Switzerland Embedded Finance Business and Investment Opportunities Databook - 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update

The embedded finance industry in the country is expected to grow by 5.7% annually to reach US$1.39 billion in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 19.2% from 2024 to 2029. The country's embedded finance revenues will increase from US$1.39 billion in 2024 to reach US$3.37 billion by 2029.

Switzerland's embedded finance sector has demonstrated steady growth over the past few months, fueled by the integration of financial services into digital platforms and the rise of open banking initiatives. With key areas such as embedded payments and Banking-as-a-Service (BaaS) gaining significant momentum, the sector is set for continued expansion.

The recent product launches and strategic partnerships highlight a robust innovation landscape, reflecting Switzerland's commitment to enhancing user experiences and streamlining financial transactions. The acquisition of Swiss Bankers by Hypothekarbank Lenzburg underscores ongoing consolidation and strategic positioning within the industry.

Looking forward, the Swiss embedded finance market is well-positioned to maintain its leadership in the European fintech sector. The introduction of supportive regulatory measures, including the promotion of open finance and anti-money laundering reforms, further strengthens the sector's growth prospects. Switzerland’s fintech regulatory sandbox continues to provide a controlled environment for testing new solutions, balancing innovation with regulatory compliance.

Overall, Switzerland’s embedded finance sector is on a promising trajectory, characterized by technological advancements, strategic collaborations, and a supportive regulatory framework, all contributing to a more integrated and seamless financial landscape for both consumers and businesses.

Looking ahead to the next few months, the Swiss embedded finance market is poised for significant expansion. With a thriving fintech ecosystem and the increasing collaboration between traditional banks and innovative startups, the future looks promising. As more companies embrace embedded finance strategies, Switzerland is well-positioned to maintain its leadership in the European fintech sector, offering seamless and integrated financial solutions to consumers and businesses.

Product & Innovations

Coop Finance+ App Launch

In October 2023, additiv supported Coop in launching the Coop Finance+ app, which offers a comprehensive range of integrated financial services. The app provides banking products and individual pension solutions, with plans to expand services supported by various financial institutions.

Swiss4's Financial Application

In July 2024, Swiss4 introduced a distinctive financial application utilizing Marqeta's technology. This app features a multicurrency account, payment and foreign exchange services, and personalized lifestyle management, targeting high-end clients and enhancing the embedded finance user experience.

Strategic Partnership

Partes and SaaScada Strategic Partnership

In July 2024, Partes Ltd and SaaScada announced a strategic partnership to enhance embedded finance solutions in Switzerland. This collaboration focuses on delivering cutting-edge core banking software and BaaS solutions customized for the Swiss financial industry, facilitating the integration of financial services into existing customer journeys.

additiv and Coop Collaboration

In October 2023, additiv assisted Coop in launching the Coop Finance+ app, which integrates financial services, including banking products and individual pension solutions. This partnership highlights the trend of embedding financial services within retail platforms to improve customer experience.

These partnerships are not just about innovation, but also about the potential of collaboration in Switzerland's embedded finance sector. They aim to deliver seamless financial solutions that are integrated into everyday consumer experiences, highlighting the power of working together in this dynamic industry.

Key Merger & Acquisitions

Hypothekarbank Lenzburg Acquires Swiss Bankers

In early 2024, Hypothekarbank Lenzburg announced its acquisition of Swiss Bankers to enhance its BaaS and embedded finance offerings. This strategic acquisition aims to strengthen Hypothekarbank's position in the embedded finance market by incorporating Swiss Bankers' capabilities and expanding its service portfolio.

While specific details on other mergers or acquisitions were unavailable, the acquisition of Swiss Bankers is a notable development reflecting ongoing consolidation and strategic positioning in Switzerland's financial sector as institutions seek to advance their digital and embedded finance capabilities.

Regulatory Changes

Promotion of Open Finance

The Swiss government is advancing measures to promote open finance, with plans to extend open banking regulations by June 2024. This initiative aims to facilitate secure data sharing between financial institutions and third-party providers, fostering the development of innovative embedded finance solutions.

Anti-Money Laundering Reforms

In February 2024, Switzerland signed a landmark agreement with Panama to address financial crimes such as money laundering, terrorism financing, and corruption. This agreement marks a significant step in strengthening the regulatory framework for financial transactions, including those facilitated by embedded finance platforms.

Fintech Regulatory Sandbox

Switzerland's fintech regulatory sandbox offers a controlled environment for testing innovative embedded finance solutions. Managed by the Swiss Financial Market Supervisory Authority (FINMA), this initiative promotes innovation while ensuring adherence to regulatory standards.

