Ab dem 4. September 2024 können Kundinnen und Kunden über die Zürcher Kantonalbank Kryptowährungen rund um die Uhr direkt im ZKB eBanking oder ZKB Mobile Banking Crypto handeln. Die Bestände der Kryptowährungen werden dabei in die bestehende Depotsicht integriert. Vorerst stehen Bitcoin und Ethereum zur Auswahl. Crypto Verwahrung Kryptowährungen nutzen die Blockchain. Mit den Chancen und Risiken dieser Technologie beschäftigt sich die Zürcher Kantonalbank schon seit Längerem. 2021 war die Bank beispielsweise an der Emission der weltweit ersten digitalen Anleihe an der SIX Digital Exchange beteiligt, 2023 wickelte sie als Joint Lead Managerin im Rahmen eines Pilotprojekts der Schweizerischen Nationalbank die Ausgabe digitaler Anleihen mit digitalem Zentralbankgeld ab. Alexandra Scriba «Unser neu lanciertes Angebot im Bereich der Kryptowährungen bietet eine hohe Sicherheit und erlaubt die Integration von weiteren Währungen und Anwendungen», sagt Alexandra Scriba, Leiterin Institutional Clients & Multinationals bei der Zürcher Kantonalbank. «Bei den Kryptowährungen übernimmt die Zürcher Kantonalbank die kritische Funktion der sicheren Verwahrung der Private Keys. Kundinnen und Kunden sowie Drittbanken benötigen somit kein eigenes Wallet und müssen sich deshalb nicht um die Verwahrung ihrer eigenen Private Keys kümmern. Beides übernimmt die Zürcher Kantonalbank.» Angebot steht auch Drittbanken offen, Thurgauer KB erste Partnerbank Die Business-to-Business-Lösung der Zürcher Kantonalbank eröffnet Schweizer Banken die Möglichkeit, ihren Kundinnen und Kunden den Handel und die sichere Verwahrung von Kryptowährungen anzubieten. Mit der Thurgauer Kantonalbank nutzt eine erste Partnerbank diese den Drittbanken zugängliche Dienstleistung bereits. Der Handel der Aufträge erfolgt über die Crypto Finance , ein Tochterunternehmen der Deutschen Börse Gruppe.   The post ZKB bietet neu den Handel und die Verwahrung von Crypto an appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Tornado Cash, a decentralized smart contract protocol built on the Ethereum blockchain, was sanctioned in 2022 by the US Treasury’s Office of Foreign Assets Control (OFAC) for its role in laundering over US$7 billion worth of illicit funds since 2019. The sanctions initially led to a drop in Tornado Cash use, weakening its ability to provide anonymity. However, transactions on the platform continue, reflecting the mixed effectiveness of sanctions on decentralized networks and highlighting the challenges in regulating these systems, a new research paper by the Swiss National Bank (SNB) says. The SNB working paper, released in August 2024, assesses the impact of OFAC sanctions on Ethereum communities and actors, with a particular focus on Tornado Cash. Tornado Cash is a cryptocurrency mixer operating on the Ethereum blockchain that facilitates anonymous transactions by obscuring the origins, destinations, and counterparties of funds, without attempting to identify their source. The service receives various transactions, mixes them, and then transmits them to their intended recipients. While its primary purpose is to enhance privacy, it has also been used by illicit actors to launder stolen funds. In August 2022, Tornado Cash was sanctioned by the US OFAC for money laundering. This includes over US$455 million stolen by the Lazarus Group, a North Korea state-sponsored hacking group. These sanctions were significant because they marked the first time a decentralized, non-custodial entity had been targeted, raising questions about the effectiveness of such regulatory actions. The SNB study analyzed the immediate and lasting impact of these sanctions on Tornado Cash, noting a sharp decline in the value of its governance token, TORN, which dropped by 60% within the few days of the announcements. Value of TORN tokens around sanction announcement, Source: Swiss National Bank, Aug 2024 There was also a significant decrease in Tornado Cash’s transaction volumes post-sanctions, with a drop in average weekly transactions by 72%. Deposit volumes fell by 74%, from an average of 1,184 weekly deposits before the sanctions to approximately 307 weekly deposits afterward. Similarly, withdrawal volumes declined by 69%, from an average of 1,093 weekly withdrawals to about 341 weekly withdrawals. These reductions a significant decline in user engagement. Weekly deposit and withdrawal volume around sanction announcement, Source: Swiss National Bank, Aug 2024 User diversity, measured by the number of unique addresses interacting with Tornado Cash, also dropped significantly, following patterns observed with transaction volumes. This suggests a lasting impact on the protocol’s usage and the privacy it offers. User diversity on Tornado Cash, Source: Swiss National Bank, Aug 2024 Despite the initial decline, the SNB paper notes that the net flows into Tornado Cash contracts eventually recovered, with the number of Ethereum blocks containing Tornado Cash transactions increasing over time. Moreover, the proportion of non-cooperative blocks (those including Tornado Cash transactions) generally rose over time, suggesting continued support from network participants. Net value and volume of Tornado Cash pools, Source: Swiss National Bank, Aug 2024 This is despite the fact that priority fees (extra fees paid by users to prioritize their transactions) are consistently lower for non-cooperative blocks compared to cooperative ones. This indicates that economic motives are not the primary driver behind the decision to cooperate with sanctions and that non-cooperation is often motivated by philosophical beliefs. Decentralized blockchain-based crypto mixers like Tornado Cash present unique challenges for regulatory enforcement. These services use smart contracts that autonomously run on the blockchain, providing high levels of anonymity and privacy, and their global accessibility and distributed infrastructure make them resilient to enforcement efforts. To this day, Tornado Cash remains operational and continues to be used for money laundering, experts report. According to blockchain analytics firm Elliptic, more than US$100 million in ether from the HTX/HECO heist of November 2023 has been laundered through the platform since March 13, 2024. Elliptic attributes this theft to the Lazarus Group, based on various attributes of the hack and the subsequent movement of funds. Cryptocurrencies are increasingly being used to obscure the origins and movement of illicitly obtained funds. Blockchain analysis firm Chainalysis estimates that nearly US$100 billion has been transferred from known illicit wallets to conversion services since 2019. The highest amount recorded was in 2022, with US$30 billion identified. Total value leaving illicit crypto wallets and arriving at conversion services including off-ramps, 2019-2024 (YTD), Source: Chainalysis, Jul 2024   Featured image credit: edited from freepik The post SNB Study: Tornado Cash Case Highlights the Challenge of Regulating Decentralized Services appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

As of September 2024, Edouard Papaux will take over the role of Managing Director Financial Technology at the  software company Netcetera. Together with the division, he will further develop Netcetera’s services in Financial Technology, Real Estate, and Pensions to successfully accompany customers on their journey into the digital future. Edouard Papaux Edouard brings a broad background in the financial services sector as well as a proven experience in sales management and leading transformation projects to this role. He has been Head of Business Development & Sales at Viseca Card Services for the past five years, reporting directly to the CEO. Prior to that, he was Director of Business Development & Innovation at the real estate company Crowdhouse and Management Consultant Digital & Strategy at the management and technology consultancy BearingPoint. He also holds a Master of Arts in Business Innovation from the University of St. Gallen (HSG). Carsten Wengel Carsten Wengel, CEO Netcetera, on the new appointment: “I am very much looking forward to working with Edouard Papaux and am convinced that he will successfully develop the Financial Technology division and our services together with the entire team. Financial Technology has been part of Netcetera’s core business since the beginning and we want to expand this area further. With our forward-looking software, we support our customers in reacting proactively and quickly to changing business and market requirements, thus setting themselves apart from the competition.”   Featured image credit: Edouard Papaux, Managing Director Financial Technology at Netcetera The post Netcetera Appoints New Managing Director of the Financial Technology Division appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

The Accelerator Program for Sustainable Finance by Commerzbank in collaboration with Tenity and neosfer selected their first 10 Sustainable Finance Startups.  With Pelt8, also one Swiss Startup made the cut. This initiative aims to evaluate and accelerate a potential collaboration with Commerzbank through an organized and efficient process in Frankfurt. The selected startups represent a diverse range of innovative approaches. Each brings a unique solution in various sustainability areas such as biodiversity/climate data, real estate/renovation management, supplier management, and corporate mobility.  Bettina Storck Bettina Storck, Head of Group Sustainability Management at Commerzbank, says: “Sustainability is an integral part of our strategy, our aim is to become a net zero bank by 2050 at the latest. Both new ideas and innovative approaches help us advance this topic, particularly in the area of sustainable finance. We’re pleased to support the Joint Innovation Accelerator Program for Sustainable Finance and look forward to collaborating with the selected start-ups to bring expertise and innovation together.” This program includes sessions and events uniquely tailored to enable collaborations, from open exchanges, to use case definition, PoC roadmap preparation, PoC validation, fundraising, growth hacking, as well as pitch training. The program will conclude with Demo Day on 30 October 2024 at the Impact Festival in Frankfurt. Meet the 10 selected sustainable finance startups: IKOSIA | Germany Improving energy efficiency for greater sustainability. They offer an all-in-one platform for comprehensive renovation measures. VREED | Germany Vreed makes digital technologies applicable to everyone involved in the real estate market and brings digital building twins to life. Novo | Germany  Novo provides an overview of where a building stands today in terms of energy efficiency and where it can be taken in the future. Deedster | Sweden  Accelerates business by connecting and engaging audiences and employees with sustainability data, insights and actions. Carployee (Pave Commute) | Austria  An app for employees that recognizes and rewards sustainable commuting. It can be used to find carpools, participate in team challenges, and celebrate colleagues. KIRI | UK The mission of Kiri is to accelerate the adoption of sustainable behaviours and drastically change the approach to sustainability by creating a community of forward-thinking consumers and brands.  