape is poised for a seismic shift. This evolution places user experience at the forefront, elevating it to a key performance indicator for banks.

Financial services will no longer be confined to traditional banking channels in this new paradigm. Instead, they will be seamlessly integrated into every aspect of our daily lives, powered by artificial intelligence, and delivered through myriad digital touchpoints.

This shift towards omnipresent, AI-driven financial services necessitates fundamentally rethinking how banks operate and deliver value to their customers.

Consequently, the ramifications of service interruptions have escalated dramatically, threatening reputational damage and severe economic losses.

In an ecosystem where financial services are expected to be always-on and instantaneous, even momentary disruptions can have far-reaching consequences. Banks must, therefore, prioritise resilience and continuity as never before.

Identifying the Achilles’s heel of financial services

In recent years, business losses due to service interruptions have surged exponentially. Meticulous statistical analysis has revealed four critical factors behind these failures: security and protection vulnerabilities, data centre interruptions, system and connection failures, and operations and maintenance errors.

As financial services become more digitalised, they face increasing susceptibility to sophisticated cyber threats, demanding advanced security measures.

Disruptions in data centre operations due to the growing reliance on cloud computing and centralised data processing can have cascading effects on a bank’s entire service ecosystem.

The intricate web of interconnected systems powering modern banking services is only as strong as its weakest link, meaning failures in any part of this network can lead to widespread service disruptions.

Additionally, human error remains a significant risk factor; as systems become more complex, the potential for misconfigurations or operational mistakes increases.

Addressing these factors requires a holistic approach encompassing technology, processes, and people to construct resilient financial infrastructures.

The ‘4 Zeros’: A paradigm shift in financial resilience

Huawei’s vision for the future of finance is crystallised in its ‘4 Zeros’ approach: Zero Downtime, Zero Wait, Zero Touch, and Zero Trust. 

This comprehensive strategy forms the bedrock of Huawei’s mission to empower financial institutions to reshape their resilience, agility, and intelligence.

Zero Downtime ensures continuous service availability, eliminating the concept of ‘offline’ in financial services. This requires robust infrastructure, intelligent predictive maintenance, and seamless failover mechanisms.

Zero Wait focuses on optimising user experience through minimal latency. In an era where instant gratification is the norm, banks must ensure that every interaction, from balance checks to complex transactions, happens in real time.

Zero Touch emphasises the importance of automation in reducing human error and increasing operational efficiency. By automating routine tasks and decision-making processes, banks can free up human resources for more strategic, value-adding activities.

Zero Trust acknowledges the evolving security landscape, where traditional perimeter-based security models are no longer sufficient. It advocates for a security approach that trusts nothing and verifies everything, ensuring robust protection at every level of the financial ecosystem.

Jason Cao, CEO of Huawei Digital Finance BU, emphasised that in this rapidly evolving intelligent world, financial institutions must reimagine these core attributes to remain competitive in the digital economy.

The ‘4 Zeros’ approach provides a framework for this reimagining, offering a roadmap for banks to evolve from traditional financial institutions into agile, resilient digital enterprises.

iBASE: The cornerstone of lifecycle management

To actualise the ‘4 Zeros’, Huawei advocates a holistic lifecycle management strategy encompassing planning, construction, operation, and ongoing optimization.

This approach is underpinned by the iBASE (Insight-Blueprint-Architecture-Step-Evaluation) methodology, a comprehensive framework guiding institutions through the entire process of infrastructure transformation.

The Insight phase leverages advanced analytics tools to thoroughly understand an institution’s current IT and network health status. This deep dive into existing systems helps identify pain points and areas for improvement.

In the Blueprint stage, a five to 10-year planning roadmap is developed, outlining a clear vision of the target architecture. This may include plans for active-active and hybrid cloud architectures, positioning the institution for future growth and innovation.

Architecture focuses on designing optimal target infrastructures aligned with the institution’s strategic goals. This involves technological considerations, business alignment, and regulatory compliance.

The Step phase involves implementing solutions and procedures for seamless upgrades, migrations, and reconstructions. This phase translates plans into tangible improvements in the bank’s infrastructure.

Finally, the Evaluation stage ensures continuous assessment and improvement. This ongoing evaluation is crucial for maintaining relevance and competitiveness in a rapidly evolving technological landscape.

The power of strategic partnerships for financial resilience

King Tsui, CTO of Huawei Digital Finance BU, underscored the importance of partnering with a robust professional services team. Many banks lack the technical reserves necessary to navigate this complex transformation independently.

Huawei’s global network of technical service centres and certified engineers provides the expertise required in IT modernisation, cloud and data centre modernisation, and smart branch modernisation.

This partnership approach recognises that the journey to digital transformation is not one that banks need to—or indeed should—undertake alone. By leveraging the expertise of technology partners, banks can accelerate their transformation, reduce risks, and stay focused on their core business of serving customers.

Cutting-edge technologies for resilient finance

To achieve the ‘ Zeros’, Huawei has introduced advanced technologies. Their AI Storage solution for Trusted Active-Active Architecture ensures service continuity from applications to databases while safeguarding against cyber threats achieving a reliability of 99.999 percent.

This solution ensures data availability and maintains data integrity and performance, crucial factors in the always-on world of digital finance.

The Xinghe Intelligent Network provides a comprehensive networking solution integrating branch networks, multi-cloud environments, security, and open automation data centre links.

This solution addresses the need for a secure, reliable, high-utilisation network infrastructure supporting rapid service development and improved management efficiency.

These technologies form the backbone of a resilient financial infrastructure, enabling banks to deliver consistent, secure, and high-performance services to their customers, regardless of external challenges or internal complexities.

The keystone of operational excellence

Automated operations and maintenance are crucial in addressing the perennial challenge of managing increasingly complex architectures. As new systems and technologies are constantly added to the IT landscape, the risk of building what Huawei terms a “heavy architecture” is becoming increasingly difficult to manage over time.

Huawei’s approach leverages automation and AI to simplify processes, provide key insights, and mitigate risks. Tools such as configuration simulation, network-wide visualisation, and big data analysis of services and user behaviour help to identify potential problems and generate proactive warnings.

This proactive approach to operations and maintenance represents a paradigm shift from reactive problem-solving to predictive risk management.

By automating routine tasks and leveraging AI for complex decision-making, banks can significantly reduce the risk of human error while improving overall operational efficiency.

Comprehensive risk mitigation for financial resilience

Huawei’s suite of solutions goes beyond mere equipment upgrades. The ManageOne cloud management platform, iDRP automated disaster recovery management platform, and network digital map are essential tools for reducing risks and enhancing O&M capabilities.

These solutions focus on comprehensive risk reduction and operational enhancement, ensuring that financial institutions can build truly resilient systems capable of withstanding the challenges of tomorrow. They provide a holistic view of the entire IT ecosystem, enabling banks to manage their infrastructure more effectively and respond to potential issues before they escalate into service-affecting problems.

Continuous optimisation is not merely a buzzword but a full-stack, one-stop service. Huawei’s formidable team, comprising over 10,000 service experts, over 3,000 digital transformation specialists, and over 760,000 certified engineers worldwide, provides unparalleled support.

Their services span the entire spectrum from consulting and planning to optimisation, ensuring financial institutions can build and maintain truly resilient systems.

This ongoing support recognises that digital transformation is not a one-time project but a continuous journey of improvement and adaptation.

Architecting the future of finance

The path to achieving Zero Downtime, Zero Wait, Zero Touch, and Zero Trust is undoubtedly complex, but it is within reach with the right approach and partnerships. As we advance toward an AI-driven financial future, the institutions that embrace these principles will be best positioned to thrive.

By leveraging cutting-edge technologies, comprehensive lifecycle management, and robust professional support, banks can construct resilient infrastructures that withstand today’s challenges and are primed for tomorrow’s opportunities. In this new era of finance, resilience is not just about survival; it’s about reimagining the essence of financial services for a digital age.

The financial institutions that successfully navigate this transformation will not just be banks; they will be technology companies delivering financial services. They will be characterised by their ability to innovate rapidly, adapt to changing customer needs, and maintain unwavering reliability in the face of technological and market disruptions.

As we stand on the brink of this new financial era, the message is clear: the future belongs to those who can build robust and resilient systems.

In the age of cloud and AI, financial resilience is the new competitive advantage, and those who master it will lead the industry into its next golden age.

Partner with Huawei to construct resilient infrastructures that withstand today’s challenges and seize tomorrow’s opportunities.

Featured image credit: Edited from Freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The proliferation of technology in modern business has created new avenues for financial statement fraud, but it has also provided sophisticated tools to detect and prevent such fraud.

Artificial intelligence (AI) approaches, in particular, have the potential to be more efficient and accurate in identifying fraud, especially new schemes that traditional methods might miss, according to a recent article by Karina Kasztelnik, PhD, and Eva K. Jermakowicz, PhD, CPA, from the Tennessee State University in Nashville.

The article, published in June, explores the evolving landscape of financial statement fraud detection, emphasizing the role of AI in enhancing the accuracy and efficiency of identifying fraudulent activities compared to traditional methods.

Financial statement fraud

Financial statement fraud involves the intentional creation of false or misleading information in financial statements. It’s typically perpetrated by owners or managers to deceive stakeholders, and aims to present a false picture of a company’s financial health, often to boost stock prices, meet financial targets, or secure favorable terms on financing.

Although financial statement fraud is among the least frequent types of fraud, its impact can be severe. Several real-world cases showcase this.

Wirecard, a German payment processing company, collapsed in June 2020 after it was revealed that EUR 1.9 billion purportedly held in its accounts was missing, leading to its insolvency and the arrest of several executives on charges of fraud and embezzlement. The company had inflated its revenue and profits to deceive investors and lenders.

Wells Fargo employees created millions of unauthorized bank accounts and credit cards between 2002 and 2016 to meet aggressive sales targets, without customers’ knowledge or consent. This led to widespread legal and regulatory repercussions, including a US$3 billion settlement in 2020, significant fines, and a major overhaul of the bank’s management and practices.

Finally, Enron, once a high-flying energy company, collapsed in December 2001 after it was revealed that it had engaged in widespread accounting fraud to hide its financial losses and inflate its earnings. The scandal led to the bankruptcy of the company, the conviction of several top executives, and the implementation of new regulations to enhance corporate accountability and financial transparency.

The challenge of detecting financial statement fraud

Detecting financial statement fraud is a multifaceted challenge due to the sophistication and adaptability of fraud schemes, the complexity and volume of financial data, inherent human limitations, and the evolving nature of fraudulent activities.

First, financial statement fraud schemes are becoming more and more sophisticated, making detection difficult. Fraudsters often have an in-depth knowledge of their company’s operations and internal controls, enabling them to design complex schemes that are well-concealed within regular financial reporting processes and hard to detect.

Secondly, the volume and complexity of financial data further complicate the detection of fraud. Modern businesses generate vast amounts of financial data, and financial statements often include complex transactions, multiple subsidiaries, and various forms of accounting treatments, making it difficult to identify irregularities without advanced tools. This overwhelms traditional analysis methods.

Human limitations also play a significant role in the challenge of detecting fraud. Auditors have limited time and resources to conduct detailed examinations of every transaction and financial statement line item. As a result, they may miss subtle signs of fraud, especially when dealing with large datasets or when the fraud involves collusion among multiple parties.

Finally, fraud techniques are continually evolving. As detection methods improve, fraudsters develop new techniques to circumvent these measures, creating a constantly evolving challenge.

AI-based approaches to financial statement fraud detection

Modern AI-based approaches are emerging as powerful technologies for more accurate and efficient fraud detection amid evolving fraud schemes and increasing amounts and complexity of financial data, the report says.

AI encompasses a range of techniques, including machine learning (ML), natural language processing (NLP), robotic process automation (RPA), computer vision, and expert systems. These techniques enable machines to analyze large amounts of data, learn from experience, and make decisions based on changing patterns and rules.

Machine learning (ML), a subset of AI, involves developing algorithms to recognize patterns in data and make predictions or decisions based on those patterns; NLP, another subfield of AI, deals with the interaction between computers and human languages, focusing on unstructured data; and data mining involves using statistical and ML techniques to extract meaningful information from large sets of data.

RPA involves the use of software robots to automate tasks performed by humans and improve efficiencies, while finally, predictive analytics, a subset of data analytics, entails the use of statistical and ML algorithms to examine historical data and make predictions about future events or behaviors.

Advantages of AI techniques

According to the report, AI and data mining techniques offer significant advantages over traditional methods.

AI approaches use ML algorithms to learn from past examples of fraudulent and non-fraudulent financial data. These algorithms can automatically detect patterns and anomalies in the data without relying on predefined rules, and are more effective at detecting new and previously unknown fraud schemes, adapting to changes in the data and fraud landscape over time.

In addition, AI can analyze large volumes of data more quickly and accurately than humans can do manually. This allows AI models to detect fraud earlier and more efficiently, reducing an entity’s financial losses.

In comparison, traditional rules-based approaches rely on a set of pre-defined rubrics that are programmed to detect specific patterns or anomalies in financial data. These rules are typically based on expert knowledge and experience, and they require human intervention to update or modify the rules as new fraud schemes emerge.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Eurex expands its crypto derivatives portfolio with the launch of FTSE Ethereum Index Futures and Options as of 12 August 2024.

Following the launch of FTSE Bitcoin Index Futures and Options in 2023, this is another major milestone in Eurex’s ambition to offer secure access to cryptocurrencies in a regulated market environment.

Ethereum is the second largest cryptocurrency with a market capitalization of approximately USD 400 billion. There is significant trading and hedging demand from institutional and professional customers, as reflected in record trading volumes in derivatives and other investment products.

The new options and futures are listed in EUR and USD, with the respective FTSE Ethereum Index as the underlying. The contract size is equivalent to 10 Ether (approximately USD 35,000). Both contracts are cash settled and expire on the last Friday of the month. In addition to monthly and quarterly maturities, weekly expiring contracts for options will also be available.

The FTSE Ethereum Index was developed by FTSE Russell together with Digital Asset Research (DAR). It captures data from vetted assets and exchanges to meet EU Benchmarks. The final settlement rate of the new Eurex contracts is determined as the volume time-weighted average of the FTSE DAR Digital Asset Price over a 15 minute period prior to the fixing time. Liquidity will be supported by orderbook and over-the-counter liquidity providers.

Eurex had already launched futures on the FTSE Bitcoin Index in April 2023. Over 100,000 contracts, equivalent to over USD 3.5 billion notional, have been traded since the launch. Crypto product offering was expanded with options on Bitcoin Index Futures in October 2023, to allow investors to hedge their Bitcoin exposure and express a more sophisticated market view with various trading strategies (e.g., straddles, put/call spreads, etc.).

Randolf Roth, Member of the Eurex Executive Board:

“We look forward to expanding our offering in crypto derivatives together with FTSE Russell and Digital Asset Research for our clients. As one of the world’s leading CCPs, Eurex offers trading on a regulated exchange and is therefore the right partner to enter the crypto space for institutional clients.”

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Securing funding without giving up equity is a strategic approach that allows startups to maintain full control over their company while obtaining necessary financial support. In Switzerland, several methods and programs are available for fintech startups seeking financial support that does not require repayment or equity exchange.

One method is competitions and awards. Many organizations host competitions that award cash prizes or resources to winning startups, providing financial support and recognition without equity dilution. These competitions can be either online or in person, and the funds won typically do not require repayment or equity exchange, although there can be exceptions.

Another approach is obtaining grants, which are non-repayable funds provided by the government, organizations, or foundations to support specific projects or purposes. Grants are often available for research, development, and innovation in various sectors. The primary benefit of a grant is that it usually does not require repayment, allowing startups to use the money for business growth, including marketing and research and development.

Today, we look at some of the most renowned startup competitions and prominent grant programs for Swiss fintech startups to consider. For this list, we used data compiled by Swiss Startup Resources and the Basel Area.

Startup competitions:

Venture Kick

Venture Kick is a Swiss initiative that annually supports approximately 100 new, high-potential spin-off projects from Swiss universities. The program provides initial funding starting at CHF 10,000, even before the formal incorporation of the company, with potential funding increasing up to CHF 1,150,000 as the project progresses through three stages. At each stage, participants present their startup projects to a Venture Kick jury, with a 50% chance of advancing to the next stage.

The first CHF 10,000 is offered as a non-repayable grant, and entrepreneurs make a moral pledge to return the money in case of success. The second CHF 40,000 and final CHF 100,000 kicks are offered as convertible loans with startup-friendly conditions, which convert at the company’s next significant equity round.

Winners of the first stage can also apply for an additional CHF 150,000 through the Innobooster grant. Furthermore, he ultimate winner of the final stage gains access to further funding of up to CHF 850,000 via Kickfund.

Beyond financial support, Venture Kick offers comprehensive guidance in business development and fundraising. Participants benefit from structured entrepreneurial paths and “kickers camps” held after each stage, which facilitate networking with successful entrepreneurs, industry experts, and investors.

>>venture>>

The >>venture>> startup competition is a significant initiative supporting early-stage startups in Switzerland, awarding over CHF 500,000 annually and providing access to a valuable network of experts, mentors, and executives from leading Swiss companies.

Each year, the competition offers CHF 590,000 in prize money distributed across various categories:

• First-ranked teams in each of the five business verticals (finance and insurance, health and nutrition, information and communications technology (ICT), industrials and engineering, retail and consumer services) receive CHF 50,000;
• Second-ranked teams receive CHF 20,000; and
• Third-ranked teams receive CHF 10,000.

For the Social and Environmental Impact vertical, it welcomes impact-driven startups and nonprofit organizations aligned with the United Nations’ sustainable development goals, launched after January 01, 2019.

Additionally, a Grand Prize of CHF 100,000 is awarded to the top team selected across all verticals.

Beyond financial rewards, the competition also helps startups systematically refine their business plans, develop actionable implementation strategies, and prepare comprehensive documents crucial for engaging with investors and strategic partners.

The competition is open to innovative business ideas and newly established companies in Switzerland.

Startfeld Diamond

Startfeld Diamond, sponsored by St. Galler Kantonalbank in collaboration with Startfeld, is a prestigious award designed to support young companies in Eastern Switzerland with innovative business ideas. The program aims to help startups fully realize their potential by providing financial support and enhancing their visibility within the entrepreneurial ecosystem.

The award process consists of two stages. Initially, a preliminary jury selects six finalists from all applications received, with three finalists each from the “Development Phase” and “Idea Phase” categories. In the second stage, the nominated startups receive intensive support to critically evaluate and optimize their business models in collaboration with industry experts. Additionally, they benefit from enhanced communication measures aimed at increasing the visibility of their ideas or products.

Two distinct awards are presented:

• The “Rough Diamond,” valued at CHF 10,000, is awarded to the best idea, particularly focusing on projects from technical colleges and universities; and
• The “Diamond,” valued at CHF 30,000, recognizes the startup with the most promising business model, supporting Eastern Swiss startups in maximizing their growth potential.

Participation in the Startfeld Diamond competition not only offers financial prizes but also opportunities for startups to refine their strategies, gain exposure, and leverage the expertise of mentors and industry professionals. It serves as a significant platform for emerging entrepreneurs in Eastern Switzerland to showcase their innovation and entrepreneurial spirit.

ZKB Pionierpreis Technopark

The ZKB Pionierpreis Technopark, jointly awarded by Zürcher Kantonalbank (ZKB) and Technopark Zurich since 2001, is a prominent accolade within Switzerland’s startup ecosystem. This prestigious award celebrates deep-tech projects on the brink of market introduction, emphasizing the founders’ dedication and risk-taking spirit.

Annually, the ZKB Pionierpreis Technopark recognizes outstanding innovation with a grand prize of CHF 100,000 for the winners. Additionally, runners-up receive CHF 10,000 each. Beyond financial rewards, the award serves as a significant catalyst for startups, helping them secure further capital and providing a prestigious platform for public exposure.

W.A. de Vigier Award

The W.A. de Vigier Award is the oldest award for young entrepreneurs in Switzerland and, with annual prize money of up to CHF 500,000 (five times CHF 100,000), is one of the most highly endowed startup prizes in Switzerland. Over the past 35 years, the foundation has distributed over CHF 14 million of seed money. The results are over 100 flourishing startups, successful initial public offerings (IPOs), multiple company exits and above all, many newly created jobs.

Projects competing for the W.A. de Vigier Award are evaluated based on several criteria:

• The entrepreneurial qualities and leadership skills of the founders;
• The degree of innovation demonstrated by the project;
• The potential societal impact and benefits;
• The technical and financial feasibility of the project;
• The market prospects and growth potential; and
• The capacity to generate new employment opportunities.

Beyond financial support, winning the W.A. de Vigier Award provides startups with valuable recognition and credibility within the entrepreneurial community, serving as an endorsement that can help attract additional funding and support.

Grants:

Innosuisse

Innosuisse offers project funding tailored to startups aiming to enter the market with highly innovative projects. This support is specifically designed for science-based initiatives that have substantial potential for innovation.

The funding is targeted at startups based in Switzerland, registered in the Swiss commercial registry, and established within the last five years (with exceptions for cases justified up to ten years). Startups must employ fewer than 50 full-time equivalents (FTEs) at the time of application, or less than 250 FTEs if controlled by another company whose financials consolidate with the startup.

The initiative focuses on startups that have not yet commercialized products or services (excluding research and development services) and have a scalable business model poised for more than linear growth. Non-commercial associations, foundations, and units of public administration are ineligible.

Innosuisse supports innovation projects that are based on applied research and are aimed at accelerating market entry. These projects should demonstrate significant potential for innovation and readiness for market launch upon project completion. Startups receive funding directly from Innosuisse; research partners are not eligible for direct funding. Innosuisse covers up to 70% of the direct project costs, with the startup required to contribute at least 30% of the costs themselves.

Innosuisse, formerly known as the Swiss Innovation Agency (formerly CTI), is an organization in Switzerland dedicated to promoting science-based innovation in the country. It focuses on fostering collaboration between research institutions, businesses, and entrepreneurs to encourage innovation and the commercialization of new technologies.

BRIDGE

BRIDGE, a joint program of the Swiss National Science Foundation (SNSF) and Innosuisse, offers funding at the interface of basic research and science-based innovation. The program consists of two funding schemes.

The Proof of Concept grant supports young researchers who have recently completed a bachelor’s or master’s degree within the last four years, are about to complete their PhD within the next six months, or have obtained a PhD within the last four years. Applicants must be supported by a Swiss research institution and apply individually.

This grant funds projects for 12 months, covering salaries and project expenses up to CHF 130,000 per year. It also supports participation in Innosuisse’s Start-up Training and the Assisted Patent Search scheme by the Swiss Federal Institute of Intellectual Property (IPI). Additionally, applicants are encouraged to apply for Innosuisse’s Initial Start-up Coaching.

The Discovery grant is aimed at experienced researchers working at Swiss universities, federal institutes of technology, universities of applied sciences and arts, or other research institutions defined by the Federal Act on the Promotion of Research and Innovation (RIPA). Applicants should have the ability to lead and manage research projects and may apply individually or as part of a small consortium (up to three applicants).

This grant funds projects for up to four years, with total costs not exceeding CHF 850,000 per applicant. It covers salary costs for project employees and project-related expenses. However, it does not cover applicant salaries unless the applicant is employed by a university of applied sciences and arts or by the Swiss Center for Electronics and Microtechnology (CSEM), in which case they may receive a salary supplement under specific conditions.

Grants by the Swiss Federal Institute of Technology Lausanne

The Swiss Federal Institute of Technology Lausanne (EPFL) offers funding to help transform ideas into the companies of tomorrow. It provides two funding schemes to help entrepreneurs seeking to accelerate their ideas out of an EPFL lab

The Ignition Grant supports early-stage projects, offering CHF 30,000 in the form of a salary and/or of consumables and/or outsourcing needs. The grant is for a maximum of six months to validate technology and develop a prototype or market fit.

Applicants must have a startup vision based on a novel technical solution, demonstrated lab technology or market traction, and a strong connection to a  lab where they will incubate their spinoff. The grant is intended for motivated and engaged entrepreneurs with innovative technology and feasible plans.

The Innogrant provides CHF 100,000 for up to one year, allowing entrepreneurs to focus entirely on accelerating their startup project. Applicants need a clear startup vision with a scalable technical solution, demonstrated lab technology, market traction, and a solid one-year plan. They must be connected to an EPFL lab for incubation. The grant seeks committed entrepreneurs with impactful, innovative technology and feasible project plans.

Grants by the Federal Institute of Technology Zurich

The Federal Institute of Technology (ETH) Zurich offers its students, alumni, and aspiring entrepreneurs throughout their journey, from the initial stages of idea experimentation to the creation of spin-off companies and beyond.

The jFund is a practical funding initiative aimed at supporting ETH junior startups in their early stages. Besides financial assistance, it offers startups access to essential resources, expert guidance, and a strong network, laying a solid foundation for growth and success in a competitive market. To qualify for the jFund application, applicants must be either former ETH juniors mainboard members or former employees who have been recognized as outstanding.

The funding program consists of three rounds, each offering increased funding opportunities. The Orientation Ticket provides a grant of CHF 10,000 for startups in their early stages of exploration. Applicants must complete a form and meet all outlined requirements. Finally, the Advanced Funding rounds offer grants of CHF 30,000 and CHF 60,000 for startups that have progressed beyond the orientation phase and may already have a prototype or initial market traction.

The Pioneer Fellowship Deep-Tech Incubation Program of ETH Zurich supports entrepreneurial ETH students and researchers in transforming their research-based technologies into marketable products and services with the aim of launching successful ETH spin-off companies. Pioneer Fellows receive up to CHF 150,000 for 18 months, or 12 months for a team of two Fellows. They also benefit from coaching, entrepreneurial training, support from their host professor, and access to ETH infrastructure and the entrepreneurial ecosystem.

National Research Programmes

The National Research Programmes (NRPs) by the Swiss National Science Foundation (SNSF) aim to promote research projects that address societal challenges of national significance. These programs are initiated by the Swiss Federal Council and focus on topics of national importance, with a research budget ranging between CHF 10 and 20 million.

NRPs are characterized by their interdisciplinary and transdisciplinary approach, ensuring that individual research projects are aligned with the program’s overarching goals. NRPs are solution-oriented, closely linked to practical applications, and emphasize the importance of knowledge transfer and communication of results. Researchers involved in NRPs engage in continuous dialogue and collaboration with practitioners and commit to disseminating research findings to both specialists and the broader public.

Proposals for NRP topics and priorities can be submitted by federal offices, research institutes, research groups, or individuals to the State Secretariat for Education, Research and Innovation (SERI). The final selection of NRPs is made by the Federal Council, which then assigns them to the SNSF for execution.

Horizon Europe

Horizon Europe is the European Union (EU)’s key funding program for research and innovation with a budget of EUR 95.5 billion. It tackles climate change, helps to achieve the UN’s Sustainable Development Goals and boosts the EU’s competitiveness and growth. Horizon Europe encourages collaboration and amplifies the impact of research and innovation in shaping, supporting, and executing EU policies while addressing global challenges. It promotes the creation and dissemination of excellent knowledge and technologies.

The program aims to create jobs, fully utilize the EU’s talent pool, boost economic growth, enhance industrial competitiveness, and maximize investment impact within a strengthened European Research Area. Legal entities from the EU and associated countries are eligible to participate in Horizon Europe. Additionally, Swiss startups can engage in many collaborative projects within Horizon Europe through Euresearch.

Boldbrain Startup Challenge

Boldbrain Startup Challenge is an accelerator addressing early-stage startups and entrepreneurs with innovative ideas who want to start and grow their businesses from the Canton of Ticino. The program offers continuous and personalized support, coaching, workshops, and a final competition with cash prizes totaling CHF 120,000 and over CHF 80,000 in in-kind prizes.

Boldbrain Startup Challenge provides coaching to help outline the project, focused workshops, targeted training, and access to a network that supports the development and growth of startups in Ticino. This includes office space, financial aid, and exposure to investors. The Boldbrain Startup Challenge is ideal for those looking to grow their innovative ideas with comprehensive support and resources.

Boldbrain welcomes early-stage startups and projects from any sector, provided they are innovative and scalable, with the potential to benefit the Ticino area. Eligible projects must be proposed by teams of at least two people. If the team already has a registered company, it must be less than three years old at the time of application. Teams must be willing to develop their projects in Ticino, have not completed another acceleration program, and participate with at least one team member in all mandatory events and meetings.

FONGIT Innovation Fund

The FONGIT Innovation Fund (FIF) offers financial support to startups in Switzerland, aiming to accelerate innovation processes within universities, Hautes Ecoles, and other Geneva-based research institutions, as well as within startups, scale-ups, and SMEs experiencing rapid growth in a technological environment. The FIF targets technological innovations that positively impact people and the planet.

FIF provides different levels of financial assistance based on the stage of the project. Early-stage projects transitioning from research institutions to new companies can receive a FIF Grant of CHF 50,000. Seed-stage companies needing additional financial support to reach the market can receive a FIF Seed Loan of CHF 100,000. Finally, expanding companies requiring significant investment to sustain rapid growth can receive a FIF Growth Loan of CHF 400,000.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Yuh lanciert 6 ETF-Sparpläne ohne Trading-Gebühren und bietet somit nun ein ähnliches Angebot an wie Neon.

Die Auswahl an ETFs für die kostenlosen Sparvarianten ist bei beiden Banken jedoch nach wie vor sehr beschränkt, trotzdem grenzen sich die beiden Neobanken damit klar von der teueren Konkurrenz ab.

Sie erlauben das automatisch wiederkehrende Investieren in ETFs ohne Trading- oder Depotgebühren.

Lediglich die staatliche Stempelgebühr fällt zusätzlich zu den TER-Kosten der ETFs an.

Die gebührenfreien ETF-Sparpläne sind bei Yuh für folgende sechs Fonds verfügbar: 

• iShares SMI ETF (CH)
• iShares MSCI World CHF Hedged UCITS ETF (Acc)
• Vanguard FTSE All-World UCITS
• Vanguard FTSE All-World High Dividend Yield UCITS
• Invesco EQQQ Nasdaq-100 UCITS ETF CHF Hdg Acc
• Invesco CoinShares Global Blockchain UCITS ETF Acc

Markus Schwab, CEO von Yuh, sagt:

«Mit unseren neuen ETF-Sparplänen, die in dieser Form in der Schweiz neu sind, bieten wir eine Anlagemöglichkeit, die Ertragschancen und Sicherheit besonders gut miteinander kombiniert. Durch den Verzicht auf Ordergebühren und den Mindestanlagebetrag von nur CHF 25 wird Investieren noch einfacher und effektiver. Wir sind einen Schritt weiter in unserem Bestreben, Finanzdienstleistungen für alle zugänglich zu machen und sie zu demokratisieren.»

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Nuvei announced a partnership with Mastercard to launch a new off-ramping solution that enables consumers in Europe to seamlessly convert their Digital Assets, including cryptocurrencies, into traditional fiat currency via debit, credit and prepaid cards.

This new functionality provides a bridge between digital and traditional finance that can be spent via Mastercard’s global network. This off-ramping solution is integrated directly into Nuvei‘s modular payment platform, delivering a simple, secure user experience.

The off-ramping process is designed to be rapid and user-friendly. Consumers can seamlessly convert a wide range of supported Digital Assets into fiat currency. They can then transfer the funds to their eligible Mastercard in near real-time, leveraging Mastercard Move’s money movement capabilities. No longer requiring third-party exchanges or money service businesses, this integrated solution simplifies transforming digital value into global spending circulation.

“We’re excited to collaborate with Mastercard to accommodate access liquidity and payments for Digital Asset holders,”

commented Philip Fayer, Chair and CEO of Nuvei.

“Our mission is to enable businesses and their customers to connect through payments, wherever consumers are and however they want to pay. Offering crypto off-ramps through our single integration aligns perfectly with this mission to facilitate frictionless transactions across the digital economy.”

“Enabling choice how consumers can engage in Digital Assets in a safe, simple and secure manner in line with all relevant regulation is at the heart of our strategy in this space”

added Christian Rau, Senior Vice President, Fintech and Crypto Enablement, Mastercard Europe.

“Combining our global network of partners and digital solutions with Nuvei’s advanced integration opens new opportunities and choice for businesses engaging in digital assets and consumers alike.”

Nuvei’s off-ramp solution with Mastercard is the latest example of its strategy to connect the worlds of traditional payments, open banking and blockchain technology into one seamless experience.

Featured image credit: Philip Fayer, Chair and CEO of Nuvei and Christian Rau, Senior Vice President, Fintech and Crypto Enablement, Mastercard Europe. Edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The European Commission has made commitments offered by Apple legally binding under EU antitrust rules.

The commitments address the Commission’s competition concerns relating to Apple’s refusal to grant rivals access to a standard technology used for contactless payments with iPhones in stores (‘Near-Field-Communication (NFC)’ or ‘tap and go’).

The Commission’s competition concerns

Apple Pay is Apple’s own mobile wallet used to allow iPhone users to pay with their devices in stores and online. Apple’s iPhones run exclusively on Apple’s operating system ‘iOS’. Apple controls every aspect of its ecosystem, including access conditions for mobile wallet developers.

The Commission preliminarily found that Apple has significant market power in the market for smart mobile devices and a dominant position on the in-store mobile wallet market on iOS. Apple Pay is the only mobile wallet that may access the NFC hardware and software (‘NFC input’) on iOS to make payments in stores, as Apple does not make it available to third-party mobile wallet developers.

In its investigation, the Commission preliminarily concluded that Apple abused its dominant position by refusing to supply the NFC input on iOS to competing mobile wallet developers, while reserving such access only to Apple Pay.

The Commission’s preliminary view is that Apple’s refusal excluded Apple Pay’s rivals from the market and led to less innovation and choice for iPhone mobile wallets users.

Such behaviour may breach Article 102 of the Treaty on the Functioning of the European Union (‘TFEU’), which prohibits the abuse of a dominant position.

The commitments

To address the Commission’s competition concerns, Apple initially offered the following commitments:

• To allow third-party wallet providers access to the NFC input on iOS devices free of charge, without having to use Apple Pay or Apple Wallet. Apple will enable access to NFC in Host Card Emulation mode (‘HCE’). HCE allows to securely store payment credentials and complete transactions using NFC, without relying on an in-device secure element.
• To apply a fair, objective, transparent and non-discriminatory procedure and eligibility criteria to grant NFC access to third-party mobile wallet app developers.
• To enable users to easily set an HCE payment app as their default app for payments in stores and to use relevant functionalities such as Field Detect (which opens the user’s default payment app when a locked iPhone is presented to an NFC reader), Double-click (which launches the default payment app when double clicking the phone’s side or home button), and authentication tools such as Touch ID, Face ID, and device passcode.
• To establish a monitoring mechanism and separate dispute settlement system to allow for independent review of Apple’s decisions restricting access.
• To apply the abovementioned commitments to all third-party mobile app developers established in the European Economic Area (‘EEA’) and to all iOS users with an Apple ID registered in the EEA, also while traveling temporarily outside the EEA.

