Switzerland Digital Banking

Part
01
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Part
01

Challenger Digital Banks: Switzerland

Revolut and N26 are challenger digital banks that offer business banking services in Switzerland. Initium is planning to launch in Switzerland this year.

SWITZERLAND & DIGITAL BANKING BACKGROUND

  • Switzerland is lagging behind other companies when it comes to digital banking. Other than Revolut and N26, the big names in digital banking do not operate in Switzerland.
  • Switzerland's customer base, lack of competition, and a regulator that has just "woken up" to the new digital players, are all mentioned reasons to enter the digital banking arena.
  • Barriers for entering the arena include the size of the country (their TAM is the size of a large US city), time to get a license, multiple official languages, and profit margins being largely driven by off-shore wealth.

REVOLUT

  • Revolut was founded in 2015 and is based in London. In 2017, they reported $15.67 million in revenue, and $17.31 in 2018. From 2016-2017, their revenue growth was 443%. They offer personal and business products.
  • Their market valuation is currently $1.7 billion, with $336.5 million in total funding over 12 rounds, with the last being March 27, 2019. They are a private company and considered a tech unicorn.
  • Revolut has completed a total of 350 million transactions at a total value of $48.9 billion.
  • Revolut states they have 7,000 new accounts opened daily.
  • They have nearly 20,000 businesses as customers, along with 4.5 million customers total. In the UK, they have 1.6 million customers.
  • Businesses may hold, receive, and exchange 29 currencies without charge.
  • Revolut claims they are ten times cheaper than a bank.
  • They have had significant reported losses.
  • Their business customers have an Open API to integrate their Revolut account into their current workflow and stack.
  • Revolut operates in Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland and the United Kingdom.
  • Their website may be viewed here.

N26

  • N26 has just launched in Switzerland.
  • N26 is a Berlin bank that operates in 20 countries in Europe. They have 2.5 million customers worldwide and were founded in 2013. They are a Late Stage Venture and have raised $682.2 million in funding over seven rounds. Their latest round was July 2019.
  • N26 has a current market valuation of $3.5 billion.
  • In 2017, they generated revenue of 11.24 million Euros which was a 2000% increase over 2016.
  • In late 2018 they had two million customers. They currently have over 3.5 million. Their monthly transaction volume exceeds 1.5 billion Euros.
  • N26 offers banking for freelancers and the self-employed.
  • They operate in Germany, Austria, France, Italy, Spain, Portugal, Ireland, Greece, the Netherlands, Belgium, Luxembourg, Finland, Latvia, Estonia, Lithuania, Slovakia, and Slovenia.
  • N26 is planning to expand to the US in 2019.
  • Their website may be viewed here.
  • INITIUM

    • Initium, which is Switzerland based company has plans to build a corporate banking group. Initium was founded by Daniel Spier.
    • They want to create a fully-licensed bank and have started their first round of investments. Initium will offer deposit taking, local payment clearing, card issuing, and acquiring, and liquidity services.
    • Initium wants to target fintech, blockchain, and crypto.
    • Their banking services may be viewed here.
    • Their website may be viewed here.

    STARTUPS TO KEEP AN EYE ON

    • Neon and Yapeal neither offer business banking, but they do offer digital banking.
    • Neon offers fully service digital accounts and has a goal to simplify customer relationships with banks. Their website may be viewed here.
    • Yapeal is a neo-bank that has a goal of redefining banking. They do not offer business services at this time. They have a fully digital on boarding process. Their website may be viewed here.

    RESEARCH STRATEGY

    To locate the top challenger digital banks, we first located industry articles that stated who the best digital challenger banks were. To be included in the next stage of our research, a bank had to be mentioned multiple times. Once we had our list, we then researched each bank separately to obtain an across the board metric. This proved difficult, as some banks did not list their annual revenue. We believe this happened because some banks are operating at a loss due to how new they are. Our next approach was to order them by their customer numbers. This again proved difficult, as the biggest bank we researched did not separate their customer base, and some banks only do business banking. Active users and monthly transactions also ran into the same issues. To combat this problem, we holistically looked at all the metrics we obtained to get our top listings.

    Due to the small amount of banks that offer the desired services, and the unique relationship Switzerland has with digital banking, we have provided all challenger banks that operate.

    To assess the market penetration, we began by locating industry reports and market studies. This did not give us enough information to triangulate a market share, as most of the information was global. Consulting business press releases from Globe Newswire, PR Newswire and from each business’ website gave us the bulk of our information. To finish our research, we researched available banking information from the government. Again, this gave us a few facts. Ultimately, we were able to put together a snapshot of the market, but not exact figures.
    Part
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    Part
    02

    Digital Services Trends: Switzerland

    While there is no publicly available information to provide 5-7 trends in digital services in Switzerland, we have used the available data to pull together key findings stating that blockchain and crypto services, along with investing and asset management services are some recent trends in terms of digital services being offered to businesses in Switzerland. Below is an outline of our research strategies to better understand why the information requested is publicly unavailable, as well as a deep dive into our findings.


    TRENDS IN DIGITAL SERVICES: SWITZERLAND

    1) BLOCKCHAIN AND CRYPTO SERVICES

    DESCRIPTION
    • According to the IFZ Fintech Study 2018, over 50% of new Fintech ventures incorporated in Switzerland in 2017 operated in the blockchain and crypto services space.
    WHY IS IT TRENDING?
    • Political and government aid stimulates the growth of the crypto and blockchain industry. The segment is one of Switzerland’s most developed fintech segments with over one hundred new startups being established in the fintech field.
    COMPANY EXAMPLE
    • Bitcoin Suisse was the first company in Switzerland to professionally offer crypto-assets and crypto-financial services.
    • The company offers a wide-range of crypto services like brokerage, crypto-assets storage, bespoke ICO services, and other crypto-financial services.

    2) INVESTING AND ASSET MANAGEMENT SERVICES

    DESCRIPTION
    • Wealthtech offers a digital alternative to wealth management services, providing technology tools like brokerage alternatives, self-service investment platforms, automated and semi-automated robo-advisors, asset class specific marketplaces, and other tools to facilitate wealth management.
    WHY IS IT TRENDING?
    • Wealthtech is considered as the second most influential segment in the fintech services in Switzerland. The sector features over 75 emerging companies.
    COMPANY EXAMPLE
    • According to FintechNews, some companies providing technology software to build robo-advisory structures, enable digital pensions solutions, or allocate crypto assets, include Viac, SELMA, and CleverCircles.

    HELPFUL FINDINGS

    CROWD FUNDING
    • Crowdfunding is an emerging fintech segment which provides loans for businesses and individuals, using a peer-to-peer (p2p) lending system. Some company examples include Cashare, CreditGate24, Lend, and Crowd4cash.
    OPEN BANKING
    • Switzerland is adopting a new trend based on API's, which should enable financial institutions to share access to their data seamlessly and securely.
    • According to FintechNews, consumers can gain more financial freedom to compare financial products while keeping their hard-earned cash with traditional banks.
    • Additionally, open information sharing can allow consumers to check real-time feeds on all finances in a single platform, enabling consumers to keep better tabs on their finances.


