Deutsche Börse AG turns 25

Deutsche Börse was founded as a stock corporation in December 1992, this date marks the start of the digitisation of the entire exchange value chain.

11 December 2017. Frankfurt (Börse Frankfurt). Deutsche Börse AG celebrates its 25 anniversary on the trading floor of the Frankfurt Stock Exchange on Monday. Numerous clients, regulators, former executive board and supervisory board members as well as employees join the bell-ringing ceremony to honour this anniversary.

On 11 December 1992, the former owners of the three independent companies – Frankfurter Wertpapierbörse AG, DTB Deutsche Terminbörse GmbH and Deutsche Kassenverein AG – opted to merge their businesses. The merger became effective on 1 January 1993, marking the foundation of Deutsche Börse AG. This created an integrated market infrastructure provider in Frankfurt and in Germany for the first time.

“European harmonisation plus digitisation were and are the cornerstones on which financial centre Frankfurt has been built. In the 1990s, the creation of Deutsche Börse as AG laid the foundation for boosting the financial centre’s international significance to a level corresponding to the important role the German real economy plays in Europe,” summarized Lutz Raettig, Chairman of the Supervisory Board of Morgan Stanley Bank AG and former Chairman of the Exchange Council of the Frankfurt Stock Exchange for many years, in his laudatory speech.

“Over the past 25 years, Deutsche Börse has developed into Europe’s most important financial market infrastructure provider by far. The driving force behind this achievement was and is our vertically integrated business model that rests on efficient technology in all areas. On this basis we expanded globally and extended our business to include a wide variety of asset classes,” said Andreas Preuss, Deputy CEO of Deutsche Börse AG.
Some of the most important milestones in the company’s history are:

  • Launch of electronic trading system Xetra as an equities trading platform in 1997
  • Foundation of Eurex in 1998 as a merger of Deutsche Terminbörse AG (DTB) and the Swiss futures exchange Soffex to create Europe’s largest futures exchange,
  • Deutsche Börse AG’s IPO in February 2001 and inclusion of its share in the DAX blue chip index in 2002,
  • Introduction of a central counterparty, first on the futures exchange in the 1990s and for Xetra in 2003,
  • Merger of the German post-trading business with Luxembourg Cedel and subsequent 100% takeover of Clearstream in 2002,
  • Foundation along with partners of STOXX index provider and full ownership acquired in 2015;
  • Entry into foreign exchange with the takeover of Germany’s most successful fintech company 360T in 2015.

Photo Source: Deutsche Börse

TechQuartier-Director Sebastian Schäfer: “We are a community based on innovation”

It is the focal point of the FinTech and start-up community in continental Europe’s biggest financial centre – and it is celebrating its first birthday: TechQuartier in Frankfurt. A discussion with the director Dr. Sebastian Schäfer on the FinTech ecosystem in Frankfurt. In the interview, he discusses the milestones they have reached and the goals that TechQuartier has set for the future. Finally, he discusses the insecurity from Brexit facing FinTech scene.

Mr. Schäfer, You are looking back at one year of TechQuartier. Which milestones have been reached during this period?

First of all, we are really happy about the reception we’ve had from the start-up scene. With around 80 start-ups, we have a full house now. Within the first months, we had already let the first 1,600 square metres with around 110 working spaces. In June, we added another floor with further 114 working spaces. From the very first day, we kept asking ourselves how to create a lively community and how this should look. We know it is not only about a nice place to work but about inspiration, learning from each other and networking. So, we brought together interested parties, members and supporters along with fitting topics – and successfully developed and started interesting formats. For example, Landing Pad, Papillon, Money meets Idea, or the Start-up Academy.

From the experience you have gained – where do you see further potential for TechQuartier, what are its strengths?

You can always improve. Our claim is to become a globally recognised Hub. This includes strengthening engagement on the venture-capital as well as marketing of our success stories in Frankfurt. Obviously our strength is that all participants are pulling in the same direction.

Brexit is occupying the financial sector. Is it a subject-matter for FinTechs as well?

