A few days ago the New York based Blog kurtosys wrote a long article about the fintech landscape of Switzerland.
The article is balanced between the highs & lows and sharply investigated, but as mentioned very long. So I would like to give a short summary together with my own views. If you are interested in the long original version, please click this link.
The author Elliot Burr refers to a PwC report saying that the fintech scene in Europe has grown for more than 215%, but most of the fintech Startups are based in London or Switzerland. Every 11th Startup is based in Zug, also known as the Crypto Valley. And Deloitte even ranked it the 15th largest Global Financial Centre. So Switzerland has the potential for fintech growth and Innovation.
This makes a lot of sense, if you keep in mind that Switzerland is one of the biggest and recognized financial centers with 2 major cities: Geneva and Zurich.
Furthermore the research department of Google and IBM are situated in Zurich and Geneva hosted the global fintech community at SIBOS last year.
The Crypto Valley in Zug is one of the biggest Startup Hotspots in Switzerland, focusing on storage solutions, encryption and digital currencies and DLT.
“Switzerland has always had a long-standing tradition of privacy and security, with a stable and supportive IT environment; the perfect environment for cryptocurrency to flourish.” Deloitte
And now we are coming to the lows of the article or as I would call it ”challenge accepted”.
It says, because of the high costs of living, that it is difficult to build up a startup and attract talents to Switzerland, because it’s very cost intensive and requires high salaries. While entrepreneurial activity amongst young adults (18-24 years old) is one of the lowest.
I think this is mayor problem. Switzerland needs to nourish the entrepreneurial spirit in children and young adults. More talents could then come from the inside. A first step are the Next Generation summercamps and will take place this summer for the firts time.
But we also have to work on the regulations side, to make it easier for startups to be build in Switzerland. And Ueli Maurer, Finance Minister, took action. He announced last November, to ease regulations and barriers preventing market entry. A draft legislation is planned for summer 2017.
“Switzerland’s sprawling and healthy fintech scene highlights its abundant potential, and with some tweaking to regulation could become the major competitor in the European fintech market.” Burr