Swiss authorities granted fintech firms access to an interbank payment system, modifying an ordinance on financial institutions on January 1, the Swiss National Bank said today (January 11).

The federal government added a new licensing category for fintech firms to its ordinance on banks and savings banks in the banking law, granting the Swiss financial market supervisory authority (Finma) the authority to licence fintech companies. The step allows these firms access to Switzerland’s interbank payment platform.

The Swiss National Bank is the institution regulating access to Swiss Interbank Clearing (SIC). “The SNB grants access to applicants that make a significant contribution to the fulfilment of the SNB’s statutory tasks, and whose admission does not pose any major risks,” said the central bank in a statement.

“Entities with fintech licences whose business model makes them significant participants in the area of Swiss franc payment transactions will, therefore, be granted access to the SIC system and to sight deposit accounts.”

Finma requires applicants to comply with minimum capital requirements. It also asks them to set out minimum capital trends adequate with their business plans, and provide information on sources of financing.

Fintech companies must acknowledge in writing their willingness to submit to regulatory actions and supply several other documents relating to their activities. Additionally, they need to present the supervisory authority with an organisational chart of the group, and documents demonstrating existing or planned licences to operate in financial markets.

Allowed to take deposits

The modified regulation also opens the door for fintech companies to take deposits.

The new licence allows them to receive public deposits of up to Sfr100 million ($101.8 million). However, they cannot raise nor pay interest on these funds.

Meanwhile, the Swiss federal government is expanding its regulatory sandbox to include crowd-lending groups. The executive plans to allow these entities to channel public deposits of up to Sfr1 million for private consumption and commercial-industrial purposes.

“This expansion became possible because crowd lending is now subject to the consumer credit law,” said the Swiss federal council in November 2018. However, the measure won’t come into force until April 1, 2019, due to pending changes in consumer law and adjustments to the banking ordinance.

Today’s action marks the third element of a project to foster financial innovation first unveiled by the Swiss government in February 2017. Two earlier parts of the plan launched in August 2017: an extended holding period for settlement accounts; and a licence-free innovation space.