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Top 5 emerging fintech hubs

June 13th 2019

By World Finance

Fintech companies are bringing disruption to all segments of finance, from payments to wealth management. A number of cities are poised to unlock business opportunities as a result of this transformation.

Fintech is proving to be one of the most fruitful sectors for venture returns. According to Juniper Research, fintech companies will generate $638bn in revenue in 2024, a 143 percent growth on estimated revenues for 2019.

As Brexit uncertainty clouds the prospects of one of the world’s financial capitals, London, there is a growing interest in the fintech hubs emerging elsewhere. Frankfurt is opening their doors to foreign investment and creating incentives for start-up creation, all in the hope of tapping into this burgeoning market. According to a survey by Startup Genome, Frankfurt is among the top emerging fintech hubs.

Home to the European Central Bank and more than 200 banks – most of which are foreign – Frankfurt plays an important role in the EU’s financial system. As a result, the city is well-placed to attract cutting edge start-ups. The business community in the country encourages such ventures through a number of programmes, including accelerators and corporate involvement initiatives. In 2016, Deutsche Bank launched Digitalfabrik, which supports the development of digital banking products, while platforms like TechQuartier have been created to connect start-ups with banks, investors and mentors.

Financial institutions and newcomers alike are keen to drive innovation, partly inspired by the city’s start-up success stories. Perhaps the most well known of these is 360T, a foreign exchange trading platform. In 2015, Deutsche Böerse bought 360T for $796m in Germany’s largest start-up acquisition at the time. Although Berlin is still largely considered the tech centre of Germany, it appears Frankfurt is quietly fostering a start-up ecosystem that could one day rival the capital’s.