Of course we are talking about Brexit and possible consequences for the FinTech ecosystem. We can see that insecurity levels are huge. Since nobody knows exactly how things will develop you can primarily feel indirect effects. If, for example, a FinTech from Asia wanted to come to Europe, they would probably have chosen London as their location. Now Frankfurt is an option people think of. We can see that by the fact that FinTechs from over 20 different countries applied for our last LandingPad where we offer the possibility to get to know the FinTech-Hub in Frankfurt. This interest bears the possibility for Frankfurt and the region to develop itself into a powerhouse of innovations thanks to systematic measures.

If you look ahead: Which goals has the TechQuartier set for the future?

Our goals are well-defined: More start-ups, more partnerships, more success stories. We want to make a contribution to Frankfurt’s start-up scene becoming internationally recognised.

Thank you very much for the interview.

Brexit brings up to 88 thousand new jobs in the Rhine-Main region

WHU study quantifies the Brexit impact on the employment market

New jobs in the banking sector – that’s the expected result of impending relocations from London to Frankfurt. As early as June 24th, 2016, one day after the referendum, Frankfurt Main Finance estimated the potential repercussion of a Brexit decision to be up to 10 thousand new jobs for Frankfurt within the financial sector and its directly related services. Today, some people already regard this figure as too conservative. A job motor can also be expected in other fields, according to the findings of a study by WHU – Otto Beisheim School of Management carried out on behalf of Frankfurt Main Finance. “It will be the multiplier effects on many areas of day-to-day life that will lead to a significant growth in employment above all in the Rhine-Main region,” explains Professor Lutz Johanning, who conducted the study together with Moritz C. Noll from the Chair of Empirical Capital Market Research. In this interview, both academics give us a deeper insight into the underlying calculations.

Prof. Johanning, what exactly is analysed in your study?

Lutz Johanning: We looked at the effects of the relocation of banking jobs in the wake of the Brexit decision on the employment market as a whole – for the City of Frankfurt, the towns and cities in its direct vicinity, and the Rhine-Main region. In the analysis, our focus was on the multiplier effects, i.e. what growth will result for other sectors and industries from an addition to the number of banking jobs. And the study shows that this effect is 2.1 to 8.8 times higher, depending on the area under consideration. Therefore, in the most optimistic case, if we assume ten thousand new bank jobs, up to 88 thousand new jobs can be created during the following four years in the Rhine-Main region.

Prof. Lutz Johanning: “The relocation of jobs doesn’t occur in isolation. People move their lives into a new city – with everything that involves.”

That’s a huge figure. How do you arrive at that result?

Moritz Noll: We extrapolated the existing statistical data on the employment market in Frankfurt and the region into the future with the help of an empirical model, taking the effects of the Brexit into account. To ascertain and arrive at meaningful figures for the purposes of further planning, we placed a high priority on two factors. Firstly, a valid data basis has been very important for us. Our study is therefore based on employment market data from the German Federal Employment Agency (BA) covering the past nine years. Secondly, we looked for statistical models that have already been effectively applied in the scientific community.

Moritz C. Noll: “Even though the Brexit is a unique occurrence, scientifically based models still exist that enable the repercussions for the employment market to be reliably assessed.”

Where did you find an appropriate solution? After all, the Brexit is an unprecedented event.

Noll: The Brexit is indeed unprecedented, but not the fact that jobs are moved to a new location as the result of changed basic conditions. There are, for instance, well-founded scientific analyses for the energy sector in the USA – bear in mind the topic of fracking. The resettlement of jobs to new locations is quite common in this context. The resulting repercussions, not only for the primary sector affected, but also in terms of the overall impact on a region have been frequently examined during the last few years. These models allow specific assumptions to be derived on which we have based our study.

Johanning: The indirect effects can be quantified with this approach. If a job at Bank X is moved from London to Frankfurt, this is not an isolated process. Rather, the person who occupies this position relocates his life into a new city – with everything that involves. He or she usually comes with a family, which means that all the corresponding needs have to be met. This begins with quite simple issues such as residential needs, schooling, training, and the requirements of daily consumption. But it also has wider structural implications – the keywords here are infrastructure, the educational system, the market for houses and flats.

Prof. Lutz Johanning: “The Rhine-Main region in particular will profit from the growth in jobs. Most of the additional jobs outside of the financial industry are more likely to occur in the areas around Frankfurt.”

Why are you so sure that the affected bankers will be transferring their primary place of residence to Frankfurt? After all, London isn’t all that far away.

