1. Definition of the term "FinTech"

There is still no uniform definition of the term "FinTech", but the abbreviation "financial technology" can be used to describe innovations in the financial sector that lead to new financial instruments, services or business models. In the case of FinTech, the term often refers to the company offering the innovation. The company behind LEND (Switzerlend AG) is also referred to as a FinTech.

Financial technology is often considered a disruptive technology because it has the potential to completely replace existing services in some cases. However, the market shares of FinTech companies are still in the per mille range.

The market in which FinTech companies operate and innovate can be divided into the following sub-sectors:


  • Big Data,

  • machine learning

  • AI

Banking Infrastructure

  • Identity & Security Management

  • Information & Transaction Platform

  • Personal & Business Finance Management

Distributed Ledger Technology

  • Cryptocurrencies

  • Blockchain

Deposit & Lending

Investment Management

  • Robo Advisor

  • Social Trading


  • Mobile Payment

  • Online Payment

  • Money Transfer

2 FinTech: advantages and potential

Start-ups and young companies are largely active in the FinTech sector. The great potential of the FinTech sector lies above all in its agility and the possibility of using technology and thus automating processes to a great extent. This can lead to significant increases in efficiency and consequently cost savings.

As a result, FinTechs offer services at more favourable conditions and compete directly with traditional institutions.

On the other hand, the lean cost structure makes it possible to address business or customer areas that are loss-making and thus not lucrative for traditional institutions. In such a constellation, FinTechs complement traditional institutions. It is not uncommon in such a scenario for the respective FinTech companies to be taken over by the traditional institutions and the service to be integrated into the product portfolio.

The resulting financial innovations offer advantages to consumers in particular, in that they can invest money, take out loans or receive advice with significantly less effort or at lower costs.The areas of big data and cloud computing, as well as the increasing spread of mobile electronic devices such as smartphones or tablets in connection with continuous access to the internet, have an advantageous effect on the development of FinTech companies.

3. FinTech scene in Switzerland

In a global comparison, the USA still plays the leading role in FinTechs. However, the European market is becoming increasingly important. The leading position here is held by the United Kingdom.

The FinTech scene in Switzerland is comparatively small in total numbers but can show strong growth figures. This is reflected in the number of companies in this sector, as well as the increasing investments in this area.

Crowdlending was also a contributor to the growth in the FinTech sector. Crowdlending platforms such as LEND are successfully brokering personal loans, business loans and mortgages in rapidly growing numbers and increasingly represent an alternative to traditional credit institutions such as banks.

In the recent past, the cryptocurrency sector has also been particularly prominent. Swiss Zug has become a global centre for crypto and blockchain technology and attracts numerous companies.

Switzerland can also score points as a business location. Above all, Zurich and Geneva offer the best conditions for young companies due to their political, economic and social conditions as well as their good technological infrastructure.