    RESEARCH STRATEGY

    To determine trends around digital services being offered to business in Switzerland, we searched through the directly available list of trends and market reports that show the most recurrent insights about digital financial services; for example, a boost of new fintech startups focused on b2b services. Additionally, we were able to identify some recurring financial services insights from these sites. Next, we compiled a list of most common trends to determine the most prominent trends in the industry. Alternatively, we were not able to find a list of 5 to 7 trends in terms of digital services being offered to businesses in Switzerland.
    We began our search for trends in terms of digital services being offered in the financial services sector to businesses in Switzerland through trusted media sites focused on financial services like Fintech Switzerland, MEDICI, and Swiss.com, among others. We tried to find articles with pre-compiled information mentioning digital services for business in the financial services in Switzerland. We were able to find two visible trends using this strategy.

    Next, we changed tactics and searched for trends in terms of digital services being offered in the financial services sector to businesses in Switzerland through published investor reports in the finance field. We found some relevant information about the fintech services in Switzerland, but they reinforced the previous trends gathered using our previous strategy.

    Finally, we searched for trends by scouring specialized magazines, journals, and trusted media sites like Swiss Journal of Economics and Statistics, Swiss Society of Economics and Statistics, among others. We focused on finding case studies about digital services being offered to businesses in Switzerland. However, this strategy provided no insights, because although publications expressed about new financial services provided in digital platforms, those were not focused on business services and could not be considered as a trend since it was emerging in the Swiss market.
    Part
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    Part
    03

    FinTech Companies: Switzerland

    Loanboox, BRD, Annanow Group AG, Monito, NovaDAX, and Pexapark are six FinTech companies that are based in Switzerland have received Series A, B, C or D funding in 2018 or 2019. Crowdhouse announced its last funding round in November 2017, while Sonnect raised an undisclosed funding round that might or might not be Series A, B, C or D.

    LOANBOOX

    • Loanboox is a "transparent, safe and convenient debt capital market platform". The company operates a debt financing platform for public sector borrowers and institutional investors and banks.
    • Loanboox secured €20 million in its Series B funding round. With investors like Deutsche Kreditbank and the LGT Group, the company's post-money valuation stood at €110 million.
    • The funding was first announced on 1/31/2019.

    BRD

    • BRD creates mobile financial software. Specifically, BRD's main app is a cryptocurrency wallet that is available to Android and iOS users and that allows them to purchase and store bitcoin and other cryptocurrencies.
    • BRD raised $15 million from Japanese SBI Crypto Investment in a Series B funding round. The funds will allow BRD to expand into the Asian market.
    • The funding was first announced on 1/25/2019.

    ANNANOW GROUP AG

    • Annanow Group AG is a last mile delivery service provider. Annanow provides Software as a Service (SaaS) to the retail industry, "connecting shops, courier services and end customers via immediate payments against immediate deliveries over the last mile".
    • Annanow announced its Series A funding round on 1/3/2019, but it did not disclose the amount of funding received or the investors. However, a local Swiss IT magazine reported that Annanow raised about 4 million Swiss francs, citing anonymous sources.

    MONITO

    • Monito is a website that offers comparisons of different international money transfer services. The company created a comparison engine that finds the cheapest options for transferring money between any two specific countries.
    • Monito's $2.5 million Series A funding round was led by Tamedia, which is Switzerland’s largest private media group.
    • The funding was first announced on 12/19/2018.

    NOVADAX

    • NovaDAX is a cryptocurrency trading exchange. The company offers an advanced trading platform for traders of various cryptocurrency tokens.
    • NovaDAX secured $20 million in a Series A funding from Abakus Group.
    • The funding was first announced on 5/9/2018.

    PEXAPARK

    • Pexapark operates a renewable energy platform. The community-powered platform helps renewable energy investors to sell their excess renewable energy.
    • Pexapark raised €3.5 million in a Series A funding round on 12/12/2018.

    COMPANIES THAT DO NOT FIT ALL CRITERIA

    CROWDHOUSE

    • Crowdhouse is a digital platform for investing in the Swiss real estate market. It offers support for real estate investments, transactions and financing.
    • Crowdhouse announced a Series B funding round on 11/1/2017, but closed it on 3/1/2018 for 7 million Swiss francs.

    SONNECT

    • Sonnect is developing a smartphone ATM software product. The product enables local shops to act as "virtual ATMs".
    • Sonnect raised an undisclosed funding round on 11/12/2018 from backers like Loomis and Six-Thirty.

    RESEARCH STRATEGY

    To identify the Swiss FinTech companies that meet all criteria, we first consulted Crunchbase, a credible investment information database. This provided us with seven FinTech companies that are based in Switzerland and that have received Series A, B, C or D funding on or after 1/1/2018. We chose not to include Sonnect because it did not disclose its funding round, so we could not be sure if it was a Series A, B, C or D. To find more companies we have checked other databases like Craft and local startup investing databases like Startup.ch. Unfortunately, this did not yield any additional results. We have then performed a general press search to identify additional companies and we were able to find crowdhouse, which announced its funding round in 2017, but closed it in 2018.

    We have concluded that only six companies exist that fit all criteria. However, there are many more companies that closed Series A, B, C or D funding rounds in 2017, as well as those that received seed funding in 2018 or 2019.
    Part
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    Part
    04

    Business Statistics: Switzerland

    The total number of businesses in Switzerland as of 2017 is estimated to be approximately 597,199. Sole traders, businesses with less than ten employees, businesses with 10 to 249 employees, and businesses with 250 or more employees accounted for 230,101 businesses, 198,807 businesses, 153,062 businesses, and 15,229 businesses respectively. 46,614 businesses were started in 2017.

    SWITZERLAND BUSINESS STATISTICS

    TOTAL NUMBER OF BUSINESSES IN SWIZTERLAND FROM 2014 2016

    BREAKDOWN OF NEW BUSINESSES

    SOLE TRADERS

    2017 – 230,101 (38.53%)
    2016 – 224,419 (40.76%)
    2015 – 217,109 (39.81%)
    2014 – 212,783 (39.39%)

    BUSINESSES WITH ONE TO NINE EMPLOYEES

    2017 – 198,807 (33.29%)
    2016 – 165,781 (30.11%)
    2015 – 165,954 (30.43%)
    2014 – 161,951 (29.98%)

    BUSINESSES WITH 10 – 249 EMPLOYEES

    2017 – 153,062 (25.63%)
    2016 – 121,955 (22.15%)
    2015 – 147,902 (27.12%)
    2014 – 150,661 (27.89%)

    BUSINESSES WITH 250 AND ABOVE EMPLOYEES

    2017 – 15,229 (2.55%)
    2016 – 14,205 (2.58%)
    2015 – 14,452 (2.65%)
    2014 – 14,801 (2.74%)

    NUMBER OF NEW BUSINESSES IN SWITZERLAND FROM 2014 2017

    BREAKDOWN OF NEW BUSINESSES

    SOLE TRADERS

    BUSINESSES WITH ONE TO NINE EMPLOYEES

    BUSINESSES WITH 10 – 249 EMPLOYEES

    BUSINESSES WITH 250 AND OVER 250 EMPLOYEES

    NUMBER OF BUSINESSES WITH ANNUAL REVENUE OF LESS THAN 50 MILLION EURO

    There are approximately 108,807 businesses with annual turnover of less than 50 million euro in Switzerland.