Between 19 January 2024 and 19 February 2024, the Commission market tested Apple’s commitments and consulted all interested third parties to verify whether they would remove its competition concerns. In light of the outcome of this market test, Apple amended the initial proposal and committed:

• To extend the possibility to initiate payments with HCE payment apps at other industry-certified terminals, such as merchant phones or devices used as terminal (so called SoftPOS), if this is enabled.
• To explicitly acknowledge that HCE developers are not prevented from combining the HCE payment function with other NFC functionalities or use cases.
• To remove the requirement for developers to have a licence as a Payment Service Provider (‘PSP’) or a binding agreement with a PSP to access the NFC input.
• To allow NFC access for developers to pre-build payment apps for third party mobile wallet providers.
• To update the HCE architecture to comply with evolving industry standards used by Apple Pay, and to continue to update standards even if they are no longer implemented by Apple Pay, under certain conditions.
• To enable developers to prompt users to easily set up their default payment app and redirect users to the default NFC settings page, enabling defaulting with only a few clicks.
• To comply with the same industry standard-specifications as developers of HCE payment apps and to protect confidential information obtained in the context of an audit.
• To shorten deadlines for resolving disputes. Moreover, Apple offered additional independence and procedural guarantees for the monitoring trustee.

The European Commission has made commitments offered by Apple legally binding under EU antitrust rules. The commitments address the Commission’s competition concerns relating to Apple’s refusal to grant rivals access to a standard technology used for contactless payments with iPhones in stores (‘Near-Field-Communication (NFC)’ or ‘tap and go’).

The Commission’s competition concerns

Apple Pay is Apple’s own mobile wallet used to allow iPhone users to pay with their devices in stores and online. Apple’s iPhones run exclusively on Apple’s operating system ‘iOS’. Apple controls every aspect of its ecosystem, including access conditions for mobile wallet developers.

The Commission preliminarily found that Apple has significant market power in the market for smart mobile devices and a dominant position on the in-store mobile wallet market on iOS. Apple Pay is the only mobile wallet that may access the NFC hardware and software (‘NFC input’) on iOS to make payments in stores, as Apple does not make it available to third-party mobile wallet developers.

In its investigation, the Commission preliminarily concluded that Apple abused its dominant position by refusing to supply the NFC input on iOS to competing mobile wallet developers, while reserving such access only to Apple Pay.

The Commission’s preliminary view is that Apple’s refusal excluded Apple Pay’s rivals from the market and led to less innovation and choice for iPhone mobile wallets users.

Such behaviour may breach Article 102 of the Treaty on the Functioning of the European Union (‘TFEU’), which prohibits the abuse of a dominant position.

The commitments

To address the Commission’s competition concerns, Apple initially offered the following commitments:

• To allow third-party wallet providers access to the NFC input on iOS devices free of charge, without having to use Apple Pay or Apple Wallet. Apple will enable access to NFC in Host Card Emulation mode (‘HCE’). HCE allows to securely store payment credentials and complete transactions using NFC, without relying on an in-device secure element.
• To apply a fair, objective, transparent and non-discriminatory procedure and eligibility criteria to grant NFC access to third-party mobile wallet app developers.
• To enable users to easily set an HCE payment app as their default app for payments in stores and to use relevant functionalities such as Field Detect (which opens the user’s default payment app when a locked iPhone is presented to an NFC reader), Double-click (which launches the default payment app when double clicking the phone’s side or home button), and authentication tools such as Touch ID, Face ID, and device passcode.
• To establish a monitoring mechanism and separate dispute settlement system to allow for independent review of Apple’s decisions restricting access.
• To apply the abovementioned commitments to all third-party mobile app developers established in the European Economic Area (‘EEA’) and to all iOS users with an Apple ID registered in the EEA, also while traveling temporarily outside the EEA.

Between 19 January 2024 and 19 February 2024, the Commission market tested Apple’s commitments and consulted all interested third parties to verify whether they would remove its competition concerns. In light of the outcome of this market test, Apple amended the initial proposal and committed:

• To extend the possibility to initiate payments with HCE payment apps at other industry-certified terminals, such as merchant phones or devices used as terminal (so called SoftPOS), if this is enabled.
• To explicitly acknowledge that HCE developers are not prevented from combining the HCE payment function with other NFC functionalities or use cases.
• To remove the requirement for developers to have a licence as a Payment Service Provider (‘PSP’) or a binding agreement with a PSP to access the NFC input.
• To allow NFC access for developers to pre-build payment apps for third party mobile wallet providers.
• To update the HCE architecture to comply with evolving industry standards used by Apple Pay, and to continue to update standards even if they are no longer implemented by Apple Pay, under certain conditions.
• To enable developers to prompt users to easily set up their default payment app and redirect users to the default NFC settings page, enabling defaulting with only a few clicks.
• To comply with the same industry standard-specifications as developers of HCE payment apps and to protect confidential information obtained in the context of an audit.
• To shorten deadlines for resolving disputes. Moreover, Apple offered additional independence and procedural guarantees for the monitoring trustee.

The Commission concluded that Apple’s final commitments would address its competition concerns over Apple’s restriction of third-party mobile wallet developers’ access to NFC payments in stores for EEA iOS users. It therefore decided to make them legally binding on Apple.

The commitments will remain in force for ten years and apply throughout the EEA. Their implementation will be monitored by a monitoring trustee appointed by Apple who will report to the Commission for the same time period.

Apple’s commitments are without prejudice to Apple’s current or future obligations under other regulations, in particular relating to other use cases and functionalities within the scope of the Digital Markets Act (Regulation 2022/1925) and the implementation of the Digital Euro.

Background

Article 102 of the TFEU prohibits the abuse of a dominant position that may affect trade within the EU and prevent or restrict competition. The implementation of this provision is defined in Regulation No 1/2003, which can also be applied by the national competition authorities.

Following the opening of a formal antitrust investigation into Apple’s behaviour in June 2020, the Commission sent Apple a Statement of Objections in May 2022. In January 2024, the Commission market tested Apple’s first set of commitments. In parallel to today’s Article 9 commitments decision, the Commission also adopted today a second decision closing its investigation into online restrictions and alleged refusals of access to Apple Pay for specific products of rivals that the Commission also opened in June 2020. This second decision also closes all proceedings in relation to the UK, which no longer forms part of the EEA.

Article 9 (1) of Regulation 1/2003 enables companies investigated by the Commission to offer commitments in order to meet the Commission’s concerns and empowers the Commission to adopt a decision to make such commitments binding on the companies. Article 27(4) of Regulation 1/2003 requires that before adopting such decision the Commission shall provide interested third parties with an opportunity to comment on the offered commitments.

If the market test indicates that the commitments are a satisfactory way of addressing the Commission’s competition concerns, the Commission may adopt a decision making the commitments legally binding on the company concerned. Such a decision would not conclude that there is an infringement of EU antitrust rules but would legally bind the company to comply with the commitments it has offered.

If the company concerned does not honour such commitments, the Commission may impose a fine of up to 10% of its total annual turnover, without having to find an infringement of EU antitrust rules, or a periodic penalty payment of 5% per day of its daily turnover for every day of non-compliance.

More information, including the full text of today’s Article 9 commitments decision and the full version of the commitments will be available on the Commission’s competition website in the public case register under the case number AT.40452.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Finastra announced the completion of a Swiss Interbank Clearing (SIC) instant payments readiness project.

Using Finastra’s cloud-based Service Bureau offering, Swiss banks can seamlessly transition to facilitating instant interbank payments.

It is expected that the 50 largest banks must be able to facilitate instant interbank payments in Switzerland and Liechtenstein by August this year. All active participants in the Swiss customer payment transactions system via SIC are expected to be capable of processing incoming customer payments instantaneously by the end of 2026.

Finastra’s 24/7 instant payment service, already being used by several banks, includes real-time sanctions screening, with transactions processed in seconds. Finastra will continually evolve the service, allowing banks to respond quickly to changing customer, industry and regulatory demands.

“Finastra is helping banks implement instant payments in the most seamless and cost-effective way using the latest technologies to deliver robust sanctions screening and fraud prevention,”

said Andreas Helbling, Country Head Switzerland, Financial Messaging Marketplaces at Finastra.

“Facilitating connectivity to SIC Instant Payments, and any critical payments infrastructure of this kind, reflects our commitment to supporting banks on their broader payment modernization journey – helping them to work in a more agile way and deliver value-added services to customers.”

SIC5 is developed by the Swiss National Bank (SNB) and SIX. It is based on the ISO 20022 messaging standard which Switzerland has been using for several years. The standard helps facilitate interoperability and cross-border transactions, also giving Swiss banks the opportunity to implement international payment capabilities in the future.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

After being on the market in Germany for over two years, the Clanq app officially launches in Switzerland. With Cornèr Bank as a strong partner, Clanq offers family accounts and payment cards.

Additionally, Clanq supports families with expertise in financial planning and sustainable saving.

Focus on parents‘ needs Saving money for the future can be quite challenging for some parents. With Clanq, Cornèr Bank aims to address the needs of families in Switzerland in its role as a banking partner, introducing a product that hasn’t existed before. Combining cashback, saving goals, and support from the entire family clan, saving becomes much easier.

More savings with cashback and saving rules

«Clanq» is reminiscent of the sound a coin makes when dropped into a piggy bank – and this happens quite often in the app. Every time a family member pays with the Clanq payment card, the child automatically receives cashback. Together with individual saving rules, the financial cushion grows steadily, bit by bit, without parents having to think about it amid their often busy family lives.

Family Banking for the whole «Clan»

Clanq is a play in the words «Clan» and «Bank». In the Clanq app, each child has their own digital piggy bank. Family members can easily and securely link accounts within the family clan to save together. Family members are invited directly through the app. With the ordered credit card, they can help save for the children with every purchase thanks to cashback, without opening a new account.

Clanq supports parents with a modern app, ensuring sustainable financial planning for their children’s future. The fintech is working on expanding the app with the functionalities «Kids and Teenage Banking» – targeting the age group of children and teenagers from 7 to 18. This allows family members to manage their own money.

Clanq powered by Cornèr already offers this today:

• Financial app with direct payment card ordering
• Various account types and payment cards for parents and supporting family members, as well as digital piggy banks for children
• Cashback on every purchase, additional offers with our cashback partners up to 20 %, and up to 25 % in the cashback online shop
• Automatic saving rules to achieve individual goals

Christina Hammer, Clanq Co-Founder:

«The financial world is changing rapidly, and for young parents, it is particularly challenging to keep track amidst other demands. Financial education is a crucial building block for a secure and independent future, especially today. The most important aspect is the role model function of the parents, which is why we want to encourage mothers to engage with this topic. »

Alessandro Seralvo, Executive Vice President Cornèr Bank:

«As a family business in its third generation, family values have always played a central role in all our activities. We are very pleased to have found an ideal partner in Clanq, who shares our values. Together with Clanq, we provide families with an ideal digital tool that allows relatives and friends to lay a financial foundation for the next generation We are particularly proud to launch this innovative fintech product in our home market Switzerland. »

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

TX Ventures led the USD 5.5m Series A round of Ireland-based Trustap. The investment will fuel the company to continue its global expansion, enabling online marketplace participants to transact in full trust.

Trustap provides marketplaces an embedded end-to-end transaction capability by managing payments, logistics and customer support on their behalf. One of the key features is escrow-style payment, which helps buyers and sellers transact in full trust on the platforms.

‍The Ireland-based company announced that it has added $5.5 million in funding led by TX Ventures.

Coinvestors in the round include new investors SeedX, Partners Resolute, Aperture and existing shareholders MiddleGame Ventures, ACT VC, Atlantic Bridge & FurthrVC.

Trustap CEO Conor Lyden explained how this fundraise will help the company moving forward.

“We are delighted to have closed this round and it’s great to have added new investors to our cap table who bring with them a wealth of experience in our core markets. Our plan is to invest in our go-to-market to ensure we make the most of some of the recent partnerships we have established. We will also look at adding further features to cater for the wide range of use cases we deal with across both C2C and B2B marketplaces.”

‍Krzysztof Bialkowski, Managing Partner of TX Ventures comments on the investment:

“Our view is that within the near-mid term, marketplaces will have to offer trusted payment solutions otherwise they will miss out on new business. Trustap, by providing escrow-like payment options and by lifting the operational burden off the shoulders of marketplaces, offer just that. The product is immensely scalable which is proven by the global presence of clients and the numerous categories Trustap facilitates among buyers and sellers. The easy-to-implement solution, the underlying trends in the marketplace industry and the execution-driven team will play a pivotal role for Trustap to become the leading infrastructure provider for trusted payments around the globe. It is a special addition to our fintech portfolio.”

Featured image credit: Trustap CEO Conor Lyden

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Switzerland has been named the second most attractive location in Europe for fintech stakeholders, surpassing the Netherlands, Estonia, and the UK. The country is recognized for its conducive business environment and the attractiveness of the local market for fintech players, according to the 2024 European Fintech Index.

The index, released on June 27 by Lithuanian fintech company ConnectPay, provides an overview of the fintech landscape across Europe. It evaluates key markets in the region and their potential for fintech businesses, government institutions, investors, and other stakeholders, assessing market potential through three dimensions:

• “Fintech attractiveness”: This includes metrics such as the presence of fintech-related regulation, funding per capita, workforce share, and the number of fintech licenses. These factors determine whether a country can be deemed a favorable market for establishing a fintech business;
• “Business attractiveness”: This spans several parameters such as startup friendliness, ease of doing business, and taxation competitiveness to define the overall context for conducting business; and
• “Market attractiveness”: This covers aspects that make a market favorable for fintech to conduct commercial operations and successfully scale. Metrics include population engagement with digital and financial services, economic health, and relevant regulations.

Across the 32 European countries studied, Switzerland ranks second, recognized for its favorable business landscape (ranked 3rd) and market potential (ranked 3rd). The country also boasts one of the region’s largest numbers of startup unicorns.

Switzerland has made some efforts to create a conducive business environment for fintech companies. In 2023, it launched the Swiss Financial Innovation Desk (FIND), an independent unit within the State Secretariat for International Finance (SIF), aimed at fostering financial innovation by supporting collaboration between the public and private sectors.

The government has also introduced regulatory changes to provide greater legal clarity and encourage innovation. These include the Fintech license introduced in 2019, the regulatory sandbox introduced in 2017, and the pioneering “DLT Act”, a legislation covering blockchain technology, digital assets and tokenization that came into force in 2021.

Challenges in fintech attractiveness

Despite its high rankings in business and market dimensions, Switzerland ranks 8th in Europe for “fintech attractiveness,” behind jurisdictions like Estonia and Luxembourg.

Previous research has delved into the difficulties fintech companies face in the Swiss market. The 2024 IFZ Fintech Study by the Lucerne University of Applied Sciences and Arts’ Institute of Financial Services Zug (IFZ) highlights that Switzerland is lagging behind fintech hubs such as Singapore and Sweden. These countries have been more proactive in enhancing their support for fintech companies, overshadowing Swiss efforts.

Additionally, a 2024 study by UBS, Credit Suisse, and the Swiss ICT Investor Club (SICTIC) indicates that Swiss startups face significant funding challenges and limited international recognition. Moreover, with a population of just nine million, the local market is too small for startups to thrive, compelling young Swiss tech ventures to seek international expansion early in their development.

Access to well-educated workers is another key challenge faced by Swiss startups, with 46% of the founders polled by Credit Suisse finding it hard to fill vacancies with suitable candidates. Labor market challenges are more pronounced for startups in the growth and expansion phase, with 55% of struggling to recruit qualified employees, compared to 39% for startups in the pre-seed and seed stages.

Sweden recognized as the most attractive country in Europe for fintech stakeholders

The 2024 European Fintech Index ranks Sweden as the most attractive country in Europe for fintech stakeholders. The country, which ranks within the top five across all three dimensions, is recognized for its high number of information and communications technology (ICT) and fintech professionals, and its fintech-friendly labor market structure.

Baltic state Estonia tops the ranking in the business (ranked 2nd) and fintech (1st) dimensions, thanks to its strong unicorn presence per million capita, high number of fintech deals per million capita, and favorable regulatory frameworks.

Finally, Denmark ranks 1st in market attractiveness, supported by its strong gross domestic product (GDP) per capital and private consumption growth indicators. The Scandinavian country takes the 3rd place in the overall ranking.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Trever, an institutional operating system provider for digital assets, continues fuelling its growth in the European market with a €2.4 million seed investment.

The software provides a compatible infrastructure and enables trading, transfer, and bookkeeping of digital assets.

Trever provides financial institutions (banks, brokers, and funds) with a state-of-the-art infrastructure to offer and manage digital assets seamlessly. Clients from the DACH region such as V-Bank, Bankhaus Scheich, or Futurum Bank have been relying on the proven system for many years. The time has come to equip banks across Europe with an efficient go-to-market product.

The software provides a compatible single-connection infrastructure and enables trading, transfer, and bookkeeping of digital assets. The modular approach allows financial institutions to start trading with a quick-to-deploy solution and expand it as their business model evolves. This ensures maximum simplicity and flexibility across the entire business process.

“Our system, developed by industry experts, is ready to equip banks across Europe and beyond. In addition, with prestigious investors on board, we will be able to enter new European markets much more quickly”,

comments Hans-Jürgen Griesbacher, CEO of Trever. The funding round was co-led by TX Ventures (CH) and Market One Capital (LUX). Blockchain Founders Capital (DE) and Dr. Alex von Frankenberg joined the round as co-investors.

Krzysztof Bialkowski, Managing Partner at TX Ventures, emphasizes his conviction about the investment:

“Institutional traders need a reliable and efficient go-to-market product, and Trever is bringing the solution on a silver platter for them. Further, we see that regulation in Europe is paving the way both on the supply and demand side which drives adoption to a great extent. In sum, the underlying market trends, the banking-grade solution, and Trever’s execution-oriented team are the perfect ingredients to capture this early market.”

Featured image credit: Hans-Jürgen Griesbacher, CEO of Trever and Krzysztof Bialkowski, Managing Partner at TX Ventures. Edited from Freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Recent advancements in technologies like generative artificial intelligence (AI), coupled with the large number of people worldwide who remain unbanked or underbanked, present significant opportunities for the global fintech sector.

By 2030, the sector is expected to reach a market size of US$1.5 trillion in revenue, a value that’s equivalent to five times the market’s current size, a new report by the Boston Consulting Group and QED Investors says.

The report, titled “Global Fintech 2024: Prudence, Profits, and Growth”, provides an overview of the sector’s evolution, drawing insights from industry leaders and investors. It discusses future developments in fintech, mentioning the potential of technologies like genAI, and outlines trends shaping the sector, including embedded finance, open banking and connected commerce.

Embedded finance to become pervasive by 2030

The first major theme highlighted in the report is the rise of embedded finance where financial services are integrated into non-financial interactions to eliminate friction and enable highly tailored customer experiences.

Initially, embedded finance use cases mainly focused on payments, lending, and insurance across both business-to-business (B2B) and business-to-consumer (B2C) contexts, but key players including Stripe and Adyen are expanding these use cases into areas such as pay by bank, cryptocurrency payments and digital assets. These two leading embedded finance firms crossed the trillion-dollar mark in overall payments volume in 2023, showcasing substantial growth in embedded payments.

Embedded lending has also seen robust growth, with buy now, pay later (BNPL) leaders Klarna and Affirm processing significant transaction volumes of US$90 billion and US$20 billion, respectively. Similarly, embedded insurance has shown rapid expansion, with premiums reaching roughly US$8 billion in Europe last year.

Looking ahead, the global embedded finance market is anticipated to exceed US$320 billion in revenue by 2030, with the small and medium-size business (SMB) segment accounting for about half (US$150 billion) of that sum. This growth will be driven by increased adoption of vertical and horizontal software solutions that address SMB’s needs in payments and lending.

The consumer segment is also expected to contribute substantially to the rise of embedded finance, projected to reach US$120 billion in revenue by 2030 as adoption of BNPL, point-of-sale (POS) lending and embedded insurance increases.

Finally, the enterprise vertical is anticipated to account for US$50 billion of embedded finance revenue. This growth will be driven by the integration of payment, lending, and trade functionalities into horizontal software solutions, aimed at addressing pain points in accounts payable and receivable.

Connected commerce poised to take off

Connected commerce, which refers to the integration of online and offline shopping experiences into a seamless, unified customer journey, represents a significant opportunity for traditional banks to capitalize on their customer data. The approach enables new revenue streams and enhanced customer loyalty through personalized marketing. Furthermore, it allows incumbents to serve as a platform for SMBs and enterprises.

Major banks and some fintech companies are already investing in connected commerce. Examples include initiatives like JPMorgan’s Chase Media Solutions, Capital One Shopping, and Citi Shop. Some fintech companies, including Klarna, are also entering the connected commerce space, while others like Revolut and PayPal are launching advertising businesses.

The adoption of connected commerce is expected to increase, emerging as a key application for banking incumbents. As core revenue streams continue to come under pressure, and as deposits risk becoming commoditized in a higher-yield environment, connected commerce offers a promising future model for traditional financial institutions.

Open banking to continue to expand

Open banking will continue to expand as more countries implement customer-permissioned access to their financial data, enabled by application programming interfaces (APIs). So far, over 65 countries have instituted open banking, and more are expected to follow suit.

However, the report notes that while open banking will drive innovation and increase financial access, it is unlikely to change the basis of competition in banking. In fact, in countries where open banking has had a decade or more to mature, no killer use case has emerged, and impact has been modest.

In the UK, open banking has been live for six years, and yet, consumer adoption has plateaued at 12% monthly active users. In the Nordics, a region that’s traditionally in the vanguard of digital adoption, open banking user penetration is well below 50%, standing at roughly 30% in Sweden and 25% in Norway.

Moving forward, open banking will remain relevant but won’t revolutionize consumer and SMB financial services and fintech, the report says.

GenAI emerges as game-changer

Finally, genAI is already proving its worth in the realm of financial services, delivering tangible productivity gains in customer service and support; software coding, testing, and documentation; in the regulatory arena; as well as for targeted, automated digital marketing.

Looking ahead, genAI applications and impact will only grow. Across cost of goods sold (COGS), genAI will increase productivity for developer and service operations. In sales and marketing, the technology will increase speed to output for content creation and improve salesforce effectiveness. And in general administrative expenses, it will optimize third-party spending, simplify the tech stack, and automate support functions.

GenAI is expected to have a much greater impact on fintech companies than on traditional banks in the near future. This is because fintech companies have “digital first” cost structures which are heavily weighted toward areas where genAI is delivering huge gains, such as coding, customer support, and digital marketing.

Fintech revenues grow despite falling funding

Global fintech funding dropped significantly in 2023, plunging 71% from an all-time high of US$144 billion in 2021 to US$42 billion. Despite funding challenges, global fintech revenues continued to grow at a robust rate, increasing by 14% annually over the past two years to reach US$320 billion in 2023, according to the report.

In particular, challenger banks were star performers in 2023. Brazil’s Nubank, for example, crossed the 100-million-user milestone in May 2024 and achieved record 2023 financial results with over US$1 billion in net profit and over US$8 billion in revenues. In Europe, Monzo reached operational profitability in the first half of 2023 and received GBP 340 million (US$430 million) in additional funding to fuel its global growth plans. In the US, Chime achieved profitability in Q1 2024 and is now preparing for a possible initial public offering in 2025, Bloomberg reported in March.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

SMG Swiss Marketplace Group AG is acquiring 100% of moneyland.ch AG with immediate effect.

moneyland.ch will become part of SMG’s Finance & Insurance business unit alongside FinanceScout24. The moneyland.ch brand, platform and team will not change and will be fully integrated into SMG. Founder Benjamin Manz will also remain active as Managing Director.

moneyland.ch will maintain its operations as an independent brand and continue providing greater transparency for consumers in Switzerland with its neutral financial comparisons, calculators and editorial content.

Expertise and renowned comparisons

Since it was founded in 2013, moneyland.ch has made a name for itself with its neutral comparisons, calculators, studies and guides.

Jochen Pernegger, Managing Director Finance & Insurance at SMG, says:

«moneyland.ch has raised the bar in the industry both in the past and the present with its high-quality financial comparisons. We look forward to working together to drive forward the Finance & Insurance division – and to benefiting from the Moneyland team’s product range, expertise and years of experience.»

moneyland.ch is the perfect addition

SMG’s Finance & Insurance division has been represented by the FinanceScout24 brand on the market for almost five years. Now, the acquisition of moneyland.ch provides the perfect addition to this business unit and expands its portfolio. The aim is to help as many consumers in Switzerland as possible to find the right product for their financial and insurance needs, as quickly as they can, and to enable them to take out this product digitally.

With the acquisition of moneyland.ch, SMG now offers an important range of comparison services for consumers which the network previously lacked.

«In addition, moneyland.ch can benefit from the digital expertise, network, reach and awareness associated with SMG’s established platforms,»

adds Benjamin Manz. By extension, this means that the comparison platform can be made accessible to as broad an audience as possible.

«We are particularly looking forward to working with the FinanceScout24 team.»

Featured image credit: Jochen Pernegger, Managing Director Finance & Insurance at SMG and Benjamin Manz, Founder at moneyland.ch

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The ETF investment startup findependent has received CHF 5 million as part of its recently announced crowd investment.

The original financing target of CHF 2 million was thus oversubscribed several times over. Over 1,500 existing customers ensured that the participation certificates were sold out within just 30 hours.

The existing investors around Roland Brack had already provided additional growth financing totalling CHF 1.5 million in recent months. The crowd investment now exceeded all expectations.

“We knew we had a strong community, but this is beyond all expectations,”

says a delighted Matthias Bryner, CEO and founder of findependent.

The original financing target of CHF 2 million was raised to CHF 3 million after just a few hours and shortly afterwards to the final CHF 5 million. Now 29% of the company is owned by findependent’s customers.

Originally, a three-day phase exclusively for findependent customers was planned, followed by a ten-day public subscription period.

“The fact that the entire sum of CHF 5 million is being raised solely by our existing customers shows that our customers are 100% behind our product,”

explains Bryner.

This means that findependent will not have to concern itself with fundraising in the coming years, but can concentrate fully on the further development of the company and the app.

“A privilege that we appreciate and don’t take for granted,”

concludes Bryner.

Featured image credit: Findependent team

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

«Navigier mich zum Zürichsee» – für die KI kein Problem. «Schreib mir einen persönlichen Brief» – auch das beherrscht der Algorithmus.

Doch wie ist es mit Investitionen. «Finde ein Renditeobjekt, das genau zu meinem Bedarf passt» – kann auch das eine KI leisten? In der Immobilienbranche heisst die Antwort ab sofort: Ja! Mit dem Launch des neuen KI-basierten Matchingsystems stösst die Crowdhouse AG das Tor in Richtung Zukunft weit auf. Daraus ergeben sich Vorteile für Branchenkenner ebenso wie für Neulinge, die nach einem Investment suchen.

Renditeobjekte mit der KI finden: So funktioniert es

Wenn Investoren auf der Suche nach Renditeobjekten sind, brauchen Sie vor allem drei Dinge. Gute Angebote, eine rentable Finanzierung und Zeit. Für ihre zahlreichen Angebote ist die Crowdhouse AG mit ihren Gründern Ardian Gjeloshi und Robert Plantak seit Jahren bekannt. Auch das Thema Rentabilität ist ein zentraler Faktor, der traditionell im Vordergrund steht. Allein die sprichwörtliche Investition der Zeit war bisher ein Aspekt, der durch das Konzept der Crowdhouse-Plattform bisher nicht vollständig optimiert wurde. Das hat sich nun entscheidend geändert.

Um die Neuartigkeit zu verstehen, ist es wichtig, das bisherige Prinzip der Immobiliensuche zu kennen. Bis zum Mai 2024 arbeitete die Suchmaske auf Crowdhouse.ch wie bei vergleichbaren Portalen auch. Wer interessiert war, erhielt einen Überblick über das gesamte Portfolio. Das mag im ersten Moment sinnvoll klingen, allerdings ist die Immobilienbranche kein Warenhaus, wie CEO Robert Plantak betont. Stattdessen ist jedes Objekt einzigartig und spricht eine bestimmte Käuferschicht an. In diesem vielfältigen Angebot das perfekte Match zu finden, kostete Zeit.

Seit Mai 2024 übernimmt eine KI den aufwendigen Prozess der Immobiliensuche, und zwar in Sekundenschnelle. Auf Grundlage des Profils findet sie interessante Objekte und meldet eine entsprechende Verfügbarkeit. So können sich Investoren nicht nur viel Zeit sparen – sie erhalten auch proaktiv Empfehlungen, wenn relevante Objekte im Portfolio erscheinen.

Das Profil als wichtigste Grundlage

Damit das KI-Matching bestmöglich funktioniert, weist Robert Plantak auf die Wichtigkeit des Profils hin. Damit die künstliche Intelligenz arbeiten kann, braucht sie Daten – je mehr sie hat, desto präziser werden die Ergebnisse. Zudem gibt er den Tipp, das Profil regelmässig zu updaten, um stets aktuell passende Empfehlungen zu erhalten.

Auf sich allein gestellt sind potentielle Investoren aber auch in diesem Punkt nicht. Parallel zur Vertiefung der Profilinformationen lernt die KI den Investor immer besser kennen – maschinelles Lernen macht es möglich. Dadurch werden die Genauigkeit und die Relevanz weiter verbessert.

Neues System ist eine technische Revolution

Renditeimmobilien finden mit Hilfe der KI, das ist nichts weniger als eine technische Revolution, mit der die Crowdhouse AG aufwartet. Die Tragweite der Neuerungen wird Besuchern wahrscheinlich erst beim Testen der neuen Funktionen bewusst. Zwar geht die technische Neugestaltung auch mit einem Update der Webseite einher, die zeigt sich jedoch zeitgemäss schlanker als ihr Vorgänger.

Der eigentliche Wandel ist im Backend erfolgt, wie CEO Robert Plantak betont, gewissermassen «unter der Haube». Robert Plantak stellt auch heraus, dass es sich bei dem Re-Design nicht um eine einfache optische Aufwertung der Seite handelt. Im Gegenteil: Es wurden Möglichkeiten geschaffen, die in dieser Form nicht gegeben waren. In über neun Jahren, in denen es Crowdhouse gibt, haben wir immer dazugebaut. Jetzt waren wir an einem Punkt, an dem wir die Herkulesaufgabe angenommen haben, alles neu zu gestalten und neu zu denken. Damit haben wir die ganze Produktlogik auf ein neues Niveau gebracht.»

Vorteile durch KI-Matching für Immobilienkäufer

Welche Vorteile haben Nutzerinnen und Nutzer vom neuen Crowdhouse-Portal? Das Matchingsystem bringt gleich eine ganze Reihe von Vorzügen mit sich. Elementar ist der Zeitgewinn. Den nennt auch Robert Plantak an erster Stelle:

«Eines der wichtigsten Güter im Leben ist die Zeit. Ein gutes Investment zu finden, kann sehr viel Zeit dauern. Die möchten wir unseren Kundinnen und Kunden sparen.»

Doch auch darüber hinaus ist die neue Plattform vorteilhaft. Die Automatisierung bedeutet zum Beispiel, dass Interessierte nicht mehr zwangsläufig selbst das Angebot sondieren müssen. Stattdessen behält die KI den Überblick über aktuelle Renditeimmobilien auf Crowdhouse.ch und sendet im Fall eines positiven Treffers eine Nachricht. Damit wird die gesamte Recherche effizienter – und das ist nicht weniger als eine 180-Grad-Wende in der Immobilienbranche.

Nicht zuletzt wird das KI-basierte Matching auch noch einmal die Attraktivität einer Renditeanlage in Immobilien erhöhen. Der Nachteil der zu hohen Investitionssummen wurde durch das Miteigentum-Konzept der Crowdhouse AG bereits nivelliert, nun gewinnt das Modell auch noch einmal mehr an Übersichtlichkeit. Das heisst, die neue Plattform wird der alten in gleich mehreren Bereichen überlegen sein.

Die KI hilft erfahrenen Investoren und Neulingen

Mehr Effizienz, mehr Automatisierung, weniger Zeitaufwand – die neue Crowdhouse-Plattform wird erfahrenen Investorinnen und Investoren ganz sicher gefallen. Doch nicht nur alte Hasen spricht das KI-Matchingsystem an.

Neulinge profitieren genauso von dem Konzept. Indem sie ihr Profil initial möglichst präzise pflegen, erhalten sie in Rekordgeschwindigkeit Zugang zu Angeboten, die genau zu ihrem Bedarf passen. Das erleichtert den Einstieg in die Welt der Immobilieninvestitionen erheblich. Ausprobieren kann es ab sofort jeder, der möchte. Das KI-Matching ist als integraler Bestandteil der neuen Crowdhouse-Seiten bereits implementiert.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The European Central Bank (ECB) published its first progress report on the digital euro preparation phase, which was launched on 1 November 2023 with the aim of laying the foundations for the potential issuance of a digital euro.

The report outlines the progress made on key digital euro design aspects and the envisaged next steps for the project.

Digital euro privacy

The design of the digital euro includes an offline functionality that would offer users a cash-like level of privacy for payments in physical shops and between individuals. When paying offline, personal transaction details would only be known to the payer and the payee and would not be shared with payment service providers, the Eurosystem or any providers of supporting services.

In recent months, the ECB has agreed on the technical features required to guarantee that online digital euro transactions will provide an even higher privacy standards than current digital payment solutions, while still ensuring robust end-user protection against fraud. The Eurosystem would use state-of-the-art measures, including pseudonymisation, hashing and data encryption, to ensure it would not be able to directly link digital euro transactions to specific users.

In line with current practice, payment service providers would only have access to the personal data that are required to ensure compliance with EU law, such as anti-money laundering regulations. To use data for commercial purposes, payment service providers would need users’ explicit consent. As the issuer of and payment infrastructure provider for a digital euro, the ECB will be supervised by independent data protection authorities that will monitor its compliance with the European Union Data Protection Regulation (EUDPR) and the General Data Protection Regulation (GDPR).

An offline digital euro

The Eurosystem is developing an offline functionality that would enable digital euro users to pay without an internet connection after pre-funding their digital euro account via the internet or an ATM. Payments would take place directly between the offline devices – e.g. mobile phones or payment cards – belonging to the users involved in the transaction, without having to rely on third parties.

The ECB has been investigating the technical tools already available on the market that could allow the settlement of offline digital euro transactions directly in end users’ devices. It has also assessed other essential aspects of offline digital euro payments, with a view to making them seamless, secure and user-friendly.

