In order for financial technology to grow, some countries are giving firms freedom to experiment, lifting the burdens of tight regulation.
Switzerland, for one, has introduced a so-called regulatory sandbox, within which small fintech firms can play without regulation.
"We will try to introduce the regulatory system that enables the market to grow without being hindered," Jorg Gasser, Switzerland state secretary for international financial matters told CNBC.
"[Fintech firms] are able to accept 1 million Swiss francs ($1.01 million) from their clients without any regulation. And once they grow out of that sandbox, the regulation will be according to their size," Gasser said.
Switzerland also offers a tailor-made fintech license, which is far less taxing on small firms compared to a banking license. Gasser explained that it's "easier to handle and less expensive to establish."
Gasser was speaking on the sidelines of the Singapore Fintech Festival, which has brought over 25,000 participants to the Lion City.
Singapore's central bank, the Monetary Authority of Singapore, also launched a fintech regulatory sandbox last year. Since then, the MAS has received 30 applications from firms wanting to test their product without strict regulations.
Singapore and Switzerland have many similarities according to Gasser, which makes them ideal fintech hubs.
"We are both neighbors of very important economic jurisdictions like China, and [the European Union] for Switzerland. We are extremely open, very well connected, we have top notch educational systems, infrastructure is very good," he said
Gasser said Switzerland could take a few lessons from Singapore's fintech operations.
"What we can learn from the situation here is the dynamics: The situation here is changing rapidly, fintech is blooming, flourishing," he said.