    RESEARCH STRATEGY

    After a thorough and wide-reaching search through Switzerland business authoritative agencies' databases, media sources, and company data aggregators' databases such as the Federal Statistics Bureau, Federal Statistical Office (FSO), the Business Group Statistics (STAGRE), Hoovers, and SWI/Swiss Broadcasting Corporation (SBC), we were able to publicly find some information regarding the total number of businesses and new businesses in Switzerland as well as data points (breakdown of new businesses) we leveraged to triangulate a proxy for those not found preexisting (breakdown of total of businesses, and number of businesses with annual turnover of less than 50 million euro) as outlined below.

    ESTIMTION OF TOTAL NUMBER OF BUSINESSES AS OF 2017

    Total number of businesses in 2017 = total number of businesses in 2016 + number of new businesses in 2017
    Total number of businesses in 2017 = 550,585 + 46,614 = 597,199

    ESTIMTION OF THE NUMBER OF NEW BUSINESSES WITH 10 – 249 EMPLOYEES

    2017 – 7,975 (10 to 49) + 3,972 (50 to 249) = 11,947
    2016 – 8,001 (10 to 49) + 4,060 (50 to 249) = 10,061
    2015 – 7,854 (10 to 49) + 4,004 (50 to 249) = 11,858
    2014 – 7,722 (10 to 49) + 4,026 (50 to 249) = 11,748

    TOTAL NUMBER OF BUSINESSES BREAKDOWN ESTIMATION

    Firstly, we determine the share of each of the categories (sole traders, businesses with less than ten employees, businesses with 10 – 249 employees, and businesses with 250 and over 250 employees) of the new businesses. We then assumed that share/percentage of each of the business categories in the new businesses each year is directly same with the total businesses in the Switzerland, based on this assumption we then calculated the number of businesses in each category using their share as outlined below:

    Categories Share/Percentage Estimation (New Businesses)

    Categories share/percentage = number of businesses in the category / total number of businesses * 100

    SOLE TRADERS

    2017 – 17,961 / 46,614 * 100 = 38.53%
    2016 – 18,520 / 45,432 * 100 = 40.76%
    2015 – 17,408 / 43,731 * 100 = 39.81%
    2014 – 16,590 / 42,119 * 100 = 39.39%

    1 – 9 EMPLOYEES

    2017 – 15,517 / 46,614 * 100 = 33.29%
    2016 – 13,680 / 45,432 * 100 = 30.11%
    2015 – 13,308 / 43,731 * 100 = 30.43%
    2014 – 12,626 / 42,119 * 100 = 29.98%

    10 – 249 EMPLOYEES

    2017 – 11,947 / 46,614 * 100 = 25.63%
    2016 – 10,061 / 45,432 * 100 = 22.15%
    2015 – 11,858 / 43,731 * 100 = 27.12%
    2014 – 11,748 / 42,119 * 100 = 27.89%

    250 AND ABOVE EMPLOYEES

    2017 – 1,189 / 46,614 * 100 = 2.55%
    2016 – 1,171 / 45,432 * 100 = 2.58%
    2015 – 1,157 / 43,731 * 100 = 2.65%
    2014 – 1,155 / 42,119 * 100 = 2.74%

    Estimation of Number of Businesses in each Categories

    Number of businesses in each category = total number of businesses * category share/percentage

    SOLE TRADERS

    2017 – 597,199 * 0.3853 (38.53%) = 230,101
    2016 – 550,585 * 0.4076 (40.76%) = 224,419
    2015 – 545,363 * 0.3981 (39.81%) = 217,109
    2014 – 540,196 * 0.3939 (39.39%) = 212,783

    1 – 9 EMPLOYEES

    2017 – 597,199 * 0.3329 (33.29%) = 198,807
    2016 – 550,585 * 0.3011 (30.11%) = 165,781
    2015 – 545,363 * 0.3043 (30.43%) = 165,954
    2014 – 540,196 * 0.2998 (29.98%) = 161,951

    10 – 249 EMPLOYEES

    2017 – 597,199 * 0.2563 (25.63%) = 153,062
    2016 – 550,585 * 0.2215 (22.15%) = 121,955
    2015 – 545,363 * 0.2712 (27.12%) = 147,902
    2014 – 540,196 * 0.2789 (27.89%) = 150,661

    250 AND ABOVE EMPLOYEES

    2017 – 597,199 * 0.0255 (2.55%) = 15,229
    2016 – 550,585 * 0.0258 (2.58%) = 14,205
    2015 – 545,363 * 0.0265 (2.65%) = 14,452
    2014 – 540,196 * 0.0274 (2.74%) = 14,801

    We leveraged publicly available regarding the annual turnover of businesses in Switzerland to triangulate a proxy of the total number of businesses with annual turnover of less than 50 million euro. Hoover reported these businesses' turnover in USD, using Google currency converter, we converted all the reported values to euro at the rate of one USD to 0.90 euro. To get the total number of businesses with less than 50 million euro ($55.38 million), we aggregated all businesses with less than $55.38 million such as Business & Professional Associations Companies — 737, Retail — 17, Business Services Companies — 47, Agriculture & Forestry Companies — 518, and other industries.
    Part
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    Part
    05

    Digital Banking By Industry: Switzerland

    Extensive searches did not uncover reports that accurately state the top industries in Switzerland that have most embraced digital business banking services. Instead, research findings did reveal several helpful findings regarding the digital banking landscape in the country. Below are the useful findings found in the course of the research to provide more insights into Switzerland's digital banking landscape.

    HELPFUL FINDINGS

    • According to Ivan Büchi, Digital Banking Director at Swisscom Enterprise Customers, digital banking services in Switzerland are insufficiently developed and utilized. While digital services for private customers exist and are in widespread use, Swiss banks are not putting effort to digitalize their services for businesses.
    • In Switzerland, journalism, hospitality, and the transport industry have seen the most digitization in recent years, which has, in turn, influenced digital innovations in the financial sector.
    • 1% of Swiss businesses rely on digital services to do business, while the global average is 15%. However, 11% of Swiss companies use blockchain.
    • In a Swiss study, it was found that business owners in the hospitality and manufacturing industries find digital technologies most important in their business model. On the contrary, Swiss business owners in the life sciences sector and retail industries found that digital technology plays less of a role in their business models.
    • Small Swiss businesses express a smaller need for digital technologies. 20% of small businesses in Switzerland state digital technology plays a big role in their business model. On the contrary, big Swiss enterprises express a much larger demand for digital technology (55%).
    • In the same study, 27% of Swiss business owners stated digital technology is important for their business because it enables them to perform financial operations online, such as product sales or payment services.
    • 47% of businesses in the hospitality sector and 43% of businesses in the manufacturing sector expect digital technology to be of value to their business in the future, compared to 33% of businesses in the construction sector and 32% of businesses in the life sciences sector.

