Risks Forum 2017 Drivers of a FinTech Hub: The Case of Switzerland Institute of Financial Services Zug IFZ Thomas Ankenbrand Denis Bieri T direct +41 41 757 67 23 thomas.ankenbrand@hslu.ch Paris, 27/03/2017
Content - Introduction - Overview of a FinTech ecosystem - Ranking methodology - Results - Conclusion Slide 2, 04/03/2017
Introduction - Switzerland has a long tradition as one of the world s most important financial centers. - Switzerland is in most rankings for innovation on a top position. - Switzerland counts 190 FinTech companies by the end of 2016. - In most FinTech hub rankings Switzerland performs worse than its peer group or even is neglected. Slide 3, 04/03/2017
Switzerland has a long tradition as one of the world s most important financial centers Slide 4, 04/03/2017 Source Own figure, data from Global Financial Center Index Reports 1 to 20
Switzerland is in most rankings for innovation in a top position Slide 5, 04/03/2017 Source Own figure, data from Global Innovation Index Reports 2013-2016
Number of FinTech companies (n=190) Slide 6, 04/03/2017 Source IFZ FinTech Study 2017
Definition of FinTech Software solutions for innovative products, services and processes in the financial industry, improving, complementing, and/or disrupting existing offerings. Hence, FinTech companies are firms whose main activities, core competencies, and/or strategic focus lie in developing those solutions. Slide 7, 04/03/2017 Source IFZ FinTech Study 2017
Classification of FinTech Mobile Payment Online Payment Money Transfer Big Data Machine Learning Artificial Intelligence Payment Analytics Robo Advisor Social Trading Hybrid Models Investment Management Banking Infrastructure Open Bank (API) Identity & Security Management Information & Transaction Platforms Personal Finance Management Deposit & Lending Distributed Ledger Technology Crowdinvesting Crowdlending Invoice Trading Crypto Currency Blockchain Slide 8, 04/03/2017 Source IFZ FinTech Study 2017
Key Resources Key Activities Overview of a FinTech ecosystem Customer Relationships Key Partners Value Propositions Customer Segments Channels Cost Structure Revenue Streams Slide 9, 04/03/2017 Source Osterwalder & Pigneur, 2010 and IFZ FinTech Study 2017
Ranking methodology Slide 10, 04/03/2017
Hub Ranking indicators Slide 11, 04/03/2017
Results Rank City / Country 1 Singapore 2 Zurich / Switzerland 3 Geneva / Switzerland 4 Toronto / Canada 5 New York City / US 6 San Francisco / US 7 Amsterdam / Netherlands 8 London / UK 9 Hong Kong 10 Stockholm / Sweden 11 Tokyo / Japan 12 Sydney / Australia 13 Frankfurt / Germany 14 Berlin / Germany 15 Oslo / Norway 16 Paris / France 17 Dublin / Ireland 18 Tel Aviv / Israel 19 Dubai / United Arab Emirates 20 Milan / Italy 21 Beijing / China 22 Shanghai / China 23 Moscow / Russian Federation 24 Cape Town / South Africa 25 Sao Paulo / Brazil 26 Buenos Aires / Argentina 27 Mumbai / India Scores Political/Legal Economic Social Technological Slide 12, 04/03/2017
Comparison of the top performers Slide 13, 04/03/2017 Source IFZ FinTech Study 2017
What can Zurich improve in the economic dimension? 30 25 20 15 10 5 0 20 15 10 5 0-5 -10-15 -20-25 Singapur Zürich Differenz Slide 14, 04/03/2017 Source IFZ FinTech Study 2017
What can Zurich improve in the technological dimension? 30 25 20 15 10 5 0 15 10 5 0-5 -10-15 -20-25 Singapur Zürich Differenz Slide 15, 04/03/2017 Source IFZ FinTech Study 2017
Conclusion - In contrast to the majority of existing FinTech rankings, our analysis shows that the Swiss FinTech ecosystem can compete with the world s leading FinTech hubs. The difference comes from the broad quantitative approach. - This strong position is mainly driven by the political/legal and the social dimension of the Swiss FinTech ecosystem. - The applied methodology allows detecting the strengths and weaknesses of a FinTech ecosystem and its global competitors in a detailed way, tracing back up to the individual indicators. - A general limitation is the availability of data. Future research will incrementally improve the data basis and the parameters of the model, leading to more accurate and more sophisticated findings. In addition, detailed region profiles with an analysis of the FinTech ecosystem up to the indicator level may be produced. Slide 16, 04/03/2017
References Accenture (2015). The Future of FinTech and Banking Digitally disrupted or reimagined? Ankenbrand, T., Dietrich, A. & Bieri, D. (2017). IFZ FinTech Study 2017. Lucerne University of Applied Sciences. Cornell University, INSEAD, and World Intellectual Property Organization (2016). The Global Innovation Index 2016. Deloitte (2016a). Industrialisierung - Die Effizienz und Flexibilität der Schweizer Bankenbranche erschliessen. Deloitte. Deloitte (2016b). Connecting Global FinTech: Hub Review 2016. Deloitte. Deloitte (2016c). The Swiss financial centre en route to being an international Fintech hub?. European Comission (2016). European Innovation Scoreboard 2016. European startup initiative (esi) (2016). Startup Heatmap Europe. Ernst & Young (2016). UK FinTech - On the cutting edge. Ernst & Young and Swiss Finance + Technology Association (2016). Swiss FinTech Report 2016. Federal Department of Foreign Affairs FDFA (2016). The financial centre and the economy. Osterwalder, A. & Pigneur, Y. (2010). Business Model Generation. Campus, 2010. PwC (2016). Cities of Opportunity 7. Swiss Banking Association (2016). The Financial Centre: Engine of the Swiss Economy. Yeandle M. and Mainelli M. (2016). Global Financial Centres Index 20. Z/Yen Group. Slide 17, 04/03/2017