Digital Finance: Areas of action 2022+

Financial centre metamorphosis

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.

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Federal Council report

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.

Federal Council report "Digital finance: areas of action 2022+" (PDF, 2 MB, 02.02.2022)

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12 measures for a strong Swiss digital financial centre

New configurations & players

What?

• Examine the legal and supervisory framework with regard to new configurations and players.

Why?

• New products and ways of providing services in the financial sector
• Arrival of new players on the financial market

How?

• Establishment of working group
• Review and, if need be, initiation of adjustment of the legal and supervisory framework, incl. fintech licence
• Together with: FINMA, the industry

Federal Council report "Digital finance: areas of action 2022+" - Page 14 (PDF, 2 MB, 02.02.2022)

Open finance

What?

• Promote and expand open finance.

Why?

• Standardised interfaces are a significant innovation driver
• Approach requires active participation of all players involved
  

How?

• SIF is an active dialogue partner/coordinator and examines the need for action
• If necessary, proposal for adjusting the framework conditions

Federal Council report "Digital finance: areas of action 2022+" - Page 16 (PDF, 2 MB, 02.02.2022)

RegTech & suptech

What?

• Enable the use of RegTechand suptech.

Why?

• Growing significance of innovative technologies in financial market regulation & supervision
• Efficiency and effectiveness gains are opportunities
• At the same time, risk management is necessary

How?

• Establishment of working group
• Review and, if need be, initiation of adjustment of the legal and supervisory framework
• SIF is an active dialogue partner/ coordinator for data-based supervision
• Together with: FINMA, Federal Chancellery, the industry

Federal Council report "Digital finance: areas of action 2022+" - Page 17 (PDF, 2 MB, 02.02.2022)

Cloud computing

What?

• Closely monitor developments in cloud computing.

Why?

• Cloud services are now an integral part of the ICT procurement strategy of many financial institutions
• Legal questions are still arising regarding cloud use

How?

• SIF is an active dialogue partner/ coordinator and examines the need for action
• If necessary, review of the legal and supervisory framework

Federal Council report "Digital finance: areas of action 2022+" - Page 20 (PDF, 2 MB, 02.02.2022)

Cybersecurity

What?

• Continue the cooperation on cybersecurity.

Why?

• Cybersecurity is essential for the digital economy to function smoothly
• Opens up opportunities (e.g. more extensive use of data) and protects against risks (e.g. cyberattacks)
  

How?

• The FDF/NCSC are continuing to enhance the mechanisms for combatting cyber-risks
• The NCSC is an active dialogue partner and continually examines the need for action
• Together with: SIF, FINMA, the SNB

Federal Council report "Digital finance: areas of action 2022+" - Page 22 (PDF, 2 MB, 02.02.2022)

Data use

What?

• Promote data use in the financial sector.

Why?

• The development status of data-based business models relative to the technical possibilities has room for improvement
• At the same time, secure data rooms are needed

How?

• SIF is an active dialogue partner and examines the need for action
• Development of a more nuanced understanding of the protection and use of data
• Together with: the FDPIC, FINMA, the industry

Federal Council report "Digital finance: areas of action 2022+" - Page 23 (PDF, 2 MB, 02.02.2022)

Shared data use

What?

• Foster shared data use in the financial centre.

Why?

• Shared data use makes it possible to improve the knowledge gained from data
• Can be used e.g. to better combat illicit financial flows, mitigate cyber-risks or optimise operations, products and distribution
  

How?

• Establishment of working group and examination of possible measures
• Promotion of concrete areas of application
• Together with: the industry and other affected units

Federal Council report "Digital finance: areas of action 2022+" - Page 25 (PDF, 2 MB, 02.02.2022)

Cross-border data flows

What?

• Ensure free cross-border data flows.

Why?

• Secure and cross-border data flows are of great importance for Switzerland

How?

• Commitment (internationally & bilaterally) to ensuring free cross-border data flows
• Taking account of the requirements of Swiss data protection and financial market law

Federal Council report "Digital finance: areas of action 2022+" - Page 27 (PDF, 2 MB, 02.02.2022)

Artificial intelligence

What?

• Support the use of artificial intelligence in the financial sector.

Why?

• AI use offers major opportunities (e.g. better personalisation, risk mitigation)
• Risks concerning the origin of data and its use, and the traceability of data processing
  

How?

• Preparation of overview
• SIF is an active dialogue partner/ coordinator and should explore the topic for the financial market

Federal Council report "Digital finance: areas of action 2022+" - Page 29 (PDF, 2 MB, 02.02.2022)

Distributed ledger technology

What?

• Enable innovative and responsible use of DLT in the financial sector.

Why?

• Further optimise the framework conditions for the use of DLT
• Risk mitigation requires coordination between authorities and cooperation with financial intermediaries
  

How?

• SIF is an active dialogue partner/ coordinator and explores the topic for the financial market
• If necessary, initiation of adjustment of the legal and supervisory framework
• If necessary, drafting of proposal to amend the CISA

Federal Council report "Digital finance: areas of action 2022+" - Page 30 (PDF, 2 MB, 02.02.2022)

Green fintech

What?

• Continue to support efforts to make Switzerland a leading green fintech hub.

Why?

• Assets will increasingly be invested sustainably and digitally in the future
• Green fintech offers the opportunity to combat climate change and the decline in biodiversity
  

How?

• SIF seeks dialogue with relevant national and international players
• SIF actively promotes green fintech in international bodies and initiatives

Federal Council report "Digital finance: areas of action 2022+" - Page 32 (PDF, 2 MB, 02.02.2022)

Potential for innovation

What?

• Strengthen the innovation potential of the financial sector in the long term by means of an innovation platform.

Why?

• To date, Switzerland has been in the middle of the pack as a fintech hub
• There is no uniform platform for innovation and the exploitation of technology
• This mirrors the approach of other major financial centres

How?

• SIF is working on a proposal with objectives and a structure for an innovation platform for the financial sector
• Together with the industry and authorities

Federal Council report "Digital finance: areas of action 2022+" - Page 33 (PDF, 2 MB, 02.02.2022)

Factsheet: 12 measures for a strong Swiss digital financial centre (PDF, 1 MB, 01.02.2022)

   

Further information

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Last modification 03.02.2022