16 Oct German Fintechs and traditional banks: Friend or Foe?
Fintechs are on the rise and global Fintech investment is quadrupled in 2014 to USD 12 billion up from USD 1.8 billion in 2010. Technology and the internet have a radically increasing role in financial services. In 2014, there are about 139 Fintech-firms headquartered in Germany and almost half of them are located in Berlin.
Lending and payment have the largest share among Fintechs. Around one fourth of Fintech startups in Germany does direct lending and the other 17% does crowdinvesting. 27% of Fintech startups are alternative payment providers, which offer online based payment services. The other Fintechs active in insurance, ID verification, online shopping and Gastronomy.
Increasing number of projects funded via Fintechs, yet so far they have a small role for the real economy. German Fintechs employ around 2,000 employees in total and the average is 11 employees per Fintech.
Banks and Fintechs are interconnected. It is about 56% of German banks cooperate with Fintechs for their digital strategy. Of these, 80% are satisfied with their cooperation.
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