The number of Swiss FinTech companies shrank in 2021 for the first time since 2015. However, a closer analysis of the sector shows existing companies have grown. This year's FinTech study by the Lucerne University of Applied Sciences and Arts provides insights into the dynamic financial technology market.
The development of the Swiss FinTech sector has only known one direction in recent years: upwards. After the size of the sector, measured by the number of active Swiss FinTech companies, increased year after year in the past, a decline is now being recorded for the first time for the year 2021. As of the end of 2021, Switzerland was home to 384 FinTech companies, which corresponds to a decline of 21 companies compared to the previous year, or around minus five percent from a relative perspective.
Despite this negative development at first glance, there are also positive trends regarding the companies' business models. For example, the median number of employees and the median total funding of Swiss FinTech companies increased last year. This is after these key figures stagnated or even declined in 2020. In addition, venture capital activity in the Swiss FinTech sector reached a record level in 2021, both in terms of the number of financing rounds (87) and volume (446 million CHF).
Sustainability becomes the new normal
The consideration of environmental, social and governance criteria in financial decisions is becoming the new normal. In the Swiss FinTech sector, relatively few companies currently have a dedicated strategic sustainability focus. Most of these companies focus on the area of investment management and target all three sustainability dimensions (ESG: environmental, social, governance).
Read the report: IFZ FinTech Study 2022 - An Overview of Swiss FinTech (hslu.ch)