SWISS
FINTECH
ALLIANCE
Pioneering Innovation, Navigating Regulation, Fostering Collaboration and Protecting the Interests of Fintech Licensees based in Switzerland.
About
As of 1 June 2023, all licensed fintechs in Switzerland (persons art. 1 b of the Swiss Banking Act) are represented by the Swiss Fintech Alliance (SFA) association. Also, most of the art. 1b applicants are advised and supported by our association with its crypto, finance and legal expert members. The alliance plays a crucial role in the Swiss financial technology industry, cultivating an environment for innovation and collaboration. As a cornerstone in the digital finance sector, we actively support and contribute to Switzerland’s growing financial innovation landscape.
Fintech Members Across Switzerland – Driving Innovation from All Regions
The Alliance brings together licensed Fintech firms from across the country, showcasing the diversity and strength of Switzerland’s financial innovation landscape.
Swiss FinTech Alliance Member
YAPEAL is a Swiss fintech offering fully digital banking services, including accounts, payments, and cards – tailored especially for B2B customers and startups.
Swiss FinTech Alliance Member
Bivial is a Swiss fintech providing multi-currency IBAN accounts, global payment processing, and digital disbursement tools – built for international business needs.
Swiss FinTech Alliance Member
Relio is a Swiss fintech delivering digital business accounts with Swiss IBANs, multi-currency wallets, and payment services – designed for complex SMEs and startups.
Established in December 2022 on the initiative of FinTechWerkstatt, the Swiss Fintech Alliance has been a beacon for founders and CEOs in Switzerland for over three years. Our association aims to protect the political and economic interests of Swiss-based digital start-ups, both locally and internationally. We focus mainly on persons entitled under Art. 1 b of the Swiss Banking Act, reinforcing our commitment to fostering the growth of Switzerland’s digital finance ecosystem.
HISTORY
Purpose
The Swiss Fintech Alliance encourages innovation and knowledge, particularly in new technologies and the rapidly changing regulatory environment. Through collaboration among tech-driven finance companies, regulatory authorities, and political representatives, we strive to keep Swiss fintech competitive globally. We actively engage in projects promoting environmental protection and the integration of individuals and companies in disadvantageous situations. As a politically and confessionally neutral non-profit organisation, our primary goal is the advancement of disruptive finance.
The “application duration counter” below in red displays the result of the Federal Council’s slow action in a fast-paced industry, as well as the slow review processes of the Swiss Financial Market Supervisory Authority (FINMA) regarding submitted applications under Article 1b of the Swiss Banking Act.
While the legal framework aims to support innovation and provide a leaner, competitive regulatory path for Fintech companies, the opposite is currently the case. As a result, after over 6 years, we have only four licensed Fintechs in Switzerland. Here is how Lithuania is supporting its fintech industry.
The application review by the audit company takes 1–2 months and costs approximately CHF 35,000, resulting in an audit report of approximately 60 pages. The subsequent application review by FINMA currently takes an average of 18 months but may vary significantly. Under the existing law, FINMA has a considerable margin of interpretation, leaving applicants in a legal grey area.
While applicants are waiting for FINMA approval, they incur an average monthly cash burn rate of CHF 100,000 to CHF 200,000. This means that, on average, liquid assets of CHF 1,800,000 to CHF 3,600,000 are depleted during this period. This circumstance currently represents the most considerable risk for any fintech applicant and results in application costs exceeding CHF 500,000. Meaning that the minimum required equity of CHF 300’000 is already consumed even before an applicant might get their license.
This autumn, the State Secretariat for International Finance (SIF) plans to start the public hearing regarding its proposal for a new regulatory framework for our industry. We look forward to this, while SFA and its members have clear expectations.
LAUNCH PAD
Current applications and their review period at FINMA to date:
Case #1
Case #2
Explanation re the application FINMA duration timer:
The processing period begins after the application has been submitted to FINMA with an application audit report confirming that:
a.) the application meets the requirements,
b.) there are no significant objections
Fintech
An innovative and cutting-edge fusion of finance and technology spearheads a remarkable revolution in global economies. With its transformative capabilities, Fintech is reshaping financial landscapes, enhancing efficiency, and empowering individuals and businesses. Embracing this groundbreaking phenomenon opens limitless possibilities, driving economic growth and fostering financial inclusion. In this evolving era, harnessing the potential of technology in finance thus becomes a profound imperative, enabling us to promote a sustainable and inclusive global financial ecosystem ready to meet the challenges and opportunities of the future.
