FinTech companies planning to operate in a regulated environment need to analyze the licensing options, their impact and the need for a FinTech-accredited audit firm.
Since 1 January 2019, financial service providers can apply for the new FinTech license in accordance with Article 1b Banking Act, which entails advantages but also limitations compared to a banking license. The following graphic gives an overview of the possibilities provided by the legislator to support the FinTech industry:
The sandbox only helps in a very narrow scope, either as a proof of concept or for a very specific business cases fitting into the restrictions. The FinTech license, on the other hand, allows for greater leeway and brings significant simplifications compared to banks:
EY is the first audit firm accredited for FinTech audits in Switzerland
Compared to the audit of banks, FINMA has significantly reduced the scope of audits for companies with a FinTech-license in its Circular 2013/3 «Auditing». Out of the 40 audit areas applicable for banks, only 14 are defined for FinTech-companies. The audit method, the reporting as well as the prescribed deadlines follow the guidelines as for banks.
FinTech-companies need an independent auditor with a specific FinTech-accreditation from the Federal Audit Supervisory Authority. On 12 June 2019, EY Switzerland became the first firm accredited for the audit of FinTech-companies.
We use our innovative and efficient tools to audit FinTech-companies. These tools increase the assurance level by analyzing large amounts of data:
The key element of our «EY Digital Audit»: This tool maps all the steps of the audit process, stores and archives the audit documentation and contains various tools to increase the efficiency of the audit.
The EY Helix Library contains our analysis tools, which we have integrated into all phases of the audit process. We are constantly developing new applications and adapting our audit approach.
EY Blockchain Analyzer
The EY Blockchain Analyzer enables an in-depth analysis of blockchain data as well as tokens and thus significantly increases the transparency and quality of our audit of FinTech-companies.
Read more about our innovations and our «EY Digital Audit» approach.
Global FinTech Adoption Index 2019
Our global analysis of the development of FinTech companies shows that financial technology or «FinTech» has experienced remarkable growth in recent years. What was once considered a complex form of financial management is now used by millions of people worldwide, due to the rise of online banking and mobile-first platforms. Read more here.