Register a company in the United Kingdom and get a Payoneer account in just 3 days!
Switzerland Soars to Second Place in European Fintech Rankings (2024)
A recent study named Switzerland the second most attractive location in Europe for businesses involved in financial technology (fintech). The Netherlands, Estonia, and the UK were all surpassed by Switzerland. The country was praised for its business environment and the potential of its local market for fintech companies.
The 2024 European Fintech Index, published in June by Lithuanian fintech company ConnectPay, examined the fintech scene across Europe. It assessed key markets in the region to see how good they are for fintech businesses, government agencies, investors, and others with a stake in fintech. The index looked at three areas to measure market potential:
- This considers factors like regulations for fintech, funding available per person, the number of people who work in fintech, and how many fintech licenses are given out. These factors show whether a country is a good place to start a fintech business.
- This includes how easy it is to start a business, how easy it is to do business in general, and how competitive taxes are. This shows how good the overall business environment is.
- This looks at things that make a market a good place for fintech companies to sell their products and services and grow their businesses. This includes how many people use digital and financial services, how healthy the economy is, and relevant regulations.
Out of 32 European countries examined, Switzerland came in second. It was praised for its good business environment (ranked 3rd) and market potential (ranked 3rd). Switzerland also has one of the highest numbers of startup companies that have become very valuable (unicorns) in the region.
Switzerland has been making its business environment more attractive to fintech companies. In 2023, it launched the Swiss Financial Innovation Desk (FIND). This is an independent unit within the government agency that deals with international finance. FIND aims to help innovation in finance by encouraging collaboration between public and private institutions.
The government has also changed regulations to provide more clarity and promote innovation. This includes a fintech license introduced in 2019, a regulatory sandbox introduced in 2017, and the pioneering “DLT Act” which came into effect in 2021. This law covers blockchain technology, digital assets, and tokenization.
Even though Switzerland ranked high in business and market dimensions, it only ranked 8th in Europe for “fintech attractiveness”. This means it is behind places like Estonia and Luxembourg. Previous studies have shown fintech companies’ challenges in the Swiss market. A 2024 study by the Lucerne University of Applied Sciences and Arts Institute of Financial Services Zug (IFZ) showed that Switzerland is falling behind fintech hubs like Singapore and Sweden. These countries have done more to support fintech companies, making Switzerland’s efforts look less impressive.
Another study from 2024 by UBS, Credit Suisse, and the Swiss ICT Investor Club (SICTIC) indicated that Swiss startups have a hard time getting funding and are not well-known internationally. With a population of only nine million, the domestic market is too small for startups to grow there. This forces young Swiss tech companies to look for business internationally very early on in their development.
Another challenge faced by Swiss startups is finding well-educated workers. 46% of the founders surveyed by Credit Suisse said it was difficult to fill open positions with qualified candidates. The problems finding workers are worse for startups that are growing and expanding. 55% of these startups struggle to recruit qualified employees, compared to 39% of startups in the pre-seed and seed stages.
Sweden was ranked as the most attractive country overall in Europe for people in fintech. The 2024 European Fintech Index ranked Sweden first. Sweden ranked within the top five in all three dimensions that were measured. The country was praised for its high number of professionals in information and communications technology (ICT) and fintech, and its labor market structure which is friendly to fintech businesses.
The Baltic state of Estonia ranked first in the business (ranked 2nd) and fintech (ranked 1st) categories. This was thanks to its strong showing in unicorns per capita, the number of fintech deals per capita, and its positive regulatory environment.
Finally, Denmark ranked first in market attractiveness. This was supported by its strong GDP per capita and positive private consumption growth. This Scandinavian country took third place overall.
International Fintech Business (IFB) can unlock the doors to the thriving Swiss fintech industry. We offer a smooth path to entry, whether you choose to incorporate a new company with a financial license or acquire a ready-made one. Our team of experts is here to answer your questions and guide you through the process. Contact us today and launch your fintech venture in the heart of Europe!
