Note from the Publisher: Brexit, the shot heard round the world, sent shock waves through the fintech industry there as well. Ever since the Brits voted to leave the EU, there’s been countless stories in the fintech world predicting London will soon get GOBSMACKED and see a mass exodus of fintechs to other European nations. Now, according to the Germans, they are soon to overtake the UK as the European center for fintech. Das ist richtig, you heard it right! Let’s see if this does indeed come to pass. (And by the way, the accordion in the accompanying photo of the German boys in lederhosen is a special nod to our CEO, who took a few lessons on the instrument in his youth.)
“The European financial sector is witnessing a tectonic shift resulting in the relocation of continent’s fintech hub. Until now, London has been the financial hub of the entire continent. The United Kingdom boasted of housing some of the best fintech companies developing cutting edge products. However, Brexit has poured water over the country’s big plans.
With Britain’s eventual exit from the European Union, the focus of fintech market has shifted from London to Berlin. The change is evident in the German Finance Ministry’s recent report. According to the report, even tough Brexit has made German look much favorable in the eyes of financial companies, it is not completely responsible for the country’s emergence as a fintech powerhouse.
The data presented in the report shows that the country has about 433 fintech companies within its borders, out of which 346 are active. These companies operate in a range of fintech sectors including financing, asset management, crowdfunding, crowdlending, blockchain technology and more. Previous year’s figures indicate that these platforms have handled over 270 million euros worth of funds in one year.”