    RESEARCH STRATEGY

    To find the information, we searched through international and local business publications that focus on the banking industry in Switzerland. The focus was on finding information about industries that are increasing the use of digital banking services the most in Switzerland. The types of sources we searched include media publications such as Forbes, Bloomberg, banking industry publications such as FUW, Economiesuisse, and economic news publications such as NZZ. On these reports, we hoped to find reports that focus on the digital banking industry and provide data on lines of business that use the services the most but no relevant reports were found. Most of the reports we found focused primarily on the process of digitization in banks themselves, or the effects of blockchain on the overall financial industry. Also, most of the reports focused on future predictions in the Swiss digital banking sector, mostly as it affects banking services.

    Next, we searched through local and international research sources, such as research firms and university databases, which we hoped could feature studies or academic articles on this topic. We explored global business databases such as Deloitte, McKinsey, Research Gate, Google Scholar, local university databases such as Unibas, UZH, and local research sources such as SBFI Admin. Unfortunately, the only relevant studies we found mainly compare the European banking industry with the Swiss banking industry, without going in-depth or mentioning industries that drive the digital banking sector the most. This was the closest we were able to find, which is also why this strategy failed as well.

    Second, we searched for the information through business reports about digital-only banks that operate in Switzerland, such as N26 and Revolut. On the two sources, we hoped to find information on, which industries do most clients of these banks come from. This information would then be used as a proxy to determine the industries that most use digital banking services in Switzerland. Although general information regarding the financial industry, which most of the banks serve was available; however, the data's scope was global and not local. Therefore, we were unable to determine if any of the information applies specifically to Switzerland, which is why this strategy also failed.

    As a last resort, we searched digital banking industry analyses reports hoping to find relevant mentions of increase in demand by industries. We have also determined the biggest industries in Switzerland and searched industry reports for information on the increase in demand for digital banking services. To find the industry reports, we searched through industry analysis sources such as Spglobal and BFS Admin, but still found no relevant insights concerning industry demand for digital banking services. The majority of the reports focused on the effects of the "fourth industrial revolution" on industries in Switzerland, which was the closest we came to finding the relevant information.
    Part
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    Part
    06

    Google Pay Statistics: Switzerland

    Google Pay is relatively new to Switzerland, having only launched at the end of April this year. As such, along with Switzerland's low mobile wallet adoption rate, it is estimated to have a transaction volume of only €14.1 million per day, reaching 19,000 users and 122,500 transactions by the end of this year.

    GOOGLE PAY IN SWITZERLAND OVERVIEW

    • Google Pay was launched in Switzerland on April 30, 2019.
    • Supported payment cards are Cornèrcard, Bonuscard, Swiss Bankers, Revolut, and boon.
    • Any merchant who offers NFC payments can accept Google Pay.
    • Transactions for 40 francs and below can be made without unlocking the phone. Amounts above this will have to be authorized.
    • Mobile wallet competitors Samsung and Apple were already available in the country. However, Switzerland is notorious for being a difficult country to be successful with digital payments, as its consumers tend to prefer cash.
    • 29% of surveyed Swiss consumers say they use mobile wallets, but this payment type still only accounts for less than 1% of the country's total transaction volume.
    • According to BusinessWire, the Swiss mobile wallet industry is expected to see a 10.6% CAGR between 2018-2025.
    • Worldwide, Google Pay users only make around 5.5 transactions per month, and make up a 6% market share.

    GOOGLE PAY IN SWITZERLAND STATISTICS

    • It was calculated that Google Pay might have around 19,000 active users by the end of 2019 (calculations of this figure are located below).
    • There will be an estimated 122,500 transactions using Google Pay in Switzerland by the end of 2019 (calculations of this figure are located below).
    • It is estimated that Google Pay payments value is around CHF 15.3 million per day, which is €14.1 million (calculations of this figure are located below).
    • There was no information available on the number of merchants in Switzerland that accept Google Pay. Any NFC-enabled POS terminal would be able to take Google Pay as a payment method. Swiss Banker states that contactless payments are available at all supermarkets and "most shops" in the country. In 2016, there were over 100,000 contactless terminals in Switzerland.

    RESEARCH STRATEGY

    Through news releases and industry reports, we were able to gather information on Google Pay's launch in Switzerland. The service only started in that country less than four months ago, and it is only supported by a select number of banks or financial institutions. We leveraged market research reports from PwC, Deloitte and ResearchandMarkets to piece together a picture of the mobile wallet industry in Switzerland. Unfortunately, none of these reports contained confirmed statistics about Google Pay's adoption in Switzerland.

    We then attempted to triangulate information about Google Pay by examining its usage in neighboring countries like Austria or the Benelux countries. We used official reports from the European Payments Council, Statista and industry news, but none of these provided data on the market share of Google Pay in neighboring countries or even Western Europe. Furthermore, we came to the conclusion that comparing neighboring countries could produce misleading information, as Google Pay launched in some of those countries much earlier than in Switzerland, and therefore would have a disproportionately larger market share.

    What we found was that while several comprehensive industry reports gave qualitative information and outlooks on mobile (and mobile wallet) payments in Switzerland, there was no information specifically about Google Pay. For example, the PwC report gives survey results about mobile payments, but nothing about just mobile wallets like Google Pay, nor any transaction volumes or user numbers. A robust report from Deloitte on mobile wallet payments in Switzerland was written prior to Google Pay's launch, and therefore only gives us total market intelligence, rather than specific data about Google Pay.

    CALCULATIONS
    Therefore, we used the available data to triangulate some information about Google Pay's usage in the country. Worldwide, the service has around 6% market share. We also found that mobile wallet transactions in Switzerland are still less than 1% of all transactions, though the industry is predicted to grow at a CAGR of 10.6%. We also found information on the company with the largest market share, Twint, which allowed us to extrapolate information on Switzerland's total mobile wallet industry.

    According to the Swiss National Bank, the country has around CHF 153 billion in daily payment volume, coming from around 1.8 million transactions. If mobile wallets are less than 1% of this total, this calculates to less than CHF 1.53 billion per day. Given that Google Pay only launched less than four months ago, and Switzerland has a notoriously low mobile wallet uptake rate, we estimate its market share would be 1% (or less) by now, especially since it is only available from five card providers. This means Google Pay could have a transaction value of around CHF 15.3 million per day.

    Mobile wallet competitor Twint recorded 627,000 users at the end of 2017, having launched in April that year. Using a 10.6% annual growth rate for the mobile wallet industry as a whole, this figures translate to an estimated 766,967 users in 2019 terms. Twint also recorded 4 million transactions in that year. Again using the 10.6% CAGR, this would increase to roughly 4.9 million by 2019. According to Deloitte, Twint had a 40% market share prior to the launch of Google Pay. Using this, this means Switzerland approximately has 1.9 million mobile wallet users (766,967 / 40%) and 12.25 million transactions (4.9 million / 40%). Using the same logic as above of Google Pay having around 1% market share by now, we can then estimate the service will have 19,000 active users and 122,500 transactions by the end of the year.

