Rhein-Main-Neckar is Germany’s most dynamic FinTech Region
The FinTech scene continues to gain momentum with entrepreneurs. In 2015, 1.2 billion euros were invested in FinTech companies in Germany where 250 FinTech companies already employ over 13,000 people. Germany has the second largest concentration of FinTechs in Europe and the fourth largest in the world. Leading the charge in Germany are Berlin and the most dynamic region, the Rhine-Main-Neckar Region, whose number of FinTechs rose by 22 percent in 2015 to 56.
In the German FinTech sector the entrepreneurial spirit prevails: the number of young technology companies in the financial services sector, FinTechs, grew last year by 32, now totalling 250. The amount of Venture Capital funds invested in these Start-Ups has nearly tripled from ca. 200 million Euros in 2014 to 576 million Euros in 2015. In Europe, only the UK has the edge, with 707 million Euros being invested in FinTechs. The British FinTech scene now employs around 61,000 people whereas in Germany FinTechs employ about 13,000 people. Taking into account the acquisition of 360T by Deutsche Börse, the total investment in German FinTechs for 2015 is 1.2 billion euros.
Within Germany, two regions have distinguished themselves as FinTech hotspots: Berlin is currently home to 70 companies and the Rhein-Main-Neckar region is home to 56. The Rhein-Main-Neckar Region, however, has proven to be the most dynamic in the past year. The number of FinTech companies there rose by 22 percent compared to the nationwide growth of 13 percent.
These are the findings of a study commissioned Frankfurt Main Finance and conducted by the auditing and consulting firm EY. The study examines the German FinTech industry and identifies potential areas for advancement.
Under the leadership of Tarek Al-Wazir, the Hessian Minister of Economics, Transport, Energy and Land Development and member of the board of Frankfurt Main Finance, the State of Hesse has initiated the establishment of an independent and inclusive FinTech Centre in Frankfurt.
“As part of the digital initiative, we are working closely with the city, the region and local industry to create a centre for young FinTech companies. Our region has the best conditions for this, offering the necessary infrastructure, the university landscape, the proximity to the regulators, the ECB and the Bundesbank, and networking with industry. Moreover, Frankfurt has the international connections that are essential for a global FinTech industry. This initiative will permanently strengthen Hessen as a business location,” says Al-Wazir.