Fintech: return to growth in 2022
(05.04.2023) Companies active in financial technologies (fintech) ended 2022 on a positive note. According to a study conducted by the Lucerne University of Applied Sciences and Arts (HSLU), the sector had 437 companies in 2022, which is a 14% increase compared to 2021.
The economic situation for fintech companies globally has been mixed. In 2022, venture capital invested in the sector declined. However, Switzerland appears to be doing well: around 84 funding rounds were recorded for a total of CHF 605 million, representing a 36% increase from the previous year.
The study's author, Thomas Ankenbrand, has qualified these results by saying, "Although Switzerland managed to avoid the global downward trend, access to funding has also become more challenging for fintech companies in the country."
Zurich and Geneva are among the top cities offering the best framework conditions for fintech development. However, the two Swiss financial centers are still behind Singapore, the undisputed global leader in this field.
As many as 32 fintech companies (7.3%) have developed their sustainability strategies. While some focus on solutions that facilitate data analysis, other so-called "green" fintech companies are particularly committed to fighting climate change.
The trend towards digitization is becoming increasingly evident in the banking sector as a whole. The study reveals that Swiss banks have strengthened their IT resources to support the transformation of banking activities, particularly the digitization of commercial processes, as well as fraud detection.