Veridion | Romania Veridion offers comprehensive business data enrichment for private companies, delivering accurate classification and real-time insights for procurement, insurance, market intelligence, and more. EIVEE | Denmark EIVEE calculates CO2 emissions with market-leading precision across scope 1, 2 and 3. They deliver industry-leading data quality for company’s entire carbon footprint. Pelt8 | Switzerland Pelt8 is providing a platform helping companies move away from excel spreadsheets to save time and money with their sustainability data collection and reporting. Fuchs&Eule | Germany Fuchs &Eule encourage as many homeowners as possible to make their homes energy efficient. To achieve this, they combine energy expertise with digital innovation, believing that now is the time to act to combat the climate crisis     Featured image credit: edited from freepik The post Commerbank Innovation Accelerator Program for Sustainable Finance Selects First 10 Startups appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Swiss Fintech company Yapeal has appointed Michael Eidel as the new Chief Executive Officer. the same time, the company announced the successful completion of a financing round, attracting new investors and strengthening the board of directors. With the increase in capital, Yapeal can advance its strategic realignment and growth phase with full force. Michael Eidel brings experience from listed financial institutions and technology companies. Most recently, he served as CEO at a financial technology company in Australia, where he drove the strategic repositioning and expansion of the company and successfully introduced an innovative technology platform for corporate clients to the market. Other positions in his career included leadership roles in commercial banks and board mandates at FinTechs in Australia and Switzerland. Michael Eidel already played a role in shaping Yapeal’s strategic realignment over the past year. Michael Eidel succeeds Thomas Hilgendorff, one of the co-founders of Yapeal, who will continue to serve as Chief Commercial Officer in the company. In this role, Thomas Hilgendorff will focus on commercial business development and the expansion of strategic partnerships. Werner Vontobel “We are very pleased to welcome Michael Eidel as the new CEO of Yapeal,” said Werner Vontobel, Chairman of the Board of Yapeal. “With his extensive international experience in the financial and technology sectors, he will play a crucial role in driving forward our strategic realignment and future growth of Yapeal.” Michael Eidel “I am excited to join the Yapeal team and lead the company successfully into the future with the great employees,” said Michael Eidel on his appointment. “Together, we will focus consistently on the growing market for Embedded Finance solutions tailored to corporate customers and their end customers. The strategic alignment based on Yapeal’s unique Digital-First platform will enable us to accelerate our growth and take a leading role in the Swiss Embedded Finance market in the medium term.” At the same time, the company announced the successful completion of a financing round with existing and new investors. This enables Yapeal to consistently implement its strategic realignment and focused growth strategy in the rapidly growing market for Embedded Finance solutions for corporate customers and their end customers. Existing strategic investor and ERP provider Abacus reinvested in the financing round. Dominik Bollier, Christoph Burkhard, and Markus Granziol have joined as new anchor investors. Dominik Bollier and Christoph Burkhard were also elected to the board of directors of Yapeal.   Featured image credit: Michael Eidel, Chief Executive Officer of Yapeal. Edited from freepik The post Yapeal Appoints New CEO and Secures Fresh Capital appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

The Tenity Zurich Fintech Accelerator Program kicked off this week in Zurich, with 13 startups selected from over 130 applications . This specialized pre-seed program is designed for ambitious founders ready to refine their groundbreaking fintech solutions and accelerate their growth by accessing Tenity’s global network of partners, mentors, and investors. The startups impressed Tenity throughout the application process, which concluded with in-person Selection Days in Zurich. Over the next four months, these startups will engage in an intensive program featuring workshops and events focused on product-market fit, marketing, and fundraising. Besides receiving personalized support from the Tenity team, participants will benefit from the extensive Tenity ecosystem, which includes over 300 alumni from its fintech-focused programs, more than 200 mentors, and a vast network of 200+ investors. The program will conclude with a Demo Day event on 05.12.2024 where the startups will showcase their progress and pitch to an audience of investors, corporate partners, and industry leaders. Tenity remains committed to fostering innovation in the fintech sector and supporting startups that have the potential to make a significant impact. Applications are now open for our Spring 2025 Tenity Fintech Accelerators in Singapore, Zurich, and Tallinn. 13 Fintech startups of Zurich Fintech Accelerator Program Batch 13: Six out of them are from Switzerland. BILLD | Italy BILLD is a green fintech startup, which provides a disruptive digital receipt service collecting Offline Market BigData through AI. ‍Settlr | Switzerland Settlr aims to solve post-trade issues, not just make the process more efficient. The company achieves this through a unique combination of deep domain knowledge and cutting-edge technology, including AI. ‍Depoformance AG | Switzerland This investment system for rental deposits allows tenants to profitably invest their deposits. This results in an increase in the deposit amount, to the landlord’s advantage through capitalization. ComplyTaxonomy.EU | Netherlands Helping financial institutions collect data on their customers required under new sustainability regulations. Quanted | UK Quanted develop cutting-edge AI tooling that enhances asset managers’ strategy profitability by uncovering hidden correlations in the market. Our proprietary explainable AI provides 0-100% confidence scores for each trade before it’s executed, allowing our users to better manage risk, as well as detailing which factors contribute to successful outcomes. Verdant Data | Switzerland VD turns ESG metrics into actionable insights with process mining, AI, and real-time nudges, enabling organizations to achieve net-zero goals with precision, driving significant environmental impact. Naera | Germany The software enables risk-mitigated, cost-efficient and scalable financing of natural capital. UpGrid | Switzerland UpGrid offers a hassle-free green energy subscription for corporates and individuals, making energy sharing and trading accessible to new market segments by decoupling financial and physical flows. BondAuction | Netherlands BondAuction is a platform for the Primary Debt Capital Markets. It delivers efficiency and transparency for Issuers, Investors, and Underwriters. Efides.io | Switzerland Efides is developing a business application to help commodity trading companies finance food trades by automating due diligence. TradrLab | UK Test trading strategies in minutes without coding. TradrLab is a Trading Intelligence platform that makes generate, building and optimising trading strategies fast and simple. Automated Data Inc. (ADI) | United States This company equips people with the right capabilities to confidently connect and integrate their data, identify relationships across disparate datasets, and drive actionable insights. Checksum | Switzerland The checksum payment solution consists only of high-quality products that have been tried and tested over many years. This allows you to benefit from various advantages.   The post 6 Swiss Fintech Startups Joining Tenity’s Accelerator Batch in Zurich appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

The digitalization of payments is progressing rapidly, and cash and cash supply are adapting to market changes. In Switzerland, cash continues to be highly valued by large segments of the population. The decline in the number of bank and post office branches and ATMs is having an impact on the availability of cash. Between 2015 and 2023, the number of bank branches fell from 3,100 to 2,600 and the number of post office branches from 1,500 to 800, while the number of ATMs fell from 7,200 at the beginning of 2020 to less than 6,400 today. In the current situation, there is a risk that the cost of providing cash will rise, putting further pressure on banks as ATM operators and driving up the cost of providing the ATM infrastructure. In order to ensure a sustainable, efficient and broad-based cash supply in Switzerland in the long term, new cooperation models are required. Against this backdrop, SIX and Diebold Nixdorf have decided to combine their expertise in cash supply and ATM operations. By combining expertise, technology and a broad partner network, the two companies are developing an innovative approach to market challenges and, together with partners such as Helveticor Ltd, are evaluating how to make cash logistics more sustainable and efficient. Goals of the Collaboration By working together, SIX and Diebold Nixdorf are covering the entire cash supply value chain to ensure continuous optimization of ATM operations in Switzerland. For ATM users, this means the usual secure and reliable cash transactions, while banks benefit from leaner processes. The aim is to achieve efficient cash management by offering all relevant operating and management services from a sole source. Vision for Cash Supply in Switzerland SIX and Diebold Nixdorf believe that ATM pooling is an indispensable contribution to an efficient, nationwide and reliable cash supply in Switzerland. With ATM pooling, the Swiss banks that operate ATMs will integrate them into a separately operated network. In particular, such a network would have the task of optimizing the operation of ATMs in terms of geographical coverage, operations and cash logistics in such a way that the Swiss banks can continue to guarantee their customers and ATM users comprehensive access to cash. ATM users will also benefit from state-of-the-art ATM technology and an expanded network. The requirements for the implementation of ATM pooling will be discussed at an event in September with the Swiss banks as ATM operators.   Featured image credit: edited from freepik The post SIX and Diebold Nixdorf Collaborate in Cash Supply appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

