Fintech

Fintech covers technology that changes how investments are researched, traded, settled, held and reported – from data platforms and trading systems to digital custody and tokenised assets. For institutional investors, it affects costs, transparency and operational risk.

Switzerland introduced a dedicated legal framework for distributed ledger technology (DLT) in 2021, including ledger-based securities and a licence category for DLT trading facilities. FINMA also offers a fintech licence for institutions that accept public deposits on a limited scale without engaging in traditional banking.

Tokenisation represents ownership of an asset – a bond, a fund unit or a share of real estate – as a digital token on a distributed ledger. It can shorten settlement times, enable fractional ownership and make processes more transparent, but it also raises questions of custody, legal enforceability and liquidity.

Crypto-assets are not a separate investment category under BVV 2. Where pension funds consider them at all, they typically do so through regulated vehicles within the alternatives allocation, with attention to volatility, custody, liquidity and the board's documented risk capacity.

Cyber risk, dependence on third-party providers, data protection, model and software errors, and legal uncertainty for new instruments. Clear due diligence on providers, outsourcing contracts and incident processes are essential before adoption.