Talent: Germany has an internationally recognized education system with university and non-university training. The country is also a desirable place to work for people from Europe and further afield.
Financing: A variety of financing options are available within the FinTech sector. Innovative business models are financed in particular by VC donors and corporate VC's but also by other investors and banks.
Accelerators and Incubators: Banks, insurance companies and other companies initiate corporate start-up programs and establish accelerator and incubator offices in order to establish new FinTech companies in the market. Some company builders are also focussing their activities in FinTech.
Coworking: Housing and commercial rents in German cities are relatively moderate compared to international FinTech centers. A wide range of coworking spaces and other flexible solutions are available across the country.
Financial Regulation: The Federal Financial Supervisory Authority (BaFin) brings the supervision of banks, financial service providers, insurance undertakings, and securities trading together under one roof. It is an autonomous public-law institution and is subject to the legal and technical oversight of the Federal Ministry of Finance (BMF). FinTech business models are diverse and may – depending on their structure – require authorization from the Federal Financial Supervisory Authority.
Entrepreneurs and FinTechs can contact the supervisory agency on the BaFin website. Here, they can also make preliminary inquiries via a contact form and submit specific questions regarding the business model. In order to facilitate the companies dealing with supervisory issues, BaFin offers a FinTech-tailored and compact set of current FAQs about FinTech business models on its website.
Hub Initiative of the Federal Government: A series of regional digital hubs have been established in Germany as part of an initiative of the Federal Ministry for Economic Affairs and Energy. Start-ups, science, SMEs, industry, and local administration join together to become centers of digital transformation. The cities of Berlin and Frankfurt are home to one FinTech hub each and the cities of Cologne and Munich each have an InsurTech hub.
The FinTech market in Germany demonstrates high potential for growth and development. According to estimates from a BMF commissioned study*, the following projections in a base scenario for the market volume in Germany in different FinTech industries were established:
Market volume 2015
Finance and asset management
EUR 2.2 bn
EUR 58 bn
EUR 36 mn
EUR 313 mn
EUR 47 mn
EUR 69 mn
EUR 330 mn
EUR 5 bn
EUR 500 mn
EUR 13 bn
|Social Trading, Robo Advice et al||EUR 1.36 bn||EUR 40 bn|
|Personal Finance Management (PFM)||1.2 mn users||8 mn users|
*Dorfleitner/Hornuf “FinTech Market in Germany“, report 17.10.2016