Digitalisation is an important factor for the competitiveness of the Swiss financial centre. It facilitates new, innovative business models in the financial sector. These developments are driven among other things by more powerful mobile end-user devices, improved availability and analysability of big data and blockchain technology.
Digitalisation requires innovation-friendly framework conditions. Financial market regulation should not create unjustified barriers to market entry for the development of new technologies.
Switzerland has already done a lot to remove unjustified barriers to market entry and thus promote the fintech and blockchain ecosystem in Switzerland. However, this is, and will remain, an ongoing task in view of the rapid pace of technological development.
Digital Finance: Areas of action 2022+
On the financial market, new technologies are opening the door to new products and players. How and by whom financial services are provided is changing rapidly and fundamentally. This poses new challenges for traditional financial service providers, as well as for the state and its role.
The Federal Council instructed the FDF to prepare a report on digital finance in order to identify specific areas of action for the Confederation. The report is the starting point for in-depth work in the years ahead and sets corresponding priorities.
Link to subpage: Digital Finance: Areas of action 2022+ (admin.ch)
In July 2017, the Federal Council created an extended authorisation-exempt area (regulatory sandbox) in banking law and extended the timeframe for settlement accounts to 60 days. FINMA also examined the regulations in its area and redesigned them to be technology-neutral (e.g. video and online identification).
On 1 January 2019, a licence category tailored to fintech entered into force. Companies that operate outside the core business of banks have since been able to accept deposits from the general public of up to a maximum of CHF 100 million on a professional basis subject to simplified requirements.
The Federal Council sees sustainable finance as a great opportunity for the Swiss financial centre. The combination of sustainable financial services and digital technology (green fintech) is particularly promising. For this reason, the State Secretariat for International Finance (SIF), together with sector representatives, launched the Green Fintech Network on 3 November 2020.
Regulatory simplifications (sandbox) have also been drawn up for the insurance sector (insurtech). For example, in its dispatch of 21 October 2020 on the Insurance Oversight Act (IOA), the Federal Council proposed that small insurance companies with innovative business models could be either wholly or partly exempted from supervision while maintaining the protection of insured persons.
Blockchain / DLT
Switzerland is one of the leading locations in the area of distributed ledger technology (DLT) and blockchain. On 1 August 2021, the Federal Act on the Adaptation of Federal Law to Developments in Distributed Electronic Register Technology and the associated blanket ordinance came into force.
SIF regularly checks whether there is a need for action in other areas too. In the digital finance and green fintech sectors, the FDF/SIF will examine the framework conditions in detail in the course of 2021 and, if necessary, propose measures to the Federal Council.
Digitalisation presents major challenges also in terms of taxation, where SIF is actively involved at national and international level.
Last modification 22.12.2022
State Secretariat for International Finance SIF