Which is the best country for FinTech startups?

Financial technology or FinTech leverages technology and innovation to revolutionize the traditional delivery of financial services. For startups trying to enter this space, location can be critical to success.

As we enter the age of hyper digitization, every company is becoming a technology company. Even financial institutions that have been historically averse to change are leading the way. 

So it makes sense to pause and ask, “which is the best country for FinTech startups?” 

The short answer is Switzerland!  


There isn’t one particular reason that makes Switzerland perfect for financial technology companies. It’s a combination of geography, political stability, government regulations, and more. 

Let’s dive right in and find out more.

Switzerland has a robust foundation to build technology companies

If you conduct a simple Google Search, you’ll quickly find out why Switzerland is one of the top FinTech countries in the world. It’s one of the top FinTech hubs that’s powered by disruptive technologies like blockchain, cryptocurrency, and financial technology. 

This is because this landlocked nation has been at the forefront of building disruptive technologies that can accommodate everyone (and not just the multinationals with deep pockets). 

So it doesn’t really come as a surprise that Switzerland is already home to 10% of all European FinTech enterprises (with 46% of them located in Zurich). In the canton of Zug or Crypto Valley, you can also find six unicorn startups that are valued at over a billion dollars each.

Switzerland also makes sense for startups as the country has a stable and robust economy, political neutrality, high security, and a loosely regulated labor market. The nation also boasts a strong reputation for innovation and is ranked No. 1 in the Global Innovation Index.

Switzerland’s low tax model is perfect for new businesses

Tax rates have been comparatively lower in Switzerland than in greater Europe. The canton of Zug, for example, charges just 14% corporation tax

Such an environment is perfect for starting a new business. It also leaves innovators and entrepreneurs feeling encouraged and supported. 

The government has also taken steps to streamline the process of setting up a new company. For example, under the new Banking Act that came into effect in April 2019, public deposits that add up to CHF 1 million or less won’t be required to have a license. 

This law has also been extended to support crowd-lending business models as part of the Consumer Credits Act. 

The new FinTech license, which came into effect in January 2019, is also more lenient when compared to comprehensive banking licenses that are required across the continent. This means that while the law provides additional safeguards for customers, you won’t be required to pay interest on deposits.

As a result, the Swiss government has managed to create a highly attractive environment for venture capital giants, including Google Ventures and Index Ventures. So you can bet there’s also substantial funding to back the next innovative FinTech company.

According to the IFZ Fintech Study 2019 conducted by the Lucerne University of Applied Sciences and Arts, there were a total of 356 FinTech firms in Switzerland last year. These grew at an astounding rate of 62% compared to 2017.  

Top FinTech companies in Switzerland are as follows:

  1. Amnis
  2. Apiax
  3. Bitcoin Suisse
  4. Crypto Finance
  5. Loanboox
  6. Instimatch
  7. Melon
  8. Monito
  9. NetGuardians
  10. Neon
  11. Selma Finance
  12. Sonect
  13. Splendit
  14. Viac
  15. Yapeal

Switzerland’s cybersecurity ecosystem complements its strict privacy laws

FinTech companies are also well placed to take advantage of Switzerland’s flourishing cybersecurity ecosystem. Companies like 3db, Artmotion, NetGuardians, and Synacts are all on the ground to help secure Switzerland’s growing FinTech industry.

The nation’s strict privacy laws will also provide an additional level of protection. This can be highly attractive for financial firms based around the world. 

Switzerland is also landlocked and not an island like financial hubs such as Singapore. This gives the nation an advantage as the data centers located in the country are safe from the effects of global warming like rising sea levels and natural disasters. 

As the FinTech industry grows from strength to strength, you can expect more innovative startups to come out of this Central European nation. 

If you want to host your data in Switzerland, we can help! 

At Artmotion, we’re highly experienced in helping businesses securely transfer their IT infrastructure to our fortified data centers. We will work closely with you to make a seamless transition from discussion to deployment.

We will also protect your valuable digital assets with military-grade encryption that will help ensure data security and regulatory compliance.

To learn more about Artmotion’s offering, reach out to one of our cloud security experts.

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