Swiss Financial Innovation Desk Mandate: A Central Public Hub to Foster the Swiss Financial Center

Mission Statement

The Swiss Financial Innovation Desk (FIND) fosters financial innovation in Switzerland, thereby contributing to the strengthening of the Swiss financial center.

FIND shall operate as the central public hub for any matters relating to financial innovation in Switzerland; within this role it will primarily

• link innovation projects, research, investors and authorities, both nationally and internationally;

• facilitate the exchange of relevant information among stakeholders;

• make propositions in order to, among other, contribute to improve on existing regulation, materially deepen exchange among actors, address market failure.

FIND has been established upon the decision of the Head of the Federal Department of Finance (FDF) in 2022, on the basis of a proposal from the State Secretariat for International Finance (SIF) in response to the Federal Council Report "Digital finance: areas of actions 2022+" and action area 12 (Strengthen the innovation potential of the financial sector in the long term by means of an innovation platform).

Activities

FIND covers the following tasks, business areas and technologies:

• Tasks: Conduct market intelligence; act as a single point of entry for innovative ventures in the financial sector looking for answers; establish a networking hub; act as catalyst for market initiatives and research projects; enhance clout of the market segment.

• Business areas: payments, investment services, wealth management, insurance, (green) fintech, auxiliary services (e.g., client onboarding and identification, data protection, KYC/AML/CFT); regulatory and supervisory technologies (RegTech and SupTech).

• Focus technologies: Big Data/Artificial Intelligence/Machine Learning; Blockchain/Distributed Ledger Technology/Crypto Assets; Open API; Mobile Technology; Cloud.

• Public Relations & communication: In order to provide information to national and international stakeholders, FIND operates its own website. Any relevant information and deliverables (reports, events, projects) are shared on this website. Alternative communication channels (social media) may also be used.

FIND does not carry out regulatory or related tasks (such as reports in response to parliamentary motions). But in its role as central hub for financial innovation, FIND provides services to other units of the federal administration (such as liaising among stakeholders or providing, channeling and passing on information between public and private stakeholders).

Deliverables

• Providing recommendations for action for the attention of the Steering Board and Innovation Sounding Board

• Organization of events such as conferences, workshops and roundtables

• Contributions to innovation projects (proof-of-concepts, pilots) that lead to the development of public goods in financial technology

• Operation of a website (e.g., with FinTech directory, publications, information for the public)

Governance

FIND operates as an independent unit within the SIF. It is administratively and financially borne by the SIF. With respect to media requests, external communication and applications for access to official documents based on the so-called Öffentlichkeitsgesetz (SR 152.3), FIND shall consult with SIF. To carry out its tasks, FIND can cooperate with actors from the private sector and other governmental units on an ad hoc basis (e.g., for specific projects). FIND interacts with the following governance bodies on a regular basis:

• Steering Board: FIND reports to the Steering Board. The Steering Board is constituted of members of the SIF and the FDF General Secretariat. Other institutions (such as SBFI, FINMA, SNB) can join the Steering Board in the role of an “Observer” with no voting rights. The Steering Board has up to six members and observers, which are nominated by their respective institutions for the whole 3-year-term. The Steering Board approves the annual report, evaluates the deliverables (at least yearly), assesses the planning and releases the budget. It assesses the recommendations for action brought to its attention by FIND. It approves the set targets and respective milestones/KPIs, which are used to verify the achievement of the targets (Accountability). It is also responsible for any other strategic decisions, including the modification of this mandate.

• Innovation Sounding Board: FIND consults the Innovation Sounding Board on a regular basis, but at least once every year. The Sounding Board is constituted of members from the financial sector, financial technology sector, academia and other financial innovation experts. It has up to eight members, which are elected for a term of one year (term renewable up to two times) by the Steering Board. The goal is to bring external expertise and market knowhow into FIND’s activities. The Sounding Board shall not be remunerated for its activities.

FIND’s mandate is initially limited to a 3-year-term, starting from the moment of operational Go Live.

Accountability

FIND reports to the Steering Board on an annual basis (Annual Report). An intermediate update is provided at least every 6 months to the State Secretary.

The Annual Report provides (a) an evaluation of past activities based on milestones/KPIs approved by the Steering Board at the beginning of each year, (b) planned future activities, and (c) an overview on used resources. Once assessed and accepted by the Steering Board, the Annual Report is published on the FIND website.

Within 12 months from the end of the 3-year-term, the Steering Board, based on the overall achievement of targets and planned future activities will make a recommendation, whether and if so, how FIND will be continued. A decision by the Head of the FDF will be taken by 31 October 2025 the latest whether to continue and expand FIND. Any continuation will entail complete separation from SIF. The mandate may be adapted to this end. The Innovation Sounding Board will be consulted on this decision.

This mandate has been drafted by SIF and has been formally approved by the Steering Board on 11 December 2023.