This summer, Switzerland has witnessed significant strides in its fintech sector, including the launch of instant payments, progress in the exploration of central bank digital currencies (CBDCs), and regulatory updates. In this article, we provide an overview of these recent advancements, focusing on fintech innovations, regulatory changes, and evolving market dynamics, such as the growth of sustainable fintech and current funding challenges. Instant payments launches in Switzerland On August 20, 2024, Switzerland officially launched instant payments, marking a significant development in the modernization of the country’s financial sector. Around 60 financial institutions are now able to receive and process instant payments, covering more than 95% of Swiss retail payment transactions. In the coming months, more banks will announce similar services, the Swiss National Bank (SNB) said, with all financial institutions in the country expected to be on board by the end of 2026. Instant payments allow private individuals and companies to perform account-to-account transactions with immediate execution and final settlement in seconds. This payment method has been available in Europe since 2017 and in the US since 2023. Swiss central bank advances CBDC experiment At the beginning of June, the SNB became the world’s first central bank to carry out a monetary policy operation in a live production environment using distributed ledger technology (DLT). Specifically, the central bank successfully issued digital SNB Bills on the SIX Digital Exchange (SDX) with a token-based issuance volume of CHF 64 million and a term of one week. The initiative was part of Project Helvetia, a joint experiment between the Bank for International Settlements, SIX and the SNB. Given the success of the pilot, the central bank said it will extend the project for at least two more years and to expand its scope. It hopes to see increased participation from additional financial institutions and aims to make wholesale CBDC available for a broader range of financial transactions. FINMA publishes guidance on stablecoins The Swiss Financial Market Supervisory Authority (FINMA) published on July 26 new guidance on the issuance of stablecoins. This guidance emphasizes the financial market laws that apply to projects aiming to issue stablecoins, including anti-money laundering (AML) regulations and minimum requirements for default guarantees. FINMA has established technology-neutral minimum requirements for default guarantees, which also apply to stablecoins. In the event of a stablecoin issuer’s bankruptcy, each customer must have an individual claim against the Swiss bank providing the default guarantee. Customers must be informed about this guarantee, which must cover the total amount of all public deposits, including any accrued interest. The guidance also stipulates that depositors must be able to claim their guarantee quickly and without unnecessary complications. Additionally, FINMA’s guidance underscores that stablecoins can fall under the AML Act due to their common use as a means of payment and their classification as deposits under banking law. Thus, issuers are subject to a number of obligations, including verifying the identity of stablecoin holders as customers and determining the identity of the beneficial owners. Open finance: no government measures required at present During a meeting on June 19, 2024, the Federal Department of Finance (FDF) updated the Federal Council on the latest developments in open finance in Switzerland, stating that the industry’s progress has been sufficient, eliminating the immediate need for government intervention and regulatory measures. The FDF highlighted the multibanking initiative launched by means of a memorandum of understanding signed by 40 banks in May 2023. This development, which focuses on opening up access to data from private accounts, savings accounts and current accounts, demonstrates the banking sector’s strong commitment to open finance, even though the Federal Council’s goals for open finance such as establishing common standards, opening interfaces and achieving scalability, have not yet been fully realized, the FDF said. Unlike in the European Union or the UK, there is no legal obligation in Switzerland for financial institutions to make financial data available to third-party providers at their clients’ request. Instead, the Federal Council expects the private sector, together with interested stakeholders, to adopt open finance principles and push ahead with the standardization and opening of interfaces on their own. Swiss fintech funding remains depressed The Swiss Venture Capital Report’s half-year update for 2024, published on July 16, reveals that investor interest in Swiss fintech startups waned in H1 2024. During the period, fintech startups in the country raised a mere CHF 79.2 million, down 58.5% year-on-year (YoY) from CHF 191 million in H1 2023. The number of financing rounds also saw a sharp decrease, falling from 30 in H1 2023 to just 13 in H1 2024, a decline of 56.7%. In contrast, investment levels in startups in the verticals and biotech, and energy and cleantech improved significantly, reaching CHF 405.3 million (versus CHF 282.8 million in H1 2023) and CHF 160 million (versus CHF 137 million in H1 2023) in H1 2024, respectively. The downturn in Swiss fintech funding aligns with global patterns. CB Insights’ State of Fintech Q2’24 Report, released on July 16, shows that global fintech funding totaled US$16.4 billion in H1 2024. This marks a 32% YoY decline from US$24.1 billion in H1 2023. Switzerland ranks 2nd in 2024 European Fintech Index Despite ongoing funding challenges, Switzerland remains a leading global fintech hub, ranking as the second most attractive location in Europe for fintech stakeholders in the 2024 European Fintech Index. Switzerland outpaces the Netherlands, Estonia, and the UK, thanks to its conducive business environment and the appeal of its local market to fintech players. However, it ranks just 8th in Europe for “fintech attractiveness,” behind jurisdictions like Estonia and Luxembourg. Previous research studies have highlighted the difficulties fintech companies face in the Swiss market, including funding challenges and limited international recognition. Moreover, with a population of just nine million, the local market is too small for startups to thrive, compelling young Swiss tech ventures to seek international expansion early in their development. Access to well-educated workers is another key challenge. A 2024 study by UBS, Credit Suisse, and the Swiss ICT Investor Club reveals that 46% of the founders polled are finding it hard to fill vacancies with suitable candidates. Labor market challenges are more pronounced for startups in the growth and expansion phase, with 55% of struggling to recruit qualified employees, compared to 39% for startups in the pre-seed and seed stages. Switzerland sees booming sustainable fintech industry E.foresight, a Swiss banking think tank operated by telecommunications provider Swisscom, has released its Swiss Sustainable Fintech Map, highlighting the fintech companies in Switzerland that incorporate sustainability into their core business models, operations, and products. The map shows that Switzerland is currently home to 49 companies that fall under the sustainable fintech category, providing the segment a share of 12% of the overall fintech ecosystem. The figure implies that the Swiss sustainable fintech sector rose by 53% between 2023 and 2024, growing at a much faster pace than the fintech sector as a whole (16%) during the period, data from the 2024 IFZ Fintech Study by the Lucerne University of Applied Sciences and Arts’ Institute of Financial Services Zug (IFZ) show. Moneyland.ch gets acquired   SMG Swiss Marketplace Group acquired in July a 100% of Moneyland.ch, a popular comparison platform in Switzerland. The acquisition aims to strengthen SMG Swiss Marketplace Group’s finance and insurance division and allow it to gain valuable comparison services for consumers. Founded in 2013, Moneyland.ch is a financial comparison service. The platform provides users with tools and information to compare a wide range of financial products and services, such as bank accounts, credit cards, loans, insurance policies, investments, and telecommunications plans. SMG Swiss Marketplace Group operates a network of online marketplaces. Its portfolio spans four business areas, namely real estate, automotive, general marketplaces and finance and insurance, and includes several well-known online platforms such as AutoScout24, FinanceScout24, Homegate, and Tutti. Moneyland.ch will continue to operate independently and maintain its mission of providing unbiased financial product comparisons, calculators, and information to consumers in Switzerland. The Moneyland.ch brand, platform and team will remain unchanged, and founder Benjamin Manz will continue to act as managing director, the company said.   Featured image credit: edited from freepik The post Switzerland’s Summer Fintech Roundup: Key Developments and News Stories appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Instant payments were launched in the Swiss market on 20 August 2024. Around 60 financial institutions are now able to receive and process instant payments, covering more than 95% of Swiss retail payment transactions. By end-2026 at the latest, all financial institutions active in retail payment transactions will be reachable. The first institutions have already launched retail offerings enabling customers to send instant payments. In the coming months, further banks will announce similar services. Instant Payments are 24/7  including Weekends Instant payments allow private individuals and companies to perform account-to-account transactions with immediate execution and final settlement in seconds – 24 hours a day, 7 days a week (including public holidays). This offers significant advantages for individuals, companies and commercial banks. Thanks to shorter settlement chains, risks are reduced and funds received are available immediately. For companies and commercial banks, instant payments expand opportunities for automating processes and linking with other services. Traditional transfers will still be possible. The Swiss National Bank and SIX Interbank Clearing Ltd anticipate that instant payments are likely to become established in Switzerland in the medium term and form the basis for further innovation in payment transactions. The technical framework for this new type of payment was put in place with the successful go-live of the new generation of the central Swiss payment system in November 2023.   Featured image credit: edited from freepik The post Instant Payments Officially Launched in Switzerland appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

