FinTech (Financial Technology)
FinTech is a collective term for companies that combine financial services with modern technology. The spectrum ranges from payment service providers (PSPs) and neobanks to robo-advisors, insurance startups (InsurTech) and lending platforms (LendTech).
In payment transactions, FinTechs have fundamentally changed the industry: They offer faster onboarding, more transparent pricing and more flexible APIs than traditional banks. Examples include Stripe, Klarna, Revolut and — in the Swiss market — Payrexx, TWINT and Neon.
In Switzerland, FinTechs are subject to FINMA supervision depending on their business model. Since 2019, there has been a FinTech licence (Art. 1b Banking Act), which allows the acceptance of public deposits of up to EUR 100 million without requiring a full banking licence.
FinTech examples
TWINT is a Swiss FinTech that enables mobile payment via app — without a credit card, directly from the bank account.
Klarna is a Swedish FinTech that offers Buy Now Pay Later (BNPL) as a payment method in e-commerce.
Neon is a Swiss neobank that offers a free bank account with app-based banking.
FinTech FAQ
What is FinTech?
FinTech (Financial Technology) refers to companies that offer financial services using innovative technologies. The spectrum ranges from payment providers and neobanks to lending platforms and insurance startups.
Is FinTech regulated in Switzerland?
Yes, depending on the business model, FinTechs are subject to FINMA supervision. The FinTech licence has been in place since 2019, which allows public deposits of up to EUR 100 million without a full banking licence.
Which well-known FinTechs are there in Switzerland?
Among the best-known Swiss FinTechs are TWINT (mobile payment), Neon (neobank), Payrexx (PSP), Yokoy (expense management), Loanboox (loan platform) and Descartes Finance (robo-advisor).
What is the FINMA FinTech licence?
The FinTech licence (Art. 1b Banking Act) allows companies to accept public deposits of up to EUR 100 million without having a full banking licence. It is considered a simplified entry into regulated financial services.
