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.

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)

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

Media

02.02.2022