In der Schweiz und Liechtenstein hat sich in den letzten Jahren ein diverses Ökosystem rund um Investitionen in Crypto Assets entwickelt. Auch in den letzten zwölf Monaten ist dieses stetig gewachsen und hat an Vielfalt hinzugewonnen. Die Regionen Zug und Zürich beherbergen die grösste Anzahl von Unternehmen. Einen aktuellen Überblick gibt die neueste «Crypto Assets Study» der Hochschule Luzern. Zwischen Juli 2023 und Juni 2024 haben sich die Preise und die Marktkapitalisierung von Bitcoin und anderen Crypto Assets erheblich erhöht. Auch das Schweizer und Liechtensteiner Ökosystem für entsprechende Investitionen ist gewachsen – sowohl, was Anbieter als auch was Produkte angeht. Ende Juni zählten die beiden Länder insgesamt 359 Unternehmen, die Produkte und Dienstleistungen rund um Investitionen in Crypto Assets anboten. Das Crypto Valley konzentriert sich in Zug und Zürich – mit gewichtigen Ablegern in Liechtenstein, Genf, Tessin und Waadt (siehe Abbildung 1). Abbildung 1: Regionen Zug und Zürich klar führend bei Crypto-Unternehmen in der Schweiz (n=359). (Zum Vergrössern klicken) Vor allem Privatkunden scheinen Crypto Assets zu nutzen Crypto Assets entwickeln sich als Ergänzung oder teilweise als Alternative im Finanzsystem. Was anfänglich ein Geheimtipp für Blockchain-Enthusiastinnen und -Enthusiasten war, erlangt nun eine breitere Akzeptanz – so besassen bereits im Jahr 2022 rund 10 Prozent der Schweizer Bevölkerung solche Vermögenswerte. Auffällig ist, dass Privatkundinnen und -kunden scheinbar öfter auf Crypto Assets setzen als institutionelle Investorinnen und Investoren, was bei Finanzinnovationen eher ungewöhnlich ist. Vielfältiges Crypto Assets-Ökosystem in der Schweiz und Liechtenstein Viele Crypto-Unternehmen konzentrieren sich auf Unternehmens- und institutionelle Kundinnen und Kunden. Entsprechend bedeutsam sind B2B-Geschäftsmodelle für das Crypto Assets-Ökosystem in der Schweiz und in Liechtenstein. Das Angebot ist vielfältig – mit einem Schwerpunkt auf zentralisierte Investmentdienstleistungen für direkte und indirekte Investitionen. Unternehmen, die Dienstleistungen für Blockchain-basierte, dezentrale Lösungen anbieten, setzen primär auf Selbstverwahrungslösungen (sogenannte «Crypto Wallets»). Fast 90 Prozent der untersuchten Unternehmen sind nicht auf nationale Märkte beschränkt, sondern auch international tätig. Steigende Tendenzen beim Handelsvolumen Im ersten Halbjahr 2024 verzeichneten die Handelsvolumina für indirekte Crypto-Produkte an den traditionellen Schweizer Börsen wieder einen Aufwärtstrend, nachdem sie in den Jahren 2022 und 2023 auf einem relativ niedrigen Niveau stagnierten (siehe Abbildung 2). Insgesamt wurden in diesem Zeitraum rund 2 Milliarden Schweizer Franken umgesetzt. Gleichzeitig stiegen auch die Handelsvolumina aus der Schweiz für direkte Investitionen in Crypto Assets über Cryptobörsen. Abbildung 2: Handelsvolumen für indirekte Crypto-Produkte an traditionellen Schweizer Börsen nehmen zwischen Juli 2023 und Juni 2024 erstmals seit zwei Jahren wieder zu. (Zum Vergrössern klicken) Vielfältige Möglichkeiten und Risiken von Crypto Assets Die Marktrisiken zeigen sich einerseits in den sehr volatilen Preisen. Andererseits bestehen zusätzliche operationelle Risiken sowie Liquiditäts- und Kreditrisiken entlang der gesamten Wertschöpfungskette. Diese variieren je nach Art der Investition. Sprich, ob direkt oder indirekt in Crypto Assets investiert wird, und ob dies dezentral über die Blockchain («Decentralized Finance», kurz «DeFi») oder über einen zentralisierten Anbieter geschieht. Eine neu entwickelte Klassifizierungsmethode teilt Crypto Assets gemäss drei wesentlichen Kategorien ein: erstens das Design des Tokens, das festlegt, wie ein Crypto Asset technisch aufgebaut ist. Zweitens sind es die Eigenschaften des zugrunde liegenden Blockchain-Systems, auf dem das Asset basiert. Und drittens sind es die dynamischen Aspekte, wie das Crypto Asset im Markt verwendet wird. Die Marktteilnehmenden können damit die Eigenschaften von Crypto Assets strukturiert evaluieren und entsprechend ihren Präferenzen agieren.   Titel-Bild Nachweis: Bearbeitet von freepik The post Neue Schweizer Crypto Assets-Ökosystem Studie der Hochschule Luzern appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Relio bietet neu digitale Kapitaleinzahlungskonten an, die Geschäftskunden online eröffnen können. In einer Pilotphase profitierten rund 50 Startups von der einfachen und schnellen Kontolösung für die Unternehmensgründung. Der neue Service erweitert das bestehende Angebot von Relio, das bisher operative Geschäftskonten umfasste. Relio verfügt über eine FinTech-Lizenz der FINMA und wird von namhaften Investoren wie der SIX Group, Betreiberin der Schweizer Börse, der TX Group, Eigentümerin von Tamedia, und dem High-Tech Gründerfonds (HTGF), einem der grössten deutschen Tech-VCs, unterstützt. Der neue Weg zur digitalen Unternehmensgründung Die Schweiz ist ein attraktiver Innovationsstandort mit über 50’000 Unternehmensgründungen im Jahr 2023. Doch der Enthusiasmus, ein Unternehmen zu gründen, wird oft durch die Bürokratie gebremst. Für die Gründung einer Gesellschaft mit beschränkter Haftung (GmbH) oder einer Aktiengesellschaft (AG) benötigen Unternehmerinnen und Unternehmer ein Kapitaleinzahlungskonto bei einer Bank, die mit einer Einzahlungsbestätigung belegt, dass mindestens CHF 20’000 für eine GmbH respektive CHF 50’000 für eine AG auf einem Sperrkonto hinterlegt wurden. Relio bietet Kundinnen und Kunden neu ein solches Kapitaleinzahlungskonto für die Firmengründung an. Dies, nachdem das Eidgenössische Amt für das Handelsregister (EHRA) kürzlich eine Praxismitteilung veröffentlicht hat, die es Finanzinstituten mit einer FINMA Fintech-Lizenz erlaubt, Kapitaleinzahlungsbestätigungen auszustellen. Damit hat der Schweizer Regulator den Weg für innovative Akteure wie Relio geebnet, die Unternehmensgründungen in der Schweiz digitalisieren und erleichtern. Auch komplexere Business Cases oder Gesellschaften mit ausländischen wirtschaftlich Berechtigten und internationalen Geschäftsführern profitieren von diesem Angebot. Diese Gruppe wurde bisher von vielen Banken vernachlässigt, da diese den Mehraufwand in der Compliance meiden. Mit der eigens entwickelten Compliance-Technologie kann Relio auch dieses Segment optimal abdecken. Erfolgreiche Pilotphase und neue Funktionen Seit der Pilotphase im Juni haben rund 50 Start-ups das unkomplizierte Kapitaleinzahlungskonto genutzt und die ersten Relio-Kunden sind bereits im Handelsregister eingetragen. Milos Stokic “Viele Treuhänder und Anwälte sind mit dem Bedürfnis an uns herangetreten, Firmengründungen in einem digitalen Workflow abzuwickeln. Mit dem neuen Angebot schliessen wir diese Lücke für unsere Kunden und Partner”, sagt Milos Stokic, Head of Marketing bei Relio.   Bald mit Online Kapitaleinzahlungsbestätigung Die Lösung wird in Kürze um weitere Funktionen ergänzt. So bietet Relio demnächst die Möglichkeit, die Kapitaleinzahlungsbestätigung mit einer qualifizierten elektronischen Signatur (QES) vollständig digital auszustellen. Ebenso können Kundinnen und Kunden demnächst eine Nachliberierung oder eine Kapitalerhöhung mit dem gleichen Service durchführen. Für Treuhänder und Rechtsanwälte möchte Relio auch die Möglichkeit der treuhänderischen Konto-Eröffnung anbieten. Bei der Produktentwicklung stand Relio in engem Austausch mit mehreren Schweizer Gründungsplattformen, die zusammen über 3’000 Firmengründungen pro Jahr abwickeln und künftig mit Relio zusammenarbeiten werden. The post Relio bietet neu digitales Kapitaleinzahlungskonto bei Firmengründungen appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Ab heute können Instant-Zahlungen bei der Hypothekarbank Lenzburg kostenlos gesendet und empfangen werden. Silvan Hilfiker «Wir sind überzeugt, dass die neue Technologie grosses Potenzial hat», sagt Bank-CEO Silvan Hilfiker. Was in vielen europäischen und asiatischen Ländern schon fast normal ist, kommt nun auch in die Schweiz. Ab heute ist bei ausgewählten Banken der neue Überweisungsstandard Instant-Zahlung möglich. Alle grösseren Banken sind verpflichtet, ab heute Geldtransaktionen innerhalb von zehn Sekunden empfangen zu können. Das Versenden von Instant-Zahlungen wird hingegen nur von einigen wenigen Banken angeboten und ist teilweise gebührenpflichtig. Die Hypothekarbank Lenzburg hingegen hat entschieden, Instant-Zahlungen kostenlos anzubieten. Kundinnen und Kunden profitieren in mehrerer Hinsicht: Instant-Zahlungen sind rund um die Uhr verfügbar, 7 Tage die Woche und 365 Tage im Jahr. Die zahlende Partei erhält sofort eine Zahlungsbestätigung und die begünstigte Partei verfügt sofort über das Geld. Keine der beiden Parteien geht ein Kreditrisiko ein, da Belastung und Gutschrift gleichzeitig und final erfolgen. Die Sicherheitsstandards von Instant-Zahlungen sind die gleichen wie bei herkömmlichen Geldüberweisungen. In einer zunehmend digitalisierten Welt werde erwartet, dass Zahlungen sofort bei den Empfängerinnen und Empfängern ankommen.   The post Instant-Payment ab sofort kostenlos bei der Hypothekarbank Lenzburg appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