The ECB’s technical work has focused in particular on delivery considerations and how to fund and defund offline digital euro wallets, including how to perform anti-money laundering and forgery checks. For offline payments, users would be able to use their mobile devices, while the Eurosystem is also investigating the potential use of battery-powered smart cards or non-powered smart cards which use a bridge device to communicate.

The effective implementation of an offline digital euro on mobile devices will ultimately depend on the requirements laid down for equipment manufacturers and providers of electronic communication services in the digital euro Regulation.

Digital euro holding limits

The design of a digital euro must ensure it can be widely used as a means of payment while still preserving financial stability and the transmission of monetary policy. For this reason, digital euro holdings of individuals would not be remunerated and would be subject to holding limits. Moreover, users would have the option to link their digital euro wallet with a commercial bank account, allowing them to make payments through their digital euro wallet without needing to pre-load it with funds.

The ECB has started work on a calibration methodology to define the holding limits, which entails a comprehensive monetary and economic assessment. A newly created workstream, including experts from the national central banks of the Eurosystem and national competent authorities, has begun to identify the factors that could influence the holding limits calibration. In this context, the ECB has launched a dialogue and a data collection exercise to obtain the granular data required to perform the assessment. As this is a collective endeavour, the ECB is holding regular exchanges with co-legislators and market participants (consumers, merchants and financial institutions) to update them on the technical work and gather feedback. The first engagements have already taken place, with more to follow in the coming months given the relevance of this work for all the stakeholders involved in the digital euro project.

Findings from this initial assessment will feed into the design of the calibration methodology. The exact holding limits would be based on this methodology and defined closer to the time of issuance, taking the prevailing economic conditions into consideration.

Digital euro rulebook and tender process

The digital euro Rulebook Development Group has completed an interim review of the first draft of the rulebook, which sets out the rules and procedures to standardise digital euro payments across the euro area. The group is expected to deliver an updated version of the digital euro rulebook by the end of 2024, including the pending chapters, which focus on user identification and authentication as well as infrastructure-related requirements.

In parallel, the ECB issued five calls for applications aimed at establishing framework agreements with suitable external providers for the provision of digital euro components and related services. The Eurosystem will now proceed with the selection process by inviting the highest ranked respondents to tender. This process will help decide the final technical details for designing a digital euro.

Supporting the legislative process

As legislative deliberations evolve, the ECB has continued to provide technical expertise to the European institutions involved. In particular, to support ongoing discussions, the ECB has (i) provided technical input with regard to analysing the dynamics in the euro retail payments market; (ii) published an in-depth technical analysis of the feasibility and implications of allowing multiple digital euro accounts per user and (iii) conducted additional technical work on a digital euro app with a view to making it highly inclusive and accessible.

“The digital euro preparation phase is progressing well and we support the ongoing democratic debate on the legal framework for the digital euro,” said Executive Board member Piero Cipollone, who chairs the High-Level Task Force on a digital euro. “The digital euro is a common European endeavour. As such, we will continue engaging with all stakeholders, including the European public, to ensure that it is successful and benefits us all.”

The Governing Council of the ECB will only decide on the possible issuance of a digital euro once the relevant legislation has been adopted, since this legal framework is essential for the concrete function of the digital euro.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Das Crowdlending Unternehmen Lend und Helveteq, der Schweizer Emittent für Investmentprodukte, lancieren gemeinsam das erste Direct Lending Zertifikat für Schweizer Immobilienfinanzierungen.

Damit wird es für private und institutionelle Investoren möglich, direkt in einen diversifizierten Pool von Schweizer Nachranghypotheken zu investieren

Das Zertifikat hat eine für den Schweizer Zinsmarkt ausgesprochen hohe Zielrendite von brutto 5.5-6.5%. Es investiert in Nachranghypotheken, die LEND auf ihrer Plattform zur Finanzierung durch die Crowd aufschaltet. Das Zertifikat investiert nach einer fixen Allokationsregel und stellt so eine Diversifikation hinsichtlich Kreditqualität, Finanzierungsobjekt und Anlagegrösse sicher.

LEND betreibt die Plattform für Direktfinanzierungen seit 2016 und bietet seit 2018 Hypothekarfinanzierungen an.

Stefan Jaecklin, Chairman von Switzerland AG meint dazu:

“Über unsere Plattform schliessen wir mit unseren privaten und institutionellen Investoren eine Finanzierungslücke in der Schweiz. Wir schalten dabei bisweilen kostspielige Intermediäre aus und schaffen einen Mehrwert für Investoren und Hypothekarnehmer, was letztlich auch unserer Wirtschaft und der Gesellschaft zugute kommt. Wir bedienen mit unserer Plattform und dem Modell der direkten Finanzierungen bereits rund 3’500 Investoren. Mit dem Zertifikat machen wir nun im Hypothekarbereich den Renditevorteil einer noch grösseren Investorengruppe zugänglich.”

Christian Katz, CEO von Helveteq, bemerkt dazu:

“Wir freuen uns, mit LEND ein innovatives Anlagezertifikat zu lancieren, welches der breiten Öffentlichkeit die Möglichkeit gibt, von attraktiven Hypothekarmärkten zu profitieren. Mit der Besicherung durch grundpfandbesicherte Hypothekarforderungen haben wir ein interessantes Rendite-Risiko-Profil für die Investorengemeinschaft in der Schweiz schaffen können.“

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Advertising in digital publications has become integral to modern marketing strategies, connecting brands with consumers in an increasingly digital world.

A new post published on StudioID highlights the strategic importance of digital publications in modern marketing strategies, emphasizing their ability to drive demand, generate high-quality leads, and enhance brand recognition and reputation affordably within business-to-business (B2B) content distribution strategies.

The post, titled “B2B Content Distribution: Why Advertising in Digital Publications Is an Essential Strategy”, explores the rapid rise of digital publications in the global media landscape, the various advertising formats that are being utilized, and the various benefits of advertising in digital publications.

Rise of digital publications

Digital publications are rapidly gaining popularity. German data platform Statista forecasts that the global market for digital newspapers and magazines will grow to US$40.23 billion in revenue by 2024, with a projected annual growth rate of 2.06% through 2029, reaching US$44.54 billion.

By 2029, the market is expected to attract 1.6 billion, up from 1.4 billion in 2024, while user penetration is projected to grow from 17.7% in 2024 to 20.4% in 2029.

Research indicates that the shift away from physical publications towards digital publications is being driven by several key factors and trends, including the proliferation of the Internet, technological advancements, and changing reader preferences for online content.

Recent YouGov research across 48 markets illustrates this transformation. It reveals that globally, 47% of consumers now rely on social networks as a primary source of news, while 38% prefer news apps, and 35% visit newspaper websites. Additionally, 27% of respondents turn to independent news websites, with 17% favoring digital magazine apps and 15% opting for online magazines.

Furthermore, 9% of global respondents seek news updates from non-major media blogs, with particularly high usage in the United Arab Emirates (UAE) (13%), Saudi Arabia (12%), and India (11%).

Mechanics of advertising in digital publications

The growth of digital publications has led to a significant increase in advertising within these platforms. Advertising in digital publications involves a close collaboration between a brand and a publisher to create a campaign specifically targeted to that publication’s readers. The resulting ads are often informative in nature and demonstrates the brand’s expertise to build trust with the audience over time.

In the fintech sector, for example, companies like Revolut, PayPal and Robinhood may promote a piece of sponsored content in publications like Business Insider, TechCrunch or Forbes. This allows them to reach a tech-savvy audience and decision-makers interested in financial tools and solutions.

This strategy allows brands to enjoy the benefits of paid channel advertising while providing the same informative nature of organic content marketing. It simultaneously provides demand generation of new leads and builds brand recognition and reputation.

Besides sponsored content, digital publications may offer other ad formats. These include display ads, such as banner ads, sidebar ads and pop-ups; video ads, which are short clips that play before, during or after video content; interstitial ads, which are full-screen ads that cover the interface of their host app or website; and rich media ads, which are interactive ads featuring video, audio, or other engaging components.

Benefits of advertising in digital publications

Advertising in digital publications offers significant benefits. First, the StudioID post says that the method provides brands with exposure to potential customers that may be beyond the reach of organic or traditional advertising networks. Some brands find that advertising with very niche publications is most effective, while others find the highest success from a broader approach, but ultimately, the right selection depends on a brand’s specific needs and audience.

Another key benefit is the ability to reach readers in the right mindset. When visitors are on a publication’s website, they are typically in a stage of their knowledge journey where they are actively seeking information. With this channel, brands get to provide information when the potential customer is looking to make an investment, significantly increasing the quality of leads and conversion.

Furthermore, advertising in digital publications allows companies to extend a campaign’s reach across various stakeholders, allowing them to easily connect with multiple decision-makers within the same organization and facilitating multi-threading opportunities.

Finally, readers trust digital publications as credible sources of accurate information. By associating their brand with these trusted sources, companies start off with a higher level of trust from the audience. Brands that work with the publisher on collaboration opportunities, such as co-creating a webinar, can enjoy even greater benefits.

Partnership methods

The StudioID post notes that brands are collaborating with digital publications in various ways. Content amplification is one method where brands promote events, activations, and campaigns to increase visibility. This is often done through pay-per-click ads directly within specific publications.

Another strategy involves leveraging newsletter placement. Digital publications often send newsletters with high open and click rates to their subscribers. Sponsored content within these newsletters blends seamlessly with regular updates, boosting its perceived value and trustworthiness among readers interested in the topic.

Sponsored articles are also popular. These involve partnerships with publications to create informative articles to be published alongside their regular content. Sponsored articles use paid content distribution to help build brand awareness as well as trust with potential customers, which drives both engagement and revenue.

Another method is co-branded content, such as sponsored webinars. These combine the publication’s the publication’s promotional efforts with the sponsor’s industry knowledge. This collaboration generates demand and attracts a highly targeted audience interested in specific topics, resulting in effective engagement and conversion rates.

Finally, brands can also choose in-article callouts, which place advertisements for specific content within regular publication articles. These ads blend in with the publication’s style, leveraging its authority to drive clicks and engagement. Positioned strategically within popular articles, they effectively amplify the reach of co-sponsored content, targeting niche audiences with precision.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Die Zahlungsmoral von Unternehmen bleibt in vielen Ländern trotz der herausfordernden geopolitischen Lage stabil – und verbessert sich im Vergleich zum Vorjahreszeitraum sogar teilweise.

Schweizer Unternehmen belegen mit 68,8 Prozent pünktlicher Zahlungen eine führende Position im nordeuropäischen Raum.

Deutsche Unternehmen folgen mit 64 Prozent und positionieren sich damit ebenfalls im oberen Segment des europäischen Marktes. Dies geht aus der Payment Studie 2024 von Dun & Bradstreet (D&B) und CRIBIS hervor, die das Zahlungsverhalten von Unternehmen in über 30 Ländern untersucht. Für die Studie wurden Daten bis zum 31. Dezember 2023 berücksichtigt.

Europäischer Vergleich

Im europäischen Vergleich zahlen Unternehmen in Dänemark (94,2 Prozent), Polen (82,7 Prozent) und den Niederlanden (76,1 Prozent) pünktlicher als in der Schweiz. Firmen in südeuropäischen Ländern wie Spanien (46,7 Prozent), Italien (41,1 Prozent) und Portugal (19,2 Prozent) rangieren dagegen hinter der Schweiz.

Im Branchenvergleich zeigt sich in der Schweiz ein differenziertes Bild: Unternehmen im Bauwesen (75,2 Prozent) und Finanzwesen (73,5 Prozent) zahlen weiterhin sehr zuverlässig. Grosshandel (63,3 Prozent) und Einzelhandel (62,9 Prozent) zeigen ein durchschnittliches Zahlungsverhalten. Besonders auffällig ist der deutliche Rückgang pünktlicher Zahlungen in den Branchen Spedition und Logistik, Kommunikationsdienstleistungen sowie im Nah- und Fernverkehr.

Zahlungs-Moral von Unternehmen in Asien

Asiatische Unternehmen weisen im Durchschnitt eine geringere Zahlungsmoral auf. Firmen in China (56,3 Prozent) und Singapur (41,1 Prozent) stechen dabei mit einer positiven Entwicklung hervor.

In Nordamerika zahlen Unternehmen in den USA (59,5 Prozent), Mexiko (44,9 Prozent) und Kanada (33,8 Prozent) seltener pünktlich als in der Schweiz. Weltweit zeigt sich ein anhaltender Trend: Kleinere Unternehmen zahlen häufig pünktlicher als grosse Konzerne.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Zendesk officially launched its global venture fund to back AI-first companies focused on enhancing customer and employee experiences.

Zendesk Ventures also announced new investments in PolyAI, a developer of advanced conversational voice assistants, and unitQ, an AI-powered product quality platform. The fund empowers emerging companies to unlock their potential by providing capital, CX and AI expertise, and strategic partnership opportunities for growth and innovation.

“Every organization is on a path to becoming AI-driven, and we’re eager to form partnerships with companies leading this new era,”

said Ben Barclay, SVP of Strategy, Corporate Development, & Transformation, Zendesk.

“Our goal extends beyond building our own products; we’re also supporting an ecosystem of startups whose visions align with ours. Customer and employee service is changing rapidly because of advancements in AI. Investing in these companies does more than drive their growth, it elevates our customers’ ability to provide exceptional interactions.”

The Zendesk Ventures portfolio already includes conversational intelligence platform Observe.AI, and field service management software provider, Zuper. The two new portfolio additions announced today are focused on AI-powered CX and operational efficiency:

• PolyAI, a voice-focused solution, allows Zendesk customers to handle complex interactions such as order tracking and delivery updates as natural as a human conversation. This capability has increased revenue for customers across a variety of industries while also reducing human agent call volumes and time spent on inquiries.
• unitQ, an AI-powered product quality platform, enables businesses by efficiently collecting and analyzing customer interactions and feedback across a range of 60+ sources in real-time, to pinpoint the root cause of all user fiction and improve Net Promoter Scores (NPS).

Beyond capital, Zendesk Ventures offers access to CX and AI experts, strategic partnership opportunities to accelerate growth and innovation, and the chance to be featured on Zendesk Marketplace.

Featured image credit: Ben Barclay, SVP of Strategy, Corporate Development, & Transformation, Zendesk, edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Die neu gegründetet Stiftung «HSG START Accelerator» unterstützt mit einem speziellen Förderprogramm nationale und internationale Startups bei der Professionalisierung ihrer Unternehmen.

Gründungspartner sind die HSG, START Global und Switzerland Innovation Park Ost (SIP Ost).

Am 26. Juni 2024 haben die drei Stiftungsräte die Gründungsurkunde unterzeichnet. Ab sofort ist die im SIP Ost angesiedelte Stiftung für Unternehmer:innen im Einsatz.

Der «HSG START Accelerator» soll das führende Accelerator-Programm in Europa werden und starke technologieorientierte Startups auf ihrem Wachstumskurs begleiten. Im Herbst 2024 testen die Organisatoren ein dreimonatiges Intensivprogramm mit einem sogenannten «Pilot-Batch». Der erste reguläre Batch startet im Frühjahr 2025. Das Programm bereitet die nationalen und internationalen Jungunternehmen gezielt auf die Wachstumsphase vor und hilft ihnen, ihre Überlebenschancen und ihre Attraktivität zu erhöhen, insbesondere für Venture-Capital-Investoren.

St.Gallen als attraktiver Standort für Jungunternehmer:innen

Der Kanton St.Gallen möchte sich als attraktiver Standort für Jungunternehmer:innen etablieren. Deshalb möchte die Regierung des Kantons St.Gallen das Gemeinschaftsprojekt «HSG START Accelerator» der Universität St.Gallen zusammen mit dem Switzerland Innovation Park Ost (SIP Ost) und START Global mit 5.4 Millionen Franken unterstützen.

Gleichzeitig sollen 4.6 Millionen Franken für die finanzielle Stärkung der bestehenden Stiftung «Startfeld» zur Verfügung gestellt werden. Der Kantonsrat hat das Geschäft in der Sommersession in erster Lesung beraten. Die zweite Lesung ist für die Herbstsession 2024 vorgesehen.

Entstanden ist das Gemeinschaftsprojekt aus dem Auftrag der Standortförderung des Kantons St.Gallen, eine Startup-Strategie für den Kanton zu entwickeln. Das Accelerator-Programm wird die regionale Gründerszene nachhaltig stärken und eine Angebot- und Finanzierungslücke schliessen. Ein solches Angebot fehlt bisher in St.Gallen. Während des Gründer:innengipfels «START Summit» Ende März 2024 wurde bekannt gegeben, dass die Stiftung im Juni 2024 gegründet wird.

Drei Stiftungsräte mit Startup-Erfahrung

Der Stiftungsrat des Accelerator-Programms setzt sich zusammen aus drei in der Startup-Szene St.Gallen aktiven und engagierten Mitgliedern:

Prof. Dr. Dietmar Grichnik (Präsidium):

Prof. Dr. Dietmar Grichnik ist Prorektor für Innovation und Qualität, Ordinarius für Entrepreneurship und Direktor des Instituts für Technologiemanagement (ITEM-HSG) an der Universität St.Gallen. Als Gründer und Direktor des Center for Entrepreneurship (Startup@HSG) und des Global Center for Entrepreneurship and Innovation setzt er sich ein für die Förderung von HSG Spin-Offs und des Schweizer Startup-Ökosystems. Als Coach und Investor engagiert sich Dietmar Grichnik in schnell wachsenden Unternehmen wie First Stop Health, einem in den «Inc. 500»-notierten Telemedizinunternehmen, und CareerOS, einem EduTech-Startup aus den USA. Zudem ist er Mitglied im Stiftungsrat der Foundation Switzerland Innovation und des Verwaltungsrats des Switzerland Innovation Park Ost (SIP Ost). Dietmar Grichnik zählt zu den TOP-100 der führenden Entrepreneurship-Professoren weltweit.

Dr. Cornelia Gut-Villa (Vize-Präsidium):

Cornelia Gut-Villa machte ihren Abschluss an der Universität Zürich und verfügt über 20 Jahre Erfahrung im Bankwesen, in der Strategieberatung und im Startup-Coaching. Sie ist u.a. Geschäftsführerin der Startfeld-Stiftung, die Jungunternehmer in der Seed-Phase finanziert, und verantwortlich für die Investor Relations des Switzerland Innovation Park Ost (SIP OST). Zudem ist Cornelia Gut-Villa im Vorstand des Swiss ICT Investor Club (SICTIC) aktiv, der ersten Anlaufstelle für Technologie-Startups mit Sitz in der Schweiz, die auf der Suche nach einer Finanzierung durch «smart money» sind. Sie ist Verwaltungsratsmitglied in verschiedenen Unternehmen (u.a. Egonym AG und Signifikant AG) sowie Mitglied des Verwaltungsrats von Swiss VR. Die SECA (Swiss Private Equity & Corporate Finance Association) hat Cornelia Gut-Villa 2021 zum 18. «Business Angel des Jahres» gewählt. An der HSG ist sie im wissenschaftlichen Beirat tätig.

Andreas Göldi (Mitglied des Stiftungsrats):

Andreas Göldi ist seit 2019 Partner bei der Venture-Capital-Firma b2venture und begeisterter Technologe, Serienunternehmer und Investor mit über 25 Jahren Erfahrung. In den 1990er Jahren gründete er noch während seines Studiums an der Universität St.Gallen sein erstes Startup Namics, ein digitales Beratungsunternehmen, das ein paar Jahre später übernommen wurde. Das Unternehmen baute in den Anfängen des Internets mehrere bahnbrechende Webseiten im deutschsprachigen Raum auf. Nach 2004 gründete Andreas Göldi mehrere weitere Unternehmen in den Bereichen Online-Medien, Social Media Analytics und Video-Marketing. Zwölf Jahre verbrachte der gebürtige St.Galler in der Region Boston, zunächst als Sloan Fellow am Massachusetts Institute of Technology (MIT) und ab 2007 als Unternehmer. Seine beiden in den USA ansässigen Startups waren frühe Anwender von maschinellem Lernen und Cloud-Infrastruktur.

Mitglieder des Projektteams (v.l.n.r.): Jürg Stuker, Max Bieri, Prof. Dr. Dietmar Grichnik, Dr. Cornelia Gut-Villa, Niklas Rückwald, Dr. des. Bernd F. Schneider

Since launching in 1997, the >>venture>> startup competition has been a cornerstone event in Switzerland’s innovation landscape, supporting and celebrating startups for over 25 years.

Past winners and participants have gone on to found over 1,500 companies and created more than 15,000 jobs in Switzerland, a testament to the competition’s enduring impact on the regional entrepreneurial ecosystem.

The 2024 edition of the competition offered over CHF 500,000 in cash prizes, along with access to a deep network of mentors and investors. The competition is renowned not only for recognising outstanding startups but also for providing them with the essential support needed to thrive.

Winners are also awarded non-dilutive cash prizes, which provide crucial funding without requiring founders to give up equity. The top three finishers in each vertical receive CHF 50,000, CHF 20,000, and CHF 10,000, respectively, to kickstart their entrepreneurial journeys.

CLIMADA Technologies: A Leader in Climate Risk Analytics

Founded by Sebastian Glink, Simone Thompson, and their climate science advisor, Prof. Dr. David N. Bresch, >>venture>> 2024 Finance & Insurance First Place Winner CLIMADA Technologies AG is a data-driven fintech with a focus on sustainability.

“CLIMADA Technologies specialises in comprehensive climate risk analytics, leveraging advanced data models and AI to provide precise and actionable insights,”

explained Sebastian.

Their platform offers forward-looking analysis for clients’ exposed locations, covering acute and chronic hazards.

CLIMADA Technologies’ event-based simulation platform is designed for the socio-economic impact assessment of weather and climate events. Using mathematical models, the platform compiles risk assessments, enabling companies, authorities, and other decision-makers to better prepare for rising weather and climate risks.

Simone elaborated,

“What sets us apart is our integration of cutting-edge technology with a deep understanding of climate science, enabling us to offer customised solutions that cater to diverse industries.

Our commitment to open-source principles and collaboration with scientific communities further distinguishes us from competitors.”

With 20 years of experience in international blue-chip organisations spanning finance, marketing, project management, branding, sales, and communications, Simone’s expertise complements Sebastian’s extensive background in building scalable technology solutions in insurance, reinsurance, and retail industries.

Unique Approach to Climate Risk

The company aims to contribute to a more resilient and sustainable global economy by empowering organisations with the tools they need to manage climate risks effectively.

“We aspire to be a leading provider of physical climate risk analytics in the Swiss and global financial ecosystems.

Our goal is to integrate our solutions into mainstream financial, insurance, and industry practices, driving the adoption of climate-resilient strategies and sustainable investment decisions,”

said Sebastian.

Their simulation models calculate risk assessments for various events like cyclones, heatwaves, droughts, floods, and forest fires, both historically and probabilistically. This predictive technology, including AI, enables them to forecast impacts of weather extremes that have not yet occurred, but are physically plausible.

A Journey Towards Impact

Participation in the >>venture>> competition was driven by CLIMADA Technologies’ commitment to expanding its impact.

“The competition provides a unique platform to showcase our innovative solutions in climate risk assessment and resilience building,”

said Sebastian.

The recognition from >>venture>> is expected to enhance the company’s credibility and visibility, attracting top-tier clients and partners.

“The recognition will open doors to new markets and opportunities for collaboration, further establishing our position as a leader in climate risk analytics,”

stated Simone.

Strategic Growth and Partnerships

Looking ahead, CLIMADA Technologies plans to scale its technology, expand market reach, and become a thought leader in climate adaptation over the next three to five years. The mentorship and networking opportunities offered by >>venture>> are particularly valuable.

“Access to experienced mentors in the finance and insurance sectors will provide us with strategic guidance and industry insights,”

noted Simone.

Winning startups receive exclusive access to mentorship and coaching from industry experts, which is invaluable in navigating the challenges of early-stage growth.

In the Finance & Insurance vertical, mentors included Magdalena Tarasinska, Board Member at the Swiss ICT Investor Club (SICTIC); Ulrich Hoffmann, Board Member at UBS Business Solutions; Philipp Steinberger, the owner of Steinberger Consulting; and Massimo Soriano, Client Advisor at Rothschild & Co.

Sebastian added,

“Insights from leaders like Ulrich Hoffmann and Frédéric Lauchenauer will be invaluable in refining our products and strategies to meet the evolving needs of the market.”

In addition, CLIMADA Technologies plans to use the CHF 50,000 cash prize to invest in research and development, hire top talent, strengthen marketing efforts, and establish strategic partnerships to enhance service delivery and expand into new geographic markets.

Commitment to Climate Resilience

The company is committed to addressing climate risks as both a business opportunity and a responsibility, aiming to deliver solutions that support businesses in mitigating risks and contributing to global climate change efforts.

Their innovative approach allows for precise impact assessments, positioning them at the forefront of climate risk management and earning them the top spot in the >>venture>> competition’s Finance & Insurance category for 2024.

This recognition is seen as an acknowledgement towards realising CLIMADA Technologies’ vision of a more resilient and sustainable future.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Cross-border payment flows are projected to increase by 53% between 2023 and 2030, rising from US$190 trillion to US$290 trillion. This growth will be driven by the rise of innovative payment technologies and trends including real-time payment (RTP), blockchain, and embedded finance, which are poised to make transactions faster, easier and more transparent, a new report by Convera, an American business-to-business (B2B) cross-border payments company, says.

The report, titled “Fintech 2025+: Trends, technology, and transformation in global commerce”, provides an overview of the cross-border payments landscape, shares industry projections and explores emerging trends.

According to the report, cross-border payments are expected to experience strong growth over the next seven years, fueled by digitalization efforts by industry stakeholders and technological advancements.

RTP systems are highlighted as a key growth driver, praised for their ability to enhance liquidity and financial stability by unlocking working capital and reducing transaction times. Around the world, RTPs have proliferated over the past years, propelled by government support.

These have contributed to their growth by establishing and enforcing regulatory frameworks that create a standardized and secure environment for RTP systems. These regulations address data privacy, fraud prevention, and consumer protection, ensuring that the RTP ecosystem is safe and reliable.

In addition to regulatory support, governments have also invested in and supported the development of national RTP infrastructures. Examples include India’s Unified Payments Interface (UPI), and Brazil’s PIX, both of which are direct results of governmental initiatives aimed at modernizing payment systems.

Governments are now working on integrating RTPs with cross-border payments. In Europe, Sweden joined the Eurosystem TARGET Instant Payment Settlement (TIPS) in February 2024, becoming the first non-euro area country to join the instant cross-border payment scheme with its national currency, the Swedish krona. Meanwhile, the European Payment Council’s One-Leg Out Instant Credit Transfer scheme, which went live last year, aims to streamline international transactions within and beyond Europe.

In Southeast Asia, Vietnam, Indonesia, Malaysia, Thailand, the Philippines and Singapore have joined hands to connect their RTP systems, emphasizing QR code usage for retail. This collaboration aims to bolster trade and resilience across the region.

In 2023, RTPs continued to climb to new record highs, totaling 266.2 billion transactions and recording a year-over-year (YoY) growth of 42.2%, an industry report by ACI Worldwide and GlobalData show. The figure gives RTPs a share of 19.1% among all electronic transactions globally. By 2028, that proportion is expected to rise to 27.1%, and reach a total of 575.1 billion transactions, representing an annual growth rate of 16%.

Another growth driver highlighted in the report is the integration of blockchain technology. Fintech companies are increasingly using distributed ledger technology (DLT) to address the challenges associated with cross-border payments by enhancing transparency and traceability, reducing fraud risk and improving security.

A survey conducted in 2022 by PYMNTS.com found that 37% of businesses were already using blockchain for cross-border payments, with an additional 13% expressing a desire to adopt this technology in the future.

The use of blockchain for cross-border transactions is expected to grow rapidly, with projections by Statista indicating a significant increase in B2B transactions on blockchain by 2025, led primarily by the Asian market.

On a global scale, the Bank for International Settlements (BIS) is collaborating with central banks on several DLT projects aimed at enhancing cross-border payment speed, transparency, and interoperability.

Project Agora, for example, seeks to integrate tokenized commercial bank deposits with tokenized wholesale central bank money using smart contracts for instantaneous settlement. Project mBridge aims to create a unified platform for issuing and exchanging wholesale central bank digital currencies (CBDCs) from multiple central banks, reducing cross-border transfer times from days to seconds. Finally, Project Dunbar focuses on developing a common platform for CBDC issuance and exchange to address interoperability challenges.

Embedded finance is another driver of cross-border payments outlined in the report. Embedded finance, which refers to the integration of financial services or tools into non-financial platforms, apps or ecosystems, represents a significant evolution in the financial services landscape, building upon concepts like open banking, open finance, modular banking and banking-as-a-platform (BaaS).

The approach is now utilized across various sectors to enhance shopping experiences and mobile services. It’s also used in supply chain operations to streamline processes and facilitate trade finance. For businesses with international operations, embedded finance simplifies currency exchange in cross-border transactions.

Estimates suggest that the global opportunity for embedded finance will reach US$7.2 trillion in the next decade, twice the combined value of the world’s top 30 banks today.

Cross-border payment revenues are expected to reach US$260 billion by 2030, driven by the B2B segment (US$220.5 billion). Consumer-to-business cross-border transactions are set to generate US$34 billion in revenues, followed by business-to-consumer (US$13.4 billion), and consumer-to-consumer (US$12.3 billion).

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

During its meeting on 19 June 2024, the Federal Council was informed by the Federal Department of Finance (FDF) about the most recent open finance developments in Switzerland.

The latest advances made by the industry are considered sufficient at this time, so that there is no need for further regulatory measures to be proposed. The FDF will continue to closely monitor developments in the financial sector as a whole based on the targets set by the Federal Council in December 2022.

Open finance refers to the practice of financial institutions using standardised and secure interfaces to make financial data available to other financial service providers such as fintechs, insurance companies and banks at the request of clients. In this way, clients can benefit from new, innovative products. It would be possible to create an overview of all bank accounts, investments and retirement assets or calculate the carbon footprint of financial investments, for example, at the click of a button.

Open Finance: Different to UK

Unlike in the European Union or the United Kingdom, there is no legal obligation in Switzerland for financial institutions to make financial data available to third-party providers at their clients’ request. Instead, the Federal Council expects the private sector, together with interested stakeholders, to push ahead with the standardisation and opening of interfaces in the various areas. In December 2022, the Federal Council instructed the FDF to submit possible measures to it by June 2024 in the event that the financial sector failed to make sufficient efforts to open its data interfaces.

The Federal Council was updated on the latest progress in the area of open finance during its meeting on 19 June 2024. The most recent developments, especially the multibanking initiative that was launched by means of a memorandum of understanding signed by 40 banks in May 2023, are seen as a clear commitment by the banking sector to open finance, even if the Federal Council’s targets for open finance in Switzerland (common standards, opening of interfaces, scalability) have not yet been fully reached. The FDF therefore informed the Federal Council that no government measures are required at present.

Deadline end of 2025

The February 2022 Federal Council report on digital finance stipulates that the need for action to promote and expand open finance should be reviewed on a regular basis, with a deadline of the end of 2025. The FDF will thus keep a close eye on further developments. It will monitor whether the multibanking initiative is being implemented effectively, whether the interfaces to non-bank third-party providers such as fintechs are being opened and how committed the insurance sector is to open finance. In addition, the multibanking initiative offers an interesting model for opening further interfaces, e.g. for securities custody accounts, for pillar 3a or in the insurance sector.

The Federal Council will continue to have the FDF keep it abreast of any measures that may need to be taken to promote open finance in Switzerland.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Traditional banks have launched separate digital banking arms – referred to as spin-offs – to compete with digital challengers and fintech companies offering smoother digital experiences and innovative products. However, spinning off a digital bank also presents challenges and many incumbents fail in their endeavor due to legacy technology, outdated business models, traditional mindsets, and core cultural incompatibility, a blog post by Gazi Yar Mohammed, a C-level bank executive and fintech entrepreneur, says.

The post, titled “Can Traditional Banks Compete with Digital Banks Through Spin-Off Strategies?”, discusses the potential of traditional banks to compete with digital banks by creating their own digital banking arms. It also explains why many banks fail in their spin-off attempts.

According to Mohammed, a number of incumbents make the critical mistake of viewing spin-offs as extensions of their existing businesses. Hence, many spin-offs are constrained by established procedures, preventing them from adopting the innovative approaches necessary to compete in a digital landscape.

Spin-offs can also be hampered by legacy technology. Burdened with outdated systems, they struggle to match the agility of fintech startups.

Thirdly, a traditional mindset is another major hindrance. The lack of fresh perspectives makes it difficult for these ventures to disrupt the status quo and meet evolving customer needs.

Lastly, there is an incompatibility with the core culture of the parent bank. Operating within the existing framework stifles the customer-centric culture and agile work practices crucial for success.

A successful strategy

To overcome these challenges, Mohammed advises incumbents to establish a truly separate entity for their spin-off ventures. This new entity should have a dedicated team with a distinct mission. This team should consist of both experienced bank personnel and individuals with forward-thinking digital expertise.

The business model should rely on a highly efficient and low-cost operation. This can be achieved by adopting a lead organizational structure and relying on cloud-based technology, automated processes and a remote workforce.

The foundation should involve a cloud-native, API-enabled technology stack which facilitates rapid innovation, seamless integration, and easy scaling. Key components of this technology stack should include a modern core banking system that handles deposits, lending, and other essential functionalities; a data and artificial intelligence (AI) platform that centralizes transaction and customer data, and which enables AI and machine learning (ML) models for personalization, fraud detection, and advanced analytics; DevOps and micro-services that utilize agile development practices and a containerized micro-services architecture, ensuring flexibility and scalability; and open banking capabilities with standard APIs that enable data sharing and integration with third-party service providers, fostering embedded finance opportunities.

Digital bank spin-offs should also adopt efficient client acquisition methods, including digital onboarding, social media marketing, self-service tools, and data-driven outreach strategies. Premium value-added services should be offered, including premium accounts with enhanced features, commission revenue from product cross-selling, and revenue sharing from partnerships.

Finally, the product roadmap should balance innovative offerings with traditional banking services. This can include mobile-first checking and savings accounts, peer-to-peer (P2P) payments, high-interest savings products with robo-advisory capabilities, digitized loan products for mortgages, cashback programs or integration with buy now, pay later (BNPL) platforms.

The growing popularity of digital bank spin-offs

Over the past years, digital-only spinoffs have become an increasingly popular way for incumbent banks to target new demographics, expand their reach, and test new products and technologies. According to Mohammed, more than 50 digital banks have been spun off by incumbents.

Bank Jabo by PT Bank in Indonesia is among the most successful ones. The venture, launched in 2021, has rapidly grown to reach 10.2 million customers, becoming one of the few profitable digital banks globally.