    MERCHANTS ACCEPTING GOOGLE PAY
    Similar to the above, we checked several industry reports and news articles about mobile wallet payments in Switzerland. We found that Google Pay is accepted at any merchant using an NFC-enabled POS terminal, which is the same technology used for all types of contactless payments. Since none of these reports contained information on the number of NFC-enabled terminals in the country, we turned to checking information from official government entities like the Swiss National Bank. We had hoped to find data on the breakdown of merchants in Switzerland that accepted different payment methods like cash-only, debit cards, credit cards, contactless, e-payments or other. This information was not found. We then hoped to gather information from major terminal distributors like SumUP, SIX or Aduno on the number of NFC-enabled terminals they provide in the country. We could use this data to either sum up or triangulate based on percentages the total number of merchants in Switzerland accepting contactless payments. Of these, only Aduno and SIX provided any type of annual report, and even then they did not provide data on the number or percent of NFC-enabled terminals or merchants. The only information we could find on this topic was a generic statement from Swiss Banker that contactless payments are accepted at "most shops" and all major supermarkets. In 2016, when Apple Pay launched, one article stated the country had over 100,000 contactless terminals, but this figure is likely quite higher by now.
    Part
    07
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    Part
    07

    FinTech Climate: Switzerland

    Switzerland is one of the world's leading FinTech hubs. About 10% of all European FinTech businesses are located in the country and its cities of Zurich and Geneva consistently rank among the top five cities for FinTech in the world. This is mostly because, as early as 2016, Switzerland outlined a plan for the FinTech industry that included a liberal regulatory approach and a number of incentives for the FinTech industry in general, and blockchain technology in particular.

    LIBERAL FINTECH REGULATIONS

    • Switzerland's president, Ueli Maurer, vowed that the country will not over-regulate the FinTech sector.
    • Maurer explained that Switzerland's regulatory strategy does not regulate technologies themselves, and it is instead aimed at overseeing specific impacts of those technologies.
    • This unique approach to regulating innovations is in stark contrast to what other developed economies are doing. Maurer explained that this high-risk approach, along with Switzerland's small size, is what enables the country to accommodate financial innovation and to "stay on top in the digital world".

    RAPID FINTECH GROWTH

    • The Swiss FinTech industry grew by 62% in 2018, according to the Lucerne University of Applied Sciences.
    • Switzerland had 356 FinTech companies at the end of 2018, compared to 220 at the end of 2017.
    • Out of the total of 356 companies "122 are in Distributed Ledger Technology, 66 in Investment Management, 56 in Banking Infrastructure, 42 in Deposit & Lending, 36 in Payment and 34 in Analytics".

    OFFICIAL PLAN TO PROMOTE FINTECH INNOVATION

    • In 2016, when Ueli Maurer was still the finance minister of Switzerland, he laid out the government's plan to promote innovation in FinTech. "We want to remain among the most important players in this sector," he said.
    • In addition to the outlined regulatory approach, the plan also introduced the concept of 'sandboxes' that could be grounds for testing new ideas without the need for full regulatory supervision.
    • The plan also proposed that companies that provide deposit services and do not lend money could obtain a special banking license that would be much easier to obtain than the standard one.
    • Switzerland's government said it would also strive to ease crowdfunding efforts and to promote the so-called Crypto-valley around Zug.

    SANDBOXES

    • Switzerland's Federal Council introduced a sandbox exemption, which all companies can apply for. The exemption allows the acceptance of public deposits of up to 1 million francs without a banking license.
    • Additionally, pure payment service providers that only accept deposits for settlement are now given an even greater exemption.
    • The exemption has been extended in April 2019 to include providing consumer loans.
    • Even companies that accept deposits from third parties up to a maximum amount of 100 million francs and that do not issue loans can enjoy more lax regulations by applying for the sandbox exemption.

    BLOCKCHAIN AND CRYPTO-VALLEY

    • Switzerland's State Secretariat for International Financial Matters established a blockchain and ICO working group to revise the legal framework to best accommodate the new technologies.
    • In September 2018, there were over 100 blockchain-related businesses in Switzerland, and the number is expected to continue growing rapidly.
    • More than half of the new FinTech ventures incorporated in Switzerland in 2017 operated in the blockchain and cryptocurrency space, according to the IFZ FinTech Study 2018.
    • The Swiss canon of Zug, dubbed the crypto-valley, is known for its active involvement in the cryptocurrency industry.

    GENERAL STATISTICS

    • The IFZ FinTech Study 2018 reveals that on a global scale the cities of Zurich and Geneva remain in second and third place for the best cities for FinTech, respectively.
    • About 10% of all European FinTech businesses are located in Switzerland, 46% of them in the city of Zurich, making it a major global FinTech hub.
    Part
    08
    of twelve
    Part
    08

    Co-Working Space: Switzerland

    Voisins, Redspace, Regus, Gotham, Coworking Switzerland and Impact Hub are the six major providers of co-working space in Switzerland.

    VOISINS

    IMPACT HUB SWITZERLAND

    COWORKING SWITZERLAND

    • Coworking Switzerland has co-working spaces in Bottighofen, La Chaux-de-Fonds, Zofingen, Meiringen, Sion, and Lugano.
    • A link to the company's website can be found here.

    REDSPACE COWORKING

    • Redspace offers co-working spaces in 3 locations in Switzerland. They include District 3, Startup space and Coworking Limmattal, all located in Zurich.
    • A link to the company's website can be found here.

    REGUS

    GOTHAM

    • Gotham offers coworking spaces in 5 locations in Switzerland.
    • A link to the company's website can be found here.

    RESEARCH STRATEGY

    To provide the number of major co-working spaces providers in Switzerland, we searched for a pre-compiled list of co-working providers in Switzerland. We were able to find a list of co-working providers from databases like Coworker, CoworkBooking, and Coworking.Coffee. As these databases include thousands of co-working spaces across hundreds of countries, it is assumed that they would provide a comprehensive list of active locations/providers in Switzerland.

    To ensure that every co-working space provider in Switzerland has been examined in order to find the number of major providers, we also studied additional providers listed on articles published by EU Startups, Startup Guide and a Deloitte report on co-working landscape in Switzerland. These articles listed the best co-working spaces in different locations in Switzerland. The majority of the providers considered the "best" were already listed on the databases mentioned above.

    We then searched through the websites of the mentioned companies in the databases and articles for the number of locations they have in Switzerland. After finding the locations of the co-working space providers mentioned across all the above sources, there are only 6 co-working space providers with 3 or more locations in Switzerland.
    Part
    09
    of twelve
    Part
    09

    Apple Pay Statistics: Switzerland

    An estimated €129 million worth of mobile POS payment transactions are made using Apple Pay in Switzerland. The research team also estimates that Switzerland has about 52,800 Apple Pay users. Further details have been provided below.

    Number of Apple Pay users

    • There are about 52,800 (details below) Apple Pay users in Switzerland.

