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1033998

Germany Fintech Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Published: | Mordor Intelligence Pvt Ltd | 150 Pages | Delivery time: 2-3 business days

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Germany Fintech Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
Published: October 13, 2021
Mordor Intelligence Pvt Ltd
Content info: 150 Pages
Delivery time: 2-3 business days
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  • Description
  • Table of Contents
Description

Fintech adoption rates are growing around the world. According to EY, 64 percent of global consumers use FinTech - with the rate as high as 87 percent in China and India. FinTech adoption in Germany almost doubled during the period 2017-18, with German use now at the same level as the global average. German banking licenses are strictly regulated by the Federal Financial Supervisory Authority, Bafin. FinTech founders have reported difficulties while applying for a banking license and navigating the stringent regulations to enter the marketplace. The market is expected to grow annually by 9% (CAGR 2021-2026).

The Covid-19 pandemic and the corresponding health measures have changed customer behavior immensely. As people sought to make less physical contact, the demand for contactless paying services grew strongly in 2020. According to Germany Trade and Invest, 43% of Germans changed their paying method to cashless options to avoid human contact. Even small retail shops that in the past only accepted cash have been switching to contactless payments for hygiene reasons. However, only 8% of German consumers prefer mobile paying options instead of classic card payments. Nevertheless, in 2020, because of a struggling economy due to the impact of Covid-19, investment in FinTech's worldwide went down. According to a KPMG report on global FinTech's, the total investment from private equity, M&A, as well as venture capital, was around USD150 billion in 2019 whereas in 2020 only USD26 billion were invested globally. As the international economy is recovering, investments are expected to rise back to the level from 2019.

The innovative technologies and disruptive business models are removing market entry and expansion barriers, with German FinTechs looking to expand beyond Germany and international FinTechs also entering the German market. Almost three quarters of foreign FinTechs are active in the Banking and Lending, Payments and Enabling Processes & Technology segments.

Key Market Trends

Increase in Investments

Germany's Banking sector secured the most FinTech investment in 2019, Raising EUR 189m of investment capital in just two rounds. Incumbent Banks, in order to offset annual losses of around 3 percent of turnover to FinTech, are increasingly turning to cooperation and partnership with FinTechs according to Clarifield International. A number of FinTechs are also employing a "cooperation through acquisition" strategy. According to PwC, there have been 92 FinTech buyouts since 2013, with around half of these seeing FinTechs buying up other Fintech companies.64% of all takeovers were of Fintech start-ups in the B2B sector. With the remaining 36% active in the B2C sector. Fintech challenger banks attracted significant VC investment in 2019.

Increasing in Start-ups

The German fintech sector breaks the 900 marks for the first time with 946 start-ups. Investment start-ups showed the strongest growth of all top fintech categories in 2019. The number (112 start-ups) increased by 29% compared to the previous year. The trend will continue in 2020. So far, investment start-ups have again made the largest contribution to growth, with ten start-ups. On the other hand, the strongest decline in growth is noticeable in blockchain start-ups, which only grew by one. Overall, the Proptech (203) and finance (189) sectors are still by far the most important categories.

Competitive Landscape

Companies across the world have huge investments in this segment of the market. In Germany, the FinTech market has many companies fragmented over minor shares. AirBank, Hawk:AI, Finleap Connect, OneFor, Raisin DS, N26 are amongst the FinTech Companies.

Adoption of FinTech platform and up-gradation to new Technology leads to increasing competition amongst the company. Innovation and technological advancement taking a pace as the COVID-19 and urbanization strike general people to the adoption of the new ease in payment and contactless payment gateways.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Table of Contents
Product Code: 72317

TABLE OF CONTENTS

1 INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2 RESEARCH METHODOLOGY

  • 2.1 Analysis Methodology
  • 2.2 Research Phases

3 EXECUTIVE SUMMARY

4 MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 A Brief on Various Technologies Driving the Fintech Market in Germany
  • 4.3 A Brief on Consumer Needs And Behaviour Analysis Towards Germany Fintech Industry
  • 4.4 Industry Policies And Regulatory Landscape Shaping the Fintech Space in Germany
  • 4.5 Market Drivers
  • 4.6 Market Restraints
  • 4.7 Porter's Five Force Model
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers/Consumers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitute Products
    • 4.7.5 Intensity of Competitive Rivalry
  • 4.8 Impact of Covid 19 on the Industry

5 MARKET SEGMENTATION

  • 5.1 By Service proposition
    • 5.1.1 Money Transfer and Payments
    • 5.1.2 Savings and Investments
    • 5.1.3 Digital Lending & Lending Marketplaces
    • 5.1.4 Online Insurance & Insurance Marketplaces
    • 5.1.5 Others

6 COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration Overview
  • 6.2 Company Profiles
    • 6.2.1 AirBank
    • 6.2.2 Hawk:AI
    • 6.2.3 Finleap Connect
    • 6.2.4 OneFor
    • 6.2.5 Raisin DS
    • 6.2.6 N26
    • 6.2.7 Wefox Group
    • 6.2.8 NeuFund

7 MARKET OPPORTUNITIES AND FUTURE TRENDS