Why are taxes stuck in the paper age? – Fintech Garden Episode 132

In this week’s episode, our host, Igor Tomych, interviews Roman von der Höh, Managing Director at RAQUEST Switzerland GmbH. The conversation this time around is about taxes, a topic not discussed often enough in fintech. However, the chat does put into perspective how the taxation system in Europe is due for an upgrade and Roman is bringing forth a unique solution to the challenge.

Withholding tax is outdated, fragmented, and becoming more complex

Tax processes are still manual and paper driven, even as cross-border investing grows and new assets like crypto emerge. Most retail investors and many banks have low tax literacy, and upcoming regulations like EU FASTER will increase compliance demands while pushing the industry toward full digitalization.

Automation is transforming tax from a cost center into a scalable service

Banks historically avoided tax services because they required experts and added operational burdens. Automation now enables end-to-end digital workflows, lower costs, and better customer experiences. This makes it possible to offer tax services to institutional, wealth, and retail clients, creating new revenue streams.

Regulation and market trends are reshaping how financial institutions operate

EU FASTER, FATCA and CRS, Brexit dynamics, crypto regulation, and global investment growth are forcing banks to rethink infrastructure. Tax efficiency influences where companies list, where fintechs incorporate, and how banks design products. Modern tax systems are becoming strategic advantages rather than back office functions.