Bank Jago’s consistency in innovation and collaboration with the digital ecosystem has played a vital role in its customers’ growth. One of Bank Jago’s strategic initiatives is GoPay Tabungan by Jago, launched in October 2023. Through its collaboration with GoPay, part of GoTo Financial, GoPay Tabungan by Jago is a savings account product for daily transactions that can be accessed directly via the GoPay and Gojek Apps.

The bank has also inked partnerships with other leading brands including Atome, Tokopedia, Bibit, and Stockbit, allowing it to offer a unique value proposition and reduce customer acquisition costs.

Furthermore, Bank Jago has achieved successes in implementing AI and analytics to enhance customer experience, personalize services and adapt to user needs. An example of the bank’s innovative features is the “pockets” and “shared pockets”, inspired by the Indonesian “amplop” system in which a person uses envelopes to save money for different purposes. Bank Jago’s pockets allow users to digitally manage money for different purposes and share these pockets with others, aligning with local financial management practices.

Another successful digital bank spin-off is Chase UK, the digital banking arm of US banking giant JP Morgan. Launched in 2021, Chase UK has grown to serve two million customers and manage some GBP 15 billion in deposits.

Chase UK is winning over customers through a slick digital experience and high standards of customer care. It’s benefiting from JP Morgan’s brand recognition and deep pockets to invest in building out its UK digital banking capabilities rapidly.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Private capital activity has increased remarkably in Germany (D), Austria (A) and Switzerland (CH), collectively referred to as DACH.

In December 2022, DACH-based fund managers held a total of EUR 238 billion in assets under management (AUM), up by more than 140% since 2018, a new report by Preqin, a London-based investment data company, shows.

Within private capital, private equity (PE) activity witnessed momentum, rising from EUR 26.7 billion in 2018 to EUR 75.7 billion in 2022. The surge was driven by several billion-dollar deals, including the EUR 17.2 billion TK Elevator deal of 2020, the CHF 10.2 billion deal for Galderma, formerly Nestlé Skin Health, in 2019, and the US$5 billion deal for Veeam Software Group in 2020.

Venture capital (VC) AUM climbed from about EUR 12 billion in December 2018 to EUR 32.3 billion by the end of 2022, with notable deals including US$1 billion rounds secured by Gorillas Technologies, a German on-demand grocery delivery and dark store operator, and Celonis, a German data processing company; a US$900 million Series E raised by German digital bank N26; and a US$900 million Series C secured by German neobroker Trade Republic.

In DACH, private capital activity is increasing as more managers enter the market. Between 2018 and 2023, the number of active general partners in the region doubled, surging from 986 to 2,084, with the most dynamic manager growth happening in PE and VC. PE grew by 90% during the period, while in VC, the figure doubled.

The surge is largely due to more DACH-based investors participating in private capital, driven by private wealth. Since 2018, the number of family offices involved in private capital has increased by over 140%. This growth is primarily focused in Germany, where the number of private capital investors has risen by nearly 70% over the same period.

Despite the momentum in private capital activity, the data show that DACH still represents under 10% of the total EUR 2 trillion European private capital AUM. The region is lagging behind its two regional rivals, France and the UK, which have embraced alternative investments more actively over the last decade. In fact, private equity AUM in the UK is over six times greater than that of DACH.

Over the mid-term, Preqin expects Germany to become a popular home for PE investments, particularly in the Mittelstand market. Mittelstand are generally private, family run companies that specialize in one product or service. These companies are typically defined as mid-market organizations with up to 250 employees and annual turnovers of no more than EUR 50 million.

Private equity fund managers across Europe have sought access to Mittelstand companies, which are the economic backbone of Germany, making up over 99% of firms and accounting for 58.5% of jobs.

Deutsche Beteiligungs AG, a PE firm specializing in mid-sized companies, reported in January 2024 that the buyout market in the German Mittelstand market is growing at an average annual rate of around 7%, indicating a yearly increase in the number of businesses being sold by founders and families.

The importance of PE firms for Germany’s Mittelstand has significantly increased in recent years. Ulrike Hinrichs, executive board member of the German Equity Capital Association, told springerprofessional.de in an interview in March 2024 that this is because SMEs often need more support for growth, internationalization, and technological innovations than traditional bank financing can provide.

Munich Strategy, a consulting firm specializing in mid-sized companies, conducted an analysis of over 800 mid-sized companies, and found that companies backed by PE grow faster in sales and profits compared to owner-managed companies.

In particular, PE-backed companies recorded an average annual sales growth of 7.5% between 2018 and 2021, while owner-managed companies grew by only 2.3% during the same period. After the COVID-19 pandemic, PE-backed companies showed a particularly rapid recovery with an average sales growth of 15.6% in 2021, compared to 7.7% for owner-managed companies.

PE investments also lead to more job creation. Between 2018 and 2021, the number of employees in owner-managed companies increased by 1.3% per year. In contrast, PE-backed companies saw an 8% annual increase in employees, partly due to takeovers.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The Asian Development Bank (ADB) has released its annual outlook and economic forecasts for Asia-Pacific (APAC), predicting strong economic growth in Southeast Asia driven by robust domestic demand, a continued recovery in tourism, and an expansion of the semiconductor industry.

The subregion is expected to grow by 4.6% in 2024 and 4.7% in 2025, up from 4.1% in 2023.

Singapore’s gross domestic product (GDP) is forecast to grow by 2.4% in 2024, up from 1.1% in 2023, supported by continuing recovery in manufacturing and external trade. Growth in manufacturing will gradually pick up in tandem with the turnaround in global electronics demand, while services will remain resilient, supported by trade-related sectors, the ADB predicts.

Stable consumption and a recovery in investment will support domestic demand, despite higher domestic taxes, and external demand is already showing signs of recovery, increasing by 16.1% in January 2024.

Across the broader Southeast Asia subregion, the Philippines (6% in 2024 and 6.2% in 2025) and Vietnam (6% in 2024 and 6.2% in 2025) are expected to see the strongest economic growth through 2025, boosted by a resurgence in merchandise exports starting in mid-2024. Indonesia, meanwhile, will maintain a 5% growth rate over the next two years, supported by strong private consumption, public infrastructure spending, and gradually improving investment. Across the region, tourism will further support services growth across the subregion, while industrial output will align with a recovery in exports and easing monetary policy.

Finally, Southeast Asia’s inflation will continue to ease, the ADB predicts, falling from 4.1% in 2023 to 3.2% in 2024 and 3% in 2025.

In 2023, economic growth in Southeast Asia slowed, dipping from 5.7% in 2022 to 4.1% in 2023 as weaker external demand contributed to slower growth in nine of the subregion’s 11 economies.

Southeast Asia’s exports of electronics contracted by 7.5% in 2023 (up to November) after a strong 19.1% expansion in 2022. With the exception of Singapore, the subregion has been less involved in producing the AI and automotive chips driving the upturn in the semiconductor demand cycle.

The rise of AI fuels demand for semiconductors

Semiconductors are the fundamental building block of modern electronics. They are critical not to consumer electronics but also to technologies like artificial intelligence (AI), 5G telecommunications, and electric and autonomous vehicles, among others.

Southeast Asian economies have been striving to increase their share in the global semiconductor value chain, and the ADB predicts that the rising AI-driven demand for specialized microchips could benefit these economies.

Southeast Asian countries could see gains due to their focus on downstream services such as assembly, testing, and packaging, which are vital to the global semiconductor industry. Moreover, these economies provide younger, more abundant, and lower wage workers that can attract investments from large semiconductor manufacturers in East Asia as they diversify their production base.

Evidence suggests that this is already taking place, with the state of Penang in Malaysia attracting almost US$13 billion in semiconductor-related foreign direct investment in 2023, exceeding the total for the previous seven years combined, according to Prime Minister Datuk Seri Anwar Ibrahim.

Malaysia, which already accounts for 13% of global semiconductor testing and packaging, is targeting at least MYR 500 billion (US$107 billion) in investment for its semiconductor industry. The country has already dran investments from leading international firms including US chipmaker Intel and German firm Infineon. Western firms AT&S, Nvidia, Ericsson and Bosch are also expanding their operations in Malaysia, as are the Chinese companies Xfusion, StarFive, and TongFu Microelectronics.

Vietnam’s capital, Hanoi, is also working to become a semiconductor production hub by 2050, offering tax breaks and other incentives to attract semiconductor companies.

To keep harnessing this potential, the ADB advises governments in the region to continue devising policies that attract foreign direct investment, increase spending on research and development, and invest in human capital development, as semiconductor manufacturing requires highly skilled labor.

Asia’s semiconductor sector

High-income and developing economies in Southeast Asia and East Asia, such as Taiwan, South Korea and Mainland China, account for more than 80% of global semiconductor manufacturing.

After contracting sharply at the end of 2022, exports from Asia’s main semiconductor manufacturing economies picked up over 2023 and were about 15% higher in the last quarter of the year relative to the first quarter.

This increase in semiconductor exports was primarily driven by increasing demand for microprocessors and memory chips, which grew by almost 25% from the first to the last quarter of 2023. Their share in overall semiconductor exports from Asia’s main producers rose almost 5% points over 2023, boosted by the exponential growth in generative AI applications like ChatGPT and the need for specialized, high-performance hardware to support these applications, the report says.

Global sales of semiconductors are expected to reach US$588 billion this year, up from US$520 billion in 2023, according to the World Semiconductor Trade Statistics (WSTS) organization.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

PostFinance customers will in future be able to open e-trading saving plans for 30 different ETFs, around 300 shares from the most important indices and PostFinance themed certificates.

As of 18 June 2024, PostFinance is the first major Swiss retail bank to offer its customers access to the saving plan function for ETFs, shares and themed certificates.

“Thanks to their simplicity and cost efficiency, saving plans are experiencing growth and increasing popularity among investors,”

says Philipp Merkt, Chief Investment Officer at PostFinance.

Put simply, a saving plan works like a standing order. Philipp Merkt explains:

“Customers can use the saving plan to buy securities regularly – weekly, fortnightly or monthly – and automatically via the PostFinance e-trading platform.”

Saving plans offer a great deal of flexibility: customers can take a break at any time, and they can also adjust their maximum investment amount based on their current financial possibilities.

Comprehensive range of saving plan options

Customers can choose from a wide range of e-trading products: there are a total of 30 different ETFs, i.e. five per issuer. The partners for the ETF saving plan service are the issuers iShares, Invesco, UBS Asset Management, Amundi, Xtrackers by DWS and Vanguard.

The saving plan function will initially be available in the desktop version of e-trading. Integration into the PostFinance App will follow at a later stage.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

E.foresight, a Swiss banking think tank operated by telecommunications provider Swisscom, has released its Swiss Sustainable Fintech Map, highlighting the fintech companies in Switzerland that incorporate sustainability into their core business models, operations, and products.

The map shows that Switzerland is currently home to 49 companies that fall under the sustainable fintech category, providing the segment a share of 12% of the overall fintech ecosystem. Investment management is the most developed sustainable fintech vertical in Switzerland, with 28 companies. It’s followed by banking infrastructure with 15 companies, payments with four, and deposit and lending with two.

The figure implies that the Swiss sustainable fintech sector rose by 53% between 2023 and 2024, growing at a much faster pace than the fintech sector as a whole (16%) during the period, data from the 2024 IFZ Fintech Study by the Lucerne University of Applied Sciences and Arts’ Institute of Financial Services Zug (IFZ) show.

An analysis of the founding years of the sustainable fintech companies based in Switzerland reveals that around half of all sustainable fintech companies were founded in the last three years, which indicates a certain momentum in this area.

From a regional perspective, the report shows that the largest cluster of sustainable fintech companies can be found in the canton of Zurich (22 companies), followed by Geneva and Zug (8 each), Basel-City and Schwyz (three each), Vaud (two), and Jura, Neuchâtel, and Thurgau (one each).

Sustainable finance on the rise

Sustainable fintech companies leverage technology to promote environmental, social and governance (ESG) criteria while providing financial services. These companies are rising in prominence for their positive contribution to sustainable developments goals such as reducing carbon footprints, promoting financial inclusion, and encouraging ethical investments.

Open Forest Protocol, for example, is developing a scalable open platform that allows forest projects of any size, from around the world to measure, report and verify their forestation data. The company, which raised US$4.1 million in January 2023, uses blockchain technology to verify and record forest data publicly, so anyone can see what is happening with the forests registered.

Frigg.eco is a Zurich-based company that provides business-to-business (B2B) software for the financing of renewable energy projects through tokenized green loans. The platform utilizes AI and distributed ledger technology (DLT) to streamline the creation of tokenized green bonds backed by sustainable infrastructure projects and improve transparency.

And Pelt8 offers a comprehensive solution for auditable data collection, climate key performance indicators (KPIs) calculation and reporting, helping companies move away from excel spreadsheets to save time and improve efficiencies. The company was named “Early Stage Start-up of the Year” at the 2023 Swiss Fintech Awards.

Sustainability in banking and finance has gained increasing attention in recent years, a trend that is evident among investors and with investment activities. Analyses by IFZ show that around half of people in Switzerland have a some preferences for sustainability in financial investments. Moreover, a 2024 report by the Swiss Sustainable Finance organization reveals that sustainability-related investments have been on the uptick over the past years, rising from a volume of CHF 717 million in 2018 to about CHF 1.7 billion in 2023.

The topic is also highly relevant at a regulatory level. On January 01, 2023, the new self-regulation of the Swiss Bankers Association came into force, obliging banks to survey the sustainability preferences of their customers and provide customers with investment products that are in line with these preferences.

Switzerland’s green fintech ambitions

Switzerland is recognized as the fourth market globally for sustainable fintech. This thriving space has risen on the back of supportive initiatives and promotion efforts by the government.

Key initiatives include the establishment of the Green Fintech Network, set up in November 2020, and the subsequent release of the Green Fintech Action Plan in April 2021. The Green Fintech Network is an informal group of experts representing companies and organizations such as the Zurich University of Applied Sciences, F10 Fintech Incubator and Accelerator, PwC and Swisscom, but also green fintech startups like MSCI Carbon Delta, Rep Risk and Yova. The group was initiated by the State Secretariat for International Finance SIF and is part of Switzerland’s broader ambition to become a global leader in green digital finance.

In 2022, the Federal Council launched a new system that measures the environmental impact of financial investments. The Swiss Climate Scores are designed to provide both institutional and private investors in Switzerland with clear, comparable information on how well their financial investments align with international climate goals.

Currently, the Swiss government is working on a new legislation to regulate greenwashing in the financial sector. The Federal Department of Finance said a draft bill should be available for consultation by August 2024.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The Money20/20 Europe conference, one of the largest annual payments and fintech events in the region, returned to Amsterdam from June 04 to 06, 2024, bringing together global innovators, venture capitalists (VCs), banks, regulators and media platforms to discuss the fintech industry’s biggest opportunities and most pressing issues.

The 2024 edition ran under the theme “Human X Machine”, examining the dynamic relationship between humans and intelligent machines, and how a partnership between artificial and human intelligence can forge a new era in finance.

With over 350 speakers, the event explored significant technological advancements and trends, including artificial intelligence (AI), open banking, growing collaboration between industry stakeholders, and business-to-business (B2B) fintech innovation.

Optimism persists

McKinsey reports that, despite funding challenges over the past three years, optimism remains strong within the fintech ecosystem. Funding volumes have stabilized with year-to-date numbers standing at about the same level as the last three quarters of last year and industry stakeholders showed confidence on the sector’s growth prospects, particularly in the untapped potential of B2B fintech.

The consultancy notes a shift in investment patterns with a larger portion of capital going allocated to middle-market companies rather than just large, high-profile deals. Mid-market companies typically refer to the companies that are not as large as major corporations but which are more established than early-stage startups. In Q1 2024, the share of smaller deals of less than US$100 million accounted for almost 70% of the total, suggesting a diversification of investment that’s expected to drive greater innovation in untapped fintech verticals, including B2B fintech.

The growth of B2B fintech

Initially, fintech innovation focused on consumer-targeted services such as mobile banking, peer-to-peer (P2P) payments, personal finance management, and investment apps. However, there has been a growing emphasis on B2B fintech solutions.

McKinsey notes that this year’s Money20/20 Europe edition highlighted the continuing acceleration and scaling of B2B business models. Successful business models are scaling well, especially in B2B, and are moving from exploratory niches to robust growth domains.

FXC Intelligence, a data platform specializing in the cross-border payment and e-commerce sectors, reports signs of growing engagement with the infrastructure side of the industry, with more companies discussing payment rails, networks and interoperability. This has led to greater interest in real-time payment solutions, particularly in markets with traditionally slower rails and for applications such as B2B payments.

Ecosystem converges

One main theme at the 2024 Money20/20 Europe conference was the convergence of the fintech ecosystem and the collective willingness to solve issues together. Many conversations involved fintech startups, banks, regulators, platform operators and merchants, all seeking to unlock new opportunities.

While all sides have their own priorities and challenges, fintech startups are recognizing that they need banks for reach, and banks are understanding that they need fintech startups for product, McKinsey reports. It notes that currently, collaborative efforts mainly focus on infrastructure, open banking, digital identity, compliance services, fraud, and anti-money laundering (AML).

Cloud migration opportunities

McKinsey reports significant opportunities in cloud migration. While nearly all players are in some stage of a transition, considerable progress is still needed. McKinsey’s cloud survey suggests that while financial institutions globally aspire to invest more than one-third of their IT spending on private cloud systems, they for now are spending less than half of that.

Likewise, there was much ambitious talk about moving to software-as-a-service (SaaS) solutions for payments, though more action is needed to fully realize this transition. This presents significant opportunities for providers, the consultancy says.

AI still in the early adopter phase

While AI was a major theme at this year’s event, research and advisory company Forrester reports that discussions remained mostly high-level and focused on operationalizing generative AI (gen AI). This includes conversations on budget and generating return on investment, legal and ethical implications, as well as investing in appropriate data and risk foundations.

Overall, organizations are largely focusing on how they can realistically make use of the technology, with proven areas such as fraud prevention currently winning out over some of the more exciting but experimental areas of focus.

Experts noted that technology departments currently lead gen AI efforts, but for significant impact, business ownership is crucial. Seamus Smith, group president of global B2B payments at FIS, highlighted the potential of AI and machine learning (ML) in transforming B2B payments, though he noted the early stage of these technologiesm

Open banking opportunities

Changing payment methods is difficult because of the complex value chain, high security and reliability standards, and business models that depend on scale. This is why open banking payments have been slow to catch on since the Payment Services Directive 2 was introduced. In January 2024, only 8.2% of digitally enabled customers in the UK used open banking payments, and these payments still made up a small portion of total payment volume.

However, there was a lot of energy and optimism about open banking at Money20/20 Europe, with practical solutions discussed that could lead to significant growth in open banking payments by 2025, Forrester reported.

In retail, discussions focused on how payment stakeholders can replicate the success of card schemes. One approach is to unbundle card services and add value as needed. For example, merchants could offer discounts or rewards to customers who use open banking payments, or provide insurance for transactions where customers might want a chargeback option.

Huw Davies, co-founder and CEO of Ozone API, and Marie Walker, open futurist at Raidiam, explored the evolution of open banking into “open everything”, embedding financial services into sectors like healthcare and transportation to create new market opportunities, the Fintech Times reports. They emphasized the importance of leveraging common infrastructure and industry collaboration.

Tokenization sees slow adoption

Tokenization, a process which involves converting assets into digital tokens that can be traded on a blockchain, is gaining increasing traction within the financial industry.

Industry leaders discussed the progress and future of tokenization. Anthony Day, head of strategy and marketing at Midnight, noted that mass adoption of tokenization has been slower than expected, a sentiment which was shared by Ryan Rugg, head of digital assets at Citi Treasury and Trade Solutions, who expressed surprise at the slow progress.

Alisa DiCaprio, chief economist at R3, emphasized that tokenization offers more efficient solutions compared to existing paper-based systems. It allows for continuous, real-time transactions and can integrate various systems seamlessly.

Featured image credit: Money2020EU

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The rapid expansion and deployment of generative artificial intelligence (gen AI) and AI more broadly across organizations worldwide has resulted in a global push for regulation.

In the US, President Joe Biden signed an executive order on AI in October 2023, laying out AI standards that are set to be eventually codified by financial regulators. Over the past five years, 17 US states have enacted 29 bills focused on regulating the design, development and use of AI, according to the Council of State Governments.

In China, President Xi Jinping introduced last year the Global AI Governance Initiative, outlining a comprehensive plan focusing on AI development, safety and governance. Authorities have also issued “interim measures” to regulate the provision of gen AI services, imposing various obligations relating to risk assessment and mitigation, transparency and accountability, as well as user consent and authentication.

Recently, Japanese Prime Minister Fumio Kishida unveiled an international framework for the regulation and use of gen AI called the Hiroshima AI Process Friends Group. The group, which focuses on implementing principles and code of conduct to address gen AI risks, has already gained support from 49 countries and regions, the Associated Press reported on May 03.

Impact of EU’s AI Act on financial services firms

The European Union’s AI Act is perhaps the most impactful and groundbreaking regulation to date. Approved by the EU Parliament in March 2024, the regulatory framework represents the world’s first major law for regulating AI and is set to serve as a model for other jurisdictions.

According to Dataiku, an American AI and machine learning (ML) company, the EU AI Act will have considerable impact on the financial services industry and firms should prepare for compliance now.

Under the AI Act, financial firms will need to categorize AI systems into one of four risk levels and take specific mitigation steps for each category. They will need to explicitly record the “Intended Purpose” of each AI system before they start developing the model. While Dataiku says that there’s some uncertainty about how this will be interpreted and enforced, it notes that this indicates a stricter emphasis on maintaining proper timelines than current regulatory standards.

Additionally, the AI Act introduces “Post Market Monitoring (PMM)” obligations for AI models in production. This means that firms will be required to continually monitor and validate that their models remain in their original risk category and maintain their intended purpose. Otherwise, reclassification will be needed.

Dataiku recommends financial services companies to promptly familiarize themselves with the AI Act’s requirements and assess whether current practices meet these standards. Additionally, documentation should begin at the inception of any new model development, particularly when models are likely to reach production, it says.

Moreover, Dataiku warns that the EU’s proactive stance may encourage other regions to accelerate the development and implementation of AI regulations. By 2026, tech consulting firm Gartner predicts 50% of governments worldwide will enforce use of responsible AI through regulations, policies and the need for data privacy.

A groundbreaking regulatory framework

The EU’s AI Act is the world’s comprehensive regulatory framework specifically targeting AI. The legislation adopts a risk-based approach to products or services that use AI, and impose different levels of requirements depending on the perceived threats the AI applications pose to society.

In particularly, the law prohibits applications of AI that pose an “unacceptable risks” to the fundamental rights and values of the EU. These applications include social scoring systems and biometric categorization systems.

High-risk AI systems, such as remote biometric identification systems, AI used as a safety component in critical infrastructure, and AI used in education, employment and credit scoring, are forced to comply with stringent rules relating to risk management, data governance, documentation, transparency, human oversight, accuracy and cybersecurity, among others.

Gen AI systems are also subject to a set of obligations. In particular, these systems must be developed with advanced safeguards against violating EU laws, and providers must document their use of copyrighted training data and uphold transparency standards.

For foundation models, which include gen AI systems, additional obligations are imposed, such as demonstrating mitigation of potential risks, using unbiased datasets, ensuring performance and safety throughout the model’s lifecycle, minimizing energy and resource usage and providing technical documentation.

The AI Act was finalized and endorsed by all 27 EU member states on February 02, 2024, and by the EU Parliament on March 13, 2024. After final approval by the EU Council on May 21, 2024, the AI Act is now set to be published in the EU’s Official Journal.

Provisions will start taking effect in stages, with countries required to ban prohibited AI systems six months after publication. Rules for general purpose AI systems like chatbots will start applying a year after the law takes effect, and by mid-2026, the complete set of regulations will be in force.

Violations of the AI Act will draw fines of up to EUR 35 million (US$38 million), or 7% of a company’s global revenue.

AI adoption surges

Globally, jurisdictions are racing to regulate AI as adoption of the technology surges. A McKinsey survey found that adoption of AI has reached a remarkable 72% this year, up from 55% in 2023.

Gen AI is the number one type of AI solution adopted by businesses worldwide. A Gartner study conducted in Q4 2023 found that 29% of respondents from organizations in the US, Germany, and the UK are using gen AI, making it the most frequently deployed AI solution.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The World Economic Forum (WEF) 2023 Global Risks Report states that cybersecurity ranks
among the top 10 global risks both currently and in the future. The annual cost of cybercrime is
expected to reach US$10.5 trillion by 2025

Data from Barracuda, a cybersecurity company, shows that cyberattacks are more effective during the summer, when companies are short-staffed. In January, only about 1 in 80 (1.25%) threat alerts were serious enough to warrant a security alert to a customer, rising to 1 in 5 (20%) between June and September.

Cybersecurity is a growing concern also in the Baltic region, which is home to the rising number not only of foreign-owned companies, but also small and medium-sized businesses, that more and more often become the key targets of cyber assaults.

As the summer holiday season approaches, businesses are urged to remain vigilant against a surge in cybercriminal activity. During this time, many companies operate with reduced staff, making them prime targets for hackers.

This comes even more alarming since many consumers globally spend more and more online. The recent PayPal e-Commerce Index reveals that the average monthly spend on online shopping in the set year-on-year increased by 17% in the UK and Spain, by 12% in Italy and by 11% in Germany. More money being spent online combined with an increased number of fraudulent activities force businesses of all sizes to employ data and payment security measures that protect client data and integrity.

In the digital age, all companies operating within the online space must remain vigilant as a single breach can jeopardize years of trust and hard work. This concerns not only the biggest market players, who employ an army of people specialising in security management issues, but also startups and smaller businesses who often have limited resources in this field. In their case, co-operating with a reliable payments partner can help them protect themselves and their customers against different types of frauds. At the end of the day, providing a secure shopping experience not only helps protect the business but also fosters customer loyalty and confidence, ultimately strengthening the business’s reputation, and delivering more revenue –

says Efi Dahan, VP, General Manager, Central and Eastern Europe and Israel at PayPal.

As the summer holiday season approaches, PayPal has prepared a short guide that can help merchants protect themselves and their customers against scams and other cybersecurity threats.

1. Stay alert: constant vigilance is crucial. Cyber threats can occur at any time, especially during busy periods like summer holidays, Black Friday shopping festival or Christmas. Monitor your systems for unusual activities and be prepared to respond quickly to any suspicious activity. Multiple orders of the same item or various orders shipping to a single address can be red flags. Unusual customer behaviour, such as trying to recover the password multiple times or logging from other locations, should also raise attention.
2. Make sure your software is secure: update your software on regular basis to patch vulnerabilities that cybercriminals could exploit. Use security software to help protect against malware and ensure your systems are compliant with the latest security standards.
3. Use trusted payment methods: clients, both domestic or international, naturally lean towards payment methods they recognize and trust, hesitating to use options they’re unfamiliar with. This inclination can often influence their purchasing decisions in specific online stores. For foreign shoppers, incorporating widely acknowledged payment solutions like PayPal can help. Such platforms instill a sense of security and trustworthiness, as customers can rest easy knowing that if any issues arise, the payment service can help. For merchants, using globally trusted and experienced payment processor can help protect against potential fraud.
4. Educate your customers: Inform your customers about safe online practices, such as recognizing phishing attempts and using strong, unique passwords. An informed customer base can be an additional line of defence against cyber threats.
5. Prevent chargeback frauds: chargeback occurs when a contested transaction is resolved in the cardholder’s (customer’s) favor. If the cardholder’s financial institution agrees with the dispute, it will undo the transaction, retrieving the money from the merchant and refunding it to the cardholder. It is a common cost of business operations. While many of chargebacks are legitimate, others can be the result of frauds. Protection solutions can help merchants automatically manage chargebacks, recovering time and money. Businesses should implement strong verification methods that can check if the billing information a customer inputs matches the billing information on file with the issuer.5 Tips from PayPal on Minimising Fraud and Risk During Summer Holidays

This article first appeared on Fintech News Baltic

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

The Swiss Financial Market Supervisory Authority FINMA is opening bankruptcy proceedings against FlowBank SA on 13 June 2024.

This measure became necessary as the bank no longer has the minimum capital required for its business operations. There are also fears that the bank is over-indebted. The aim of the bankruptcy proceedings is to protect depositors. According to current calculations, the privileged deposits can be repaid in full out of the bank’s available funds.

FINMA established in the last week that FlowBank SA no longer has sufficient capital for its operations as a bank. The minimum capital requirements, which must be met at all times, have been significantly and seriously breached.

FlowBank SA and its management bodies were unable to take steps to sustainably restore compliance with the capital requirements within the required timeframe. Moreover, there are well-founded concerns that the bank is currently over-indebted. As there is no prospect of a restructuring, the bank must be wound up. FINMA has appointed the law firm Walder Wyss AG as liquidator to carry out the bankruptcy proceedings.

Serious breach of supervisory law

FINMA took its first enforcement action against FlowBank SA in October 2021 when it identified serious breaches of supervisory law, specifically with regard to capital requirements, the requirement for an adequate organisation and risk management. In October 2022 FINMA therefore ordered wide-ranging measures to restore compliance with the law and appointed an independent auditor to monitor their implementation.

When new information on various compliance deficiencies came to light – including ongoing breaches of the capital ratio – FINMA again took enforcement action against the bank in June 2023 and appointed a monitor to oversee the bank’s activities and investigate its compliance failures.

The monitor reported that FlowBank SA repeatedly breached the capital requirements, while its organisation remained deficient in various areas of the bank. The bank’s bookkeeping and financial reporting was found to be inaccurate and incomplete. The bank also failed to fulfil disclosure and reporting obligations to FINMA.

In addition, the investigation found that the bank entered into numerous higher-risk business relationships and processed large transactions without properly investigating the background of these business relationships and transactions. The bank increased its risks considerably by entering into these relationships, even though it had not yet resolved its organisational deficiencies. In FINMA’s view, this represented a serious breach of the bank’s money laundering due diligence obligations and FINMA’s prohibition on the bank from entering into additional higher-risk business activities.

Given the serious malpractice, the prolonged non-compliance with licensing conditions and the bank’s inability to restore compliance with the law, FINMA ordered the withdrawal of the bank’s licence on 8 March 2024 and disqualified its guarantee of proper business conduct. This ruling does not yet have legal force due to a pending appeal at the Federal Administrative Court. However, during the appeal various precautionary measures decreed by FINMA, e.g. to prevent assets from being withdrawn by the bank, are in effect.

FINMA intervening immediately

After the bank’s board of directors approved the 2023 financial statements just a few days ago, and confirmed data to assess the risk of insolvency has only been available for a short time, FINMA established that FlowBank SA’s financial situation is much worse than the bank originally reported. The bank was clearly in breach of the minimum capital requirements at the end of 2023 and again at the end of April 2024. In addition there are well-founded concerns that the bank is over-indebted as at the end of April 2024. The bank was unable to carry out an eligible capital increase within the required timeframe. This new situation requires FINMA to intervene immediately to protect depositors, which is why it has placed the bank into bankruptcy.

Repayment of privileged deposits

FINMA’s primary aim is to protect depositors. In a first step the liquidator will therefore repay deposits up to CHF 100,000 (privileged deposits) to the clients concerned as quickly as possible. According to current calculations, the privileged deposits can be repaid in full out of the bank’s available funds. Therefore we do not expect the Swiss banks’ deposit insurance scheme (esisuisse) to be involved. Client custody accounts will also be segregated from the estate and repaid.

FlowBank SA is a bank offering online brokerage and trading with its head office in Geneva and subsidiaries in London and the Bahamas. The bank has total assets of approximately CHF 680 million, holds over 22,000 client accounts and employs around 140 staff worldwide.

In March 2022 London based Digital Asset Manager CoinShares announced a 20.28% Investment into FlowBank.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Am Freitag ist es endlich soweit und die Fussball Europameisterschaft in Deutschland startet mit den Eröffnungsspiel Deutschland gegen Schottland.

Wie bereits 2022 an der WM in Qatar und 2021 an der letzen EM haben wir wieder für die Fussball EM 2024  unser “Swiss Fintech Football Dream-Team” zusammengestellt. (Wie immer: just for fun und weil wir Fussball und Fintech begeistert sind)

Das Fintechnews.ch Redaktion freut sich sehr auf die Spiele, hat aber im Gegensatz zum jetzigen Team kein Stürmer-Problem.

Schweizer Spiele:

15.06 Schweiz-Ungarn, 15.00h in Köln

19.06 Schweiz-Schottland, 21.00h in Köln

23.06 Schweiz-Deutschland, 21.00h in Frankfurt

Im Achtelfinale dann wahrscheinlich gegen Spanien, Italien oder Kroatien ????

Hopp Schwiiz!

Warum ist Twint seit 2016 der Torhüter?
Wir finden Twint verteidigt den Mobile Payment Markt Schweiz sehr gut und so lange Apple Pay keinen Schweizer Pass bekommt, stehen wir zu unseren Oldie Torhüter. Murat Yakin hat ja mit Sommer und Kobel die Qual der Wahl, wir haben auf dieser Position aber ein Problem.

Wo bleibt der Nachwuchs?
Es ist richtig, dass unsere Formation seit der Fussball WM sich nicht gross geändert hat. Neu im Team sind bspw. Everest und Kaspar&, nachnominiert wurden zudem auch die beiden frisch gekürten Swiss Fintech Awards Gewinner, ansonsten sieht es eher schlecht aus mit dem Fintech Nachwuchs in den letzten par Jahren. Falls Du das anders siehst, lass uns das via Social Media Kommentar wissen.

Unsere vergangenen Fussball Fintech Teams findet ihr hier:

2022
2021
2018
2016

Das Schweizer Fussball Fintech EM National Team 2024

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Cypriot fintech company MD Finance has released its selection of the world’s most promising publicly-listed fintech companies.

These companies, selected out of a pool of 200 ventures, are standing out in terms of growth potential and investor appeal, and represent the “most attractive fintech companies for investors in 2024,” according to MD Finance.

The 18 companies shortlisted come from North and South America (11), and Asia-Pacific (7), with the USA being the most represented country, totaling ten companies. It is followed by South Korea and Japan, with two companies each. Other countries represented include Kazakhstan, India, Taiwan and Brazil, with one company each.

Valuations and investor sentiment

The analysis by MD Finance reveals that the 18 companies exhibit a median enterprise value (EV)/earnings before interest, taxes, depreciation and amortization (EBITDA) ratio of 34.5. The EV/EBITDA ratio is a popular valuation multiple used to determine the fair market value of a company. It is a widely used measure to assess the relative value of companies, especially within the same industry.