The insurtech industry has witnessed a significant resurgence in 2024, with funding volume rising 44% in Q2 2024, the first initial public offerings (IPOs) since 2022 and a surge in deal activity across Europe, new data released by market intelligence platform CB Insights show. The “State of Insurtech Q2 2024 Report,” released on August 06, offers an overview of the global insurtech landscape, focusing on equity funding activity in Q2 2024. The report highlights key investment trends, geographic activity, and exit activity during the quarter. In Q2 2024, global insurtech funding outpaced the growth seen across the broader venture and fintech landscapes, rising to a remarkable US$1.3 billion. The figure represents the highest funding level since Q1 2023, marking a five-quarter high. Quarterly equity funding and deals in insurtech worldwide, Source: State of Insurtech Q2 2024, CB Insights, Aug 2024 The growth in funding was primarily driven by a 50% increase in equity funding in property and casualty (P&C) insurtech, which rose from US$600 million in Q1 2024 to US$900 million in Q2 2024. Funding to life and health (L&H) insurtech startups also increased quarter-over-quarter (QoQ), rising from US$300 million to US$400 million. However, despite the rise in funding, both verticals recorded a decrease in the number of deals, with deal counts falling by 28% and 26% QoQ, respectively. This indicates that deal sizes grew significantly, a trend further supported by a 25% increase in median insurtech deal size in H1 2024 compared to 2023, rising from US$4 million in 2023 to US$5 million in H1 2024. Annual average and median deal size in insurtech, Source: State of Insurtech Q2 2024, CB Insights, Aug 2024 Q2 2024 also saw the sector’s first IPOs since Q3 2024, with two listings. Digit Insurance, an India-based insurance provider, debuted on the National Stock Exchange in May 2024, and Rasan, a Saudi Arabia-based company focusing primarily on auto insurance sales and vehicle services, started trading on the Saudi Exchange in the same month. Merger and acquisition (M&A) activity in the insurtech sector also rebounded, surging 150% QoQ from six in Q1 2024 to 15 in Q2 2024. A notable M&A transaction was the acquisition of Arya.ai, a deep learning and artificial intelligence (AI) startup, by Aurionpro Solutions. Aurionpro Solutions is a technology solutions firm from India that serves the banking, mobility, payments, and government sectors. Aurionpro Solutions acquired a majority stake (67%) in Arya.ai through an all-cash deal, involving the purchase of shares from existing shareholders and the subscription of new equity capital in Arya.ai. Looking at regional trends, the report shows that Europe’s influence in the global insurtech industry is increasing with the region’s share of insurtech deals reaching 35%, a record high. Percent of quarterly insurtech deals by global region, Source: State of Insurtech Q2 2024, CB Insights, Aug 2024 Insurtech deal activity in the continent also surged, soaring 67% QoQ to about US$500 million and reaching a seven-quarter high. That rise was driven by two US$93 million deals for Iceye, a Finland-based provider of data from satellite imagery, and Vitesse, a UK-based claims payments processor. Deal counts, meanwhile, stayed steady, increasing slightly from 28 in Q1 2024 to 29 in Q2 2024. Insurtech quarterly funding and deals in Europe, Source: State of Insurtech Q2 2024, CB Insights, Aug 2024 Comparatively, the US saw insurtech deal count fall from 61 to 40. However, like Europe, VC funding volume increased in the US, surging from US$500 million in Q1 2024 to US$700 million. Insurtech quarterly funding and deals in the US, Source: State of Insurtech Q2 2024, CB Insights, Aug 2024 Insurtech startups based in Asia raised a total of US$51 million in equity funding in Q2 2024, down from US$100 million in Q1 2024, data from CB Insights show. Notable deals secured this year include Qoala, an Indonesian startup that completed its US$47 million Series C funding round in March.   Featured image: edited from freepik The post Insurtech Sees First IPOs Since 2022 and Booming Deal Activity in Europe appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Apple is transitioning from a technology company to a key player in the fintech sector, driven by its diverse financial products, strategic initiatives and use of cutting-edge technologies. A new analysis by C-Innovation, a French fintech-focused research firm, discusses the firm’s growing role in the financial services industry, delving into its range of financial products, recent strategic moves, and potential growth driven by the adoption of artificial intelligence (AI). Apple’s financial services ecosystem The report, released on July 17, explores how Apple has emerged as a leading force in the financial services industry with products like Apple Pay and Apple Card. These offerings have made a substantial impact, and changed how people pay, save, invest and take on debt, effectively cementing Apple’s position as a fintech leader. They comprise: Apple Wallet, a mobile app launched in 2012 as Passbook that allows users to store digital documents, debit cards, and most of Apple’s financial services, and which integrates with other Apple services and devices; Apple Pay, a mobile payment service introduced in 2014 in the US that allows users to make convenient contactless payments with their Apple devices in physical stores, online, and within apps; Apple Cash, a service that enables users to send and receive money via the Messages app launched in 2017; Apple Card, a credit card introduced in 2019 and developed in partnership with Goldman Sachs and Mastercard that offers cashback rewards on purchases, enhanced security measures, and more; Apple Tap to Pay, a software point-of-sale (softPOS) solution launched in 2022 that allows merchants to accept contactless payments directly through their Apple mobile devices without needing additional hardware; Apple Pay Later, a service launched in 2023 that allows users to split the cost of a purchase into multiple interest-free payments; and Apple Savings, a high-yield savings account launched in 2023 that’s integrated with the Apple Card and which allows users to save money and earn competitive interest rates. Apple’s fintech products have gained a notable foothold in the market. For instance, Apple Card has garnered 12 million users, and estimates by Dutch consultancy and mergers and acquisitions advisory firm Flagship Advisory Partners suggest that Apple controlled a remarkable US$800 billion worth of payments in 2022. Recent developments and strategic moves Recent developments, including the proposed termination of the partnership with Goldman Sachs and the shutdown of Apple Pay Later, reflects Apple’s fintech strategy moving forward. This strategy focuses on bringing more financial services in-house to gain more control and flexibility, as well as exploring global opportunities that could guarantee it more profitability and penetration, the C-Innovation report says. In November 2023, reports surfaced that Apple was considering ending its consumer banking partnership with Goldman Sachs, sourced briefed on the matter told the Wall Street Journal. This move followed reports of Apple working on “Project Breakout,” an initiative aimed at internalizing more financial services, including those currently offered with Goldman Sachs, such as Apple Savings and Apple Card. Additionally, Apple has shut down its buy now, pay later (BNPL) business in the US, opting instead to partner with specialist providers. This approach allows Apple to minimize its risks, while collecting fees from these partners. Apple Pay Later was discontinued in the US in June 2024, ahead of the launch of new Apple Pay features set to hit iPhones this fall. These features will allow Apple Pay users to make purchases as well as access installment loans from credit and debit cards withing the mobile app. The service will be available in countries including Australia, Spain, the UK and the US where users will be able to apply for loans through partners including ANZ, CaixaBank, HSBC, Monzo, Citi, and Affirm. Entering the AI era Apple is now stepping into the AI era with its new Apple Intelligence platform and collaborations with generative AI (genAI) providers like ChatGPT. This new direction is poised to place Apple on the verge of more groundbreaking innovations, with the transformative potential of genAI presenting significant opportunities in the fintech sector, the C-Innovation report says. In June, Apple unveiled Apple Intelligence and a partnership with OpenAI to integrate ChatGPT into the iOS operating system, opening to new interesting scenarios. Apple Intelligence is an AI platform that combines generative models with personal context to provide users with highly relevant recommendations and insights. The technology will introduce several new capabilities relating to language tasks and image creation, among other things, and is poised to have widespread impacts across the entire Apple ecosystem, including the firm’s financial services offering, C-Innovation says. Apple Intelligence infographic, Source: C-Innovation, Jul 2024 By using the vast amount of user data that Apple has garnered over the years, the firm is poised to revolutionize the banking industry and stay at the forefront of the rapidly evolving fintech landscape, it says. Overall, C-Innovation predicts that Apple Intelligence will usher in a new era for the company where genAI plays a crucial role in personalizing and enhancing user experiences.   Featured image: edited from freepik The post Apple Drives Fintech Growth Ambitions with Strategic Initiatives, AI Integration appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

