IFLR EMEA Fintech Special Focus 2019 Switzerland: A Licence For The Future?

The beginning of 2019 saw the introduction of a new regulatory licence category into Swiss law with the aim of facilitating or enabling novel business models in the financial marketplace. Figuring in the law under the term "promotion of innovation" (Innovationsförderung), the new licence has been informally dubbed the "fintech licence" or "banking licence light". The entering into force of the legal framework of the fintech licence marks the completion of a three-pillar fintech programme initiated by the Swiss Federal Council (the federal government of Switzerland) in November 2016. It had the goal of adapting Swiss financial regulation to the business needs of the fintech industry, while adhering to the concept of a technology-neutral regulatory regime, as far as possible. Fintech licence holders are allowed to accept deposits from the public on a professional basis – an activity previously limited to banks – subject to a deposit ceiling of CHF100 million (approx. $99