An EV/EBITDA ratio below the industry average might suggest the company is undervalued or facing challenges. On the other hand, an EV/EBITDA ratio above the industry average might suggest the company is overvalued or has strong growth prospects.

Bank of Montreal, from Canada; Kaspi, from Kazakhstan; and OneMain Holdings, from the US; have the lowest EV/EBITDA ratios of the cohort at 19.5, 10.4, and 22, respectively. The ratios, which stand below the industry median, suggest that these companies are either undervalued or facing challenges.

Bank of Montreal is the eighth largest bank in North America by assets, providing personal, commercial and investment banking to 13 million customers. Kaspi offers payments, marketplace, and fintech solutions to 12.6 million monthly active users. Finally, OneMain Holdings provides non-prime consumers responsible access to credit.

Conversely, nCino, Navient Corporation, and Rocket Companies – all from the US – have the highest EV/EBITDA ratios of the cohort at 274.7, 172.7, and 159.2, respectively. These numbers are way above the industry average, suggesting that these companies are either overvalued or have strong growth prospects.

nCino is a cloud-based banking software provider that’s partnered with more than 1,800 financial services companies. Navient Corporation is a student loan servicer. Finally, Rocket Companies is a fintech company that provides simple, fast and trusted digital solutions for complex transactions, and which serves 2.5 million clients.

The analysis by MD Finance also reveals that all companies have a EV/Revenue (EV/Rev) ratio higher than 6 with a median of 9.4. The EV/Rev is another valuation metric used to assess a company’s value relative to its revenue. This ratio helps investors understand how much they are paying for a company’s sales, without taking profitability into account.

Like for the EV/EBITDA ratio, an EV/Rev ratio below the industry average might suggest the company is undervalued or limited potential in the eyes of investors, while an EV/Rev ratio above the industry average might suggest that the company is either overvalued or that the market has faith in the company’s ability to generate more efficiently in the future.

Bank of Montreal, Kaspi and KeyCorp, from the US, have the lowest EV/Rev ratios of the cohort, at 5, 5.3 and 6.3, respectively. These ratios stand below the industry median, making these companies either undervalued or witnessing slow revenue growth.

KeyCorp is a bank holding company that offers a range of retail and commercial banking, commercial mortgage and special servicing, consumer finance and leasing, investment management, and investment banking products and services. It holds about US$187 billion in AUM.

At the other end of the spectrum, JIO Financial Services, from India, Navient Corporation and KB Financial Group, from South Korea, have the highest EV/Rev ratios at 109.8, 47, and 34.9, respectively, suggesting overvaluation or strong revenue growth potential.

JIO Financial Services provides financial services, including payment services and insurance broking, and boasts 439 million subscribers. KB Financial Group offers a broad range of banking and financial services, and holds around KRW 517.8 trillion of assets under management (AUM).

Financial performance

The analysis also shows that all of the 18 companies are EBITDA profitable, meaning that their core operations are generating positive earnings before accounting for non-operating expenses and non-cash expenses. However, it also reveals that two companies – nCino and Rocket Companies –  reported a negative net income of -US$16 million and -US$42 million, respectively, in 2023.

In contrast, Bank of Montreal, KB Financial Group, Kaspi and Nubank achieved the highest performance in 2023, recording a net income of US$4.4 billion, US$3.5 billion, US$1.9 billion, and US$1 billion, respectively.

Nubank is a digital banking platform from Brazil serving about 100 million customers. The company offers digital credit cards, transfers, and payments.

Other noteworthy publicly-traded fintech companies featured in the MD Finance shortlist include Payonneer Global and KakaoBank. Payoneer is an American financial services company that provides online money transfer, digital payment services and provides customers with working capital. The company posted US$93 million in net income in 2023 and serves 5 million customers. KakaoBank is a South Korean financial institution specializing in mobile banking services and fintech. The bank recorded US$321 million in net income in 2023 and boasts 23 million customers.

Fintech stocks rebound

In Q1 2024, fintech stocks continued their upward trend. The RPP Fintech Index, which tracks the performance of key fintech verticals, saw a 4% increase from its December 2023 value, a sustained growth which highlights the continued strength and expansion of the fintech sector, according to London-based corporate finance advisory Royal Park Partners.

Across the fintech verticals covered by the RPP Fintech Index, insurtech recorded the strongest growth, rising by a remarkable 61% quarter-on-quarter (QoQ). The rise of the insurtech index was largely driven by Root Insurance’s strong performances, with its stock price soaring approximately fivefold following the release of its “best-ever” Q4 results.

Meanwhile, payments and capital markets witnessed more moderate growth at 5% and 4%, respectively. Conversely, the cryptocurrency and blockchain sector tumbled 16% QoQ. However, the crypto and blockchain vertical rebounded in the first months of 2024 and added 3% after the launch of the first spot bitcoin exchange-traded funds garnered substantial market momentum.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Tenity and Ergon Informatik AG, a pioneer in digitalization and technological solutions based in Switzerland, have partnered to promote digital innovation in Switzerland.

Tenity is a leading innovation ecosystem and early-stage investor promoting innovation primarily in the financial and insurance sectors through pre-seed acceleration programs, collaboration-focused open innovation programs for partners, and industry events, among other activities.

Andreas Iten, CEO & Co-Founder of Tenity, explains,

“This partnership with Ergon represents a powerful fusion of our expertise in nurturing fintech and insurtech startups with Ergon’s unparalleled experience in digital transformation. We are convinced that the extended Tenity ecosystem will benefit greatly from Ergon’s know-how and expertise.”

Strong partners – from the initial idea to market success

Ergon is a leading provider of IT solutions and services based in Switzerland. Together, Tenity and Ergon will support the fintech and insurtech markets in Switzerland and beyond.

Adrian Berger, Managing Director Finance Solutions & Member of the Executive Board at Ergon, explains the importance of this cooperation:

“The partnership with Tenity will allow us to effectively use our extensive knowledge and experience in the field of digital transformation and create innovative solutions for fintech and insurtech companies. Together, we combine our strengths and support startups from the initial idea through to market success.”

Ergon has over 20 years of experience in working with both international and local financial service providers, establishing many meaningful and lasting partnerships along the way. These partnerships have included projects in retail banking, private banking, wealth management, asset management, stock exchange and POS transactions. Ergon even developed the first Internet banking system in Switzerland. When it comes to insurance, Ergon has extensive know-how in broker systems, B2B transactions and insurance portals.

Within the Tenity ecosystem, Ergon offers specialist expert knowledge in areas such as tech consulting, user experience design, software engineering and data and artificial intelligence. This expertise is specially tailored to the requirements of startups accepted on the “Tenity Pre-Seed Fintech Accelerator Program”.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

For the ninth time, the Swiss FinTech Awards celebrated outstanding Swiss start-ups and influential personalities from the Swiss fintech scene on the evening of June 11 in Zurich.

AI Start-up Neur.on AI Wins “Early Stage Start-up of the Year”

Neur.on AI emerged victorious in the “Early Stage Start-up of the Year” category. This young company offers an AI-based translation solution specialized for the financial industry, enabling more cost-effective and precise translations of any financial documents compared to existing market offerings. With this, the start-up addresses a $10 billion market (USD) in
financial and legal translations.

Also making it to the finals in this category was the start-up CLIMADA Technologies, which provides financial service providers with transparent and regulatory-compliant climate change reporting.

GenTwo Expands the Investment Universe and Wins “Growth Stage Start-up of the Year”

In the “Growth Stage Start-up of the Year” category, GenTwo took the prize. GenTwo expands the investment universe through the “assetization” of previously inaccessible, unbankable assets – driven by technology and innovations in securitization and tokenization. With their offerings, GenTwo has created financial products worth five billion US dollars for over 300 clients in 26 countries.

Also in the finals was payrexx, a payment service provider offering easy access to over 200 payment options on its platform. The company has so far acquired 60,000 merchants as customers and integrated its platform as a white-label solution with over 100 partners.

Johannes “Johs” Höhener Honored

Johannes “Johs” Höhener received the “FinTech Influencer of the Year” award for his decades-long positive impact on the fintech industry. Throughout his career, Höhener has influenced the Swiss FinTech community in various roles and companies, including establishing and leading Swisscom’s fintech division, founding and developing the ecommerce competence center for cantonal banks e-research AG, and numerous advisory roles such as with Swiss Stablecoin AG and board positions like for example with daura AG.

The jury of the Swiss FinTech Awards honors Höhener’s constant and tireless dedication to the Swiss fintech landscape with this award.

Die Swiss FinTech Awards

Since 2015, the Swiss Finech Awards have fostered a strong Swiss fintech ecosystem.

While start-ups undergo a multi-stage application process and must convince the jury, the “FinTech Influencer of the Year” is directly nominated and selected by the jury. The jury of the Swiss FinTech Awards consists of around 20 renowned fintech experts and industry representatives.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Celebrity investors are becoming an influential force in the venture capital (VC) landscape, offering significant visibility, credibility and strategic support to the startups they invest in. But some are standing out from the pack, demonstrating a knack for identifying future unicorns or strong merger and acquisition (M&A) targets.

Market intelligence platform CB Insights has released its “Celebrity VC Index”, ranking the top 20 celebrity investors based on the strength of their portfolios. The index takes into consideration recent financing and exit activity, unicorn metrics, as well as the Mosaic scores of portfolio companies, to identify the most successful celebrity VCs.

The Mosaic score is a proprietary algorithm developed by CB Insights that evaluates the health and growth potential of private companies. It combines various metrics and data points into a single score to assess the viability and future prospects of a company.

Most active celebrity VCs and best investors at spotting future unicorns

According to the Celebrity VC Index, Joe Montana, a former American football player, is the most active and successful celebrity VC, topping the ranking by making more investments than any other celebrities and minting more unicorn startups.

Since 2020, Montana’s Liquid 2 Ventures has invested in a whooping 569 deals and backed 10 of today’s unicorn startups. These companies include Airbyte, an open-source data integration platform valued at US$1.5 billion, Pipe, a financial services company providing non-dilutive capital solutions for businesses worth US$2 billion, and Whatnot, a livestream shopping platform valued at US$3.7 billion.

American actor and entrepreneur Ashton Kutcher ranks second with his Sound Ventures having invested in 118 deals since 2020 and bet on five companies that reached unicorn startups. These ventures include Misfits Market, an online grocery delivery service now valued at US$2 billion, Truepill, an online pharmacy platform worth US$1.6 billion, and Papa, an elderly homecare startup valued at US$1.4 billion.

Most exits and highest Mosaic score average

The Chainsmokers, an electronic DJ duo, and Jay-Z, a rapper and entrepreneur, have seen the most exit activity in proportion to their overall deal volume, recording five exits via M&A or initial public offering (IPO) each since 2020. The Chainsmokers and Jay-Z rank third and fourth in the Celebrity VC Index, respectively.

The Chainsmokers have backed startups such as Flink, an online supermarket valued at US$1.07 billion, and WeLoveNoCode, a marketplace that connects 5,000 companies and 36,000 no-code developers; while Jay-Z has invested in ventures including K Health, a healthtech startup worth US$1.5 billion, and Oatly, a Swedish company that develops oat-based diary alternatives. Oatly went public in 2021 at a valuation of US$10 billion, giving Jay-Z a 5x return on investment, according to CB Insights.

Mindy Kaling, an actress and producer, leads the ranking in terms of portfolio companies’ Mosaic scores, averaging 883 out of 1,000. Since 2020, Kaling has only invested in seven startups and backed one company that became a unicorn. Maven, a virtual clinic specializing in women’s and family health, reached a US$1 billion valuation in 2021 after raising a US$110 million Series D funding round. Kaling ranks sixth in the Celebrity VC Index.

Investment trends

Data from CB Insights show that celebrities investors tend to invest in consumer-facing brands and media-adjacent businesses, which align with their personal brand, expertise, and influence. These sectors offer high visibility and market engagement, allowing celebrities to leverage their fame to drive business success.

Kutcher, for example, has invested in Warby Parker, a direct-to-consumer eyewear startup that went public in 2021. Kaling, Jay-Z and Serena Williams (#17) have backed Impossible Foods, a company developing plant-based substitutes for meat products.

The CB Insights report also notes that the top-performing celebrity investors have turned investing into a consistent business practice. This is shown by the fact that the top five celebrities in the ranking have established their own VC funds in addition to complement their individual investing activity. Alongside Montana’s Liquid 2 Ventures and Kutcher’s Sound Ventures, these funds include the Chainsmokers’ Mantis, Jay-Z’s Marcy Venture Partners, and Kevin Durant (#5)’s Thirty Five Ventures.

Other celebrity featured in CB Insights’ Celebrity VC Index include professionals athletes Michael Jordan (#12), Chris Paul (#13), and LeBron James (#19); actors Robert Downey Jr. (#7), Will Smith (#8) and Leonardo DiCaprio (#18); rappers Snoop Dogg (#11) and Drake (#16); social media personalities Josh Richards (#10) and Jake Paul (#20); comedian Kevin Hart (#14); TV host and producer Oprah Winfrey (#9); and DJ Steve Aoki (#15).

Notable celebrity investors in fintech

Separate research by Fintech Global shows that several of these celebrities are also active in fintech. In particular, Durant, the Chainsmokers, Hart and Smith were among the 10 most active fintech celebrities investors between 2019 and 2023, the report says.

Durant’s key investments over the period include Goalsetter, a mobile banking app that allows peer-to-peer transactions; Jeeves, which provides open global business accounts; and Titan, an investment firm also backed by Smith.

The Chainsmokers invested in Step, a teen banking app also backed by Smith; Pluang, an Indonesian fractional investing app; and X1 Card, a challenger credit card. Hart backed Fonoa, a tax automation platform, and Mercury, a business banking startup, while Smith invested in Front, a strategic investment platform, and Public.com, a social investing platform.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Despite the promised benefits of improved customer support and personalization, the use of artificial intelligence (AI) in banking also introduces several disadvantages and risks, including data privacy and security issues as well as fraud risks, a new survey by Glassbox found.

The study, which polled 1,000 US consumers aged 21+ in May 2024, found that 60% of respondents believe AI in banking presents equal parts benefit and risk. Notably, 47% of respondents identified security risks as their primary concern regarding AI in banking.

Security is considered an extreme priority in digital banking by over half of the respondents, with 90% stating that the security of personal information is important or extremely important. This underscores the urgent need for banks to prioritize security and reliability in their digital services.

There is also a clear demand for transparent and proactive communication about AI use and related security measures, with 85% of consumers expecting proactive communication from their banks. Moreover, more than half of the respondents indicated they would switch banks if they were victims of AI-related fraud.

These concerns are substantiated by another survey conducted by BioCatch, a security services firm. The company, which polled financial institutions in the US and ten other countries in January and February 2024, found that 51% of the organizations surveyed lost between US$5 million and US$25 million due to AI-based or AI-driven threats in 2023. Nearly half of the respondents anticipate an increase in financial crime and fraud in 2024.

A rising challenge in this context is deepfake technology, which allows for the creation of fake videos, images, and audio to impersonate individuals. This technology has become increasingly sophisticated and accessible, leading to a significant increase in its use for fraudulent purposes.

According to Sumsub’s 2023 Identity Fraud Report, there was a tenfold increase in the number of deepfakes detected globally across all industries from 2022 to 2023, with the crypto and fintech sectors accounting for 96% of these cases. In the fintech space alone, deepfake incidents rose by 700% in 2023 compared to the previous year.

Deloitte expects deepfake incidents to proliferate in the years to come as bad actors continue to exploit increasingly sophisticated and affordable generative AI (gen AI) technologies to defraud banks and their customers.

The firm estimates that gen AI, which refers to AI systems designed to autonomously generate new, original content, could drive fraud losses in the US to US$40 billion by 2027, up from US$12.3 billion in 2023, representing a compound annual growth rate of 32%.

Despite the risks and challenges, consumers recognize AI does provide some valuable use in banking. According to the Glassbox survey, 59% of US consumers are comfortable with AI being used to identify potential fraud, and nearly half support its use in fixing mobile app or website errors to improve usability.

AI also aids in providing a seamless customer experience across digital platforms, a feature deemed important by 66% of consumers. Additionally, 79% of users emphasized the importance of quality customer support online, and 63% consider personalization based on past activity and history to be significant.

Furthermore, customers expect reliable and consistent experiences when accessing financial information and resources. In fact, 87% of respondents stated that overall reliability and the absence of errors are essential when conducting transactions via app or website.

Globally, AI is being adopted by the banking sector at a fast pace. A recent McKinsey survey found that adoption of AI has reached a remarkable 72% this year, up from 55% in 2023. Also, responses show that companies are now using AI in more parts of the business. Half of respondents reported that their organizations have adopted AI in two or more business functions, up from less than a third of respondents in 2023.

Top executives in the finance and banking sector are willing to take significant risks for the efficiency improvements brought about by AI. A study conducted by IBM, which surveyed more than 3,000 CEOs in the banking and financial markets, found that 66% believe the potential productivity gains from automation and AI are so substantial that they would accept significant risks to stay competitive. Additionally, 67% said they would take more risks than their competitors to maintain their competitive edge, underscoring the importance of adopting AI in this sector.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Colombus Consulting veröffentlicht die vierte Ausgabe seiner Studie über die Digitalisierung der Kundenbeziehungen der Schweizer Privatbanken, die mit einem Panel von fast 30 Hauptakteuren des Sektors durchgeführt wurde.

Die Studie zeigt, dass die explosionsartige Entwicklung der KI zu immer schnelleren Veränderungen führt. Es ist noch nicht zu spät und für Privatbanken höchste Zeit, sich auf die neuen digitalen Herausforderungen einzustellen, die KI mit sich bringt.

Die Rangliste 2024 bleibt weitgehend unverändert, wobei sich eine Top-5-Gruppe vom Rest des Panels abhebt

Das Quartett Vontobel, Julius Bär, Lombard Odier und Pictet dominiert auch dieses Jahr die Rangliste.

Dank hoher Besucherzahlen auf ihren Webeiten profitieren sie in allen untersuchten Aspekten von einem „Schneeballeffekt“ und generieren einen natürlichen oder bezahlten Besucherstrom, der die Kunden auf ihre digitalen Plattformen (Web, Mobile, soziale Netzwerke usw.) weiterleitet. Der bemerkenswerte Einstieg von Alpian an die Spitze des Rankings im Jahr 2023 wurde in diesem Jahr bestätigt, was den innovativen und digitalen Charakter der Bank unterstreicht.

Abgesehen von den Veränderungen in der Rangliste ist das Wachstum des Internettraffics für das gesamte Panel positiv (+10 % mit fast 590 Millionen monatlichen Besuchern), und die Leistungen der verschiedenen E-Banking-Plattformen haben sich erheblich verbessert. Dies spiegelt sich auch in einem stärkeren Engagement des Publikums wider (+17 %).

Dennoch haben die untersuchten Banken bei der Digitalisierung noch einen weiten Weg vor sich, insbesondere was die Beherrschung des digitalen Marketings und der Verwaltung mobiler Apps betrifft, wo nur langsam Fortschritte erzielt werden. Lombard Odier und Vontobel zeichnen sich jedoch durch eine regelmässig aktualisierte und gut bewertete App aus, und neue Marktteilnehmer wie Alpian bieten moderne Funktionen wie In-App-Videoanrufe an.

Soziale Netzwerke: Eine neue Ära hat begonnen

Während die Zahl der Abonnenten in den sozialen Netzwerken im Jahr 2023 stabil blieb, verzeichnet die Studie in diesem Jahr ein Wachstum von 32 %. Die bei Facebook festgestellte Verlangsamung (+9 %) wurde durch LinkedIn (+42 %, das 77 % des gesamten Publikums der sozialen Netzwerke erreicht) mehr als wettgemacht, gefolgt von YouTube und Instagram (+20 % und +17 %). Dagegen scheint X (ehemals Twitter) nicht mehr attraktiv zu sein (+0,2 %).

Im Jahr 2024 zog das Aufkommen von Videoinhalten, in denen die Überzeugungen der Banken in Bezug auf Marktvisionen und Investitionen dargestellt werden, ein neues Publikum auf diese Medienplattformen an. Insgesamt blieben CSR (Corporate Social Responsibility) und ESG (Environmental, Social and Governance) auch in diesem Jahr die meist behandelten Themen dieser Inhalte.

Die Studie stellt auch Kommunikationsbemühungen zu gestellschaftlichen Themen fest, insbesodere zum Sport oder zu gemeinnützigen Engagements. Obwohl diese Art der Information ein neues Publikum anspricht, erzeugt sie nur wenig Engagement und fördert nicht den Austausch mit ihren Zielgruppen.„

Digitale Verantwortung: Im Rückstand?

In den letzten Jahren haben die Privatbanken begonnen, ESG-Kriterien zu berücksichtigen, und die nachhaltige Entwicklung ist zu einem wichtigen Aspekt der Bankprodukte, insbesondere der Fonds, geworden.

Banken sind endlich bereit, ihre Instrumente den Kunden zur Verfügung zu stellen

Die Anbieter digitaler Lösungen haben dieses Konzept verstanden und bieten nun B2B2C-Tools an, die die Banken für ihre eigenen Konten nutzen und ihren Kunden zur Verfügung stellen können (Online-KYC [Know-Your-Customer], elektronische Unterschrift, Portfoliosimulation und Auswirkungsanalyse, Auftragserteilung).

Neue Technologien und Private Banking: Auf dem Weg zu präziseren und personalisierten Empfehlungen

Private-Banking-Berater profitieren stark von neuen Technologien, die die Art und Weise, wie sie mit ihren Kunden interagieren und deren Portfolios verwalten, revolutionieren. Mit Hilfe von Instrumenten wie Portfoliomanagementdiensten, Software für das Kundenbeziehungsmanagement, E-Banking und generativer künstlicher Intelligenz können sie genauere und individuellere Empfehlungen aussprechen und anbieten.

Diese Technologien ermöglichen ein besseres Verständnis der Kunden (z. B. AirWealth von Avaloq), verbesserte Bankdienstleistungen, insbesondere in den Bereichen Simulation und Portfoliomanagement (z. B. Swissquant), sowie schnellere und bessere Reaktionen sowohl intern als auch extern. Die Einführung dieser neuen Technologien ist jedoch mit einigen Hürden verbunden, wie die Weitergabe von Kundendaten mittels Tools von Drittanbietern, das Bankkundengeheimnis zu wahren und den Wandel innerhalb der Finanzinstitute zu bewältigen.

Private Banking und KI: Auf dem Weg in einer neue Ära der Effizienz und Compliance

Im vergangenen Jahr haben viele Banken KI-Initiativen lanciert, die sich in unterschiedlichem Ausmass auf ihre operative Leistung auswirken. Mit der Einführung von One.chat, einer mit dem Zürcher Startup Unique entwickelten Lösung zur Optimierung der Produktivität, oder der Lancierung eines KI-basierten Fonds zur Erzielung einer Outperformance ist Pictet der Konkurrenz einen Schritt voraus. Diese Anwendungsfälle zeigen, dass die Banken die KI für ihre internen Prozesse nutzen. Derzeit gibt es noch keine Initiativen, die sich mit Kundendaten befassen, was zeigt, dass die Schweizer Privatbanken nach wie vor um die Vertraulichkeit besorgt sind.

Digitaler Index : Die globale digitale Performance der Branche

Colombus Consulting präsentiert das globale Ranking des digitalen Index, welcher die digitale 360°-Performance von Privatbanken anhand von 50 Indikatoren (Web, Mobile, Marketing und Social), misst. Die Ergebnisse zeigen sehr unterschiedliche Situationen zwischen den Akteuren.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Austrian Fintech unicorn Bitpanda is expanding its partnership with Deutsche Bank to provide real-time payment solutions for incoming and outgoing transactions for users in Germany.

This API-based account solution will provide Bitpanda with access to German IBANs, streamlining and enhancing the experience for users and ensuring confidence, speed and efficiency.

Deutsche Bank already supports the operational needs of Bitpanda as its European Hausbank for cross-currency solutions in Austria and Spain.

Bitpanda is a regulated multi-asset broker platform offering more than 2,800 selected virtual assets and indices as well as stocks, ETFs and commodities to retail investors. Deutsche Bank represents another major institutional partnership for Bitpanda, who are currently undergoing a period of significant growth. Cooperation with traditional financial services providers is a strategic goal throughout 2024 for the unicorn, which believes that such integration will shape the future of the financial services industry.

Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, commented:

“Bringing the best parts of the industry together is where we can create real value for people. Deutsche Bank’s commitment to working with new and innovative players in the financial industry continues to make our partnership possible. From today, we can access a range of Deutsche Bank’s products, unlocking benefits for our team and our users.”

Kilian Thalhammer, Global Head of Merchant Solutions, Deutsche Bank, added:

“We are always looking to partner with companies who share our commitment to user safety and security. With Bitpanda, a recognised and regulated fintech provider, we are confident to help build a secure and trusted environment for users in this innovative field of virtual asset investing. With our strategy to be the bank of choice for the high-potential platforms, the partnership with Bitpanda represents a key milestone as we shape this emerging ecosystem through active engagement with leading industry players.”

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Money20/20 Europa has unveiled six startups that are poised to transform the world of money.

The selected startups are Flexvelop, Brite Payments, Kore Labs, Nomyx, Velexa, and NALA. The emerging startups were unveiled during Money20/20 Europe’s Startup Media Session on June 5th at the RAI in Amsterdam.

Money20/20 Europe brings together the most influential figures in the fintech and financial services landscape, unlocking growth opportunities for these startups to transform into industry heavy hitters.

“Startups have always been at the heart of Money20/20. It has been a real pleasure seeing the early-stage startups begin on our stages before maturing into some of the biggest players in the industry. As the world of money comes together for Money20/20 Europe, we are delighted to showcase startups that we believe will change the future of money, covering the entire gamut of the ecosystem from regulations to infrastructure. It’s a core mission for Money20/20 to identify, support, and elevate startups and we couldn’t be more proud to provide a platform for these handpicked businesses as they continue their growth journey,”

said Scarlett Sieber, Chief Strategy and Growth Officer at Money20/20.

The six crowned fintech startups are:

Flexvelop is a German flexible financing solution for business equipment, enabling companies to lease technology and purchase it at a reduced price. Thanks to this flexible leasing, rental, and credit model, businesses can trial different equipment to see what best suits their needs, better react to market shifts, and find more cost-effective solutions tailored to them.

Brite Payments is a Swedish instant payments startup offering smarter, faster, and more financially sustainable ways for payments and payouts thanks to open banking. Their technology allows funds to be transferred immediately and seamlessly with bank-grade security, minimizing risk for merchants and creating a hassle-free payment experience for consumers.

Kore Labs is a UK-based, award-winning RegTech startup digitizing financial product management to reduce regulatory risks, costs, and time to market for financial products. Kore serves a wide range of financial institutions, including major European banks, investment managers, and insurance companies.

Nomyx is an American Web3 and AI tokenization startup enabling companies to transform traditional assets into digital tokens in a seamless, secure, and transparent manner. Businesses can tokenize a wide range of assets with Nomyx, such as traditional financial assets, real estate properties, art pieces, company shares, intellectual property rights, and collectibles. Nomyx unlocks liquidity for businesses and provides them with increased flexibility with portfolio management.

Velexa is a London-based white-label API-based investing platform offering global market access across all major asset classes and currencies. Velexa is the only multi-asset platform that offers a cutting-edge B2B2C WealthTech technology that empowers banks, brokers, wealth managers, and other institutions to embed investing services in their portfolios, delivering a unified personal finance experience for their end users, ultimately making finance less intimidating. In this way, Velexa aims to revolutionize financial literacy and wealth management across Europe.

NALA is an international money transfer app enabling individuals (nala.com) and businesses (rafiki.com) in the EU, US, and the UK to send money to 11 countries in Africa. Payments to Africa are significantly more expensive than payments to any other continent; NALA was built to reduce those fees through fast, reliable, and affordable cross-border payments. NALA has grown 29x in the past 20 months. Earlier this year, NALA turned profitable and achieved 10X revenue growth in the past 12 months. Their team grew from 7 to nearly 100 in this same time period.

Money20/20’s Startup Media Session was designed as part of its goal to support startups sitting at the intersection of finance and technology. Last year’s winners included Net Purpose, Clima Cash, Eljun, GoKind, KYP, Zing, and Conduit, among others.

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

Das Schweizer Fintech-Unternehmen Kaspar& hat eine Seed-Finanzierungsrunde über CHF 2.5 Millionen abgeschlossen und geht eine strategische Partnerschaft mit Avaloq ein.

Im Rahmen der neuen Partnerschaft hat Avaloq eine Minderheitsbeteiligung an Kaspar& erworben und plant, die Investment-App des Unternehmens in die Avaloq Core Platform zu integrieren. Damit können Banken, die die Plattform von Avaloq in der Schweiz nutzen, ihrer Kundschaft einfacher zugängliche Anlagemöglichkeiten bieten.

Kaspar& wurde 2020 als Spin-off der Universität St. Gallen und der ETH Zürich gegründet. Das Unternehmen bietet Zugang zu Bankkonten und Zahlungsdienstleistungen sowie eine App für kostengünstige Investments. Die innovativen Anlagemöglichkeiten von Kaspar& umfassen eine Save-as-you-spend-Lösung, die Kreditkarteneinkäufe aufrundet und die Differenz in Indexfonds und ETFs investiert. Das erleichtert es Schweizer Konsumentinnen und Konsumenten, erste Anlageerfahrungen zu sammeln und langfristig Vermögen aufzubauen.

Mit der Partnerschaft unterstreicht Avaloq das Bekenntnis zu Innovation und einem niederschwelligen Zugang zur Vermögensverwaltung. Durch die einfache Integration ins Kernbankensystem von Avaloq können Finanzinstitute in der ganzen Schweiz die Investment-App von Kaspar& rasch für ihre Retailkunden und vermögende Privatkundschaft verfügbar machen.

Martin Greweldinger, CEO von Avaloq, dazu:

«Wir sind stolz auf unsere Innovationskraft und unser solides Netz an Fintech-Partnern. Mit unserer Beteiligung an Kaspar& würdigen wir das Potenzial des Unternehmens, das Anlageverhalten im Schweizer Retail-Markt zu revolutionieren. Kaspar& bietet seiner Kundschaft nicht nur automatisierte, kostengünstige Anlagelösungen, mit der intuitiven Benutzeroberfläche erleichtert die App ihren Nutzerinnen und Nutzern auch erste Anlageerfahrungen. Durch die vollständige Integration der App in unser Kernbankensystem fördern wir das Wachstum von Kaspar& und ermöglichen es Finanzinstituten, die die Avaloq Plattform in der Schweiz nutzen, ihren Kundinnen und Kunden Zugang zu dieser innovativen Anlageplattform zu gewähren.»

Für Kaspar& stellen die Partnerschaft und der Abschluss der Seed-Finanzierung wichtige Pfeiler des künftigen Unternehmenswachstums dar. Angeführt von Avaloq sind noch weitere Minderheitsinvestoren wie die Basellandschaftliche Kantonalbank (BLKB) sowie institutionelle Anleger und Business Angels an der Finanzierungsrunde beteiligt.

Jan-Philip Schade, Mitbegründer und CEO von Kaspar&, dazu:

«Mit der strategischen Partnerschaft mit Avaloq schreiben wir ein neues Kapitel unserer Unternehmensgeschichte. Die Beteiligung eines wichtigen Vertreters des Schweizer Finanzmarkts bestätigt das Potenzial unserer Plattform und ermöglicht es uns, den Wachstumskurs von Kaspar& beizubehalten. Ich glaube, dass die Integration der Kaspar&-App ins führende Schweizer Kernbankensystem einen wesentlichen Schritt hin zur verstärkten Zusammenarbeit zwischen Banken und Fintechs darstellt. Wir freuen uns auf den langfristigen Ausbau unserer Partnerschaft mit Avaloq und darauf, Finanzinstitute in der Schweiz bei der Erweiterung ihres Anlageangebots für Retailkunden und ihre vermögende Privatkundschaft zu unterstützen.»

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

A new research by Onalytica, an influencer marketing software platform, shows that while brands are prioritizing social content for their business-to-business (B2B) influencer marketing strategies, influencers are increasingly engaging in dynamic and interactive brand collaborations, with a strong preference for speaking at in-person events and co-creating content.

This trend highlights a shift towards more immersive and substantive engagements, highlighting a deeper partnership between brands and influencers to attract audience attention across various platforms.

The 2024 B2B Influencer Marketing Report reveals that 76% of brand marketers prioritize social content, closely followed by video at 70%. However, influencers are most enthusiastic about speaking at in-person events (71%) and co-creating content in partnership with brands (67%).

These figures show a divergence in preferences for engagements, with influencers favoring direct interaction and immediate impact of live events, while brands emphasize digital content, including blogs and videos, to broaden reach and deepen engagement. This reflects strategic opportunities for brands to integrate live influencer engagements with digital content strategies, enhancing both their reach and relationship depth, the report says.

LinkedIn as the top channel

In 2024, the channel preferences of brands and influencers show strategic alignment. Brands and influencers rated LinkedIn as their top channel for 2024, highlighting the platform’s pivotal role in B2B influencer marketing. However, platforms like Instagram and YouTube continue to hold strong appeal, reflecting an ongoing trend towards visual and video-based content for engaging audiences.

However, divergence emerges on platforms like Reddit and Threads, where priorities vary significantly, indicating differences in audience engagement and platform suitability.

Data from Onalytica show a clear premium on B2B influencer tasks requiring personal interactions or significant preparation. Speaking at an in-person event costs an average of US$17,000, while authoring an ebook or whitepaper has an average price of US$10,000. Video content, especially long-form, also commands high fees, reflecting its importance and effectiveness in current marketing strategies. Long-form video as part of a series costs an average of US$8,000, the data show.

Towards deeper and more impactful collaborations

The outlook for B2B influencer marketing in 2024 is positive, with 50% of customers planning to invest more or significantly more in B2B influencer marketing this year as businesses increasingly recognize the nuanced value of influencer partnerships.

Onalytica expects companies to forge deeper, more impactful collaborations, emphasizing long-term relationships over one-off campaigns. This commitment underscores a strategic shift towards leveraging authentic voices to amplify brand presence and drive meaningful business outcomes, the report says.

B2B influencer marketing is a strategy where businesses collaborate with industry experts, thought leaders, and influential figures to promote their products, services, or brand to other businesses. This type of marketing leverages the trust, reach, and expertise of industry influencers to connect with targeted business audiences, build credibility, and drive engagement.

The influencer marketing industry is thriving. According to German data platform Statista, the global influencer marketing market is projected to reach US$22.2 billion by 2025, more than double what it was in 2020 (US$9.7 billion).

Research by Ogilvy, an advertising company, reveals that three-quarters of B2B decision-makers around the world currently use influencer marketing. Among those, more than 9 in 10 (93%) are planning to expand their use of influencers.