The European Union (EU) lags behind the US in the development and strength of its venture capital (VC) industry. This weak VC landscape is not only stifling productivity and economic growth within the EU but also hindering the bloc’s environmental ambitions and global competitiveness, a new working paper by the International Monetary Fund (IMF) says. The paper, titled “Stepping Up Venture Capital to Finance Innovation in Europe” and released in July, examines the current state of the VC industry in the EU, highlighting the main obstacles to its development. It argues that building a robust and advanced VC ecosystem is crucial for fostering innovative startups and enhancing economic growth and productivity, and offers recommendations to support the growth of the VC industry in Europe. A weak VC landscape Over the past decade, VC investments in the EU have averaged 0.2% of gross domestic product (GDP) per year, significantly lower than the 0.7% average in the US. This difference is also reflected in the fact that US VC funds have raised US$800 billion more than EU funds for investing in innovative startups. Venture capital investments, 2013-2023, Source: Stepping Up Venture Capital to Finance Innovation in Europe, International Monetary Fund, Jul 2024 The EU’s weak VC industry negatively affects its competitiveness, growth prospects, and green ambitions. Several studies find that innovative, young fast-growing firms that go on to be “superstars” contribute disproportionately to aggregate jobs and growth. Such firms typically invest heavily in research and development (R&D) and information and communications technology (ICT), two key areas where the EU lags significantly behind the US. Intellectual property (IP) and information and communications technology (ICT) investments breakdown, 2000-2020, Source: Stepping Up Venture Capital to Finance Innovation in Europe, International Monetary Fund, Jul 2024 Europe also trails behind the US in aggregate productivity, with real output per hour worked 26% points lower in the EU than it would be if it had kept pace with US productivity growth since 2000. Real gross domestic product per hour worked, 1995-2023, Source: Stepping Up Venture Capital to Finance Innovation in Europe, International Monetary Fund, Jul 2024 VC financing is also critical for developing new technologies and scaling up firms in the so-called “clean tech” sectors, which the EU in its Green Deal Industrial Plan has identified as strategically important. However, European VC investments in these sectors currently represent just a fraction of US levels. Venture capital cleantech investments, 2021, Source: Stepping Up Venture Capital to Finance Innovation in Europe, International Monetary Fund, Jul 2024 EU’s weak VC landscape has also prompted many of the most successful EU startups to move elsewhere for financing, causing the EU to lose out on both the direct growth benefits and positive spillovers from these innovative firms. For example, Miro, an enterprise software publisher from Russia, moved its headquarters to the US in 2019. The startup is valued at US$17.5 billion. Chainalysis is a blockchain analysis firm founded in 2014 in Copenhagen. The company is now headquartered in New York and is valued at US$8.6 billion. And Hugging Face, an artificial intelligence (AI) startup from France, is now headquartered in New York and is valued at US$4.5 billion. Factors hindering VC activity According to the IMF paper, several factors are contributing to the financing challenges faced by European startups. For one, the EU’s fragmented economic and financial markets are a major obstacle. The European financial system is predominantly bank-based, and banks are often ill-equipped to finance high-tech startups due to the lack of tangible collateral, the mismatch between bank risk models and the needs of fast-growing but initially unprofitable firms, and regulatory constraints that discourage riskier investments. Financial market structure, Source: Stepping Up Venture Capital to Finance Innovation in Europe, International Monetary Fund, Jul 2024 Additionally, European households tend to be more risk-averse compared to US households. They prefer to place a larger proportion of their savings in bank deposits rather than in equities, investment funds, or private pension schemes. This risk aversion contributes to a greater reliance on bank loans and unlisted equity for financing in Europe, whereas in the US, listed equity plays a more central role. Household financial assets and liabilities, 2022 (percent of GDP), Source: Stepping Up Venture Capital to Finance Innovation in Europe, International Monetary Fund, Jul 2024 Another major hurdle is the fragmentation of Europe’s financial system. Cross-border integration in banking is lower today than before the global financial crisis, and capital markets remain fragmented, with pools of private capital confined to national boundaries. Most occupational pension schemes do not offer pension products across borders because of the differences in national social benefits and labor laws and the attendant costs, complexity, and operational risks. Pension funds and insurers also tend to exhibit strong home-country bias in their asset allocations. Furthermore, regulatory, legal, and tax frictions impede cross-border investment and consolidation. Finally, long and complicated procedures for reclaiming withholding taxes discourage cross-border investment within the EU. These constraints leave the EU with fewer and smaller VC funds than the US, with “exit” options for successful startups through initial public offerings (IPOs) or acquisitions being similarly constrained, the report says. Fostering VC funding activity The paper outlines several proposals for reforming the EU’s economic and financial policies, emphasizing the need for greater market integration across the bloc, targeted investments and regulatory adjustments. First, it argues that the best solution to the EU’s scale, productivity and growth issues lies in fully integrating its market for goods, services, labor, and capital. Achieving a true single market would make it easier and less costly for the most productive firms to grow, find the necessary talent, reap economies of scale, and access deeper pools of capital, the paper says. It also emphasizes the importance of investing in education, R&D, and ICT to foster innovative startups, citing Estonia as an example where an emphasis on digital skills in education along with public and private investment in digital infrastructure has helped create fertile ground for innovative startups to emerge and grow. The paper further notes that startups require access to skilled employees and the flexibility to adapt as they grow. It recommends that EU policies should evaluate immigration and labor laws to ensure they do not hinder startups’ ability to attract talent or adjust their strategies. The paper also underscores the importance of stock options as a form of compensation for startup employees and calls for harmonized tax treatment of stock options across EU countries. Additionally, the development of portable private pension schemes across the EU would make it easier for firms to attract skilled workers from other EU countries. In the financial sector, the paper identifies VC as a critical area for policy focus and suggests expanding public support for the VC industry. Reforms should consider tax incentives to stimulate VC investments, and national public financial institutions (PFIs) should play a more significant role by complementing private investments, it says. The paper also calls for closer partnerships between national PFIs and EU institutions like the European Investment Bank (EIB) and European Investment Fund (EIF) to strengthen local VC ecosystems and connect them with more developed hubs across the EU. Regarding the regulatory framework, the document notes that while EU rules on VC are generally well-received, some fine-tuning may be necessary. For instance, the eligibility criteria for investors in large VC funds should be aligned with those for smaller funds to avoid unnecessary barriers. Furthermore, regulatory reforms in the insurance sector and for pension funds are needed to remove obstacles preventing them from investing in private equity and VC. Finally, the paper recommends a broad review of EU laws and regulations affecting high-tech sectors to identify unintended consequences that may impede the growth of innovative firms. Recent regulations like the General Data Protection Regulation and the Digital Markets Act, for example, have generally improved competition in the digital sector. However, they may also create inconsistencies and complications for startups, the paper says. Europe has consistently trailed behind the US in VC funding. In Q2 2024, European startups secured a total of US$14 billion in equity funding across 1,522 deals, a far cry from the US$39 billion and 2,419 transactions raised by tech startups in the US, data from CB Insights’ State of Venture Q2 2024 show. Venture funding and deals by global region in Q2 2024, Source: State of Venture Q2 2024, CB Insights, Jul 2024   Featured image credit: edited from freepik The post EU’s Underdeveloped VC Sector Threatens Growth and Global Competitiveness: IMF appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

The spread of global e-commerce businesses is one of the defining aspects of the modern world. The data speaks for itself: in 2023, worldwide e-commerce reached an immense 5.8 trillion U.S. dollars (source: Statista) in sales. That’s why choosing a payment gateway that meets specific business requirements and securely handles sensitive customer data is a top priority for any e-commerce business. In collaboration with FYST, a leading-edge fintech powerhouse of customized and secure payment solutions, let’s review 6 key factors to keep in mind while choosing a payment gateway for your online business. What is a payment gateway and how does it work? Before diving into the topic, let’s understand the payment gateway and how it works. Payment gateways function like point-of-sale terminals in physical stores (except it happens online). This system is the cornerstone of electronic transaction processing: payment gateways process visitors’ card details once they enter them at your checkout store and make the transaction happen. Top 6 factors to consider when choosing a payment gateway for your e-commerce business According to a study, the global market revenue of payment gateways reached 31 billion U.S. dollars in 2023, and it’s expected to get to 161 billion dollars by 2032 (source: Market.us Scoop), so the competition between these payment solutions for businesses available in the market is enormous. Therefore, choosing the payment gateway that best suits your business mightn’t be that straightforward. That’s why FYST has prepared the top 6 critical factors you need to consider in your payment gateway. Security measures Although 59% of customers expressed concern about the risk of online payment in 2022 compared to the previous years (source: Statista), most payment gateway solutions adhere to strict compliance with the Payment Card Industry Data Security Standard (PCI-DSS). Besides, make sure you choose the online payment gateway that comes with features like built-in fraud prevention, encryption, tokenization, and more. Transaction fee Most payment gateways charge a fee per transaction, which can increase your business’s cost. Therefore, consider payment solutions for e-commerce businesses with low transaction charges when choosing a payment gateway. Considering your volume of transactions also helps you reduce expenses, as there are online payment gateways that offer pricing based on your transaction volume. Types of payments allowed Choose a payment gateway that supports your target customer base, including debit and credit cards, digital wallets, and other relevant payment methods. If your e-commerce business targets a worldwide customer base, choose a payment gateway that supports multi-currencies and relevant international payment methods. Integration with other systems Consider how easy the payment gateway integrates with your existing software, website, mobile app, and other platforms. Otherwise, it may cause your online shopping platform to become glitchy, leading your customers to leave your website. Transaction limits Check for transaction limits while choosing your solution. Some payment gateways have a transaction limit on the amount it can process per month. If your e-commerce business is small, it may not be an issue. Otherwise, be certain that your selected payment gateway has no such transaction limits. 