Switzerland’s Fintech Sector Sees Record Growth Amid Sustainability Focus

Posted by: Baris Karapinar
Category: ESG News

A recent study by Lucerne University of Applied Sciences and Arts reveals a significant surge in Switzerland’s fintech sector, reaching 483 companies by the end of 2023, marking an 11% increase from the previous year. Notably, this sector has tripled in size since 2015, with Liechtenstein also joining the study for the first time, housing 22 fintech companies.

Of particular interest is the robust growth of fintech firms with a sustainability focus, constituting around 10% of Swiss fintech entities, a 23% increase from the previous year. Study director Thomas Ankenbrand notes heightened investor interest in sustainable investment opportunities, fueled by banks’ obligation to inquire about sustainability preferences from private investors.

Despite this growth, Switzerland faces heightened competition, with Stockholm surpassing Zurich and Geneva as more attractive locations for fintech companies. However, Switzerland maintains its standing as a favorable fintech hub.

The study also highlights a decline in fintech financing in 2023 compared to the previous year. However, Ankenbrand emphasizes the untapped potential of fintech, especially in the realm of artificial intelligence, which could further bolster Switzerland’s fintech landscape and its position as a business destination.

The iinTech study, now in its ninth edition, was supported by various entities including e.foresight, Finnova, Inventx, SIX, Swiss Bankers Prepaid Services, Swiss Fintech Innovations, and Zürcher Kantonalbank.

Link to the news source

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