In the fintech sector, prominent influencers include Jim Marous, a financial industry strategist, co-publisher of The Financial Brand, and one of the most influential people in banking; Oliver Bussmann, a senior technology executive with 30+years of influential leadership with UBS, SAP, Allianz, Deutsche Bank, and IBM; Lex Sokolin, a New York and London entrepreneur with senior operating and board-level experience in blockchain, digital investing, and wealth management; and Efi Pylarinou, an independent fintech and blockchain advisor.

Featured image credit: edited from freepik

Free Newsletter

Get the hottest Fintech Switzerland News once a month in your Inbox

New regulations in the European Union (EU) concerning payments and financial data access are laying the groundwork for open finance.

Though these initiatives aim to foster innovation and improve customer experiences in the financial services sector, they may also pose complex and costly implementation challenges to the sector, according to a note by the Institute of International Finance (IIF) released on May 22, 2024.

The note, released on May 22, examines the recent regulatory changes in the EU’s data-sharing landscape, focusing on the impact of new open finance rules on financial institutions.

A major highlight is the European Commission (EC)’s financial data access and payments package, released in June 2023. The package comprises proposals for a revised Payment Services Directive (PSD3), a new Payment Services Regulation (PSR), and a proposed Financial Data Access Regulation (FIDA). These proposals are designed to expand data access beyond payments, improve fraud prevention, and set the foundation for open finance.

Payment innovation and fraud prevention

The PSD3 and PSR are intended to replace and modernize the current Payment Services Directive or PSD2. Their objectives include combating fraud, enhancing customer rights, improving access to bank accounts for non-banking players, and ultimately facilitate open finance.

The European Parliament voted in favor of both the PSD3 and PSR on April 23, 2024, marking a significant step forward in shaping the future of open finance in the EU. It proposed several changes to the texts primarily to improv fraud prevention. These changes include:

• Strengthening consumer protection amid booming fraud activity;
• Promoting innovation through new payment services, risk-based strong customer authentication (SCA) and interoperability;
• Increasing transparency and user control over data sharing;
• Improving fraud data sharing through a dedicated IT platform overseen by the European Banking Authority (EBA); and
• Clarifying the regulations’ scopes regarding electronic money tokens, location-based discrimination, and direct debit refunds.

The EBA responded only a few days after the Parliament’s vote, formulating on April 29, 2024 specific suggestions for further amendments to the PSD3 and PSR texts such as requiring two different SCA factors, mandating comprehensive fraud risk management frameworks, and ensuring pre-execution transaction monitoring for instant payments.

Finalized versions of PSD3 and PSR are now expected by late 2024, with potential implementation around 2026, expects Sia Partners, a consulting firm.

Giving customers more control over their data

The FIDA, meanwhile, is intended to establish clear rights and obligations to manage customer data sharing in the financial sector, giving customers control over their data and allowing third parties access to a wide range of financial information. This includes data on mortgages, loans, savings, investments, insurance, pensions, and creditworthiness assessments.

Proposals under the FIDA include requirements for financial institutions to provide data access to other institutions or fintech firms, subject to customer permission. Customers will have full control over who accesses their data and for what purpose, enhancing trust in data sharing. Additionally, data holders and users will need to join Financial Data Sharing Schemes (FDSS), which will govern data access in line with FIDA and other EU regulations.

FIDA was voted on at the European Parliament’s Economic and Monetary Affairs Committee on April 18, 2024. However, industry experts do not expect FIDA to be finalized before 2025.

Impact on financial institutions

According to the IIF, the PSD3, PSR and FIDA present opportunities for the financial services industry to collaborate with new players in the ecosystem to develop innovative, value-added products and services and improve customer experiences.

However, the trade association highlights the significant challenges financial institutions may face in implementing these challenges. In particular, it notes that meeting the real-time data sharing requirements under FIDA may prove technically challenging and costly for data holders.

Moreover, industry stakeholders remain skeptical of the expected benefits of new regulations. A 2023 research by the EC examined the application and impact of PSD2, and found that the costs of implementing PSD2, particularly for API development (estimated at EUR 3.2 billion) and SCA rollout (estimated at ~ EUR 5 billion, were substantial. An overwhelming majority of banks and associations consulted for the study suggested that these costs largely outweigh the benefits to them.

Featured image credit: edited from freepik

Middle-market fintech firms fall between small, early-stage startups and large, established corporations in terms of size and maturity. These companies target mid-sized businesses or consumers, and often specialize in specific products or services tailored to their target audience. They typically generate moderate revenue and hold moderate market presence compared to larger fintech players but still represent a significant portion of the overall fintech ecosystem.

According to the PitchBook note, middle-market fintech companies are increasingly appealing to larger firms, especially given the relative ease of financing and executing deals in this space. These companies have also shown strong performance amid high inflation, making them attractive targets for investment.

In Q1 2024, PitchBook recorded 16 fintech PE buyouts, a notable increase compared to 11 in Q1 2023, to 2023’s average of 11 buyouts per quarter, and to H2 2022’s average of 14 per quarter. Among these transactions, payments companies accounted for the majority at 38%, continuing a trend observed over at least the past four years. Enterprise payment had been the top segment for PE buyout over the prior 12 months (27%), as well as over the last four years (26%), the note says.

According to PitchBook, payment companies are particularly attractive targets because of their ability to withstand inflation and maintain steady revenue streams. These companies provide a service that nearly everyone needs and benefit from robust consumer and business spending. Unlike software-as-a-service (SaaS) businesses, payment companies charge customers based on a percentage of each transaction rather than a fixed annual contract price. This model shields them from the negative impacts of inflation and may even offer some advantages in such economic conditions, the note says.

Additionally, PitchBook emphasizes that industry-specific payment tools, combined with workflow software, can generate the kind of revenue growth and margin that create attractive buyout returns. One such example is the acquisition of Jobox.ai by Talus Pay, a provider of payment processing solutions for small and mid-sized merchants that’s owned by Alvarez and Marsal Capital. Jobox.ai specializes in home services payments and workflow software. This acquisition complements Talus Pay’s existing focus areas, including healthcare, retail, restaurants, manufacturing, and government.

Another example is the acquisition of MuniciPAY by Autoagent Data Solutions in January. MuniciPAY operates as a citizen payment gateway for municipalities. Autoagent Data Solutions, known for its escrow tax and government payment processing services, acquired MuniciPay to expand its citizen payment gateway, allowing local governments to consolidate their incoming revenue in one place.

According to the note, these companies, which combine payments and software, have a competitive advantage that is hard for others to penetrate, along with a loyal customer base, making them attractive targets.

Fintech M&A activity sees rebound

Delving into corporate acquisition patterns, the PitchBook note highlights a rebound in activity this year. In Q1 2024, corporate acquisitions reached 18 deals, up from a four-year low of 14 in Q4 2023.

During the quarter, the increase in corporate M&A was largely driven by a more positive outlook among executive leadership teams. Until recently, corporate leaders faced challenges related to slowing revenue growth due to waning stimulus. They also expected a recession due to rate hikes and an inverted yield curve. However, the ecosystem surpassed expectations, the report says.

The quarter also witnessed large financial companies actively acquiring fintech companies to add new products and improve existing offerings. JP Morgan, for example, purchased LayerOne Financial in March to improve its offerings for hedge funds. With the deal, clients of JP Morgan’s wholly-owned subsidiary Neovest will be able to monitor their portfolios, conduct risk assessments, send orders to their brokers and perform compliance checks all from one platform, the companies said in a statement.

In Q1 2024, corporate acquisitions in North America were concentrated in New York, San Francisco, and other major cities, the note says. Many of these deals involved small businesses with five to 20 employees, indicating that corporates continue to acquire for talent and technology. Top segments by deal count were capital markets (23%), CFO software (18%) and financial services infrastructure (18%).

Globally, the total value of fintech M&A deals announced in Q1 2024 reached its highest level since Q4 2021, totaling US$75.7 billion across 282 transactions, data from Financial Technology Partners, an investment banking firm focused on fintech, show. Although the number of deals decreased 11% compared to Q1 2023, the overall volume increased 7.5 times.

Increased M&A volume was driven by a resurgence in US$1 billion+ M&A deals, which totaled 11 in Q1 2024 compared to only two announced during the same period last year. These large deals included Capital One’s proposed US$35 billion acquisition of Discover Financial Services, KKR’s purchase of a 50% stake in Cotiviti at a US$11 billion valuation, trading platform Webull’s US$7.3 billion merger agreement with special purpose acquisition company (SPAC) SK Growth Opportunities, and Nationwide Building Society’s US$3.7 billion acquisition of Virgin Money.

This article first appeared on fintechnews.am

Featured image credit: edited from freepik

Dabei wurden 132 verschiedene Faktoren berücksichtigt, um digitale Funktionalitäten, Dienstleistungen und Produkte zu analysieren. Die Ergebnisse dieser Studie wurden diese Woche auf der IFZ-Konferenz «Innovationen im Banking» präsentiert.

Bewertungen oder auch Aussagen zu «digitalen» oder eben «nicht-digitalen» Schweizer Retailbanken sind oft nicht einfach nachvollziehbar und scheinen manchmal etwas willkürlich. Mit der unten vorgestellten Untersuchung soll durch transparente Kriterien aufgezeigt werden, welche Banken tatsächlich einen höheren oder niedrigeren Digitalisierungsgrad im Privatkundenbereich haben.

Vorgehen

Hierfür hat das IFZ gemeinsam mit dem Digital Banking Think Tank e-foresight der Swisscomper April 2024 bei 37 Retailbanken und 3 Neobanken eine Untersuchung durchgeführt. Es wurde analysiert, welche (digitalen) Funktionalitäten, Produkte und Dienstleistungen für Privatkunden angeboten werden (digitale Angebote für Firmenkunden wurden explizit nicht berücksichtigt).

Dadurch soll eine objektiv nachvollziehbare Grundlage für einen Vergleich zwischen den Banken geschaffen werden. Die entsprechende systematische Erfassung von Funktionalitäten, Produkten und Dienstleistungen wurde in zwölf Themenblöcke eingeteilt. In Abbildung 1 sind die zwölf Themenblöcke ersichtlich. Die Anzahl der abgefragten Funktionalitäten pro Block ist jeweils in den Boxen unten rechts ersichtlich.

Die Anzahl der analysierten Elemente in diesem Jahr (132) ist deutlich höher als im Vorjahr (103). Es gab zudem auch einige Veränderungen im Fragebogen. Es wurden 35 neue Funktionen hinzugefügt, während 6 Aspekte nicht mehr berücksichtigt wurden.

Der Hauptgrund für den Wegfall der sechs Funktionalitäten war die Tatsache, dass Banken eine sehr hohe Abdeckung dieser Funktionen aufwiesen (in der Regel boten fast 100% der Banken diese Funktionalitäten an). Daher sind die Ergebnisse dieses Jahres nicht zu 100 Prozent mit denen des Vorjahres vergleichbar.

Die detaillierte Liste der 132 untersuchten Elemente und auch die einzelnen Gewichtungsfaktoren finden Sie hier.

Der Fokus der Analysen lag wie in den Vorjahren ausschliesslich auf den Verfügbarkeiten von Funktionalitäten. Auf eine Bewertung der Qualität der entsprechenden Angebote wurde verzichtet. Auch eine Bewertung des Nutzererlebnisses («User Experience» UX) wurde in unseren Analysen nicht vorgenommen. Des Weiteren wurden Aspekte wie die Performance von Webseiten oder des E-Bankings oder schwierig messbare Grössen wie die «Digitale Kultur» oder die «Agilität der Organisation» nicht berücksichtigt.

Eine im Vorjahr durchgeführte Umfrage bei gut 1’000 Schweizerinnen und Schweizer hat gezeigt, dass eine möglichst breite Abdeckung von Funktionalitäten aus Sicht der Kundschaft insgesamt als «wichtig» angesehen wird (die aus Kundensicht wichtigen Funktionalitäten finden Sie ebenfalls in diesem Blog-Artikel).

Um den Digitalisierungsgrad im Privatkunden-Geschäft der einzelnen Banken miteinander zu vergleichen, wurden zwei Werte berechnet.

1. Bei Variante 1 wurden die Anzahl angebotener digitaler Funktionalitäten, Produkte und Dienstleistungen addiert.
2. Bei Variante 2 wurden die einzelnen Themenblöcke basierend auf unserer Einschätzung unterschiedlich gewichtet. Die Gewichtung hat den Vorteil, dass gewisse Funktionalitäten eine höhere Bedeutung erlangen als andere an sich weniger wichtige Funktionalitäten. Auf der anderen Seite ist die «Wichtigkeit» immer mit unserer subjektiven Einschätzung verbunden. Daher zeigen wir nachfolgend beide Ranglisten auf.

Der Maximalwert beträgt 132 Punkte (ungewichtete Variante) respektive 13.85 Punkte (gewichtete Variante) und wäre erreicht, wenn alle in dieser Studie untersuchten Funktionalitäten, Produkte und Dienstleistungen von einer Bank angeboten würden. Wie schnell ersichtlich wird, ist der überwiegende Teil der Schweizer Banken derzeit noch weit davon entfernt, den Maximalwert zu erreichen.

Welches ist die digitalste Schweizer Retailbank im Privatkundengeschäft? Die Ranglisten

Nachdem im Vorjahr die Migros Bank die UBS vom ersten Platz verdrängt hatte, hat die UBS den Spitzenplatz – unabhängig vom Messansatz – wieder eingenommen (vgl. Abbildung 2). Die Migros Bank liegt aber noch immer auf dem guten zweiten Platz.

Die VZ Depotbank und die Credit Suisse befinden sich auf den Rängen 3 und 4 (abhängig vom Messansatz). Die BCV liegt neu auf dem fünften Rang (ungewichtet; Vorjahr: 6. Rang).

Aufgestiegen ist auch die St. Galler Kantonalbank (von Rang 16 auf Rang 10). Hingegen ist die Raiffeisen-Gruppe weiter zurückgerutscht und liegt nun unabhängig von der Berechnungsmethode auf Rang 9. Des Weiteren hat sich PostFinance wieder etwas nach oben gearbeitet, nachdem sie in den letzten Jahren stetig zurückgerutscht war. Sie liegt in unserem Ranking nun wieder abhängig von der gewählten Methode auf Rang 7 (gewichtet) oder Rang 8 (ungewichtet).

Weiter in den Top 10 befinden sich die Kantonalbanken aus Zürich (ZKB) und Luzern (LUKB). Mit der Valiant Bank und der Hypothekarbank Lenzburg haben es auch zwei Regionalbanken in die Top 15 geschafft.

Wie ersichtlich wird, variieren die einzelnen Ränge zwischen den beiden Messmethoden leicht. Die grundsätzliche Aussagekraft wird durch die Gewichtung der einzelnen Themenblöcke aber nicht bedeutend verändert.

Rankings der einzelnen Kategorien

Wir haben auch verschiedene Sub-Rankings für die oben vorgestellten zwölf Teilbereiche erstellt. Nachfolgend zeigen wir Ihnen einige ausgewählte Erkenntnisse daraus:

• In Bezug auf das E-Banking schneiden UBS (Rang 1) und die VZ Depotbank (Rang 2) am besten ab.
• Die drei Top Banken im Bereich der Funktionalitäten im Mobile Banking sind die UBS, das VZ und die Luzerner Kantonalbank.
• Im Bereich (Digitales) Anlegen und Vorsorgen liegt die Zürcher Kantonalbank an der Spitze vor der VZ Depotbank. PostFinance und UBS folgen (gleichauf) auf dem dritten Rang.
• Kombiniert man die Bereiche «Touchpoints» und «Digitalisierungsgrad der Filiale», liegt die UBS an der Spitze vor der Credit Suisse und PostFinance (beide sind gleichauf).

Generelle Entwicklungen

35 der 40 untersuchten Banken nahmen bereits im Vorjahr teil. Die nachfolgenden Ergebnisse beziehen sich auf die Entwicklung dieser 35 Banken.

• Im Vergleich zum Vorjahr werden durchschnittlich 14.3 Prozent mehr Funktionen angeboten
• In die Bereiche „Anlegen und Vorsorgen“ wurde besonders stark investiert (u.a. Handel und Verwahrung von Kryptowährungen)
• In den Bereich „Konto, Karten und Zahlen“ wurde am wenigsten investiert
• 31 der 35 untersuchten Banken haben sich gegenüber dem Vorjahr verbessert
• Eine deutliche Verbesserung von zusätzlichen 10 Funktionen/Angeboten gegenüber dem Vorjahr konnte man bei den folgenden Banken (und in dieser Reihenfolge) feststellen: St. Galler KB, Valiant Holding, Aargauische KB, BC de Genève, Zürcher KB, Berner KB, PostFinance, UBS, BC Vaudoise, Glarner KB, Schwyzer KB
• Im Vergleich zum Vorjahr ist es deutlich verbreiteter geworden, Devicedaten an den Support zu übermitteln (+9 Banken bieten diese Funktion an), virtuelle Sub-Konten im E-Banking (+7 Banken) und im Mobile Banking (+6 Banken) zu erstellen, mit einem Chatbot auf der Webseite zu kommunizieren (+6 Banken) sowie als Kunde selbst mit Kryptowährungen direkt im E- und M-Banking zu handeln (+5 Banken)
• Aktuell sind nur wenige Banken mit folgenden Funktionen ausgestattet: Online-Leasing; Fraktionshandel von Aktien; Multibanking-Lösung (Retailbanking); Elektronisches Schliessfach für persönliche Dateien des Kunden; Voice-Bot für Bankanwendungen; Stimm- und Spracherkennungssoftware; ein digitaler Vorsorgeauftrag-Konfigurator; Digitaler Handel von physischem Gold; Social Trading Angebote; digitales Archiv für Bankverträge; Neuabschluss von Hypotheken im Mobile Banking

Fazit

Vor dem Hintergrund der aufgezeigten Resultate können folgende Konklusionen gezogen werden:

• Es bestehen nach wie vor erhebliche Unterschiede zwischen den Banken hinsichtlich der Abdeckung von Funktionen. Die Bandbreite reicht von 17 bis 102.75 Punkten, wobei 22 der untersuchten 40 Banken weniger als die Hälfte der Funktionen der UBS anbieten. Insgesamt besteht weiterhin erhebliches Verbesserungspotenzial.
• Die Schweizer Banken sind aber keineswegs untätig. Fast alle erweitern ihre Funktionalitäten in verschiedenen Dienstleistungsbereichen. Im Jahr 2023 wurden dabei, hinsichtlich der Anzahl der angebotenen Funktionen, mehr Fortschritte erzielt als im Vorjahr.
• Obschon heute viele Banken eine „Mobile First“ Strategie fahren, zeigt die Studie, dass der angebotene Funktionsumfang im Mobile Banking demjenigen im E-Banking weiterhin hinterherhinkt (d.h. verschiedene Angebote sind teilweise „nur“ im E-Banking verfügbar). Vor allem kleine Banken setzen weiterhin vermehrt auf E-Banking anstatt auf Mobile Banking.
• Es besteht eine positive Korrelation zwischen der Unternehmensgrösse (gemessen anhand der Bilanzsumme) und dem Grad der Digitalisierung.

Leonteq announced the launch of a collaboration with neon under which neon will offer the ETP+ on the FuW Swiss 50 Index NTR to their clients as part of the recently launched investment plan without purchase or deposit fees.

As a challenger of traditional Swiss banking, neon offers a user-friendly account and investment solution as an app for all smartphones.

The collaboration between neon and Leonteq aims to address a new growth market for investment plans in Switzerland. In this context, Leonteq recently launched a dedicated ETP+ on the FuW Swiss 50 Index NTR to enable monthly investments by neon customers in small sizes.

Alessandro Ricci

Alessandro Ricci, Head Investment Solutions of Leonteq, stated:

“Our shared goal with neon is to simplify the investment process for retail investors. Together with this fast-growing fintech company, we provide easy and affordable access to a straightforward investment solution that delivers enhanced investor safety through the ETP+ wrapper.”

Timo Hegnauer

Timo Hegnauer, Head of Trading of neon added:

“We are excited to also challenge the Swiss retail market for investment plans together with well-established partners like Leonteq. As a leading financial technology company, Leonteq brings their expertise as well as their innovative products to neon invest. We are dedicated to removing barriers to investing: By offering our customers the opportunity to buy the FuW Swiss 50 Index NTR with 0% trading fees as part of the new neon investment plan, our cooperation with Leonteq extends our selection of assets with 0% purchase fees with a product that focuses on Switzerland.”

About ETP+ on FuW Swiss 50 index

The FuW Swiss 50 Index NTR is developed by the editorial team of Finanz und Wirtschaft (FuW) and includes the top 50 tradable Swiss companies. Every six months, the companies in the index are selected according to their free float market capitalization and considering minimum liquidity requirements. The top 25 companies are double-weighted, while the remaining 25 companies are single-weighted, resulting in a broader diversification compared to market capitalization weighted indices. The recently launched ETP+ on the FuW Swiss 50 Index NTR is listed on BX Swiss.

Featured image credit: edited from freepik

The collaboration will allow the private bank to utilize the proven crypto expertise of Bitcoin Suisse in managing its crypto investment solutions, and to expand its existing offering in the area of digital assets under the “ARCHIP” brand.

The cooperation is to be integrated into Maerki Baumann’s investment process via the “Joint Crypto Advisory Board”. Clients of Bitcoin Suisse will gain access to first-class private banking services for traditional assets. Maerki Baumann’s longstanding experience in serving clients with a crypto background makes the private bank Bitcoin Suisse’s preferred partner for traditional investments.

Bitcoin Suisse, Switzerland’s leading crypto financial services provider, and the Zurich-based private bank Maerki Baumann & Co. Ltd. have entered into a cooperation. While Bitcoin Suisse will contribute its crypto-related expertise, Maerki Baumann will provide access to its experience in the realm of private banking.

Stephan Zwahlen

Stephan A. Zwahlen, CEO of Maerki Baumann, is convinced of the cooperation’s merits:

“The collaboration between Bitcoin Suisse and Maerki Baumann reinforces our strengths by allowing both companies to focus on their core competencies. This is for the benefit of our clients as well as for those of Bitcoin Suisse.”

Luzius Meisser

Luzius Meisser, Chairman of the Board of Directors of Bitcoin Suisse, expressed his enthusiasm about the new arrangement:

“Together, we create a robust bridge in both directions, enabling crypto natives and traditional investors alike to diversify their portfolios across a wider spectrum of assets with the guidance of relevant experts.”

Since March 2024, Maerki Baumann has bundled its offering in the area of digital assets under the new “ARCHIP” brand. As part of its collaboration with Bitcoin Suisse, Maerki Baumann will draw on its many years of experience as a private bank in serving private and institutional clients as well as corporate clients with a crypto background.

The clients of Maerki Baumann will benefit from the cooperation, as it will enable the private bank to leverage the proven crypto expertise of Bitcoin Suisse in managing its digital assets investment solutions.

Featured image credit: Stephan A. Zwahlen, CEO of Maerki Baumann and Luzius Meisser, Chairman of the Board of Directors of Bitcoin Suisse, edited from Linkedin

Acquiring a global exchange will significantly accelerate Robinhood Crypto’s expansion worldwide. Bitstamp holds over 50 active licenses and registrations globally and will bring in customers across the EU, UK, US and Asia to Robinhood.

This acquisition will introduce Robinhood’s first institutional business. Bitstamp has been trusted by its institutional clients for reliable trade execution, deep order books and industry-leading API connectivity. With Bitstamp’s other institutional offerings like white label solution Bitstamp-as-a-service, institutional lending, and staking, Robinhood will enter the space with active and established relationships, infrastructure and industry-leading products. Bitstamp’s core spot exchange, with over 85 tradable assets, and products like staking and lending, will enhance Robinhood’s Crypto offering.

Johann Kerbrat

“The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and long standing global exchange has shown resilience through market cycles. By seamlessly coupling customer experience with safety across geographies, the Bitstamp team has established one of the strongest reputations across retail and institutional crypto investors,”

said Johann Kerbrat, General Manager of Robinhood Crypto.

“Through this strategic combination, we are better positioned to expand our footprint outside of the US and welcome institutional customers to Robinhood.”

JB Graftieaux

“As the world’s longest running cryptocurrency exchange, Bitstamp is known as one of the most-trusted and transparent crypto platforms worldwide,”

said JB Graftieaux, CEO of Bitstamp.

“Bringing Bitstamp’s platform and expertise into Robinhood’s ecosystem will give users an enhanced trading experience with a continuing commitment to compliance, security, and customer-centricity.”

Bitstamp’s team will join forces with Robinhood, fostering collaboration, innovation, and knowledge sharing across continents. Robinhood and Bitstamp customers can expect the same level of service, security and reliability and as we move forward, we are committed to maintaining transparency throughout this process.

Robinhood expects the final deal consideration to be approximately $200 million in cash, subject to customary purchase price adjustments. The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2025.

Featured image credit: edited from freepik

This strategic transaction underscores HPS‘s commitment to enhancing its digital banking and payments capabilities.

CR2, with offices in Dublin, Dubai, Jordan, India and Australia, is renowned for its innovative digital banking and payments solutions. Through its flagship platform, BankWorld, CR2 powers 90+ banks across more than 50 countries, offering a comprehensive suite of digital banking, digital wallet and payment functionalities. In addition, CR2’s Partner Ecosystem combines the confidence of BankWorld with access to easy plug-in third-party fintech innovations.

HPS views CR2’s business as highly attractive and aligned with HPS’s AccelR8 strategic growth plan. HPS believes there is strategic synergy between the two businesses, and that the parties’ respective complementary software and capabilities will help existing and new customers address their increasingly complex challenges. The transaction also consolidates HPS’s position as a leader in the African market thanks to its presence in the French-speaking regions, to be complemented by CR2’s strength in English-speaking Africa and Australia.

The acquisition marks an important strategic milestone in HPS’s growth journey as it continues to execute on its AccelR8 strategic plan. CR2 is expected to contribute materially to HPS’s financial performance by delivering new potential revenue opportunities in complementary markets. In addition, combining CR2’s digital banking solutions with PowerCARD will enable HPS to strengthen its value proposition with current and new customers. The transaction is expected to be EPS accretive in the first year following completion, reflecting synergies expected to be realised. In the 12 months to June 2023, CR2 generated revenues of €23.8 million.

Building on its successful acquisitive track-record, including the switching activity in Morocco and the recent acquisitions of IPRC and ICPS, HPS continues to expand its global presence and strengthen its position as a leading consolidator in the global payment industry.

As we embark on this new chapter of growth and innovation, HPS remains committed to delivering excellence in digital payments, while upholding the highest standards of integrity and customer service.

Abdeslam Alaoui Smaili

Commenting on the acquisition, Abdeslam Alaoui Smaili, Co-Founder and CEO of HPS, said:

“Today marks a significant milestone in the continued growth of HPS. CR2 has a differentiated and exciting capability set, which is a strong fit for HPS and adds significant depth and breadth to our platform. Both companies share a common passion for excellence in digital payments and for providing high-value solutions to customers. With similar cultures valuing customer focus and high performance, we believe that HPS will be an excellent home for CR2 to thrive and deliver long term growth. On behalf of the HPS board, I look forward to welcoming all our CR2 colleagues as we join forces to build upon our strong momentum going forward.”

Fintan Byrne

Fintan Byrne, CEO of CR2 commented

“We are pleased to be joining Abdeslam and the team at HPS. Together, we share a wealth of experience, a passion for innovation and a relentless focus on customer success. This transaction is a recognition of what the team in CR2 have created and the opportunity within our business for future growth. Importantly, it aligns with our continued international scale ambition. With additional scale comes even more opportunity to invest and innovate. This is an exciting time to be in the digital banking and payments technology sector. Together, we look forward to continuously delivering for customers and all stakeholders with confidence.”

Evercore is serving as exclusive financial adviser to HPS. Norton Rose Fulbright and Matheson LLP are serving as legal advisers to HPS. The terms of the acquisition are not being disclosed. The transaction is subject to customary regulatory conditions and is expected to close in the coming months.

Featured image credit: edited from Unsplash

Established European fintech firms are experiencing some relief this year following a challenging 2023.

Last year, venture-growth companies faced difficulties due to several factors, including the withdrawal of tourist investors, increased volatility, lower returns, and weak public market valuations. However, 2024 is showing signs of improvements, with deal values and valuations increasing significantly Q1 2024, data newly released by PitchBook show.

The figures, shared in the “Q1 2024 European VC Valuations Report”, reveal a positive note in European venture-growth valuations this year, with median venture capital (VC) deal values in the stage increasing significantly to EUR 9.3 million in Q1 2024, compared with EUR 6.0 million last year. Valuations also displayed signs of uptick, increasing 4.5% to EUR 21.7 million.

Venture-growth VC pre-money valuation (EUR million) and deal value (EUR million), Source: Q1 2024 European VC Valuations Report, PitchBook, May 2024

According to PitchBook, this rise was likely helped by the rally public equity valuations have seen since January 2024, providing more favorable comparables. Notably, prominent venture-growth fintech companies such as Klarna and Monzo have achieved higher implied valuations recently.

Klarna, the Swedish fintech company once crowned as Europe’s most valuable startup, is reportedly in discussions with banks for a potential US initial public offering (IPO) as early as Q3 2024, with an expected valuation of US$20 billion. The company, known for its buy now, pay later (BNPL) services, was last valued at US$6.7 billion after US$800 million fundraise in 2022. It had reached a staggering US$45.6 billion valuation in a 2021 round.

Monzo, a digital bank from the UK serving nine million customers, raised a US$430 million round in March 2024, giving it a post-money valuation of US$5 billion. The company, which said it became profitable in March 2023, said it would use the funds to expand and introduce new products. Monzo was valued at US$4.5 billion in late 2021 after a previous funding round.

Deal sizes and valuations for fintech VC investments also grew in both early-stage and late-stage deals. The median early-stage VC deal value in fintech sat at EUR 3.3 million in Q1 2024, up 50% from EUR 2.2 million in 2023. Median late-stage VC deal value rose 2.4% during the same period, reaching EUR 4.2 million in Q1 2024.

In Q1 2024, fintech led early-stage VC deals across all major verticals, securing the largest median round of the quarter, followed by cleantech (EUR 2.8 million) and software-as-a-service (SaaS) (EUR 2.6 million).

Median early-stage VC deal value (EUR million) by vertical, Source: Q1 2024 European VC Valuations Report, PitchBook, May 2024

Europe sees growth in 2024

The recovery in European fintech VC is further supported by data released in April by market intelligence platform CB Insights. The data, released as part of the “State of Fintech Q1 2024” report, reveal that Europe was the only major global region to see fintech funding increase in Q1 2024, growing by 22% quarter-on-quarter (QoQ) to US$2.2 billion.

Key deals were secured in the UK and the Netherlands, exemplified by Monzo’s US$430 million Series I, Flagstone’s US$139 million round (UK), Mews’ US$110 million Series D (Netherlands), and DataSnipper’s US$100 million Series B (Netherlands).

Experts anticipate continued growth in the European fintech sector moving forward, especially in areas such as alternative payments, blockchain technology and regtech.

James Booth, VP Partner Management EMEA at PPRO, anticipates an increase in the use of payment methods such as bank transfers, e-wallets, and buy now, pay later, telling Sifted in January 2024 that British consumers are already using alternative payment methods in more than 50% of online transactions.

James Devlin from Fidelity International Strategic Ventures predicts that regtech will gain traction in 2024 as regulators continue to pressure financial institutions to meet compliance obligations, particularly in monitoring staff communications.

Finally, Carol Hagh, a Non-Executive Director and Chair of the Screening Committee at Harvard Business School Alumni Angels of the UK, claims that while a mass resurgence of cryptocurrency is unlikely, blockchain technology holds promise. She anticipates that 2024 might witness substantial adoption and commercialization of the technology, particularly in sectors such as insurance, healthcare, and supply chain management.

Despite the positive outlook for Europe, global fintech investments faced challenges in Q1 2024, with a 16% decrease in funding compared to the previous quarter and a 119% year-over-year (YoY) decline. This decline reflects broader economic uncertainties, soaring inflation and a looming global recession. Global fintech funding dropped by 50% to US$39.2 billion in 2023, falling from US$78.6 billion in 2022 – a far cry from the record of US$140.8 billion secured in 2021.

Featured image credit: edited from freepik

Die Kooperation eröffnet Stripe-Nutzern weltweit die Möglichkeit, TWINT als Zahlungsmethode zu integrieren, und erschliesst damit den Zugang zu mehr als fünf Millionen aktiven Nutzern von TWINT in der Schweiz.

TWINT ist mit einer Abdeckung von über 76 Prozent im Schweizer E-Commerce eines der beliebtesten Zahlungsmittel der Schweiz. Nahezu alle Schweizer Banken bieten ihren Kunden TWINT als mobile Bezahllösung an. TWINT-Nutzer können direkt und bargeldlos von ihrem Bankkonto aus Zahlungen für eine hohe Zahl an Use Cases auslösen, unter anderem im E-Commerce, an der Kasse, in Apps und an Verkaufsautomaten. Weitere Funktionen und Einsatzbereiche kommen laufend neu dazu.

Die Allianz zwischen Stripe und TWINT ist nicht nur bedeutsam für Schweizer Nutzer von Stripe, sondern auch für internationale Unternehmen, die ihre Produkte und Dienstleistungen in der Schweiz anbieten. Für viele deutsche Unternehmen etwa zählt die Schweiz zu den wichtigsten Expansionsmärkten.

Marcos Raiser do Ó

Marcos Raiser do Ó, Head of DACH and CEE bei Stripe:

„Wir freuen uns sehr, mit TWINT zusammenzuarbeiten, um unseren Nutzern einen noch besseren Zugang zum Schweizer Markt zu ermöglichen. TWINT ist eine sichere und bequeme Zahlungsmethode, die von Millionen von Menschen in der Schweiz genutzt wird. Wir erwarten, dass viele unserer Nutzer ihren Umsatz im Schweizer Markt mit TWINT deutlich steigern können.”

Adrian Plattner

Adrian Plattner, CSO bei TWINT, ergänzt:

„Die Integration von TWINT als Zahlungsmethode bei Stripe eröffnet zahlreichen internationalen Händlern die effektive Möglichkeit, den Schweizer Markt zu erschliessen. Gleichzeitig bauen wir die Vielfalt an Einsatzmöglichkeiten für die Nutzenden von TWINT zunehmend aus. Wir freuen uns darum, unsere Reichweite mit dieser Partnerschaft über die Grenzen der Schweiz hinaus weiter zu festigen und das Leben von Nutzenden und Händlern zusätzlich zu vereinfachen.”

Digitalization and technology are introducing a number of benefits to banks, allowing them to improve efficiencies, cut cost and enhance customer experience. However, these advancements also introduce risks, including operational, reputational, and strategic risks, according to a new report by the Bank for International Settlements (BIS).