24/7 customer support Ensure the payment gateway solution provider offers 24/7 customer support through various channels such as chat, mail, phone calls, etc. It’s one of the major concerns when choosing a payment gateway, as customers may panic if technical problems or other issues arise during their payment process. Wrap up With the myriad of payment gateway options in the market, choosing the best one for your business can be challenging. Because of many advantages and disadvantages to consider, making an informed decision in this domain isn’t always that straightforward. By trusting fintech experts like FYST to handle the selection and integration of proven payment solutions, you can simplify and streamline the process and ensure you pick the best solution for your needs. The post Choosing a Payment Gateway for E-commerce: 6 Critical Aspects to Consider appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Following a short pilot phase, Coop has decided to no longer act as the operator of the Finance+ platform, as the demand did not meet expectations. Furthermore, Coop informed that the environment has changed as a result of increased competition in the financial sector in recent months. As one of several Finance+ partners, Coop will be withdrawing from the project. The exact date has not yet been determined. Glarner Kantonalbank also announced to withdraw from the project. Coop claim to guarantees the continued operation of the Finance+ platform until further notice and will provide all services to their full extent. Follow-on solutions for customers are being assessed.   Coop Neobank am Start in der Schweiz – Fintech Schweiz Digital Finance News – FintechNewsCH The post Coop to Discontinue Finance+ Neobank Project After Less Than 1 Year appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Cryptocurrencies are increasingly being integrated into traditional finance, driven by both retail and institutional interest. Financial institutions are embracing tokenization and institutional investors are increasingly entering the cryptocurrency market. Bitcoin, in particular, is emerging as a valuable diversification tool in wealth management, highlighted for its low correlation with traditional asset classes and its strong growth performance, a new report by Bitcoin Suisse, a Swiss crypto services provider, says. The inaugural “Crypto Wealth Management Report”, released in July 2024, looks at the historic performance of bitcoin, showcasing the crypto’s position as a potential powerhouse within diversified portfolios. The report explores the key drivers behind the performance of bitcoin and the potential benefits of incorporating the cryptocurrency into wealth management strategies. Banks embrace crypto Following record highs in 2021 and a subsequent slump, cryptocurrency prices have risen significantly in recent months. This resurgence has prompted various retail banks in Switzerland to develop crypto offerings, adapting to changing market dynamics and customer preferences, the report says. A recent study by the Lucerne University of Applied Sciences and Arts found that 28% of Swiss banks currently offer or plan to offer cryptocurrency investment opportunities. State-backed banks, such as the cantonal banks of Zug, St Gallen and Lucerne, as well as Postfinance, the banking arm of the Swiss Post Office, have recently launched their crypto offerings. The Bitcoin Suisse report also highlights the broader potential of blockchain technology beyond cryptocurrencies, noting that projects involving tokenization have proliferated and witnessed remarkable traction. For example, BlackRock’s introduction of its tokenized treasury fund, the BlackRock USD Institutional Digital Liquidity Fund, achieved a market value of US$500 million just four months after its launch, according to CoinDesk. This surge is part of the broader growth of the tokenized treasury market, which has more than doubled this year, rising from US$780 million in January 2024 to US$1.8 billion in June 2024. In Switzerland, the central bank has also been exploring the concept of a central bank digital currency (CBDC). In collaboration with the Bank for International Settlements the Swiss National Bank (SNB) has been actively involved in Project Helvetia, an initiative which began in 2020 and which aims to integrate wholesale CBDCs (wCBDCs) into existing financial systems. Project Helvetia recently entered a new phase, with the SNB and the SIX Digital Exchange (SDX) expanding their exploration of settling tokenized securities through a wCBDC to other financial institutions and transaction types. Institutional adoption on the rise Adoption of cryptocurrencies has also increased among institutional investors. The world’s first bitcoin exchange-traded funds (ETFs), which debuted in the US in January 2024, have exceeded expectations, attracting US$12 billion in inflows within the first three months and almost US$300 billion in year-to-date trading volume. Globally, net flows into crypto exchange-traded products reached a record US$88.1 billion in assets under management (AUM) in Q1 2024. Initial bitcoin ETF flows, Source: Crypto Wealth Management Report #1, Bitcoin Suisse, Jul 2024 Currently, bitcoin ETF flows largely stem from registered investment advisors, asset managers, hedge funds and family offices that have already established access. Bitcoin Suisse predicts that as more institutional consultants, corporations, pension funds, and sovereign wealth funds complete their due diligence, even more substantial capital flows will follow. Bitcoin: a tool for diversification Across the crypto market, bitcoin in particular is emerging as a powerful source of diversification. Bitcoin has low correlation with traditional asset classes, offering the lowest average correlation (0.04) to all relevant asset classes over a 12-month period, according to the report. This low correlation makes the cryptocurrency a powerful tool for risk management and a diversification opportunity. By including bitcoin in a portfolio, wealth managers can potentially mitigate overall portfolio volatility while enhancing risk-adjusted returns, the report says. Bitcoin has recorded remarkable growth. Since 2013, the cryptocurrency has dominated every other asset class in annual performance in nine out of twelve years, providing an annualized return of ~109% and an astounding cumulative return of ~470,000%, according to the report. Performance of major asset class, Source: Crypto Wealth Management Report #1, Bitcoin Suisse, Jul 2024 Many factors contribute to bitcoin’s remarkable performance. One key differentiator lies in its finite supply, capped at 21 million coins. This scarcity creates a unique economic long-term value proposition where demand is almost guaranteed to outpace supply in the long run, the report says. Another key property of bitcoin is its function as a store of value. Mimicking gold, bitcoin serves as an inflation hedge, carries no credit or counterparty risks, mostly features an inverse relation to the dollar, and can serve as a source of trust, because its network is decentralized, permissionless, and immutable. Finally, bitcoin resonates with the new generation of investors. These investors are typically more technologically savvy and comfortable with digital innovations. They also value autonomy and have a growing distrust of traditional financial institutions, making bitcoin’s decentralized nature particularly appealing.   Featured image credit: edited from freepik The post Crypto Wealth Report: Integration of Cryptocurrencies Boosted by Institutional Interest appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Ant International, the global arm of China’s Ant Group, is expanding its presence in Europe by partnering with fintech companies and financial institutions to grow its merchant network, and sponsoring major sports events to grow brand recognition. In a recent interview with FXC Intelligence, a data platform for cross-border payments, Douglas Feagin, president of Ant International, shared ambitious plans to expand the Alipay+ network in Europe with more digital wallets, banking institutions and merchants. Additionally, Ant International aims to strengthen the European presence of its other brands, including Ant to Merchant (Antom) and WorldFirst, promising enhanced access to the Asian market for prospective partners. Expanding the Alipay+ network Alipay+ is the company’s cross-border payment ecosystem that connects local digital banking apps and e-wallets to a single payment platform. The platform allows users to make payments in foreign countries using their local e-wallets, meaning that users do not need to switch to a different e-wallet when traveling or shopping internationally. Currently, Alipay+ links 30 digital wallets, including Alipay itself in China, Kakao Pay in South Korea, GCash in the Philippines and TrueMoney in Thailand, serving a total of 1.5 billion end-users. 