Frankfurt FinTech Report #5 – Frankfurt FinTech goes global!

South Korea, Hong Kong, Norway and Holland – in the first quarter of 2017 Frankfurt Main Finance was very busy developing its relationships around the world. In January, a Frankfurt FinTech delegation visited FinTech events in Busan and Hong Kong. In February, Frankfurt Main Finance made its first ties with the Norwegian FinTech scene and further solidified its relationship with Holland FinTech.

FMF delegation visit to South Korea and Hong Kong in January

Under the leadership of Dr. Lutz Raettig, President of Frankfurt Main Finance (FMF), a German FinTech delegation, organized by FMF, traveled to South Korea and Hong Kong from January 11 to 19. FMF Members Techfluence, Frankfurt School of Finance & Management and Peermatch also had representatives on the delegation.

In Seoul, the delegation took participated in the Korea-Germany Global Fintech & Blockchain Symposium at the Korean National Assembly. The delegation also met again with Chairman Kim Jung-Hoon, the Chairman of the Policy Committee of the Korean Parliament. After visiting Dayli Financial Group, one of Korea’s leading FinTech companies, the delegation continued its visit in Busan.

FMF signed a first agreement on a comprehensive partnership with the city of Busan in 2013, followed by a further agreement on FinTech in January 2016. At the Korea-Germany Fintech Roundtable, German and Korean FinTech companies presented themselves and took part in a lively debate on the future of FinTech in Korea and Germany.

In Hong Kong, the delegation participated in the Asian Financial Forum (AFF), the largest finance conference in Asia. In cooperation with the FrankfurtRheinMain GmbH and Hessen Trade & Invest, FMF was an exhibitor at the AFF and explained the advantages of Frankfurt as Continental Europe’s leading financial center and a premier location for Asian financial institutions.

At the FinTech O2O International Fintech Pitch Evening in Cyberport, the state-owned tech center in Hong Kong with more than 30,000 sq. meters of space for FinTechs and other tech companies, the delegation took a deep dive into the Hong Kong FinTech community for the first time. The FinTech O2O was part of the startmeup.HK week, organized by the Hong Kong government in collaboration with Invest.HK to promote the local start-up scene. At the AFF Deal Flow the next day, FinTech companies met potential investors. After further meetings with FinTech companies, the Hong Kong Monetary Authority, Cyberport and Metta, the Next Money FinTech Finals 2017 was the highlight of the trip for most delegates. The Next Money FinTech Finals are among the top 10 FinTech events worldwide.

Korean-German Blockchain Cooperation

At the Korea-Germany Global Fintech & Blockchain Symposium held in Seoul on January 12, 2017, a Memorandum of Understanding was signed between the Global FinTech Research Institute in Seoul, the Korean Society of Blockchain and FMF. This Memorandum of Understanding will pave the way to a more intensive cooperation between Korea and Germany on Blockchain. More than 30 members of a Korean-German Blockchain Working Group will meet for the first time on April 7, 2017.

Visit of a Norwegian FinTech Delegation

Since last year, FMF and the Royal Norwegian Embassy in Berlin have closely collaborated on FinTech matters. On February 1, 2017, a Norwegian delegation with representatives of Innovation Norway, the Norwegian Tech Industry Association, the Embassy, ​​the Foreign Ministry and the Tøyen Startup Village Frankfurt visited the Financial Centre Frankfurt. At an event in Deutsche Börse’s FinTech Hub on Sandweg, the delegation met representatives of Frankfurt FinTech companies. Both sides are keen to continue the exchange during the year with further events.

Money2020 Pre-Event in Frankfurt

In close partnership with Holland FinTech, FMF successfully organized two FinTech matchmaking events last November in Amsterdam and Frankfurt. A further meeting took place in Frankfurt in the new Tech Quarter on February 8, 2017, supported by ING DiBa. It featured the European roadshow of Money 20/20. After welcome speeches from all the partners involved, a panel with renowned industry experts discussed the implications of the forthcoming PSD2 directive.

If you are interested in participating in similar activities and events, please contact Dr. Jochen Biedermann.

FinTech Matchmaking

FinTech Matchmaking with Holland FinTech

After a successful round in Amsterdam, Holland FinTech and Frankfurt Main Finance joined forces again in Frankfurt for their second FinTech Matchmaking event. Both the Netherlands and Frankfurt boast a vibrant FinTech scene which makes for an ideal partnership in this international exchange between close neighbors. One of the main challenges for young start-ups is gaining exposure and expanding outside of their domestic markets. The successful Matchmaking event did not only facilitate exchange between participating entrepreneurs but also provided them with an introduction to potential cooperation partners and investors.