    Number of Apple Pay Payment Value

    • An estimated €129 million (details below) mobile POS payment transactions are made using Apple Pay in Switzerland.

    Number of Merchants Accepting Apple Pay

    • While there is no specific data on the total number of merchants accepting Apple Pay in Switzerland, "ALDI SUISSE, Apple, Avec, Hublot, K Kiosk, Lidl, Louis Vuitton, Mobilezone, Press & Books, SPAR, and TAG Heuer" are some notable merchants accepting Apple Pay in the country.

    Other related findings

    • American Express, Master Card, Visa, Bonus Card, Boon, Corner Card, Credit Suisse, Monese, Neue Aargauer Bank, Revolute, Swiss Banker, and Swiss Card are financial organizations supporting Apple Pay in Switzerland.
    • Apple Pay was launched in Switzerland on July 7, 2016.
    • The average transaction value per mobile POS payment user is Switzerland is about €1,784.7 in 2019.
    • A report by PwC revealed that about 35% of transactions in Switzerland are made via mobile payment.

    Research Strategy:

    To provide statistics on Apple Pay usage in Switzerland, we commenced our research with a thorough search of official reports and press releases specifically on the website of Apple Inc. in Switzerland. We also searched through articles from credible platforms and expert analysis for any useful data point on the usage of Apple Pay in the country. While we were able to find relevant data points that we could use to triangulate the requested data, relevant data related to the number of Apple pay payments by volume in the country was largely unavailable.

    Our next approach was to search on credible payment-related statistical databases such as the Central Bank of Switzerland, the European Central Bank and other notable sources such as PWC. While these sources provide information related to digital payments in Austria, there was no data or information specific to the number of Apple pay payments by volume in the country.

    Furthermore, we tried to triangulate this data using the available data on the share of Apple Pay in the country. We searched on third-party databases such as Statista, Deloitte, among others, however, there was no information on the total number of payments by volume processed in the country which could be used to determine data specific to Apple Pay.

    Triangulation

     In 2019, the total transaction value involving mobile POS payments in Switzerland amounts to €725 million (US $818 million), and there are about 0.4 million mobile POS payment users in the country. A report by Deloitte established that 54% of mobile payments in Switzerland are made on third-party providers such as Apple Pay, Google Pay, and others.

    Therefore, €391,500,000 (i.e €725 million * 54%) mobile POS transactions are made on third-party providers.

    Furthermore, the report by Deloitte reports that among third-party providers in Switzerland, Apple Pay accounts for 33% of users.

    Therefore, €129,195,000 (i.e €391,500,000 * 33%) mobile POS transactions in Switzerland are completed on Apple Pay.

    Similarly, there are 0.4 million mobile POS payment users in Switzerland. Assuming that third-party providers also account for 54% of users, then, there are 160,000 (i.e 400,000 * 54%) users of third-party mobile POS payments providers.

    Therefore, based on the above assumption there are probably 52,800 (i.e 160,000 * 33%) Apple Pay users in Switzerland.
    Part
    10
    of twelve
    Part
    10

    Digital Banking: Switzerland

    Cryptocurrency and blockchain are two fintech segments growing in Switzerland and potentially affecting its digital market. Further, according to a report by Deloitte, Swiss banks' digital offerings typically include a broad range of functionalities that appeal to customers and help their banks achieve high rankings. Complete details about digital banking in Switzerland and how people access digital banking services are presented below.

    Key Indicators of Digital Banking in Switzerland

    • According to the Swiss National Bank (SNB), customer use of e-banking services is high in Switzerland and the entry of new participants such as fintechs, bigtechs and digital banks has, thus far, been relatively modest.
    • According to KPMG, Switzerland has been experiencing an emergence of digital players such as fintech startups or ‘big data’ technology giants such as Google and Apple offering financial services. Customers in Switzerland have started embracing new banking models with compelling digital user interfaces.
    • Larger banks in Switzerland have set themselves as more demanding digitalization targets compared to their smaller counterparts.
    • According to a survey conducted by the SNB, only about 50% of the Swiss population makes use of online banking services.
    • Digital banks are emerging as new challengers in all key business segments in Switzerland.
    • According to Deloitte, Swiss banks rank high regarding their digital offerings on account of their broad range of functionalities.
    • According to EY, consumer fintech adoption in Switzerland is at 64%. About 10% of all European fintech businesses are based in Switzerland, primarily in the city of Zurich as of 2019.
    • Two fintech segments (i.e., cryptocurrency and blockchain) and investment management are witnessing significant growth in Switzerland.
    • There are over 100 fintech companies in the cryptocurrency and blockchain industry in Switzerland. There are over 75 fintech companies in the investing and asset management industry in Switzerland.

    How People Access Digital Banking in Switzerland

    • In 2016, 18% of Swiss customers carried out more banking transactions via mobile end devices.
    • In 2016, 75% of Swiss customers conducted banking transactions online on their computers.
    • Only 25% of Swiss customers used their smartphones and 22% used their tablets for banking transactions in 2016.
    • According to the CREALOGIX Group, 43.6% of millennials in Switzerland were mobile banking customers in 2018.
    • In 2018, 50% of millennials in Switzerland preferred to conduct transactions on their desktops.
    • In 2018, German-speaking Swiss millennials were more likely to conduct transactions on their desktops, at around 58%, when compared with the western Swiss at 43%.
    Part
    11
    of twelve
    Part
    11

    Registering a New Company: Switzerland

    In Switzerland, the process of establishing a limited liability company is less complicated and expensive compared to that of establishing a corporation. Many small and medium-sized companies prefer limited liability company entity compared to other legal entities. On the other hand, creating a company in Switzerland only requires one founder or shareholder.

    Overview of starting a new business in Switzerland

    How long it takes to set up business banking accounts, and the challenges

    • A newly formed company in Switzerland can be incorporated in approximately three weeks. However, this is dependent on the proper submission of relevant documents and successful submission of the share capital.
    • One of the key challenges of new businesses in Switzerland is that the country has highly regulated markets, domestic rules, and regulations. Thus, to maneuver easily, new businesses in Switzerland are required to seek legal assistance, which may help shorten the time for registration and incorporation.
    • Legal assistance plays a pivotal role in the formation of new businesses in Switzerland; new companies may be advised on any legal matter arising during the period of registration and incorporation

    Switzerland's business environment

    • Switzerland’s policy of neutrality, its economic and political stability, banking secrecy guaranteed by law and non-involvement in any of the international conflicts makes the country a business-friendly environment for many companies across the globe.
    • Being one of the largest financial centers in the world makes the Switzerland suitable for individuals’ and corporations. For instance, Swiss banks offer abroad range of offshore banking services to companies and individuals.
    • Presently, Switzerland is one of the world’s leaders in asset management.
    • Despite lacking natural resources Switzerland remains one of the most developed, stable and prosperous countries across the globe. The country boasts of the highly skilled labor force, home to some of the world’s multinational corporations and the second highest GDP per capita in Europe after Luxembourg.
    • Switzerland remains an excellent country to incorporate for trading companies and especially those conducting administrative functions and not commercial activities. Trading for companies may qualify for an advantageous tax regime.