The report, titled “Digitalisation of Finance” and authored by the BIS’s Basel Committee on Banking Supervision, examines the ongoing digitalization of finance on banks, highlighting both the advantages and risks of new technologies and the rise of new technology-enabled service providers in the banking sector.

APIs are facilitating data sharing

According to the report, the ongoing digitalization of finance is characterized by the emergence and growing use of innovative technologies across various aspects of the banking value chain. These technologies include application programming interfaces (APIs), artificial intelligence and machine learning (AI/ML), and distributed ledger technology (DLT).

Innovative technologies and the banking value chain, Source: Digitalisation of finance, The Basel Committee on Banking Supervision, Bank for International Settlements, May 2024

APIs facilitate data sharing between different applications, enabling efficient real-time processing and increased data connectivity. Around the world, banks are using APIs to share and import data between their internal systems for mobile banking, collaborate with external partners within their systems, collaborate with external partners through models like banking-as-a-service (BaaS), and connect with third parties such as account software providers, payment processors and alternative credit scoring companies.

APIs are also commonly used in open banking and open finance frameworks, which are rapidly being implemented around the world to encourage further innovations in business models and products, and foster financial inclusion.

Adoption of open banking and open finance, Source: Digitalisation of finance, The Basel Committee on Banking Supervision, Bank for International Settlements, May 2024

AI and ML to boost efficiencies

Banks are also increasingly adopting AI and ML techniques to enhance their operations. These techniques are capable of predicting a wide variety of complex phenomena and have the potential to increase banks’ operational efficiency, risk management capabilities and product offering. This includes improving customer experience through streamlined interactions, offerings superior pattern recognition ability and predictive power, providing greater accuracy and consistency in processing, as well as enabling cost efficiencies.

AI holds tremendous potential in finance, with McKinsey estimating that AI technologies could deliver up to US$1 trillion of additional value each year for the global banking industry. This would be achieved through increased revenues through personalized services, cost efficiencies, and the uncovering of new and previously unrealized opportunities using data.

Banks are using AI and ML applications for both back office and front office functions with use cases including credit underwriting, trading activities, pricing models, regulatory capital and planning, liquidity requirements and planning, fraud detection and prevention, anti-money laundering and combating the financing of terrorism (AML/CFT), chatbots and marketing.

Most recently, generative AI (gen AI), a subfield of AI focused on developing algorithms and models capable of generating new text, images, or other media, has received significant public attention. Though banks’ use of gen AI remains limited at present, the BIS report notes that some are exploring or piloting gen AI applications internally to improve operational efficiency and staff productivity. Specific use cases observed include digital assistants, market analysis, fraud detection and code generation.

McKinsey estimates that gen AI could improve productivity in core corporate and investment banking (CIB) activities by between 30% to 90% in individual use cases, potentially adding up to about 10% of CIB operating profits in the long run.

Generative AI use cases in banking, Source: Digitalisation of finance, The Basel Committee on Banking Supervision, Bank for International Settlements, May 2024

DLT is opening up new opportunities

DLT is another technology transforming the banking industry by enabling digital money, tokenization, and improving the operational management of banks’ existing business activities. The technology is praised for its ability to lower costs and enhance efficiencies through automation and desintermediation.

One particular area of interest for banks is the tokenization of assets. Asset tokenization refers to the process of recording the rights to a given asset into a digital token that can be held, sold, and traded on a DLT platform. The resulting tokens represent a stake of ownership in the underlying asset. Asset tokenization has been praised for its potential to facilitate new ways of using financial assets to serve end users, offering new opportunities previously hindered by monetary system frictions.

Global management consultancy Roland Berger forecasts that the market for asset tokenization could mushroom to at least US$10 trillion by 2030. The value implies a 40-fold increase of the value of tokenized assets from 2022 to 2030, and marks a significant rise from the current value of around US$300 billion.

Estimated value of tokenized assets by 2030, Source: Roland Berger, Oct 2023

Notable use cases of asset tokenization by banks include the issuance of security tokens backed by real estate, the tokenization of banks’ shareholders’ equity, the tokenization and custody of bank customers’ shares, the tokenization of financial instruments such as intraday repo options and bonds, and the tokenization of the ownership rights in works of art.

Beyond tokenization, some banks are also using or exploring DLT for other purposes, including identification verification, settlement of tokenized transactions, cross-border payments, digital asset custody and bookkeeping.

Cloud computing fosters innovation

Finally, cloud computing promotes efficiency and economies of economies of scale by providing on-demand computer processing resources. These solutions allow for easier access to technology and computing infrastructure that would otherwise be expensive or take a long time to build and be costly to maintain. This reduces the barriers to entry for firms expanding into new products and services, and over time, reduce costs in financial services.

For banks, cloud services eliminate building costly on-premise data centers that cover peak-level computing burdens and, instead, allow them the flexibility to accommodate seasonal fluctuations in the need for computing.

For fintech startups, cloud services provide them with the infrastructure, tools, and flexibility needed to innovate, grow, and compete in the dynamic fintech landscape.

In the financial services sector, industry participants are embracing cloud computing at a fast pace. An industry survey conducted last year by Capgemini revealed that 91% of banks and insurance companies had initiated their cloud journey, a significant increase from 2020, when only 37% of firms had embarked on their cloud transformations. 89% of the financial services executives polled viewed cloud-enabled platform as crucial for delivering the agility, flexibility, innovation, and productivity necessary to meet escalating business demands.

Impact of new banking competitors and business models

Technological advances have led to the emergence of new market entrants and business models, increasing competition in the banking sector.

Digital-only banks, fintech startups, and bigtech firms are offering specialized digital financial services targeting individuals, entrepreneurs, and small and medium-sized enterprises (SMEs), often leveraging data and technology to enhance user experience. These companies also benefit from regulatory advantages over traditional banks due to their nimble nature, innovative technologies, and sometimes less complex business models.

Technological advances have also fostered strategic partnerships between banks and other firms. These partnerships aim to leverage the strengths of both parties, with banks providing infrastructure, expertise and regulatory permissions, and non-bank intermediaries contributing to product development, data analytics and user experience.

For banks, new technologies and partnerships offer opportunities for innovation, efficiency gains, and enhanced risk management. For consumers, digitalization promises expanded financial access, reduced transaction costs, improved experiences, and increased competition.

However, digital transformation also introduces new vulnerabilities and amplifies existing risks. Large-scale digital transformation projects carry risks related to legacy infrastructure and lack of expertise, particularly for smaller banks. Partnerships with non-banks, meanwhile, can create dependencies, jeopardizing banks’ control over volumes, product design, origination processes and customer relationship, and leading to potential losses in business and financial performance.

Furthermore, reputational and operational risks may arise from failures, non-compliance, and issues with third-party partners. Finally, increased data sharing and interconnectivity between banks and third parties pose challenges for data security and protection. This expanded access can lead to data breaches and a larger surface area for cyber attacks.

Featured image credit: edited from freepik

Mit Click to Pay können die Online-Händler den Bezahlvorgang per Karte vereinfachen und ihre Chance auf erfolgreiche Kaufabschlüsse erhöhen, ohne dass ihnen zusätzlicher Aufwand oder Kosten entstehen.

Santosh Ritter

«Das Bezahlen im Internet ist oft noch zu kompliziert. Click to Pay ist angetreten, um die Kartenzahlung im Netz so einfach zu machen, wie man es vom kontaktlosen Bezahlen im Geschäft kennt. Damit Schweizer Banken ihren Kundinnen und Kunden die Lösung zur Registrierung anbieten, ist eine breite Verfügbarkeit im Online-Handel zentral. Die Integration von Tausenden von Online-Shops in Zusammenarbeit mit Payrexx ist ein wichtiger Meilenstein für den breiten Roll-Out von Click to Pay im Schweizer Markt»,

sagt Santosh Ritter, Country Manager Schweiz und Liechtenstein bei Visa.

Händler profitieren von schnellerem Checkout, höherer Kaufabschlussquote und mehr Sicherheit

Click to Pay ist eine Weiterentwicklung der Kartenzahlung im Internet. Für Online-Händler bietet dies eine Reihe von Vorteilen. Bisher ist fast die Hälfte der Kaufabbrüche (44%) in digitalen Warenkörben auf Probleme beim Bezahlen zurückzuführen. Denn Konsument:innen begegnen in diesem Prozess oft noch gleich mehrere Hürden.

Sie müssen ihr Portemonnaie zur Hand haben, Daten von der Karte abtippen und mehrere Formularfelder ausfüllen. Click to Pay macht diese Schritte überflüssig und beschleunigt damit den Checkout-Prozess, wodurch die Quote erfolgreicher Kaufabschlüsse erhöht werden kann. Denn Online-Käufer:innen können mit Click to Pay shop- und geräteübergreifend mit wenigen Klicks bezahlen, ohne die Kartendaten überall neu einzugeben zu müssen. Selbst beim Ersteinkauf in Online-Shops, die diese moderne Checkout-Methode anbieten.

Zudem senkt Click to Pay für Händler das Risiko, Ziel von Kriminellen zu werden. Denn jede Zahlung mit Click to Pay ist tokenisiert und dadurch mit einer zusätzliche Sicherheitsebene abgesichert. Das bedeutet, dass Händler und ihre Zahlungsdienstleister bei einer Zahlung keine Kartennummern verarbeiten, sondern einen digitalen Platzhalter.

Visa Tokens können nicht an anderer Stelle eingesetzt werden und sind für Unbefugte damit wertlos, selbst wenn sie in falsche Hände geraten. Hiervon profitieren auch Konsument:innen: Die Betrugsrate bei Token-Zahlungen ist um bis zu 50 Prozent niedriger. Zudem ist die Payrexx-Zahlungsplattform PCI DSS Level 1 zertifiziert, verwendet Verschlüsselungsprotokolle wie SSL (Secure Socket Layer) und reduziert das Betrugsrisiko mithilfe des 3-D-Secure-Verfahrens.

Automatisches Update für Payrexx-Kunden – kein zusätzlicher Aufwand

Click to Pay modernisiert bestehende Kartenzahlungen im Online-Handel. Händler müssen keine neuen Zahlungsart akzeptieren und auch keine neue Partei wird zwischen sie und ihre Kund:innen geschaltet. Damit erhalten sie nicht nur die Kundenbeziehung, sondern geniessen auch weiter Vorteile wie die Zahlungsgarantie, sofort in dem Moment, in dem eine Transaktion autorisiert wird.

Die Integration von Click to Pay für Händler erfolgt in Zusammenarbeit mit Zahlungsdienstleistern wie Payrexx, die von Visa die notwendigen API-Spezifikationen und Integrationsanleitungen erhalten. Für Payrexx-Kunden entsteht kein zusätzlicher Aufwand. Die Aufschaltung von Click to Pay ist mit ihren bestehenden Konfigurationen kompatibel. Zudem sind Kartenzahlungen auch weiterhin per manueller Eingabe möglich.

Ivan Schmid

«Insbesondere für kleinere Händler ist es wichtig, dass ihre Kundschaft schnell und bequem einkaufen kann. Click to Pay mit Visa beschleunigt den Checkout-Prozess und erhöht so die Wahrscheinlichkeit, dass der Kauf auch tatsächlich abgeschlossen wird. Aus der engen Zusammenarbeit mit Visa ergibt sich also nicht nur ein enormer Mehrwert für die Händler von Payrexx, sondern auch für all ihre Shopperinnen und Shopper»,

sagt Ivan Schmid, Gründer und CEO von Payrexx.

Nach Rekordwerten im Jahr 2021 und einem darauffolgenden Einbruch sind die Preise von Kryptowährungen in den letzten Monaten wieder deutlich gestiegen. Verschiedene Retailbanken haben sich entschlossen, ein Angebot an Kryptowährungen aufzubauen.

Gemäss einer Studie der Hochschule Luzern (HSLU) bieten 28 Prozent der Retailbanken Kryptowährungen als vollwertige Anlageklasse an oder beabsichtigen, dies künftig zu tun. Nach Jahren der Zurückhaltung sieht es danach aus, dass mindestens grössere Retailbanken in ihrer Kundenbasis ein Bedürfnis nach Kryptowährungen erkennen.

Banken gelten als vertrauenswürdiger

Felix Buschor

«Die Banken scheinen in Kryptoanlagen Potenzial zu sehen»,

sagt Co-Studienautor Dr. Felix Buschor. Der Finanzexperte führt dies auf zwei grosse Vorteile zurück, welche Banken gegenüber Kryptobörsen haben:

«Erstens geniessen sie das Vertrauen ihrer Kundschaft, wenn es um die sichere Abwicklung und Verwahrung von Kryptowährungen geht. Zweitens können Kryptowährungen kundenfreundlich mit vorhandenen Bankdienstleistungen verschmolzen werden.»

Das heisst gemäss dem Studienleiter, dass Kryptowährungen im E- oder Mobile-Banking gehandelt werden können oder im Depotauszug und im Steuerverzeichnis zusammen mit den übrigen Vermögenswerten ausgewiesen werden.

Abbildung 27: Übersicht über mögliche Ausprägungsformen von Kryptowerten.

Blockchain: Gamechanger für die Banken?

Die Einführung von Kryptowährungen sei für die Banken nicht nur eine reine Erweiterung ihrer Produktpalette. Gemäss Buschor stellt sich damit unweigerlich auch die Frage, welche strategische Bedeutung sie der Blockchain für die Zukunft des Bankgeschäfts beimessen. Wie die Studie zeigt, gibt es hierzu unterschiedliche Auffassungen:

«Manche Banken sehen Blockchain als eine Technologie, die das Rückgrat des Bankings der Zukunft bilden wird. Das Beherrschen der Blockchain Technologie wird als Kernkompetenz angesehen»,

so Buschor. Die Mehrheit der Banken sei sich diesbezüglich aber weniger sicher. Für sie stehe im Vordergrund, rasch auf das Kundenbedürfnis nach Kryptowährungen reagieren zu können.

Diese unterschiedlichen Auffassungen zeigen sich im Sourcing: Wer viel Potenzial in Kryptoanlagen sieht, investiert jetzt substanziell, um bankintern Know-how, Systeme und Prozesse rund um die Blockchain aufzubauen. Die Banken, welche in Kryptoanlagen im Moment eher einen kurzfristigen Businesscase sehen, würden sich dieses Know-how bei Drittanbietern einkaufen.

«Das geht wesentlich schneller, als eigene Prozesse aufzugleisen»,

hält der Co-Studienautor fest.

Finastra, a global financial software provider, has been chosen by private bank LGT to launch instant payment services in Austria and Liechtenstein, with plans to expand to other markets.

LGT will utilise Finastra’s payment hub, adopting a model bank implementation approach to expedite compliance with the EU’s instant payments regulatory timeline.

By separating payment processing from its core banking system, LGT aims to manage anticipated growth in instant payment volumes and ensure 24/7 service availability.

Finastra’s payment hub is designed to offer a scalable and resilient payment processing system, enabling banks to meet regulatory requirements and quickly adapt to future changes.

LGT’s implementation of Finastra’s payment hub will allow the bank to swiftly comply with the upcoming EU regulatory deadline for instant payments.

The solution also facilitates the adoption of other payment schemes, such as SIC5 IP in Switzerland, supporting ongoing modernization and innovation.

LGT already employs Finastra Kondor, a treasury management system, and Finastra’s Total Messaging platform.

Bernhard Strauch

“We selected Finastra’s payment hub as it supports multiple payment types within one standalone system, while enabling seamless integrations of new services as and when we need them.

With Finastra’s solution and industry expertise, we will gain the necessary agility required to keep pace with regulatory and industry demands.”

said Bernhard Strauch, Head Securities & Payments Services at LGT Financial Services.

Neil Macro

“Underpinned by open architecture, APIs and our partner ecosystem, our solutions enable banks like LGT to innovate at speed, boost risk management and deliver enhanced services to end-users.

For example, the bank can seamlessly implement new functionality to strengthen its instant payments offering, such as Verification of Payee and real-time sanctions screening. We look forward to supporting LGT on further developing its payments services.”

said Neil Macro, Vice President, Managing Director – EMEA mid-markets, Payments at Finastra.

Featured image credit: Edited from freepik

A jury of 20 decision-makers and opinion leaders from the Swiss fintech sector has selected the finalists for this year’s Swiss Fintech awards from over 60 applications.

The finalists in the “Early Stage Start-up of the Year” category are Climada and Neur.on AI.

In the “Growth Stage Start-up of the Year” category, GenTwo and Payrexx reached the finals.

The Early Stage Finalists Swiss Fintech Awards 2024

Climada Technologies aims to provide financial service companies with transparent and regulatory compliant climate change reporting with a high degree of automation. The open-source platform provides science-based insights into climate risk analysis, offers assessments of the effects of these risks on a company’s finances, productivity or supply chains and develops future scenarios.

Neur.on AI tackles the problem that financial institutions have to process and translate a vast number of legal documents. By using artificial intelligence, Neur.on AI can translate legal documents cost-effectively and accurately. Neur.on AI has proven that its specialized financial and legal translations are significantly better than those of non-specialized competitors.

Growth Stage Finalists Swiss Fintech Awards 2024

GenTwo expands the investment universe through the assetization of previously unbankable assets – driven by technology and innovation in securitization and tokenization. With its offering, GenTwo has been able to create five billion US dollars’ worth of financial products for over 300 clients in 26 countries.

Payrexx is a payment platform that integrates a wide range of both local and global payment methods to facilitate online commerce for all types of businesses. With just one Payrexx account, merchants can tap into over 200 payment options. The company has so far acquired 60,000 merchants as customers and integrated its platform with over 100 partners as a white label solution.

Finalist Presentation

On June 11, the finalists will present their innovations in Zurich at the Swiss fintech conference by Finanz und Wirtschaft and the winners will be announced that same evening at the Swiss FinTech Awards Night. Since their inception in 2016, the Swiss FinTech Awards have become the most important award in the fintech industry and have since honored outstanding innovators, startups and influential players within the Swiss fintech ecosystem every year.

2023 acted as a reset year in the venture capital (VC) ecosystem as investments witnessed their first significant drop since 2017. In 2024, investors anticipate a gradual growth in both the number and size of funding rounds compared to 2023, with massive opportunities for fintech startups in the areas of generative artificial intelligence (gen AI), sustainable finance, business-to-business (B2B) solutions and tokenization, a new report by American VC firm Plug and Play says.

The “Fintech Megatrends 2024” report, released in March 2024, shares the major fintech trends to look out for this year, drawing on market research and interviews with VCs and investors from Plug and Play, LBBW Venture Capital, BlackFin Tech, Elevator Ventures, Breega, Illuminate Financial, Auxxo, DB1, Fidelity International Strategic Ventures, HV Capital, and Dawn Capital.

Sustainable finance

Although significant efforts have been made to reduce greenhouse gases, global progress towards net-zero emissions is lagging, with CO2 emissions from energy and industry increasing by 60% since 1992.

In the financial sector, the Net-Zero Banking Alliance has been established, comprising 142 banks from 44 countries committed to reaching net-zero greenhouse gas emissions from their lending and investment activities by 2050. However, some European banks such as Deutsche Bank, HSBC, Barclays, and Crédit Agricole have been found to support fossil fuel companies by facilitating the raising of over EUR 1 trillion through global bond markets, according to an investigation by The Guardian.

These challenges are bringing about opportunities for sustainable finance startups to tap into, with Plug and Play emphasizing renewable energy, carbon capture and accounting technologies, circular economy solutions and precision agriculture technologies as promising verticals.

The VC firm also see significant opportunities in the voluntary carbon market (VCM). VCM, which allows entities to purchase carbon credits to offset greenhouse gas emissions, was valued at US$2 billion in 2021. By 2030, the market is projected to reach US$40 billion, with sectors including banking, oil and gas, and airlines expected to remain key adopters of VCM. In this area, technological solutions that are enhancing market transparency and efficiency through automated verification and predictive analytics are expected to gain momentum.

The firm also anticipates increased demand for transparent, standardized, and accurate ESG data, fueling the growth of startups in the sector. This will come amid stricter regulations on ESG standards and requirements.

Generative AI integration and RPA

Gen AI, a type of AI technology capable of producing various forms of content, including text, imagery, audio, and synthetic data, emerged prominently in 2023, driven by the excitement following the introduction of OpenAI’s ChatGPT in late 2022.

Despite the frenzy that ensued, enterprise adoption of AI systems lagged behind expectations in 2023, with a survey of approximately 600 enterprise executives from Coatue suggesting that while 60% of enterprises were planning to adopt AI in 2023, less than 10% had managed to do so.

This slow adoption is being attributed to challenges like the complexity of integrating AI with existing systems, the lack of accuracy and insufficient quality data. These obstacles present opportunities for fintech startups to help enterprises incorporate gen AI into their systems more effectively.

Plug and Play also anticipates an increase in demand for robotic process automation (RPA) this year as banks seek to cut costs and reduce their workforce. RPA involves the use of automated “bots” to handle high-volume, low-complexity, and repetitive tasks typically performed by employees, improving efficiencies, reducing overall costs, and allowing for continuous operation without errors. Over the past decade, RPA has emerged as a prominent technology in business-to-business (B2B) software tech. This growth is projected to carry on, with Forrester expecting the market size to reach US$22 billion in 2025.

CFO tech and B2B fintech

CFO tech, a fintech subsector dedicated to assisting CFOs and finance teams in managing their financial operations more efficiently, is another trend to look forward to this year onwards. The sector is expected to grow on the back of technological advancements, evolving business needs and increasingly complex regulatory environments.

Finance teams are grappling with significant challenges in managing and analyzing data due to their disparate nature and complex interconnections. The process involves collecting and cleaning data from various sources, such as enterprise resource planning (ERP) systems, human resources management systems, billing tools, customers, and suppliers, a tedious and time-consuming process that detracts from more strategic activities. Furthermore, normalizing and reconciling data across systems is time-consuming, and obtaining inputs for budgeting from numerous stakeholders leads to inefficiencies and errors.

CFO tech will emerge to address these challenges by providing a comprehensive suite of tools designed to improve accuracy, efficiency, compliance, and strategic decision-making within the finance function. They will enhance collaboration and empower finance teams to adopt a more proactive approach across the entire value chain. These tools will cover areas such as ERP, accounting, payroll, spend management, and compliance, Plug and Play says.

Tokenization, alternative assets among top wealthtech trends

In the wealthtech segment, asset tokenization is expected to gain traction this year owing to the technology’s potential to enhance liquidity, simplify trading, and open up new investment opportunities. This trend will be driven by increased adoption among banking incumbents like JP Morgan and ABN AMRO which are developing infrastructure to support the trend. Plutoneo, a German-based blockchain consulting firm, projects that the European security token market will grow 81% annually over the next five years and reach EUR 918 billion by 2026.

The democratization of alternative assets is another major trend to look out for in 2024 and beyond. These assets, which include private equity funds, luxury goods, art and real estate, offer diversification and new investment opportunities for both institutional and retail investors. Fintech companies are driving this trend by making private banking accessible to a broader audience.

Finally, indexing is poised to be a hot trend in fintech in 2024 driven by the rapid growth and needs of the exchange-traded fund (ETF) market. Many asset managers lack the sophisticated in-house capabilities required for index development and benchmarking, a gap which creates opportunities for innovative indexing fintech startups to provide the necessary infrastructure for designing and maintaining these custom indices. Their services will be particularly crucial for the growing segment of thematic ETFs, which require specialized and dynamic indexing solutions.

Next-generation compliance tools

Finally, next-generation compliance tools are expected to gain prominence and experience significant growth this year onwards as financial crimes and fraudulent transactions continue to pose threats to the financial system and global economies.

Plug and Play predicts that a new wave of regtech startups will emerge. These startups will spearhead the “compliance 2.0 wave”, leveraging technologies like gen AI models to discern intricate fraudulent schemes. They will focus on bringing know-your-customer (KYC), know-your-business (KYB), and anti-money laundering (AML) capabilities within one platform. This integration will facilitate continuous customer monitoring, streamline the onboarding process and ensure ongoing anti-fraud controls.

EY estimates that the annual cost of money laundering and associated crimes ranges from US$1.4 trillion to US$3.5 trillion.

featured image credit: edited from freepik

The operation, subject to approval by the German and Italian supervisory authorities, is carried out through an agreement signed with SCHUFA Holding AG, from which Fabrick will acquire 75% of finAPI. The other 25% of the shares will remain with the two founders of finAPI, Dr. Florian Haagen and Dr. Martin Lacher, who will both continue to play a role in the unified entity.

The strategy aims to drive forward the innovation of European businesses by enabling new embedded finance service models. Founded in Munich in 2008 to develop solutions for the aggregation and analysis of financial data, finAPI is a pioneering force across the Open Banking, Data Intelligence, KYC, and Payments services. It serves over 350 clients, including banks, financial service providers, fintech companies, insurance companies, and software providers, not only in Germany, but also in Austria, the Czech Republic, Slovakia, and Hungary.

Expanding its presence beyond Italy, Spain and the United Kingdom, Fabrick takes a significant step by entering into the strategically important DACH region. This move not only establishes Fabrick’s leadership in Germany, but also solidifies its position as one of the key players in Europe’s burgeoning Open Finance segment for services provided.

Paolo Zaccardi

Paolo Zaccardi, CEO of Fabrick, stated:

“This agreement to acquire finAPI, following the recent capital increase with Mastercard and Gruppo Reale Mutua and the acquisition of JudoPay in the United Kingdom, represents another significant milestone for Fabrick, enabling the proliferation of the internationalisation strategy defined since our inception. It allows us to enter the DACH Region, an area of strategic importance in allowing us to scale up our operations and seize the growing opportunities offered by the sector in which we operate. This operation is also a further step in expanding our offering, which now covers the entire value chain of Open Finance services.”

The strategic importance of the German market is also confirmed by the results of the study “Embrace Embedded Finance For Seamless Payment Success: A Spotlight On Europe,” conducted by Forrester Consulting for Fabrick. Of the 126 German decision-makers and managers interviewed, 74% stated they would invest or increase investments in payment acceptance solutions in the next 24 months. Specifically, 77% of the sample said that they will assign a high priority to payment orchestration solutions and 71% to solutions for accepting account-to-account payments via API.

The combined portfolio of finAPI and Fabrick offers customers a wider range of centralised digital solutions. In particular, finAPI‘s customers will benefit from this merger, thanks to the European coverage and Fabrick’s extensive portfolio of payment solutions.

Tanja Birkholz

Tanja Birkholz, CEO of SCHUFA, stated:

“Over the past three years, we have worked intensively with the goal of creating the greatest possible value for individuals and businesses. Technology plays an important role in developing customer-oriented products and services, and this requires strong partners capable of focusing on technological development. In this sense, Fabrick represents the ideal partner for the further development of finAPI. We know the needs of our customers, and Fabrick and finAPI possess the technological know-how to meet them, allowing them to benefit from further product developments in the field of Open Banking.”

Florian Haagen

Florian Haagen, CEO and Co-founder of finAPI, stated:

“The operation with Fabrick, characterised by its European approach, offers great opportunities for all. Together with the German market business, we will continue to actively shape the future of Open Finance in Europe.”

The transaction remains subject to approval by the German and Italian supervisory authorities. finAPI will remain regulated in Germany and will continue its strategic collaboration with SCHUFA for the development of Open Finance in the German market.

Drake Star Partners and White & Case supported SCHUFA as advisors and legal, while Fabrick was assisted by Chiomenti and Gleiss Lutz for legal matters and Deloitte Financial Advisory for due diligence.

Featured image credit: edited from freepik

A new study conducted by tech marketing agency Z3x reveals that while business-to-business (B2B) fintech companies are active on social media and maintain blogs to connect with their audiences, there is room for improvement, particularly in creating an engaged developer ecosystem and offering developer portals.

The research, which polled 200 business-to-business (B2B) fintech companies worldwide and analyzed their websites, sought to evaluate the sector’s marketing strategies and technical details, aiming to provide insights to industry specialists.

Key findings indicate that 95% of B2B fintech companies use LinkedIn, 75% use Facebook, and 60% use X, making these three platforms the top social networks for B2B fintech businesses. Additionally, 77% of the companies have blogs, with 60% having general blogs, 36% news blogs, and 8% tech blogs. This reveals that most B2B fintech businesses have understood the importance of maintaining a blog to support authority building, education and lead generation.

The report emphasizes the need for diverse blog content, pointing out that the relatively small percentage of companies offering tech content represents a growth opportunity. By showcasing technological expertise, companies can engage their users more effectively, the report says.

Furthermore, the report highlights opportunities for improvement in the use of channels such as TikTok and Instagram. B2B fintech companies can stand out from competitors by leveraging these channels, it says. However, to effectively reach their audience and strengthen their industry position, they must tailor their content to each platform’s unique features and target audience.

Developer portals and communities

The Z3x study also examines the use of developer portals and communities, including the presence of “Dev Zones”, or dedicated spaces for developers.

Developer portals and communities are critical in driving product adoption, fostering innovation, and building long-term relationships with their clients. These platforms provide essential resources, support, and engagement opportunities that empower developers to effectively utilize fintech solutions and contribute to the ecosystem.

However, the research reveals that only 36% of the B2B fintech companies polled have a separate, dedicated area specifically for developers, and just 22% provide changelogs, a low percentage which may raise transparency concerns about product evolution.

Changelogs are websites that track and describe the changes made to a software project or product over time, such as the version number, date of release, and a summary of the changes made. They help developers and users understand the evolution of the system and stay informed about the latest updates.

Additionally, only 37% of B2B fintech companies offer a public application programming interface (API) that enables communication and data exchange between different software applications. This cautious approach may reflect a lack of trust in the developer community or fear of revealing competitive advantages, but may also limit product development and sector innovation.

Equally concerning is that only 43% of companies make their API documentation publicly available. At a time when application interactions are central to most technological solutions, keeping such documentation private can stifle innovation and collaboration, the report says. This practice, often driven by competitive fears, might protect certain business interests but at the expense of broader developmental opportunities.

Regarding community-building efforts, the study shows that only 9% of fintech companies have dedicated platforms for developer communities. The most used platforms are GitHub (67%), followed by Discord (17%), Stack Overflow (11%), Reddit, and Slack (both 6%).

SDKs and public code repositories

The report also discusses software development kits (SDKs) and public code repositories, emphasizing their importance in promoting transparency, support community and ecosystem development, and simplify integration.

SDKs are comprehensive collections of software tools, libraries, documentation, code samples, processes and guides that developers user to create applications. These offerings simplify integration, enhance developer experience and reduce development costs.

However, the study reveals that only 27% of the B2B fintech companies surveyed provide SDKs. Similarly, just 16% of companies maintain public code repositories, predominantly utilizing GitHub. Public repositories are online platforms that facilitate collaboration, code sharing, and community building among developers. They provide a centralized and transparent environment for hosting and managing software projects, promoting open collaboration, code reusability, transparency, accountability, community building, and visibility for projects and contributors.

For B2B fintech companies, not providing SDKs or not maintaining a public code repository can result in integration challenges, poor developer experience and reduced developer adoption, and a loss of community engagement. It can also lead to security concerns, difficulty scaling, limited innovation and competitive disadvantage.

The rise of B2B fintech

B2B fintech has witnessed remarkable growth and innovation in recent years, driven by increasing demand from businesses for tailored financial solutions, efficiency improvements, and technological advancements. Data from Dealroom.co reveal that there has been a notable shift in fintech activity from consumer-focused to business-oriented propositions, particularly evident in 2023.

According to the data provider, B2B fintech startups received the majority of fintech funding last year, accounting for 79.8% of total investments through November 30. In contrast, business-to-consumer (B2C) startups attracted only 20.2% of fintech funding during the same period. This represents a considerable decline from the 50.6% share that B2C fintech startups held in 2016, indicating a notable trend shift worth monitoring.

Nirav Choksi, CEO and co-founder of Indian digital banking platform CredAble expects the trend to carry on in 2024 and beyond, driven by opportunities in payment platforms, lending solutions, and software-as-a-service (SaaS) tools.

Choksi foresees several technology trends dominating the sector moving forward, including robotic process automation (RPA), blockchain technology, open finance, generative artificial intelligence (gen AI), and banking-as-a-service (BaaS).

RPA stands to automate repetitive tasks, improving efficiency and reducing costs; gen AI is poised to play a pivotal role in customizing financial services, optimizing investment portfolios, and enabling fairer credit access; and blockchain technology is set to enhance cross-border transactions, digital identity verification, trade finance, and compliance, he says.

Additionally, BaaS will allow non-financial companies to integrate financial services into their platforms, offering a connected and convenient financial experience for businesses; and open finance will evolve from open banking to utilize diverse data sets for more innovative and inclusive financial solutions.

Featured image credit: edited from freepik

by Fintechnews Switzerland May 23, 2024

ebankIT, a fintech company that offers financial institutions a customer-centric digital banking experience , announced the opening of its newest hub in Berlin, Germany.

With a strong presence of over 10 clients in the DACH Region, particularly in Switzerland, the establishment of this strategic hub in Berlin signifies a significant step for ebankIT in providing exceptional value to financial institutions, partners, and industry stakeholders.

ebankIT offers tailored banking solutions that align with local regulations while also meeting the needs and expectations of banking clients. By placing a strong emphasis on innovation and user-centric design, ebankIT’s omnichannel platform distinguishes itself in the market by offering seamless integration, advanced security features, and intuitive user experiences.

Renato Oliveira

“We are delighted to inaugurate our new operational center in Berlin. With this center we will strengthen our ability to deliver tailored financial solutions to better serve FI in the DACH Region,”

Said Renato Oliveira, CEO of ebankIT,

“With Berlin’s dynamic tech ecosystem and talented workforce, we’re ready to start creating a meaningful impact and help shape the future of digital banking.”

Featured image credit: edited from freepik

The leadership appointments support Trust Square’s aims to accelerate innovation, foster global collaboration, and drive adoption in emerging technologies.

The latest leadership appointments follow Trust Square’s recent announcement of a strategic partnership with The Hashgraph Association (THA).

Marc Degen

Marc Degen, Chairman of the Board of Directors, states:

«We are excited to have Marc and Daniel join us and bring their expertise to our mission of driving the adoption of new technologies. Both have an outstanding reputation within the community and share their expert view on how new technologies find their path into reality from the corporate, startup and influencer perspective. The board of Trust Square is convinced that we have won the best talent to nurture the seeds we’ve planted into a bouquet of helpful instruments to simplify tech innovation for everyone.»