On November 25, 2016, more than eighty participants met at the Frankfurt offices of ING-DiBa, who also sponsored the event, to hear pitches from eighteen Dutch and German FinTechs. “Innovations arise when the best and most creative come together and learn from each other. That is why we are happy to support the event and look forward to the exchange,” says Željko Kaurin, Board Member at ING-DiBa. Also supporting the FinTech Matchmaking event was Hessen Trade & Invest. In between the two pitch sessions, the group was also given a tour of Frankfurt’s newly opened FinTech hub, Tech Quartier, and met with the hub’s director Dr. Sebastian Schäfer. The Tech Quartier is an important development for the FinTech ecosystem in Frankfurt and hopes to draw more FinTechs from abroad to the Financial Centre.

Pitching for the Frankfurt robo-advisor Vaamo, Co-Founder and Co-CEO Oliver Vins was quick to recognize the importance of these events for the local FinTech ecosystem. He explained after the event that, “it is always great to see the possibilities Frankfurt has to offer for FinTech companies as well as making international contacts. This is one of the many reasons why Frankfurt is such an ideal location for FinTechs.” Vins is happy to see Frankfurt’s ecosystem increasingly strengthening and attracting more cooperation with other countries. “Events like this help to steadily advance this exchange and always provide engaging contributions. We’re really happy to see more and more of these type of events being organized and to be able to take part as well.”

Based on the overwhelmingly positive feedback from all involved, Frankfurt Main Finance and Holland FinTech already have plans to continue the event series in 2017. Frankfurt Main Finance has a strong focus on creating partnerships and cooperating with other financial centres and joint FinTech events have begun to play a major role in these. To this end, Dr. Lutz Raettig, President of Frankfurt Main Finance, stated, “Many German FinTech companies have successfully established their business models in Germany and are ready to take steps to expand internationally. Through our partnerships with leading financial centres around the world, we are able to support these efforts and work to position the Financial Centre Frankfurt as an attractive destination for foreign FinTech companies. Fintech Matchmaking events like these are a great platform for these young start-ups.”

Participating FinTechs


FinTechGermany Award

FinTech Matchmaking Events in Amsterdam and Frankfurt

Financial services technology companies, known as FinTechs, are making moves and currently the latest trend in the financial sector. Across the globe, start-ups are pursuing the goal of digitalization in the finance industry, making it more efficient and customer oriented.

FinTech is a global game that cannot be played in one hub alone. Digitalization is a global process. Even though information travels at the speed of light across the world, the local connection to people is what creates value. Therefore, creating a worldwide network of Fintech hubs is the only way to really accelerate Fintech growth and reduce time to market both for start-ups and large corporates.

The large number of FinTechs in both the Netherlands and Germany presents the perfect opportunity to increase cooperation between the FinTech Communities. Therefore, Frankfurt Main Finance and Holland FinTech will organize two events, one in Amsterdam on 4 November 2016, and one in Frankfurt on 25 November 2016. FinTechs from across both countries are encouraged to participate in these events, present or pitch their company and discover potential cooperation partners, investors and friends.

“Our FinTechs and their innovative power are essential to Frankfurt maintaining its position as a leading international financial center. Supporting their expansion internationally by leveraging our global network of partners is of utmost concern for us. Together with Holland FinTech, we want to bring Amsterdam and Frankfurt closer together,” said Hubertus Väth, Managing Director of Frankfurt Main Finance e.V..

The event in Frankfurt will be sponsored by ING DiBa.

If you are interested in joining either event, please contact us and for further information. Download the agenda for the Amsterdam and Frankfurt events.

Contacts:

Francesca Aliverti, Holland FinTech, francesca@hollandfintech.com

Dr. Jochen Biedermann, Frankfurt Main Finance, jochen.biedermann@fmfinance.de

Global Fintech Hubs Federation

FMF Founding Member of Global FinTech Hubs Federation

Frankfurt Main Finance is excited to announce becoming a founding member of the Global FinTech Hubs Federation, an initiative supported by Innovate Finance and Innotribe. The Global FinTech Hubs Federation is an independent and inclusive global network of emerging and established FinTech hubs to help foster innovation across the world’s financial services industry. Hubertus Väth, Managing Director of Frankfurt Main Finance, explained Tuesday that, “This is another important step in Frankfurt Main Finance’s work to position Frankfurt as a global destination for FinTech. We look forward to working closely with the UK’s Innovate Finance and SWIFT’s Innotribe, both exemplary initiatives for advancing FinTech around the globe. FinTechs play an increasingly critical role in the finance industry and therefore, their advancement is of the utmost importance for the Financial Centre Frankfurt.”