These regulatory advancements reflect Switzerland's commitment to fostering a supportive environment for the growth of embedded finance, balancing innovation with necessary safeguards and oversight.

This report offers a comprehensive, data-centric analysis of the embedded finance industry. It covers lending, insurance, payment, wealth and asset-based finance sectors and provides a detailed breakdown of market opportunities and risks across various sectors. With over 75+ KPIs at the country level, this report ensures a thorough understanding of embedded finance market dynamics, market size, and forecast.

It breaks down market opportunities by type of business model, consumer segment, and distribution model. In addition, it provides detailed information across various segments in each sector of embedded finance. KPI revenue helps in getting an in-depth understanding of end market dynamics.

The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Embedded Finance industry in Switzerland. Below is a summary of key market segments:

Switzerland Embedded Finance Market Size and Forecast

• Embedded Finance by Key Sectors
• Retail
• Logistics
• Telecommunications
• Manufacturing
• Consumer Health
• Others
• Embedded Finance by Business Model
• Platforms
• Enabler
• Regulatory Entity
• Embedded Finance by Distribution Model
• Own Platforms
• Third Party Platforms

Switzerland Embedded Insurance Market Size and Forecast

• Embedded Insurance by Industry
• Embedded Insurance in Consumer Products
• Embedded Insurance in Travel & Hospitality
• Embedded Insurance in Automotive
• Embedded Insurance in Healthcare
• Embedded Insurance in Real Estate
• Embedded Insurance in Transport & Logistics
• Embedded Insurance in Others
• Embedded Insurance by Consumer Segments
• B2B
• B2C
• Embedded Insurance by Type of Offering
• Embedded Insurance in Product Segment
• Embedded Insurance in Service Segment

Embedded Insurance by Business Model

• Platforms
• Enabler
• Regulatory Entity
• Embedded Insurance by Distribution Model
• Own Platforms
• Third Party Platforms
• Embedded Insurance by Distribution Channel
• Embedded Sales
• Bancassurance
• Broker’s/IFA’s
• Tied Agents
• Embedded Insurance by Insurance Type
• Embedded Insurance in Life Segment
• Embedded Insurance in Non-Life Segment
• Embedded Insurance in Non-Life Segment
• Motor Vehicle
• Fire and Property
• Accident and Health
• General Liability
• Marine, Aviation and other Transport
• Other

Switzerland Embedded Lending Market Size and Forecast

• Embedded Lending by Consumer Segments
• Business Lending
• Retail Lending
• Embedded Lending by B2B Sectors
• Embedded Lending in Retail & Consumer Goods
• Embedded Lending in IT & Software Services
• Embedded Lending in Media, Entertainment & Leisure
• Embedded Lending in Manufacturing & Distribution
• Embedded Lending in Real Estate
• Embedded Lending in Other
• Embedded Lending by B2C Sectors
• Embedded Lending in Retail Shopping
• Embedded Lending in Home Improvement
• Embedded Lending in Leisure & Entertainment
• Embedded Lending in Healthcare and Wellness
• Embedded Lending in Other
• Embedded Lending by Type
• BNPL Lending
• POS Lending
• Personal Loans
• Embedded Lending by Business Model
• Platforms
• Enabler
• Regulatory Entity
• Embedded Lending by Distribution Model
• Own Platforms
• Third Party Platforms

Switzerland Embedded Payment Market Size and Forecast

• Embedded Payment by Consumer Segments
• B2B
• B2C
• Embedded Payment by End-Use Sector
• Embedded Payment in Retail & Consumer Goods
• Embedded Payment in Digital Products & Services
• Embedded Payment in Utility Bill Payment
• Embedded Payment in Travel & Hospitality
• Embedded Payment in Leisure & Entertainment
• Embedded Payment in Health & Wellness
• Embedded Payment in Office Supplies & Equipment
• Embedded Payment in Other
• Embedded Payment by Business Model
• Platforms
• Enabler
• Regulatory Entity
• Embedded Payment by Distribution Model
• Own Platforms
• Third Party Platforms

Switzerland Embedded Wealth Management Market Size and Forecast

Switzerland Asset Based Finance Management Industry Market Size and Forecast

• Asset Based Finance by Type of Asset
• Hard Assets
• Soft Assets
• Asset Based Finance by End Users
• SME’s
• Large Enterprises

Reasons to buy

• In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2020-2029).
• Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.
• Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.
• Get insights at segment level, by the distribution model and by business model in key embedded finance segments
• Insights into the asset based finance market size and by type of assets, by end users.