14 of these 30 digital wallets are integrated with European merchants, allowing seamless cross-border payments for their users. To facilitate these integrations, Alipay+ collaborates with local acquirers, working with the likes of Barclays in the UK, and UniCredit in Italy to enable their merchants to accept payments from Alipay+ users. This integration allows businesses to reach a broader customer base, including international travelers and online shoppers. Most recently, Ant International announced a wide-ranging partnership with French banking group BNP Paribas. Among other things, the collaboration will enable European merchants using the bank’s acquiring service to accept payments for 30 Alipay+ wallets. Ant International has also inked a number of deals with European fintech companies these past couple of months, forging partnerships with the likes of Tinaba from Italy, Nexi from Germany and DNA Payments from the UK. Feagin emphasized the company’s openness to incorporating more European institutions into the Alipay+ ecosystem, explaining that the aim is not only to serve Asian travelers but also to tap into opportunities to support European customers. He envisions considerable growth moving forward, noting that European banks are increasingly introducing innovative fintech and digital services to reach different customer bases. This includes solutions tailored for younger customers or those preferring simpler, stored-value accounts instead of traditional bank accounts. Currently, Alipay+ claims 400,000 European merchants within its network, a far cry from its 80 million merchants in China. These merchants range from luxury goods stores to local businesses and travel services like taxis. Recently, the company partnered with Freenow, a German mobility service, allowing customers of Alipay, AlipayHK and Touch n’ Go to book taxis in seven European countries including France, Germany and Italy. Ant International’s increasing focus on Europe, Source: FXC Intelligence analysis, Jul 2024 Enhancing the footprint of Antom and WorldFirst in Europe Ant International is also working on the expansion of its Antom brand in Europe. While Alipay+ focuses on offline customers, Antom supports online commerce by offering payment and digitalization services in 150 markets and over 100 currencies. It caters to major online marketplaces such as those offered by Alibaba, digital goods marketplaces, including gaming, entertainment, as well as online travel agents. In Europe, Antom aims to increase merchant access to an increasingly lucrative Asian market, while also increasing cross-border payment options for e-wallet users in the continent. Most recently, the company bolstered its presence through the acquisition of MultiSafepay, a Amsterdam-based payment services provider serving over 18,000 small and medium-sized enterprises. Finally, WorldFirst, a UK-founded company acquired by Ant International in 2019, will reinforce its standing in Europe by joining the Single Euro Payments Area (SEPA) scheme. The development, enabled by Ant International’s recent partnership with BNP Paribas, will enable WorldFirst’s clients to access payment schemes under SEPA in real-time and automate treasury payments to optimize their operations. WorldFirst provides business-to-business payment solutions, including a multicurrency account and marketplace cross-border collections. The company has served one million customers worldwide and is connected to over 120 marketplaces. Sports sponsorships to increase brand visibility Alongside partnership announcements, Ant International also made headlines this year for its three-way sponsorship of the UEFA European Football Championship (Euro) 2024. The sponsorship, which heavily showcased Alipay+, Antom and WorldFirst branding across the tournament, led to increased brand recognition and transaction volumes in Europe. Feagin noted that the partnership was an excellent opportunity for brand exposure, aligning with Ant International’s interests and broadening its audience. Around the tournament, Feagin said Alipay+ saw increased flows in the host country of Germany. In its opening week, Ant International reported a 29% year-over-year increase in visitor spending via Alipay+ partner e-wallets in Europe and a 67% increase in transactions in Germany compared to the previous week. The Euro is the primary association football tournament organized by the Union of European Football Associations (UEFA). It is one of the most prestigious football tournaments in the world, second only to the FIFA World Cup in terms of its significance and popularity within Europe. This year, Euro 2014 set records for TV audiences, achieving an estimated global cumulative audience in excess of 5 billion viewers. Headquartered in Singapore, Ant International aims to support merchants worldwide through a comprehensive range of digital payment and financial services solutions. The company aims to become the “most trusted digital services connector”, thanks to its four key businesses and brands: Alipay+, Antom, WorldFirst and Anext Bank, a digital wholesale bank in Singapore. Ant International’s brand structure, Source: FXC Intelligence analysis, Jul 2024   Featured image credit: edited from freepik The post Ant International Expands European Footprint with Payment Partnerships and Sports Sponsorships appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

The Swiss Financial Market Supervisory Authority (FINMA) has published new guidance on the issuance of stablecoins. This guidance emphasizes the financial market laws that apply to projects aiming to issue stablecoins, including anti-money laundering (AML) regulations and minimum requirements for default guarantees. The new FINMA guidance, released on July 26, 2024, addresses the questions frequently arising regarding the issuance of stablecoins in Switzerland. It builds on an initial notes from 2019 that outlines how the regulator treats stablecoins under Swiss supervisory law. The document defines stablecoins as a type of cryptocurrency designed to be a low-volatility means of payment on a blockchain. The primary goal of stablecoins is to provide the benefits of digital assets, such as fast transactions and blockchain transparency, while minimizing the price volatility that is characteristic of traditional cryptocurrencies like bitcoin and ether. To achieve a stable value, issuers typically peg their tokens to a reserve of assets like a fiat currency. Consequently, this gives stablecoin holders a payment claim against the issuer at any time. These claims are generally categorized as either deposits under banking law or as collective investment schemes, and require a banking license. However, in Switzerland, various stablecoin issuers are partnered with banks and use their default guarantees, obviating the need for a banking license. This creates risks for both the stablecoin holders and the banks, FINMA says. Requirements for default guarantees To protect depositors, FINMA has established minimum requirements for default guarantees. These requirements are designed to be technology-neutral and also apply when dealing with stablecoins. Firstly, if a stablecoin issuer goes bankrupt, each customer must have their own claim against the Swiss bank issuing the default guarantee, and customers must be informed of the default guarantee. The default guarantee must cover at least the total of all public deposits including any interest earned by customers. Furthermore, the provisions must allow depositors to easily and quickly claim the guarantee without complications. To ensure customers can quickly claim the default guarantee, FINMA also requires that the claim be due at the time of the stablecoin issuer’s insolvency, meaning at the latest when bankruptcy proceedings are initiated, and not only when a certificate of loss is issued. Overall, FINMA warns that while these requirements increase depositor protection, they do not match the protection level provided by a banking license, especially considering that stablecoin holders do not benefit from deposit protection under banking law. For banks, any irregularities at stablecoin issuers can cause reputational and legal risks, the regulator notes. AML regulations The guidance also emphasizes that stablecoins can fall under the AML Act. This is due to their usual intended purpose as a means of payments, and because they are classified as deposits under banking law, leading to a permanent business relationship within the meaning of AML legislation. Therefore, stablecoin issuers are considered financial intermediaries for the purposes of AML legislation, imposing thus a number of obligations. Among other things, issuers must verify the identity of the stablecoin holder as the customer in accordance with the applicable obligations and establish the identity of the beneficial owner. If doubt arises in the course of the business relationship as to the identity of the customer or of the beneficial owner, the verification of identity or establishment of identity must be repeated. FINMA highlights the increased risks of money laundering, terrorist financing, and sanction circumvention associated with stablecoins. This is because stablecoins share many of the features of cryptocurrencies, including the possibility for anonymous transfers via self-managed wallets and the global reach, the regulator says. The rise of stablecoins Stablecoins have proliferated in recent years, with several projects launched in Switzerland. In 2020, Sygnum launched its CHF-pegged settlement token, DCHF. The stablecoin, a key component of Sygnum’s digital asset ecosystem, enables real-time transfers, allowing for immediate transaction settlement and eliminating the need for intermediaries, thereby reducing complexity, costs, and counterparty risk. Swiss Stablecoin, a startup founded in 2022 by former National Council and Council of States member Pascale Bruderer, is working on launching its own CHF stablecoin, the digital franc (CHFD). This stablecoin aims to simplify and improve the Swiss payment system, providing a regulated, widely accessible payment method that appeals to retailers, banks, and the Swiss population. Globally, the top five stablecoins are Tether (USDT), USD Coin (USDC), Multi-Collateral Dai (DAI), Binance USD (BUSD) and USDP Dollar (USDP), according to a S&P Global analysis. As of June 2023, these tokens accounted for more than 90% of the US$125 billion market capitalization. USDT and USDC were the two largest stablecoins by market capitalization, at US$83 billion and US$28 billion, respectively. Both are centralized, real-world assets collateralized stablecoins, meaning that each token is backed by US$1 in reserve assets. DAI, which had a market capitalization of US$4.7 billion in June 2023, is a decentralized cryptocurrency pegged to the US dollar produced by the Maker protocol and managed by a decentralized autonomous organization (DAO), MakerDAO.   Featured image credit: edited from freepik The post Swiss Financial Regulator Issues Stablecoin Guidelines, Emphasizing AML Obligations and Default Guarantee Requirements appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.