Fintech is developing, traditional banking is dying?

A new study in Switzerland shows that the fintech sector is growing strongly, while traditional financial institutions are stagnating. The report has been published by SwissBanking.

The report entitled “IFZ FinTech Study 2019” was prepared by the University of Applied Studies in Lucerne to show the changes taking place in the fintech industry in 2018. It also analyzed how banks occupy a position in the fintech industry. The results are surprising.

Big jump

According to the report, the Swiss fintech sector showed a significant increase in 2018. At the end of this period, the industry already had 356 active companies, which gives a jump of 62 percent compared to the previous year. The sector itself has registered larger venture capital transactions, but the cryptographic asset market has been subject to a large correction, which is part of the global, unprovoked trend. The situation may change in 2019.

The report also notes that the fintech industry is constantly evolving in comparison with the general financial sector in which the number of organizations and employees is falling. According to the report, fintech companies are faster and more efficient in terms of implementing new technologies.

Grow or die!

When it comes to traditional financial institutions, banks purport to evolve to survive in the long term. Experts do so.

The researchers also noted that companies from the blockchain market and cryptocurrency may develop further, but need a friendly regulatory environment. And they can count on that! At the end of March, Swiss President Ueli Maurer stressed that the establishment of regulation for the blockchain sector should take place quickly, and the rules must be clear.

Speaking of block networks and other distributed settlement technologies, Maurer said the Swiss authorities “are constantly looking for ways to stay two steps ahead.” Much more at the same time the Swiss Federal Assembly approved the Federal Council’s proposal to adapt existing legislation to regulate cryptocurrency. The legislation is aimed at determining how to suppress the risk associated with cryptocurrencies, and whether entities operating transaction platforms on this market should be identified with financial intermediaries and thus be subject to financial market supervision.

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