Swiss FinTech Landscape

Growth, Trends and Future Prospects

market and valuation update for the CM sector

Industry
14/05/25

After peaking in 2022, both the number of Swiss FinTech transactions and the funding volume returned to pre-2021 levels in 2024. To anticipate future market developments, we wanted to gauge the current sentiment among Swiss FinTechs, identify prevailing trends and understand cultural and operational shifts.

We therefore conducted an analysis of the Swiss FinTech market, which comprised approximately 500 companies as of year-end 2024. Using information from major data providers like CBInsights and Pitchbook, we identified a subsample of the 150 most significant companies in the Swiss FinTech sector from an M&A and funding perspective. Management representatives from those FinTechs were invited to take part in an online survey conducted between October 2024 and March 2025. The conclusions of our study are based on responses from 50 of those FinTechs, evenly distributed across various subsectors such as Banking, Wealth Management, Digital Assets, Lending, Payments and others.

Swiss FinTech deal activity returns to pre-2022 levels. Strong Q1 2025 numbers spark optimism for a trend reversal

Industry trends like Digital Assets and AI, favourable interest rates and high market liquidity drove a significant increase in Swiss FinTech M&A activity in 2021, peaking at USD 810m funding volume in 2022. However, unfavourable macroeconomic conditions caused Swiss FinTech transactions to revert to 2020 levels by 2024. The strong start to 2025, with funding volumes nearly matching those of the entire previous year in just one quarter, highlights positive momentum in the Swiss FinTech sector and boosts optimism for future deal activity.

Equity funding volume in Switzerland (indicative)

Switzerland | FinTech equity funding total transaction value 2020 - Q1 2025 (USDm)

Strong preference for B2B business models among Swiss FinTechs

Swiss FinTech business models largely target business clients rather than retail clients. This is confirmed by our survey, with 64% of FinTechs questioned preferring B2B and just 20% favouring B2C. Despite the greater visibility and recognition of B2C solutions in everyday life, B2B FinTechs are taking the lead due to the increasing demand from businesses for customised financial solutions. Moreover, intense competition and saturation in the retail segment are encouraging many FinTechs to shift their focus to B2B opportunities.

Swiss FinTechs prioritise EMEA over Asia and the Americas for expansion

Swiss FinTechs primarily target EMEA for expansion, driven by lower market-entry barriers including shorter distances to the home market, similar regulatory environments, and cultural similarities (such as a common language in some cases). Furthermore, Asia is seen as a more attractive expansion target than America, whose markets are far more saturated and competitive, with US companies having access to extensive funding. Moreover, Asia’s favourable regulatory environments and large, underbanked populations, coupled with rapid adoption of digital financial services, make it a preferred choice among Swiss FinTechs.

Promising investment opportunities for private equity and venture capital firms will arise as these groups are favoured for upcoming funding rounds

Having passed the seed and early stages, most FinTechs surveyed are now in the growth and expansion phase as they endeavour to scale their businesses and enhance their market share. To support their growth perspectives, the majority of them are seeking funding, predominantly favouring venture capital and private equity firms along with strategic investors such as corporate ventures.

Survey participants confident of short-term growth despite regulatory uncertainties

The FinTech representatives surveyed expressed a range of perspectives on the current regulatory environment and its future trajectory. Market participants highlighted Switzerland’s decreasing appeal since 2020, which they attributed to restricted market access under the 2023 MiCA regulation, stricter FINMA policies and diminishing political support. Despite some scepticism among respondents regarding regulations, the majority expect substantial growth in the Swiss FinTech sector over the coming year.

Market Outlook

Increased M&A activity expected as most Swiss FinTechs identify it as a key growth driver

91% of surveyed FinTechs are currently exploring M&A opportunities as they identified M&A as a key growth driver and a valid alternative to strategic partnerships. Based on several discussions with market participants, we recognise continued attractiveness of the Swiss FinTech market, underlined by concrete M&A plans from both strategic and financial investors. Consequently, we anticipate increased M&A activity in the short to medium term.

Swiss FinTech Landscape