A study commissioned by the German finance ministry quantifies the emergence of disruptive finance in Germany by predicting the sector will top $157 billion by 2035, news report.
“Germany is one of the most attractive countries for fintech firms. The industry’s growth rate is impressive,” said Jens Spahn, parliamentary state secretary at the finance ministry.
According to experts, even though still small if compared to traditional banking in terms of market size, fintech has great market potential as regulation and technology will play a pivotal role in the industry’s growth and there will be no “battle of the systems” between banks and Fintech firms as the majority of traditional banks are already seeking out partnerships with innovative financial firms, the study pointed out (embedded, below).
Meanwhile, as funding in Europe dropped 43% on a quarterly basis, with $233 million invested in Q3 2016, the country saw almost 35% more funding to VC-backed fintech companies than the UK for the second consecutive quarter in 2016 ($105 million versus the UK’s $78 million), a study from KPMG International and CB Insights confirms
However, Sven Korschinowski Partner, Financial Services, KPMG in Germany, claimed:
International collaboration is becoming increasingly important in the fintech space in Europe and across the globe. As many technological evolutions are driven on a global level, it makes sense to connect diverse fintech hubs to enable collaboration, education and the exchange of ideas. We’re seeing this in a variety of new initiatives, especially in blockchain.