Starting a Fintech Business in Europe with SRO Membership in Switzerland

In this article, we’ll explain what SRO membership means, when it’s the right choice, and what kind of software is needed to launch a successful fintech company using this model.

Launching a fintech business in Europe has become an exciting opportunity for startups and entrepreneurs. With a growing demand for digital financial services and evolving regulations that support innovation, Europe continues to attract founders looking to build new payment systems, crypto platforms, and alternative banking services.

Among all European countries, Switzerland offers a unique entry point. It is known for its strong financial tradition, business-friendly environment, and clear regulatory pathways. One of the most accessible and practical ways to start a fintech business there is through something called SRO membership.

What Is SRO Membership?

SRO stands for Self-Regulatory Organization. In Switzerland, SROs are organizations that supervise financial service providers in specific areas—mostly related to anti-money laundering (AML) rules. These organizations are officially recognized by FINMA, the Swiss financial regulator.

Companies that want to provide financial services but do not hold a banking or financial institution license can join an SRO. This allows them to operate legally under Swiss law as long as they follow the rules around AML and customer verification.

Instead of being directly supervised by FINMA, these businesses are monitored by the SRO they join. The SRO ensures that they have proper procedures for identifying customers, checking for suspicious transactions, and keeping records.

This model is especially useful for smaller or early-stage fintech companies that want to get started without needing to apply for a full financial license, which can be time-consuming and expensive.

When Is SRO Membership a Good Choice?

SRO membership works well for fintech companies that fall under the category of financial intermediaries, but do not hold or manage customer funds in the same way a bank would. These companies offer financial services, but with a limited scope.

You might consider SRO membership if your business is planning to:

• Offer cryptocurrency exchange or brokerage services
• Provide digital wallets for crypto or fiat currencies
• Operate a payment platform or remittance service
• Develop token issuance platforms or handle initial coin offerings (ICOs)
• Build white-label solutions for other financial companies

In many of these cases, SRO membership provides a legal and compliant way to begin operations while keeping startup costs and administrative requirements at a reasonable level.

It is also a good option for companies that want to test the market in Switzerland and Europe before applying for a full license or expanding into other countries.

How to Start a Fintech Business with an SRO in Switzerland

Getting started requires careful planning and an understanding of the legal and operational steps. Here’s a simplified breakdown of the process:

1. Define Your Business Model

Start by clearly outlining what kind of financial service your business will provide. Are you processing payments? Facilitating crypto transactions? Offering wallet services? This will help determine if your company qualifies as a financial intermediary under Swiss rules.

2. Set Up a Swiss Company

To apply for SRO membership, your fintech must be based in Switzerland. You’ll need to register a Swiss legal entity, usually a GmbH or AG. You may also need to hire local representatives or maintain a physical office, depending on the SRO.

3. Prepare AML Documentation

Each SRO requires its members to follow anti-money laundering procedures. You’ll need to create internal documents such as:

• Know Your Customer (KYC) policies
• Risk assessment guidelines
• Transaction monitoring plans
• Internal reporting and audit procedures

These documents will be reviewed during your application process.

4. Apply to an SRO

There are several approved SROs in Switzerland, including VQF, ARIF, and PolyReg. Each has its own fees, processing time, and specific requirements. You’ll submit your business plan, corporate documents, and AML policies as part of your application.

5. Build Your Tech Infrastructure

Compliance is only one part of the business. You’ll also need to build or license the technology needed to operate your fintech service. This includes software for handling payments, digital assets, customer accounts, and compliance reporting.

6. Launch and Stay Compliant

Once accepted as an SRO member, you can begin operations. Your SRO will carry out periodic reviews or audits to make sure you’re following your AML responsibilities. It’s important to maintain proper records and adapt your policies as needed.

Software You’ll Need to Support Your Fintech Operations

Whether you’re building a crypto exchange, a digital wallet, or a payment app, your business will rely heavily on software. Below are the main categories of software you’ll need to operate effectively under SRO supervision.

Payment Software

If your fintech offers fiat money services like payments, transfers, or e-wallets, you’ll need a system that can handle:

• User account creation
• Payment initiation and confirmation
• Virtual IBANs or card issuing
• SEPA and SWIFT integrations
• Transaction history and reconciliation

Some startups choose to develop this software in-house, while others use white-label platforms that come with built-in compliance tools.

Crypto Software

For companies working with digital assets, crypto wallet software is essential. This software should support:

• Crypto wallet management (hot and cold storage)
• Blockchain integrations
• Fiat-crypto conversion engines
• Transaction monitoring on-chain
• Crypto custody features

It’s also helpful to integrate Know Your Transaction (KYT) tools that check crypto transactions in real time for suspicious activity.

Core Banking Software

While you may not be a bank, many fintech services benefit from using core banking system to manage user accounts and internal ledgers. These platforms provide:

• Balance tracking
• Interest calculation
• Fee management
• Ledger entries and audit logs
• Reporting for both customers and regulators

Modern cloud-based core banking systems are often modular and scalable, which is ideal for startups and SRO members.

Benefits of Starting with an SRO in Switzerland

There are several reasons why founders choose the SRO route in Switzerland:

• Faster setup compared to applying for a full financial license
• Lower capital requirements and operational overhead
• Legal certainty for offering limited financial services
• Reputable jurisdiction with strong investor and customer trust
• Clear and structured AML framework
• Possibility to scale or license up in the future

Switzerland also offers a well-established fintech ecosystem with experienced advisors, legal experts, and service providers that can help guide the process.

Limitations and Future Planning

It’s important to understand that SRO membership only allows you to operate in Switzerland and does not provide passporting rights to other EU countries. If you want to expand across the European Union, you’ll eventually need to apply for an EMI (Electronic Money Institution) or PI (Payment Institution) license in an EU member state.

However, starting with an SRO gives you the opportunity to launch your business, build your brand, and gather valuable market feedback before committing to larger investments.

Conclusion

Starting a fintech company in Europe doesn’t always require a full license from day one. With SRO membership in Switzerland, entrepreneurs can build and operate legally under a trusted regulatory framework designed for financial intermediaries.

By choosing the right SRO, preparing strong compliance documentation, and investing in the right software—whether it’s for payments, crypto, or core account management—you can build a reliable and scalable fintech operation.

Switzerland’s SRO model offers a clear path for growth while allowing the flexibility needed for startups to innovate and evolve. If you’re planning to enter the fintech space in Europe, it’s a route worth exploring.