FinTech is growing rapidly in Europe
Investment in the global fintech sector has grown more than four times faster than venture capital as a whole, and Europe is taking a rising share of it.
Nevertheless, the five-year growth rate in FinTech investments in Europe vastly exceeds the growth rate of both Silicon Valley and the global average. The five year compound annual growth rate for Europe excluding the UK and Ireland is expected to amount to 56% for deal volume and 39% for investments, while the global average five-year compound annual growth rate is expected to amount to 27% for deal volume and 26% for investments.
Germany is one of the top five European regions for fintech startups when measured in terms of total deal volume. Currently, more than 130 active players comprise the German FinTech market. The majority of these players focus on the investment, payment or banking market segments. André M. Bajorat, Co-Founder at figo, former CEO at NumberFour AG, and specialist in banking, payments, and mobile technologies, has categorized German FinTech startups as follows:
As customers’ lives are becoming increasingly mobile and digital, they are changing their behaviour and expectations with respect to financial information and products. New access to information and to banking products will continue driving demand for fintech products, meaning that investors can expect strong growth in the fintech sector in Europe and abroad.
Players worth watching in Europe include Powa Technologies, Funding Circle, iZettle, SumUp, Fenergo, WorldRemit, iZettle, Payleven, Kreditech, wonga, fidor bank, Zopa, iwoca, Transferwise, klarna, paymill and Auxmoney.
Sources: Accenture Report “The Boom in Global FinTech Investment” (published 2014) and André M. Bajorat “Deutsche Fintech Startups Mindmap” (published 19.11.2013)