Security tokenization in a regulated environment can change the fundraising process in Swiss banking system

Abstract

The Swiss banking industry is in the full swing of structural change. The DLT cluster comprising known how and providers has developed in Switzerland in recent years, signifying the significant benefits for the banking industry. The financial sector is under rising regulatory costs and digital transformation pressures. Apart from the direct impact of the financial crisis in 2008, increasing regulatory expenditure accounts for the highest cost pressure. A negative interest rate has further reduced the bank's margins. At the international level, the abandonment of Swiss bank secrecy, the political uncertainties of Switzerland's upcoming relationship with the European Union generated obstacles in cross border business. To make it even more challenging, the rivals and start-ups offer new business models and vying for a slice of cake from the established financial institutions. All factors have created pressure on the financial sector to be more cost-effective, efficient, transparent, and secure in Switzerland (Anthamatten & Lago, 2019)....