The appointment of Marc Hauser as CEO as per the start of June 2024 reinforces Trust Square’s strategic direction. As a renowned expert in the technology and innovation space, he brings with him 18 years of experience across deep tech, fintech, Web3, banking, and entrepreneurship and is uniquely positioned to lead Trust Square in fostering innovation and collaboration across various domains. He states:

Marc Hauser

«I am honored to join Trust Square as its new CEO at this pivotal moment in the technology landscape. My mission is to leverage our central role at the intersection of innovation and collaboration to drive the adoption of technology into the corporate environment. We will build on our solid foundation in Switzerland to expand our impact internationally, creating vibrant ecosystems in new locations.»

Having served as Head Europe & Managing Partner at Tenity, Marc Hauser will use his expertise to drive Trust Square’s strategy of expanding its reach beyond Zurich and Switzerland, forging partnerships with global entities like The Hashgraph Association to establish international hubs, and support enterprise use cases.

Daniel Gasteiger, Co-Founder of Trust Square, takes over the position of Chair of the Advisory Board. In this capacity, he will drive expert communities to further strengthen Trust Square’s position as a thought leader in the emerging tech space

The Credit Workplace is the answer to typical challenges faced by banks and financial service providers. Numerous manual process steps, fragmented IT support, distributed and redundant data and extensive use of end-user computing characterize the day-to-day work of experts. As a result, substantial efficiency potential cannot be realized, the use of AI is made more difficult, compliance requirements can sometimes only be met with great effort and ensuring consistent data requires additional measures and coordination.

The Credit Workplace relies on a significantly improved integration capability, introduces uniform and optimized data structures (e.g. when mapping assets) and enables the digitalization and automation of decision-making and risk processes. End-user computing applications can be scaled back and document-based process steps can be replaced by interactive dashboards tailored to the target group. The effort involved in recording, maintaining and copying data is significantly reduced, allowing employees to focus on the actual lending business and risk management. Overall, collaboration between employees within and between departments and with customers is significantly simplified.

Michael Spiegel

“Thanks to the agile way of working in mixed teams of SAP Fioneer and pbb employees and the high level of commitment on all sides, the co-innovation was implemented on schedule,”

explains Michael Spiegel, Head of Operations & Digitalization at pbb.

“The Credit Workplace has considerably simplified our lending process. The intuitive structure and specific dashboards help enormously to maintain an overview of the complex processes involved in lending, risk assessment and portfolio management and to always have up-to-date information available. In addition, a number of manual processes have been automated.”

Alexander Wehrmann

Dr. Alexander Wehrmann, Managing Director at SAP Fioneer, adds:

“Together with pbb as a strong and competent partner, we have established a new solution that not only comprehensively supports and substantially improves the processes for commercial real estate financing, but we have also taken an important step in expanding our product portfolio in commercial lending.”

Featured image credit: edited from freepik

This 7-year CHF 200 million digital bond, the largest World Bank CHF bond issuance since 2009, uses Distributed Ledger Technology (DLT) and advances the digitalization of capital markets while also supporting the financing of World Bank’s sustainable development activities.

The World Bank partnered with the SNB and SIX Digital Exchange (SDX) to further scale efforts in the use of DLT in capital markets. This partnership introduces the use of wCBDC by the SNB for initial settlement.

The coupon and redemption payments will be made using tokenized CHF on the SDX. The SDX connects to conventional settlement systems such as Euroclear and Clearstream, via SIX SIS, allowing investors to hold the digital bond through their traditional custodians. The transaction follows the World Bank’s recent digital issuance on Euroclear’s Digital Financial Market Infrastructure (D-FMI) and builds upon its partnerships with core market infrastructure providers to scale digitalization efforts.

The bond is listed on both SIX Digital Exchange and the traditional SIX Swiss Exchange. The securities are governed by Swiss law. The bond was placed mainly in Switzerland, with banks, bank treasuries and corporates representing the majority share of allocations at 60%, followed by asset managers, insurance companies and pension funds at 39%. The remainder was placed with central banks and official institutions.

Jorge Familiar

“We are grateful for the opportunity to issue the first CHF digital bond as an international issuer. This achievement marks another significant step in the World Bank’s commitment to increasing capital markets’ efficiency through digitalization in partnership with central banks and central securities depositories. It builds on our previous accomplishments with bond-i and the issuance of digitally native notes last October,”

said Jorge Familiar, Vice President and Treasurer of the World Bank.

David Newns

“Being able to settle wholesale transactions in tokenized central bank money is a critical, foundational requirement for the adoption of a blockchain based capital markets infrastructure. Today, the World Bank takes the industry one step forward. SDX is truly delighted to have the World Bank’s first CHF-denominated digital issuance settle in wCBDC on our platform as part of the SNB’s groundbreaking initiative Project Helvetia. This is further testament of the World Bank’s pioneering innovation in the digital asset space,”

said David Newns, Head SIX Digital Exchange.

Commerzbank was the sole lead manager and is also the paying and issuer agent for this transaction.

Featured image credit: edited from freepik

The new director of Innosuisse is Dominique Gruhl-Bégin. The Federal Council approved her appointment by the Innosuisse Board on 15 May 2024.

Innosuisse is the Swiss Innovation Agency. It is dedicated to promoting science-based innovation in the interest of industry and society in Switzerland. Innosuisse’s activities include funding innovation projects between companies and research institutes, both at the national and international levels. They also offer support for startups through training, coaching, internationalization offers, and participation in international trade fairs.

Ms Gruhl-Bégin will take over the position from 12 August 2024. The current director, Annalise Eggimann, is stepping down for reasons of age, but will continue in her role as chair of the Innosuisse 2024 presidency of TAFTIE, the European network of innovation agencies.

Dominique Gruhl-Bégin

Dominique Gruhl-Bégin, who is a Swiss-Canadian dual citizen, has considerable experience in the field of innovation promotion. The 48-year-old is currently CEO of Serpentine Ventures, a subsidiary of the Swiss Ventures Group, which is involved in innovation funding and start-up support. She headed the Start-ups and Next-Generation Innovators division at Innosuisse between 2017 and 2022.

Ms Gruhl-Bégin graduated from the University of Montreal with a Master’s degree in Economics. She went on to complete a further Master’s degree in Art Gallery and Museum Studies at the University of Leeds.

She began her professional career as a research assistant at the University of Montreal before working as a management consultant and supply chain management specialist in the United States and Switzerland. Among other things, she worked at the Canadian Embassy in Bern as Trade Commissioner for Trade Relations and Innovation. In August 2016 she became deputy head of the Start-up and Entrepreneurship division in the secretariat of the then Commission for Technology and Innovation CTI. The following year she went on to head the Start-ups and Next-Generation Innovators division at Innosuisse.

Annalise Eggimann is stepping down as director of Innosuisse at the end of July 2024. Until her retirement in spring 2025, she will continue in her role as delegate and chair of the Innosuisse 2024 presidency of TAFTIE, the European network of innovation agencies.

Last June, COMCO launched two investigations to find long-term solutions for domestic interchange fees for Visa and Mastercard debit cards. With Mastercard, COMCO quickly reached an amicable settlement.

For domestic card-present transactions, i.e. when the debit card is physically presented at the point of sale, COMCO settles with Mastercard on an interchange fee of 0,12 % with a cap at 30 cents for transaction amounts of CHF 300 and more. This solution is equivalent to an average rate of 0,1 %, which is considerably lower than the rate of 0,2 % by European regulations. The purpose of this settlement is to create a solid legal framework for all stakeholders involved with a view to enabling sound business decisions and to encourage innovation. Therefore, it cannot be terminated before 2033.

Currently and related to previous proceedings of the competition authorities, for domestic payments made via the Web or mobile devices (e- or m-commerce) an interchange fee of 0,31 % is charged. Prior to the present investigation, the competition authorities and Mastercard agreed, that this rate will be lowered to 0,28 % as of November 1, 2025.

The settlement applies to Mastercard debit cards only and does not prejudge the findings of the simultaneously launched and ongoing investigation into domestic interchange fees for Visa debit cards for card-present transactions.

Domestic interchange fees are revenues that a Swiss card issuer (usually a bank) receives when its debit cards are used in Switzerland. Those fees are passed on by the acquirer as part of its merchant service charge to the company that accepts the card during the payment process (typically a merchant). Thereby the interchange fee is only one of numerous fee components of the merchant service charge.

Featured image credit: edited from Pexels

In Ireland, the fintech landscape has rapidly expanded, with over 280 indigenous and 130 international companies operating there, particularly in areas like payments, open banking, crypto, and crowdfunding, according to industry trade group Fintech Ireland.

Highlighting the prominence of fintech in both nations, Sifted’s inaugural leaderboard of the UK and Ireland’s fastest-growing startups reveals that nearly a third of the 2024 entries are from the fintech sector, totaling 31 startups. This makes fintech the most populous and successful startup vertical in the two countries based on revenue growth. Notable fintech companies featured include neobank Allica Bank, insurtech YuLife, lending business Tembo Money, and buy now, pay later (BNPL) startup Zilch.

With fintech continuing to grow and evolve, a number of conferences and events are being organized in the UK and Ireland to facilitate networking and knowledge exchange among industry professionals. In this article, we delve into some of the most prominent fintech events taking place in the UK and Ireland during the second half of 2024, shedding light on their key themes and highlights.

The Fintech Summit 2024

May 16, 2024

Croke Park, Dublin, Ireland

Scheduled to take place on May 16, the Fintech Summit inaugural event is set to connect financial institutions with the fintech innovators revolutionizing the financial system.

With a focus on advancing the financial system’s efficiency and inclusivity, the summit will explore how cutting-edge technologies can be effectively utilized, regulated, and scaled. The event will feature panel discussions, keynote speeches, and masterclasses addressing the most pressing challenges and opportunities facing both emerging fintech startups and established financial services incumbents.  Additionally, it will provide ample opportunities for networking and business development.

Attendees can expect a comprehensive agenda designed to achieve two primary objectives: thought leadership and connectivity. They will also have access to one of Ireland’s largest fintech trade shows, facilitating connections with potential customers and partners. Various networking sessions and strategic business meetings will be organized to encourage meaningful interactions and collaboration among participants.

DIGIT Expo West

May 29, 2024

Scottish Events Campus (SEC) Centre, Glasgow, Scotland

DIGIT Expo West, scheduled for May 29, 2024, at the Scottish Events Campus (SEC) Centre in Glasgow, will bring together Scotland’s largest annual technology showcase to the forefront.

The event will feature a comprehensive conference program comprising keynotes, interactive workshops, panels, and an extensive exhibition hall, providing attendees with valuable insights, networking opportunities, and engagement with leading IT and digital vendors. The conference program will cover a wide range of themes, including cloud computing, DevOps, cybersecurity, digital leadership, and data innovation.

Key speakers at DIGIT Expo West 2024 include:

• Ed Parsons, Geospatial Technologies, Google;
• Cheryl Hung, Senior Director, Arm;
• Faisal Kamrn, Principal Technology Analyst, Sony;
• Elizabeth Fairley, COO, Talking Medicines;
• James Maciver, CTO, Phlo;
• Ayorinde Thompson John, Executive Director, JPMorgan Chase & Co;
• Dr. Sofiat Olaosebikan, Lecturer in Computer Science, University of Glasgow;
• Marika Lohmus, Head of Risk & Payments, Cleo;
• Alison B Lowndes, Senior Scientist: Global AI, Nvidia; and
• Euan Wielewski, Machine Learning Lead, NatWest.

Moreover, the exhibition at DIGIT Expo West will feature 50+ exhibitors, making it one of the largest gatherings of IT and digital vendors in the west of Scotland. Delegates will get to engage with leading solutions providers, experience live product demos, and participate in interactive games, enhancing their understanding of the latest technologies and solutions available in the market.

Dublin Tech Summit

May 29 – 30, 2024

RDS, Dublin, Ireland

The Dublin Tech Summit 2024, scheduled to take place on May 29 and 30 at the RDS in Dublin, is a two-day event poised to bring together global tech leaders, innovators, and entrepreneurs, with an expected attendance of over 8,000 participants and hundreds of speakers from around the world. The summit aims to showcase the latest technological advancements, highlight innovative ideas, and explore the future of tech in a rapidly evolving landscape.

This year’s edition will focus on emerging technologies like quantum computing and deep tech, positioning them as the new frontier of innovation. Discussions will also address the future of artificial intelligence (AI), emphasizing the importance of regulation and security in shaping a digital future. Speakers from diverse backgrounds, including tech innovators, social media influencers, and entrepreneurs, will share their insights on topics such as digital transformation, next-generation computing, startups, and global investing.

Dublin Tech Summit aims to foster collaboration, strengthen tech ecosystems, and facilitate networking opportunities to drive innovation and entrepreneurship forward. Since its inception in 2015, the summit has grown to become a significant event in the tech industry, providing a unique blend of Irish culture and global networking.

London Tech Week

June 10 – 14, 2024

Olympia, London, UK

Scheduled to take place from June 10 to 14, London Tech Week 2024 promises to be even more expansive than its previous editions, offering attendees unparalleled opportunities to showcase innovations and connect with their target audience. With the event expanding to the vast London Olympia campus, doubling its space, opportunities, and impact, participants can anticipate an extraordinary week filled with groundbreaking innovations and transformative experiences.

London Tech Week 2024 will bring together innovators, investors, tech giants, and entrepreneurs from over 90 countries, offering a platform for the global tech ecosystem to intersect with investment, innovation, and talent in the UK.

Attendees can expect visionary insights from cross-industry leaders, deep dives into the startup ecosystem, and engaging discussions on social impact from prominent figures in the realms of technology, business, and politics. Participants will also get to engage with top founders, industry experts, leading investors, and enterprise tech leaders, gaining inspiration and connections to thrive in the tech industry.

Highlighted themes for this year’s event include:

• Artificial Intelligence: Exploring the ethics and real-world impacts of AI, fostering creativity, and enhancing efficiency;
• The Future of Security and Data: Addressing the importance of securing data and privacy, and exploring proactive solutions and ethical responsibilities;
• Tomorrow’s Talent: Discussing strategies for preparing for the evolving job market, including upskilling, talent retention, and lifelong learning;
• The Deep Tech Revolution: Exploring radical innovation in AI, biotech, and beyond, and its impact on future industries;
• Green Innovation: Harnessing technology for a sustainable future, with discussions on eco-solutions, circularity, and environmental sustainability; and
• Empowering Entrepreneurship: Encouraging innovation, venture building, and disruption in various sectors.

London Tech Week 2024 will feature multiple stages, including the Main Stage, Start-Up Stage, and Corporate Innovation Stage, each hosting a range of sessions, panels, and presentations on diverse topics.

Customer Experience in Financial Services Conference 2024

June 18 – 19, 2024

etc.venues, London, UK

The Customer Experience in Financial Services Conference 2024, taking place on June 18 and 19 at etc.venues in London, aims to bring together professionals from banking and insurance sectors to explore the latest advancements in customer-centric and digital strategies. The conference is expected to host over 200 attendees, feature more than 15 exhibitors, and offer insights from over 20 speakers.

Targeted towards retail banks, wealth management firms, private banking institutions, insurance companies, and building societies, the Customer Experience in Financial Services Conference 2024 aims to offer a platform for collaboration and knowledge sharing on delivering enhanced customer experiences in a digital era.

Distinguished speakers from leading organizations such as Citi Bank, Saffron Building Society, Consumer Duty Alliance, and Monzo will deliver presentations, participate in panel discussions, and engage in Q&A sessions, providing valuable insights into customer experience strategies and innovations.

Attendees can expect to delve into innovative content, including discussions on leveraging the metaverse for customer experience, digital inclusivity, updates on consumer duty regulations, brand management, achieving balance between hybrid, digital, and human interactions, data-driven personalization, and the application of AI in enhancing customer experiences. Participants will also get to engage with industry experts, initiate meaningful conversations, and explore potential partnerships vital for achieving their customer experience objectives.

MoneyNext 2024

June 19 – 20, 2024

ExCeL, London, UK

MoneyNext 2024, scheduled for June 19 and 20 at ExCeL in London, stands as a premier digital transformation event for financial services worldwide. The event will bring together four co-located industry-leading events: the Banking Transformation Summit, the Wealth Management Transformation Summit, the Insurance Transformation Summit, and the Lending Transformation Summit.

MoneyNext 2024 will offer a platform for connection with 2,500 financial services tech professionals, all united in their pursuit of delivering digital innovation and advancing their transformation journey. The event promises an immersive experience, with attendees granted access to all four co-located summits, offering a comprehensive view of the latest trends, ideas, and opinions from experts, innovators, and visionaries in the field.

Attendees will benefit from insights shared by 200 industry-leading speakers, who will illuminate their stories, visions, and innovations in the financial services sector.

Highlighted features of MoneyNext 2024 include:

• Expanded Speaker Lineup: Visionaries from esteemed institutions such as Handelsbanken, Santander, Metro Bank (UK), Shawbrook Bank, Castle Trust Bank, Deutsche Bank, Standard Chartered, Recognise Bank, and more will contribute their insights;
• Sponsor Support: Confirmed sponsors including Appian Corporation, Telefónica Tech, Pure Storage, Comarch, nCino, Inc., Version 1, Workday, Bud, Feedzai, among others, underscore the event’s significance in the industry; and
• Roundtable Program: Featuring over 100 discussions, the roundtable program will offer participants the opportunity to engage as contributors or observers, covering a wide array of topics relevant to their interests and expertise.

CDAO Financial Services and Insurance UK 2024

September 11 – 12, 2024

London, UK

The CDAO Financial Services and Insurance UK 2024 conference, scheduled for September 11 and 12 in London, will offer a unique platform for data and analytics professionals serving the financial services industry to explore the latest trends and challenges in their field. With over 40 speakers, this year’s event will delve into critical areas such as data security, AI, and digital transformation.

Attendees will also have the opportunity to discover emerging trends and solutions providers to navigate evolving landscapes effectively. They will also get to engage with experts through a mix of panel discussions, roundtable sessions, and Q&A opportunities, fostering interaction and collaboration within the financial services data and analytics community.

Moreover, the conference will provide a unique networking opportunity, allowing attendees to interact with industry leaders, influential technologists, and data scientists, learning from over 100 industry innovators sharing best practices and advice to improve data and analytics strategy.

Fintech Summit

September 25, 2024

Dynamic Earth, Edinburgh, UK

The Fintech Summit 2024, scheduled for September 25, at Dynamic Earth in Edinburgh, UK, will mark the 11th edition of the annual event and will serve as the launch event of the Scotland Fintech Festival. The summit will provide a platform for industry professionals to engage in discussions, share insights, and explore innovative solutions to navigate the evolving landscape of fintech in Scotland and beyond.

Amidst one of the most turbulent periods in modern history, the summit aims to explore the role of financial innovation in socio-economic recovery. The pandemic accelerated the adoption of mobile banking, digital channels, and cashless payment systems while underscoring the fragility of the economic system and the need for fast, frictionless finance.

The conference will reflect on the evolution of fintech against this backdrop of volatility, focusing on key trends, challenges, and market disruptions. It will discuss the opportunity for fintech to assist customers in managing the cost of living crisis and contribute to building a better future for the country.

Core conference topics include:

• Landscape: Addressing the cost of living crisis, financial health, and sustainability;
• Customer Strategy: Enhancing engagement, inclusion, user experience, and data insight;
• Emerging Technologies: Exploring advanced analytics, AI and machine learning (ML), robotic process automation (RPA), blockchain, and mobile;
• Regulation: Navigating GDPR, MiFID II, PSD2, and open banking; and
• Infrastructure: Assessing IT, security, digitalization, cloud computing, mobile technologies, and “anything-as-a-service” (XaaS).

Fintech Talents Festival 2024

November 11 – 12, 2024

The Brewery, London, UK

The Fintech Talents Festival, scheduled this year for November 11 and 12, 2024, at The Brewery in London, stands as one of the UK’s largest and most impactful fintech festivals. The festival aims to serve as a platform for showcasing visionary ideas, practical innovation, and in-depth explorations of industry challenges across various sectors of financial services.

Marked as a two-day must-attend event, the 2024 Fintech Talents Festival is set to bring together over 2,000 participants, including global financial institutions, merchants, brands, marketplaces, digital platforms, technology enablers, innovators, and fintech startups. The attendees will comprise C-level executives, founders, as well as leaders in innovation and digital transformation from across the UK and Europe.

The 2024 Fintech Talents Festival promises to be an immersive experience, offering attendees a comprehensive view of the latest trends, innovations, and challenges in the fintech industry. Its content will span a wide range of topics and will include co-located events, each focusing on specific areas of interest:

• Fintech Talents Festival: Explore a broad menu of fintech content, delving into the digital transformation of the financial services landscape. Engage in debates, discussions, and conversations designed to spark innovation and collaboration;
• Future Identity Festival (co-located event): Gain insights from industry experts, technology leaders, and policymakers on the evolving landscape of identity and trust, exploring the latest developments shaping the future;
• FTT AI Transformation Stage: Dive into the AI revolution within finance, examining internal strategies and the impacts of AI application in the fintech landscape;
• FTT Embedded Finance and Customer Alpha Stage: Connect with a growing community of financial and non-financial brands exploring new pathways for delivering financial products and services through a range of distributors;
• FTT Open Finance Stage: Explore the possibilities of open finance, evaluating new business models and the competitive landscape powered by open finance initiatives;
• FTT Mutuals (co-located event): Unite with leaders from mutual finance sectors to future-proof and grow mutual finance institutions; and
• FID Fraud and FinCrime Stage: Experience transformative discussions shaping the future of finance, identity security, and crime prevention, particularly focusing on how AI can revolutionize operations and enhance security in a digital world.

FMLS:24

November 18 – 20, 2024

Old Billingsgate, London, UK

FMLS:24, taking place from November 18 to 20, 2024, in London, invites participants to immerse themselves in the world’s financial epicenter. The event promises an exploration of trends, networking opportunities with industry leaders, and direct engagement with top speakers.

FMLS:24 is part of a series of events by Finance Magnates slated to captivate the financial industry in 2024. These gatherings offer unparalleled networking opportunities, knowledge sharing, and avenues for industry advancement.

These events aim to bring together industry leaders, professionals, and experts from across the globe to partake in meaningful discussions, explore innovative solutions, and shape the future of the financial sector. They focus on four key sectors, namely fintech, payments, online trading and digital assets.

Featured image credit: edited from Unsplash

by Fintechnews Switzerland May 15, 2024

Tenity announced that Andrea Fritschi has joined its leadership team as new Chief Investment Officer and Managing Partner, effective May 1st, 2024. Andrea takes over the role from Maximilian Derpa.

Andrea brings over 20 years of extensive experience from her tenure in private equity and venture capital investment management at Swiss Re and BlackRock, as well as from the entrepreneurial expertise she gained as founder and CEO of startup companies.

Her strong financial acumen and ability to thrive in both corporate and entrepreneurial environments will be pivotal as Tenity continues to expand its VC investment program in Fintech and Insurtech.

Andrea Fritschi

“I am excited to advance Tenity’s VC investment offerings. The targeted investments aim to set new industry standards and catalyze significant innovation, driving the development of the financial ecosystem”,

says Andrea Fritschi, CIO at Tenity.

Andrea holds an MBA from IMD and has furthered her executive education at INSEAD, ensuring a strong academic foundation that complements her hands-on industry experience. Her vision and leadership will be instrumental in driving Tenity’s strategic growth and innovation.

Andreas Iten

“We are thrilled to welcome Andrea to the Tenity family,”

said Andreas Iten, CEO & Managing Partner at Tenity.

“Her impressive track record and deep understanding of investment management and entrepreneurship will be invaluable as we scale our operations and enhance our investment strategies in the fintech and insurtech sectors.”

Featured image credit: edited from freepik

In 2021, the number of fintech platforms in Latam and the Caribbean reached 2,482, soaring 112% from 2018, data from a report by the Inter-American Development Bank (IDB), IDB Invest and Finnovista show, underscoring the region’s increasing reliance on digital financial services.

At the same time, government initiatives like Brazil’s Pix and Mexico’s CoDi instant payment systems are further propelling the adoption of digital transactions and highlighting efforts by Latam governmental bodies to modernize their financial frameworks.

As fintech continues to rise and evolve in Latam and South America, numerous conferences and events are being organized to facilitate networking and knowledge exchange among industry professionals. Today, we delve some of the most prominent fintech events in South America scheduled for in H2 2024, shedding light on their key themes and highlights.

Chile Fintech Forum 2024

May 14 – 15, 2024

Espacio Riesco, Huechuraba, Chile

The Chile Fintech Forum 2024, taking place on May 14 and 15 at Espacio Riesco in Huechuraba, Chile, will bring together over 3,000 attendees to explore Chile’s leadership in fintech.

Featuring more than 100 speakers, including policymakers and industry leaders, the forum will address critical issues in fintech such as regulatory frameworks, digital payments, and innovation. This year’s event, organized in partnership with Chócale as a media partner, seeks to position Chile as a fintech hub in Latam.

The forum will commence with remarks from Chile’s Finance Minister Mario Marcel, focusing on the impacts of current governmental policies. Subsequent discussions will delve into the regulatory landscape and digital currencies, led by public policy expert Ignacio Briones and Banco Central’s Alberto Naudon.

A highlight of the first day will include a panel on the current and future state of digital payments in Chile, featuring industry experts Rodrigo Quijada, Paola Ledezma, and Thiago Dias. They will analyze trends and challenges within the rapidly evolving local market. Later sessions will explore open finance, with insights from leaders like Roberto Opazo and Carlos Oviedo.

Day two will emphasize financial inclusion and ecosystem development, featuring contributions from Solange Berstein of the CMF and Nelson Rojas of Caja Los Andes. Notably, there will be discussions on regional financial growth with fintech leaders from across Ibero-America.

The forum will conclude with a discussion on the role of influencers in the fintech ecosystem, featuring Francisco Ackermann, Romina Capetillo, and David Ávila. Tickets for the event are available on the official Chile Fintech Forum website, where attendees can also engage in matchmaking and networking opportunities.

Money Expo Colombia 2024

May 15 – 16, 2024

Agora Bogotá, Centro de Convenciones, Bogota, Colombia

Money Expo Colombia 2024, scheduled to take place on May 15 and 16 at Agora Bogotá Centro de Convenciones in Colombia, will bring together traders, introducing brokers, investors, financial institutions, and brokers from the dynamic trading and investing community.

With over 3,000 visitors expected, 300+ financial brokers, 30+ speakers, and representation from more than 10 countries, Money Expo Colombia will offer a unique platform for individuals to expand their professional network, gain insights into fintech, stay informed, engage with experts, attend topical workshops, and connect with market leaders.

The event will offer a unique networking opportunity and facilitate interactions with industry-leading service providers to enhance skills, knowledge, and investment strategies. It will also feature a showcase of top brands in the financial field, offering their products and services in one convenient location.

Attendees will get to expand their knowledge through educational sessions led by speakers and industry experts, covering topics such as US stocks, commodities, metals, and other online trading products. Networking activities will also allow attendees to make meaningful connections with potential clients, partners, and investors. This includes one-on-one meetings, business discussions, panel discussions, and workshops where industry experts share insights on current market trends and best practices.

Febraban Tech 2024

June 25 – 27, 2024

Transamerica Expo Center, Sao Paulo, Brazil

Febraban Tech 2024, one of Brazil’s largest technology and innovation event in the financial sector, is set to celebrate its 34th edition from June 25 to 27, 2024, at the Transamerica Expo Center in Sao Paulo, Brazil. The event aims to serve as a platform for leaders from various sectors including finance, technology, sustainability, and agribusiness, as well as those interested in innovation, to engage in discussions on pressing topics in the digital economy.

With the central theme “The responsible journey in the new AI economy”, Febraban Tech 2024 aims to shed light on how the financial sector, along with the broader economy, is gearing up to responsibly leverage new resources and advancements in AI.

The event will feature thematic tracks addressing key areas such as:

• Responsible AI: exploring trust, security, and business transformation;
• Open finance and Pix: shaping Brazil’s influence on the global financial landscape;
• DREX: examining opportunities and emerging trends in the tokenized economy;
• The future vision of banks in ensuring cybersecurity;
• Leveraging data intelligence to enhance customer loyalty;
• Harnessing connectivity for next-generation financial services;
• The role of cloud technology in driving agility, efficiency, and cost-effectiveness;
• Cross-industry collaboration in the digital market landscape;
• Agro 5.0 and the transformative potential of financial technology in agriculture;
• The synergy between empathy and technology in shaping the modern workforce;
• Advancing the environmental, social and governance (ESG) standards agenda in Brazil: transitioning, fostering inclusion, and promoting equity; and
• Strengthening the financial sector and fostering inclusion through partnerships between fintechs and banks.

WebCongress Latam

August 08 – 09, 2024

Chamber of Commerce Bogotá Salitre, Bogota, Colombia

WebCongress Latam is a leading technology and digital transformation conference with 46 editions in 17 countries, dedicated to helping companies, entrepreneurs, creators, and future professionals engage actively in the new era of technology.

This year’s edition, scheduled for August 08 and 09, 2024, will focus on the pervasive role of artificial intelligence (AI) in various aspects of our lives, including strategies, campaigns, governments, creative ideas, and physical spaces. Attendees can expect a program featuring conferences, workshops, and networking sessions designed to provide a comprehensive view of the industry.

Renowned experts will share revolutionary ideas, strategies, and success stories in areas such as:

• AI in key industries;
• Virtual experiences;
• The future of immersive content;
• Social networks and content creation;
• Digital transformation and data analysis;
• Startup and entrepreneurship culture;
• Digital culture and community building; and
• Security, ethics, and privacy.

WebCongress events worldwide attract the entire industry and major companies, with sponsors and allies including brands like Meta, TikTok, LinkedIn, Samsung, Nvidia, Salesforce, Adobe, and Google, among others. This year’s event is expected to draw hundreds of decision-makers, agency owners, digital creators, and marketing directors, providing attendees with a valuable business experience and meaningful connections.

Volcano Innovation Summit 2024

August 31 – September 02, 2024

Hotel Casa Santo Domingo, Antigua, Guatemala

The Volcano Innovation Summit is a global initiative aimed at fostering innovation, science, and culture exchange, with a particular focus on incorporating Latam into the global network. Held in Antigua, Guatemala, from August 31 to September 02, the event will bring together world leaders from various fields including digital, corporate, financial, telecom, cyber, energy, and sustainability, and is expected to be attended by over 2,000 participants, 30 partners and more than 130 speakers.

The Volcano Innovation Summit 2024 will feature co-located events and sessions, in addition to cultural and social happenings. This includes Content Treks and immersive content journeys covering topics such as investment, technology, innovation, entrepreneurship, sustainability, inspiration, wellness, and fintech. Attendees can expect thought-provoking discussions, hands-on workshops, and networking opportunities with industry leaders and innovators.

The summit will also include the Startup Avenue Competition 2024, aimed at promoting an entrepreneurial culture in Latam and fostering innovation to drive economic growth. Additionally, the Volcano4Good philanthropy initiative will seek to make a real difference in Guatemala’s future by addressing core obstacles such as education, malnutrition, natural resources, and mobility.

ANDICOM

September 04 – 06, 2024

Cartagena de Indias Convention Center, Bolivar, Colombia

ANDICOM, held at the Cartagena de Indias Convention Center in Bolivar, Colombia, from September 04 to 06, 2024, aims to serve as a platform for high-level leaders and executives from the technology, real estate, financial sectors, as well as government and regulatory entities, to explore the latest trends and technological solutions.

Featuring a high-profile academic agenda, a commercial exhibition showcasing innovative solutions from leading technology companies in the region, and networking opportunities with decision-makers, ANDICOM strides to facilitate the strategic exchange of knowledge and the creation of key alliances for organizations.

Each day of the congress will focus on a specific theme:

Day 1 will emphasize the intersection of technology, business, and society, with a particular focus on AI as a catalyst for innovation. Attendees will learn about the effective application of emerging technologies and the importance of implementing ethical frameworks and appropriate regulations for social and business development.

Day 2 will center on innovation and the digital future, highlighting how creativity and human capacity shape tomorrow’s solutions. Topics will range from automation and data analysis to personalized experiences, promising efficiency, connectivity, transnational trade, and a more equitable world.

Finally, day 3 will shift the focus to digital ecosystems and tech trends applications, exploring how these ecosystems are driving innovation and business growth. Attendees will delve into the integration of emerging technologies and the practical application of technological trends, analyzing their impact on industries, global collaboration, sustainable development, and an inclusive digital economy.

Fintouch Brasil 2024

September 13, 2024

Rebouças Convention Center, Sao Paulo, Brazil

Fintouch Brasil 2024, scheduled for September 24-25 in São Paulo, Brazil, stands out as a premier fintech event in the country. Organized annually by ABFintechs, the event aims to serve as a vital platform for fostering discussions on the challenges encountered by fintech companies, covering topics such as innovation, business strategies, regulations, and sector trends.

Participants can expect engaging discussions, thought-provoking panels, and networking opportunities tailored to meet the specific demands of the fintech industry in Brazil.

Gartner CIO and IT Executive Conference

September 23 – 25, 2024

WTC Sheraton Sao Paulo, Sao Paulo, Brazil

The Gartner CIO and IT Executive Conference 2024, taking place from September 23 to 25 at the WTC Sheraton Sao Paulo in Sao Paulo, Brazil, will offer a gateway to a new era of possibilities for CIOs, IT leaders, and business executives. With a focus on leveraging digital and emerging technologies, especially AI and generative AI, the event aims to serve as a platform for strategic leaders to update enterprise governance and operating models and strategies.

The 2024 Gartner CIO and IT Executive Conference will addresse the strategic needs of enterprise IT leaders and their teams across various areas, including digital business strategy and execution, leadership development, culture and talent, technology and innovation, technology finance and value, cybersecurity, risk, and compliance, application strategy and modernization, infrastructure and operations, and more.

Highlights of the event include workshops, executive stories, social engagements, guest speakers, Gartner Magic Quadrant sessions and Market Guides, solution provider sessions, one-on-one meetings with Gartner experts, ask the expert sessions, and more.

Attendees can expect to explore innovative and transformational opportunities alongside a global community of experts and peers. With insights and expert guidance on digital business transformation, data value realization, the future of intelligent applications, building digital foundations, and mitigating cyber risks, participants will be equipped with the tools needed to support mission-critical priorities.

Through interactive and collaborative sessions, attendees will have the opportunity to connect with Gartner experts, industry-leading CIOs, and technology executives, fostering new relationships, gaining insights, and uncovering solutions to pressing challenges.

This article first appeared on fintechnews.am

Featured image credit: edited from freepik

Noch im Jahr 2021 verzeichnete der Crowdfunding-Markt mit 791.8 Millionen Franken ein Rekordvolumen. Seither sinkt es jedoch: 2023 betrug es 558.7 Millionen Franken und schrumpfte somit um 15.6 Prozent gegenüber dem Vorjahr. Dies zeigt der neueste Crowdfunding-Monitor der Hochschule Luzern (HSLU).