    Challenges for those setting up businesses in Switzerland compared to other regions

    • One of the major challenges of operating new businesses in Switzerland is that all Swiss companies are required to have a resident director.
    • The incorporation costs are very high in the country, for instance, all companies are required to have a minimum paid capital of CHF 20,000.
    • Businesses in Switzerland are faced with high government annual fees.
    • Companies are required to cope with increased labor costs and high compliance requirements.
    • Another notable challenge for businesses in Switzerland compared to other regions is that corporate income tax is levied on worldwide profits and especially for companies that have a global presence.
    • Other challenges include European Union standards not always being adopted compared to other regions in Europe.
    • Tight domestic rules and regulations, and highly regulated markets are other notable challenges that companies in Switzerland go through.
    • Compared to consumers of other regions, Swiss consumers value quality and place a premium on quality, and thus cannot tolerate substandard products or services.

    Research strategy

    We focused our research on entities that are commonly used by small and medium-sized private companies. To determine the process of starting a new company in Switzerland and the challenges involved, we consulted experts through their respective websites and blogs. Our area of focus was the main challenges that new business owners in Switzerland experience while incorporating new companies in the country. Noteworthy, the research team was unable to establish any differences in the process involved in setting up brick and mortar business and online business.


    Part
    12
    of twelve
    Part
    12

    English Usage: Switzerland

    English is currently becoming the fourth most used language in Switzerland and it is being used more commonly in the business sector. More information can be found in the following findings.

    ENGLISH USAGE AS FIRST OR SECOND LANGUAGE

    • As of 2019, approximately 5.1% of the population in this country uses English as one of their primary languages. English is frequently used "to bridge the divides", and a lot of official documentation is available in this language.
    • English is "the fourth most common language in Switzerland" and has gradually turned into "a lingua franca". It is widely spoken and understood, particularly in cities.
    • Because of its importance as an international language of communication, it is "the second language learned in schools" and it is chosen by 35% of adult language learners.
    • At home or when communicating with relatives, 5% of people in Switzerland speak English.

    ENGLISH USAGE FOR BUSINESS

    • English is commonly being used as a language of business in the country.
    • In this country, around 19% of people speak English at work.
    • English is being used as the primary language by many international companies in Switzerland, but most companies use German or French as a base.

    ENGLISH USAGE FOR ADVERTISING/MEDIA

    Research Strategy:

    In order to provide quantitative and qualitative data regarding the use of English as a first or second language in Switzerland, we consulted reliable sources such as Swissinfo, TheLocal, and SantaderTrade. With this strategy we were able to provide quantitative data on the use of English by the general population and the use of this language for business. However, we were not able to provide quantitative data regarding the use of English on advertising or media in the country and more quantitative data on English use for business.

    For searching quantitative data on advertising/media and business, we tried implementing the following strategies. First, we searched through articles and news related to the use of English in the country hoping to find information on how the language is used in advertising or media and business. We found articles like " French and foreign languages on rise in Switzerland" and "What Language is Spoken in Switzerland?". Unfortunately, these articles only contained information related to usage in schools, at home, and at work.

    Our second approach was looking for reports or research articles related to foreign language usage in advertising or business in the country. With this strategy we found the article "Advertising in a Foreign Language or the Consumers' Native Language?", which did not contain any information related to the use of English in advertising or media in Switzerland and was focused on other countries like Netherlands, Germany, France, Belgium, and Spain.

    Finally, we tried looking for statistic reports in sources like Statista in order to find quantitative insights on the use of English on media/advertising or business. However, with this last tactic we only found a few reports which were not related at all to the topics: "Digital Advertising—Switzerland", "Two Worlds: Languages IRL and Online", "Advertising expenditure of industries in Switzerland", and "Share of population with knowledge of English in non-native European countries". These sources only contained information related to the use of other languages in the web, advertising expenditure, advertising industry market size, and knowledge of English in Europe.

    Even though the quantitative data for these topics was not publicly available, we found other sources through our research that provided us with qualitative data on English usage regarding the general population and its usage in business and advertising/media, which we provided on our findings.