Frankfurt Main Finance is no stranger to promoting FinTech. As the initiator of Dialogforum FinTech Frankfurt Rhein-Main, FMF worked to develop FinTech ecosystem in the region today. Part of Dialogforum’s work will culminate with the opening of Frankfurt’s new large-scale FinTech Centre, Tech Quartier, in October 2016. Supporting numerous initiatives across the region, Frankfurt Main Finance has facilitated cooperation and dialogue between entrepreneurs, academics, regulators, politicians and financial institutions to advance the Financial Centre Frankfurt as a destination for FinTech and innovation. Furthermore, in May 2016, Frankfurt Main Finance dedicated its flagship event, the Frankfurt Finance Summit, to exploring trends in digitalisation and FinTech. Titled On the Move – the Future of Finance, central bankers, politicians, regulators and executives met there to discuss the current trend of digitalisation and it’s consequences for the industry.

Expanding International Network with Global FinTech Hubs Federation

As the FinTech sector develops globally, it is creating a growing international community. The Global FinTech Hubs Federation is bringing together FinTech hubs to provide a neutral, cross-border platform to encourage greater collaboration, engagement and knowledge sharing in this growing global community. In addition to work within the region, Frankfurt Main Finance strives to maintain and develop relationships with other FinTech and financial centres around the world. This international network has advanced understanding and cooperation between FinTech centres and allowed for a productive dialogue to address the needs of young FinTech companies in a global environment. “We actively support German FinTech companies to expand internationally. Via our global network, we help them to easily find peers, clients and investors in our partner hubs. Furthermore, we welcome international FinTech companies in Frankfurt Rhine-Main. Frankfurt, the leading financial center of the Eurozone, offers them first-class infrastructure as well as easy access to capital, talent and regulatory know-how. Via the Global FinTech Hubs Federation, we will broaden our network and we are very much looking forward to sharing knowledge and to cooperate with other leading FinTech hubs and communities,” says Dr. Jochen Biedermann, Senior Advisor to Frankfurt Main Finance.

FinTech in Frankfurt Rhein-Main Region

Over the past years, the Frankfurt Rhein-Main region has distinguished itself as a dynamic centre for fostering FinTech innovation and growth. According to a 2016 study by consulting firm EY, the number of FinTech companies in the region rose by 22% in 2015 to 56 at the beginning of 2016. The study also shows a huge increase in investment in German FinTech companies, which totalled 1.2 billion Euros in 2015. Furthermore, the Financial Centre Frankfurt is home to several FinTech centres, including the forthcoming Tech Quartier, Main Incubator, FinTech Headquarter, Deutsche Börse Venture Network’s FinTech Hub, Accelerator Frankfurt and Goethe University’s Unibator.

FMF at Globalization of FinTech in Korea Symposium

By invitation of the Global FinTech Research Institute in Seoul, Jochen Biedermann gave a keynote at the symposium Globalization of FinTech in Korea. Top-ranking Korean politicians took part in that event. He presented the results of Frankfurt’s FinTech initiative Dialogforum FinTech Frankfurt Rhein-Main and introduced Frankfurt’s new FinTech centre, which will open in October. Furthermore, he motivated next steps in strengthening the FinTech partnership with Korea. Dr Biedermann also visited several Korean FinTech companies and encouraged them to expand their business to Europe via FinTech hub Frankfurt. With Finotek, a leading Korean FinTech company has already a presence in Frankfurt Rhein-Main and will send a representative from August onwards.

In a second keynote, Dr Biedermann spoke about international developments in FinTech and Blockchain at the Korean Computer Congress in Jeju-City.

The next visit of a Korean FinTech delegation to Frankfurt is planned for October.

 

Korean FinTechs Visit the Financial Centre Frankfurt

To help mark the 25th anniversary of Germany’s reunification, a 14-member South Korean delegation headed by Congressman Kim Jeong Hoon (pictured with Angela Merkel during the reception) visited the financial centre, Frankfurt. The delegation included leading FinTech companies like YAP Global, Finotek, Yello Finance Group and Datastreams corp. Frankfurt Main Finance organised an exchange at the offices of Frankfurt Economic Development between Frankfurt’s universities, Germany’s leading FinTech companies and the Maininkubator.

South Korea is the world leader in mobile payment among industrialized countries with a usage rate of 40%. With more than 60 million mobile payment users, Koreans are among the world’s fastest adaptors of FinTech.

Dr. Lutz Raettig, Chairman of the Executive Committee of Frankfurt Main Finance was impressed: “In this regard, Germany needs to catch up and we want to this to happen. On the other hand, in Frankfurt we have FinTech companies, like as 360T, which are unparalleled infrastructure providers. Korea and Germany complement each other well and we therefore hope to continue to work together even more closely.”

In December 2013, the financial centres Frankfurt and Busan signed a “Memorandum of Understanding” to mutually support and strengthen one another.