According to PayNXT360, Embedded Finance industry in Switzerland is expected to grow by 26.9% on annual basis to reach US$1,679.9 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 19.2% during 2024-2029. The embedded finance revenues in the country will increase from US$1,679.9 million in 2024 to reach US$4,044.0 million by 2029.

Key Market Drivers of Switzerland Embedded Finance: Switzerland has a well-established banking sector known for its stability and confidentiality. Traditional banks are gradually adapting to the digital era, offering online and mobile banking services. However, the pace of innovation has been relatively slower compared to fintech hubs like the UK or the US.
• Innovation and Customer Experience: Embedded finance seamlessly integrates financial services within existing platforms, offering a convenient and frictionless customer experience. This resonates with the tech-savvy Swiss population, driving adoption.
• Growth of Fintech: Switzerland boasts a thriving fintech ecosystem, fostering collaboration between traditional banks and innovative startups. This synergy fuels the development and implementation of embedded finance solutions.
• Dubai’s largest lender Emirates NBD has made an equity investment in trade finance and treasury network Komgo. The firm currently claims to have 10,000 enterprise users worldwide, and a daily transaction processing value of $1bn.
• Partnerships and Collaborations: Embedded finance often thrives on partnerships between fintech startups, traditional financial institutions, and non-financial companies such as e-commerce platforms, marketplaces, and ride-sharing services. These collaborations enable the integration of financial services into everyday consumer experiences.
• On February, 2024, a landmark agreement was signed between Switzerland and Panama, marking a significant step forward in the fight against financial crimes, including money laundering, terrorism financing, and corruption.

Latest Innovations in Switzerland’s Embedded Finance Sector
? Embedded Insurance: Integration of tailored insurance products within specific workflows is gaining traction. For example, embedded travel insurance offered within travel booking platforms.
• In Oct 2023, additiv, a global leader in embedded finance, announced that it is supporting Coop to launch Coop Finance+, a comprehensive new app for integrated financial services. At launch, Coop Finance+ offers banking products and individual pension solutions, with plans for further expansion in the coming months. Services are powered by Hypothekarbank Lenzburg for banking and Vanguard, OLZ, Liberty Vorsorge, and Glarner Kantonalbank for pensions.
? Open Banking: Open banking regulations allow secure data sharing between financial institutions and third-party providers. This facilitates the development of innovative embedded finance solutions.
? Artificial Intelligence (AI) and Machine Learning (ML): These technologies are being used for risk assessment, fraud detection, and personalized financial product recommendations within embedded finance platforms. Never have there been more active companies in the Swiss Fintech sector, totalling over 500 at the end of Q1 2024.

Major Start-ups of Switzerland Embedded Finance: In 2022, tech startups located in Zug raised about CHF 250 million in VC funding, making it the second biggest recipient of fintech investment that year. The canton is widely known as the “Crypto Valley,” owing to the high number of startups specializing in blockchain technology and cryptocurrencies located in the canton, including prominent names in the space such as the Ethereum Foundation, Amina Bank, formerly known as SEBA Bank, and Bitcoin Suisse.
This report provides a detailed data-centric analysis of the embedded finance industry, covering lending, insurance, payment, wealth and asset based finance sectors market opportunities and risks across a range of different sectors. With over 75+ KPIs at the country level, this report provides a comprehensive understanding of embedded finance market dynamics, market size and forecast.

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

PayNXT360’s 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.