    Sources
    Sources

    From Part 01
    Quotes
    • "Neon offers fully-service digital accounts that provides visa debit /credit card tracking and controlling facilities. The company’s mission is to unite technology and design to redesign and simplify people’s financial experience and their relationships with the banking system."
    • "Yapeal is an upcoming neo-bank in Switzerland that aims to redefine banking. The YapApp would be based on blockchain-inspired technology, and some features include a fully-digital onboarding process, AI to figure out one’s lifestyle and habits, a digital budget advisor called the Financial Amigo, among others."
    Quotes
    • "Switzerland-based Initium has been unveiled with plans to build a multi-jurisdictional corporate banking group."
    • "In terms of details, it wants to create a fully licensed bank, and has started the first of three rounds of investment."
    • "On its website, it will offer deposit taking, local payment clearing, card issuing and acquiring, and liquidity services."
    • "Initium says: “The institutional infrastructure of the banking system, which has been built up over generations, is ill-suited to the demands of the new digital economy. Indeed, in some of the most innovative and forward-looking sectors of the economy, profitable businesses are finding it difficult or even impossible to secure basic corporate banking services.”"
    Quotes
    • "Acceptance of corporate funds into a bank account ● View and operate accounts via online banking platforms ● Settle operating expenditure and receive operating income ● Offer direct connections into the local clearing system in different countries ● Service offerings such as IBANs and HOCAs ● Support clients who want to issue cards or receive customer payments ● Offer API integration to customer platforms ● Provide corporate cards for clients’ staff ● Assist operators in the crypto space to convert crypto into fiat and effect a faster fiat pay-out to their customers "
    • "• Q1 2019 INITIUM GROUP AG INCORPORATION Fundraising commences and team engaged • Q3 2019 Build global infrastructure Incorporate Liechtenstein legal entity and commence banking license application • Q4 2019 Launch Security Token Offering to close first funding round • Q2 2020 Launch in European Economic Area(subject to the banking license being granted by the FMA Liechtenstein) "
    Quotes
    • "Germany’s challenger bank and fintech unicorn N26 is gearing up to launch in Switzerland. N26’s CEO and co-founder Valentin Stalf said at the Start Summit 2019 in St. Gallen last month that the startup’s entry into the Swiss market is expected to take place in two to three months."
    • "N26 currently serves 24 European markets but not Switzerland. The company said more than 10,000 people from Switzerland had enlisted for an account as of the end of January."
    • "Markus Gunter, CEO of N26’s banking arm, told Bloomberg in an interview earlier this week that the company is currently prioritizing international growth rather than product expansion, preferring to build up its international customer base first."
    Quotes
    • "I downloaded Revolut, with its 50,000 Swiss customers. "
    • "Then I checked out Europe's "full challenger banks" - Fidor, Atom, Starling, Monzo, Secco - and it turns out I can't use any of them. It just reminds me how isolated we are as customers here in Switzerland - and how little we have done from banking and Fintech to change our own destiny."
    • "Should a Challenger Bank come to Switzerland? YES: Top 3 Reasons: 1.• The prospect of establishing a highly profitable onshore business. You get access to a fantastic customer base: Switzerland despite its small population has a large, homogenous critical mass of affluent, complex clients who are willing to pay for a deep set of financial services. 2. • Mediocre competition from a set of legacy incumbent banks with huge overhead cost structures - whose e-banking is okay-ish but does not break any molds. 3. • A modernizing regulator who is still adjusting to new realities of digital, and whose relationship to the incumbent banks is strained in the best of times - and has just woken up to working in new ways with new players."
    • "What are the Main Barriers to Entry for Challenger Banks? #1. Size. With just over 8 million people - our growth comes mainly from new arrivals/immigrants who have little savings. Our total addressable banking market is actually around the size of one mid-sized US city - or a very small Chinese one. To make things worse, we have four official national languages - but 25% come from a diaspora including Italy, Portugal, Eastern Europe and Africa. #2. Retail Banking is not actually our Core strength. Swiss banking margins are largely driven by international wealth management and private banking, most of that coming from offshore clients. Look at the divisional PnL of the two major Swiss banks - a few hundred million in profit in Switzerland versus many billions earned on their wealthy international business."
    Quotes
    • "The firm is targeting the new digital economy, including fintech, blockchain and crypto. A lot of its website is spent discussing this economy or globalisation."
    • "It reckons it can address this “challenge” by providing traditional banking services to the underbanked sectors of the digital economy."
    • "In terms of its core banking system, Initium says this is not yet decided. It is “closely working” with Swisscom Blockchain to conduct due diligence to either develop its own core system or use an existing one (third-party)."
    Quotes
    • "Or at least that’s set to happen thanks to entrepreneur, Daniel Spier, who founded Initium after his own difficulties getting basic banking services while operating in the often-scorned part of the fintech sector. "
    Quotes
    • "By launching Initium Group as a multi-domicile bank specialising in providing financial services to firms in the NDE, Daniel will provide the missing element which innovative firms need to grow and thrive: a financial services platform for the New Digital Economy."
    From Part 03
    From Part 06
    From Part 10
    Quotes
    • "The larger banks have set themselves more demanding digitalisation targets than their smaller counterparts, in particular in the mortgage business"
    • "The differences are less pronounced in deposits and payments, where all banks are already well advanced in terms of digitalisation."
    • "In the payments area, the use of digital offerings is systematically recorded. Customer use of e-banking services is high. When it comes to opening a deposit account or establishing a lending relationship, digital channels are used less frequently."
    • "How dominant will new participants such as fintechs, bigtechs and digital banks become in the Swiss market? Although there have been significant developments in certain segments, the entry of such players into the market has thus far been relatively modest."
    • "The banks surveyed see digital banks emerging as new challengers in all key business segments over the next three years"
    • "In implementing their digitalisation strategies, the larger banks are focusing on deploying their own innovations and solutions (cf. chart 9). They are also seeking to engage in cooperation with other market participants, above all with fintech firms and providers of core banking systems (CBSs)."
    Quotes
    • "Swiss banks rank high when it comes to their digital offering, thanks to the particularly broad range of functionalities they offer on average."
    • "In terms of user experience, we observe a reversed picture for Switzerland. Swiss customers rate the user experience with their respective Swiss bank relatively poorly."
    Quotes
    • "Only about half of population in banking-rich Switzerland uses online banking services, a representative survey conducted by the Swiss National Bank (SNB) among 34 banks showed on Tuesday."
    • "Overall, the banks have not yet reached their digitalization targets,” the SNB said."
    • "However, the survey also found risks linked to increasing competition from new market participants such as big technology firms or online banks that could lead to further margin pressures."
    Quotes
    • "A key shift in the market place has been the emergence of digital players such as Fintech start-ups or ‘big data’ technology giants such as Apple and Google offering financial services. "
    • "Customers have started embracing new banking models, which are decentralized and driven by compelling digital user interfaces, more aligned to their needs and lifestyle choices."
    • "New digital challengers are able to design agile business and operating models from scratch."
    Quotes
    • "The proportion of mobile banking customers totals 43.6 per cent – a growing market with high potential. "
    • "Asked about their preferred digital banking method – online banking on the desktop or mobile banking – half of the respondents said that they prefer to conduct transactions «traditionally» on their desktops. "
    • "The German-speaking Swiss are more likely to do so, at around 58 %, compared with the western Swiss at 43 %."
    Quotes
    • "An estimated 10% of all European fintech businesses are now based in Switzerland, mainly in the city of Zurich."
    • "According to the IFZ Fintech Study 2018, 2017 was the year that the Swiss fintech industry matured, with the sector becoming widely acknowledged as an important innovation driver and startups penetrating the financial system on different levels."
    • "There were 220 fintech companies in Switzerland by the end of 2017, with 32 new companies being incorporated throughout the year. Two segments in particular have been witnessing significant growth: crypto and blockchain, and investment management."
    • "With over a hundred companies, the crypto and blockchain industry is Switzerland’s most developed fintech segment with ventures tackling multiple topics from cryptocurrencies and crypto-assets, to asset management and decentralized applications."
    • "Second to blockchain and crypto is the investing and asset management field, unsurprisingly. With over 75 companies, it is the second most crowded fintech segment in Switzerland."
    Quotes
    • "One in three bank customers in Switzerland, for example, say that they used online banking more frequently last year than before, while 18% carried out more banking transactions via mobile end devices."
    • "While three in four customers conducted banking transactions online on their computers last year, only 25% used their smartphones and 22% their tablets."
    From Part 11
    Quotes
    • "Foreign and local investors can choose from the following types of Swiss legal entities: limited liability companies, stock companies, sole proprietorships, limited partnerships and general partnerships."
    • "A Swiss limited liability company must have a minimum number of two shareholders which is very advantageous for small or medium enterprises started by businessmen who want to have limited responsibility restricted to their financial contributions. The company will also need to appoint a manager. "
    Quotes
    • "Switzerland is an excellent jurisdiction to establish a holding company, ideal for investors who need to manage substantial shares of other entities, especially when they are resident for tax purposes outside the Swiss borders."
    • "The downsides of incorporating in Switzerland is that Swiss companies require a resident director, incorporation costs are high, including a minimum paid up capital of CHF 20,000, high government annual fees, increasing labor costs and high compliance requirements."
    • "Corporate income tax is levied on worldwide profits."
    Quotes
    • "The reason why Switzerland is the most sought-after country for starting a business is due to its political and economic stability, central European location and liberal legal framework."
    • "The Swiss constitution allows anyone, including the foreigners, to run a small business in Switzerland or to form a company or have a financial interest in one."
    • "At least one of the directors must be a Swiss resident for your company. The procedure for registering a small business at the Swiss company register is simple as long as you are aware of all the necessary documents that shall be submitted to the registry."
    Quotes
    • "There are certain unique challenges when doing business in or with Switzerland, These include: EU standards are not always adopted, domestic rules and regulations apply and highly regulated market. "
    • "Swiss consumers place a premium on quality. "