Finch Capital has published a detailed report on the state of European Fintech in 2019.
The report was produced together with Dealroom, entitled “The State of European FinTech, 2019 edition” and reveals the drivers behind the creation of value in this sector, the investors and buyers in the last five years.
The report also explains that fintech in 2019 was the largest investment category in Europe, attracting 20% of all investments and is more widespread in Europe than in Asia and the United States.
European Fintech companies have created more than twice the value of any other technology sub-sector in Europe.
The report analysed four vertical aspects of financial technology: banks and payments, insurance, real estate and new financial technologies. The largest investments in the last decade have focused on the banking and payments sector, but the data shows that they are shifting towards new technologies, such as AI and IoT.
The growth of the banking and payments sector is mostly attributable to new banks, while InsureTech, despite having raised large amounts of capital, has been quite disappointing.
The real estate sector is also evolving, with the rise of technologies such as blockchain and artificial intelligence, to the point that it is expected to improve greatly in the future.
Finch Capital’s founding partner, Radboud Vlaar, said:
“The report shows FinTech proven to be more than a buzzword, creating €150B in value, many jobs, better experiences & products for European consumers. The next wave of enabling Financial Technology will be less visible but even more value accretive as it will tackle the inefficiency of the Financial Industry and can easily add another €150B in value”.
Dealroom’s founder and CEO, Yoram Wijngaarde, commented:
“Europe’s next €10B+ or even €50B+ startup could very well emerge out of fintech. The term Fintech covers a vast space, from full-stack payment services like Adyen, to challenger banks like Monzo, to enabling tech like UiPath. With so much happening in the space, we’re excited to publish a comprehensive overview of the different areas of fintech, in partnership with Finch Capital, who know the space extremely well”.
Finch Capital is a thematic investor in European and Southeast Asian financial companies, as well as AI and IoT companies. It has offices in Amsterdam, London and Jakarta.
Dealroom was founded in Amsterdam in 2013 and consists of a global database providing insights into innovative companies and venture capital investments.