FinTech Trends to Watch Out for in 2022 and Beyond in Switzerland
Fintech is among the most popular industries in the world. The sector has grown significantly in recent years and is predicted to continue on an upward trend, reaching $158 million by 2023.
Switzerland is one of the most advanced Fintech hubs. Fintech innovation flourishes in this region due to its long history as a hub for top-tier financial services; its innovation-friendly legislative environment combined with the desired tax structure; talent availability due to its leading educational institutions; and the enticing living circumstances.
In 2022, this paradigm-shifting event will still be happening. Financial technology is set to undergo several changes in the next few years. Below, we look at some of the most significant ones.
Autonomous banking combines automation, AI, and machine learning to provide clients with the best possible experience on mobile platforms. Because of the volume of data and the quickly increasing field of AI, self-driving finance is becoming a very plausible possibility.
In autonomous finance, the consumer does not directly provide the inputs. Instead, he employs a virtual banker created specifically for him via the portal. This virtual banker will monitor and assess your portfolio, risks, and investments. The AI algorithm will then generate the best investment and saving options for the consumer. This drastically reduces the risk of human error and any incorrect judgments made by the consumer.
However, autonomous finance will not be extensively employed for some time since the requisite technology is extremely expensive and out of reach for the vast majority of FinTech businesses in Switzerland.
Neo-Banks and Digital Wallets
Neo-Banks and Digital Wallets are FinTech software products that provide users with financial services more easily and conveniently than a traditional bank. Working with traditional banks has always presented challenges when it comes to entering the market.
Nonetheless, neo-banks and wallets have penetrated and are anticipated to dominate the market in a few years, as states have relaxed their regulations to compete with rivals' ease of doing business. Over the next eight years, the neo-bank industry, which is currently worth more than US $35 billion, is expected to grow at a compound annual growth rate of 47.7 percent.
Regulatory Technology (RegTech)
RegTech is a platform that assists businesses in complying with complicated industry laws. Issues that do not correspond to the regulations are discovered and made to comply with the system using regulatory technology. Specialized software makes it possible to automate time-consuming operations, monitor data security, and notify clients and bank workers of fraud. For breaching the regulations, penalties of millions of dollars are levied.
Whether in FIAT or cryptocurrency, there is still a strong need for business prospects in the payments sector. Revolut, N26, Neon, Yapeal, and Saphirstein continue to establish their business in the Swiss market. Several firms are implementing crypto-based payment business models, in part because they offer real-time settlement, which reduces the need for arduous clearing procedures, credit and counterparty risk, and the requirement for capital and liquidity over long settlement durations.
Switzerland has never created an equivalent to European licenses for payment services or electronic money. When transactional services are combined with pre-funding or account services, the arrangements are either subject to the comparatively easier AML-only requirements or to the more complex banking license.
Cybersecurity experts believe that biometric authentication is safer than traditional passwords and PINs.
Biometrics can effectively guard against fraud and theft of personal information. Unique fingerprints, iris patterns, visage, and voice can not be faked. For this reason, FinTech firms depend on this financial technology.
Users believe that biometric authentication is the best method of identity verification since they detest using numerous passwords. They just need to remember one new password per year; they do not need to learn letter and numerical combinations. Even if your laptop or smartphone is taken, confidential information will still be secure.