(27.03.2024) Despite decreased investments within the sector, the number of companies engaged in financial technologies (fintech) grew last year. According to a study by the Lucerne University of Applied Sciences and Arts (HSLU), the industry saw an increase to 483 firms in 2023, marking a 10.5% rise compared to 2022.
Since 2015, the number of fintech companies based in Switzerland has tripled. Growth has been particularly robust in the sustainable finance sector. Over the past year alone, the presence of these companies has surged by nearly half, now accounting for 10% of the overall Swiss fintech landscape. According to the study's authors, increasing investor interest in so-called "sustainable" investments has contributed to the significant expansion of this asset category.
However, annual funding for fintech companies experienced a slowdown. Venture capital transactions supporting the sector dropped from 605 million francs in 2022 to 457 million in 2023 (-24.5%), while the number of funding rounds decreased by 19%, from 84 to 68.
Nevertheless, the volume of funds raised in 2023 remained higher than those observed in 2019 (210 million), 2020 (259 million), and 2021 (446 million). It is currently difficult to ascertain whether the current trend reflects a structural decline or a cyclical slowdown, possibly stemming from the rise in benchmark interest rates.
Still well-placed in international comparison, Zurich (3rd) and Geneva (4th) have nevertheless each dropped one spot in the ranking of the most attractive cities for fintech. While Stockholm rose from fourth to second place between 2022 and 2023, Singapore maintains its lead in the ranking.
Last modification 27.03.2024