Johanning: The same discussion took place a number of years ago in connection with the European Central Bank employees. The question then was also whether people will actually be moving to the Rhine-Main region or whether they will just be here to work. Experience shows that they come here to work and to live. That’s why this particular context has provided a best-practice example for many years, and this has served as an orientation for us in the study.

You have differentiated in your analysis – between Frankfurt, its immediate environs, and the region. What does this distinction reveal?

Johanning: Frankfurt will profit directly from the new jobs in the banking sector. That’s not a regional issue. The central office sites will be found in the city centre. Consequently, the effect here on other parts of the economy is also modest, around 2.1- to 3.4-fold. Bank-related services will also benefit during the course of development; but these services are often not located directly in the city, but in the immediate surroundings like Eschborn, Offenbach or other neighbouring cities. In addition, many people are looking for somewhere to live somewhat outside of Frankfurt. That, in turn, will benefit the neighbouring municipalities as well as the entire region. The larger the radius drawn, the more differentiated the effects and the greater the multiplier effect. Optimistically speaking, ten thousand new bank jobs in the city can generate up to 88 thousand new jobs in the Rhine-Main region.

The study mentions two models. What does that mean exactly?

Noll: We’ve made use of two models to assess the impact of the ten thousand new jobs in the financial sector on all the other industries. Model 1 takes a factor into account that dampens the growth effect to a greater degree. Model 2, on the other hand, does not include this factor, and the growth is estimated to be higher overall as a result. It was important for us to present the entire spectrum of possible results in the study.

You know the statistics in detail. In which industry will the effects have the greatest impact?

Johanning: It should be said to start with that Frankfurt is a region with a very high growth rate – even without the Brexit. The highest growth rates over the past few years have been recorded in the sectors of logistics, real estate and business services. These growth industries will be given an additional push through the Brexit effect. What cannot be deduced from our quantitative model, however, is which structural changes within the individual industries will lead to greater or less growth over the next few years.

Noll: In a further step, we examined with the help of our models how the long-term job growth rates differ with and without the Brexit. As a result, we were able to show that the long-term growth path is changed by an initial shock, i.e. the relatively sudden event of additional jobs flowing into the financial industry caused by the Brexit. This means that job expansion throughout the employment market as a whole can be significantly higher in the long term in the Brexit case than in a case without additional Brexit jobs. One can therefore see that the growth effects on the employment market can be markedly higher than the initial effect might lead us to expect. So there’s still room for growth and untapped potential.

Moritz C. Noll: “If we also take the long-term effects into account, even better figures are possible.”

So the upshot is even more growth for an already prospering region. Have you also been able to quantify in the study how local government tax revenues will change as a result?

Johanning: We’ve attempted to estimate this effect as well with the aid of a simple projection, at least for the Frankfurt city area. However, these results should be considered with caution since they are based on the previous results from the employment market forecasts, which inevitably results in additional inaccuracies. We looked at the local government share of the income tax, the value-added tax and the local business tax. In summary, we estimate that the City of Frankfurt will be able to earn between EUR 136.2 and EUR 191.9 million in revenue every year through the three above-mentioned tax forms as a result of the additionally created jobs.

Thank you for the interview.

Winning Frankfurt: Brexit Bankers’ Welfare Effect Beyond Bringing Their Jobs

Picture credits: fritzphilipp photography 

“Influx to Frankfurt – chances for the city as business location, financial centre and modern metropolis”

Frankfurt will profit when many bankers move from the Thames to the Main. Here is an interview about the chances and challenges with Dr. Rolf E. Stokburger, Managing Partner, Germany, at the international HR consultancy Boyden and a specialist in the search and placement of executive personnel.

People working in London’s financial sector seem increasingly willing to move to Frankfurt. What are the reasons for this?

Dr. Rolf E. Stokburger: The increasing relevance of the Brexit vote and the resulting decision of a number of banks to switch their location for financial services and products to Frankfurt are causing more and more London bankers to think about moving to Frankfurt. American and Japanese banks, in particular, such as Goldman Sachs, Morgan Stanley, Citi, Nomura, Daichi or the Swiss-based UBS, have already announced their intention to resettle. We can distinguish two groups of bankers at the moment. Firstly, there are those who see relocation as an opportunity for career advancement and therefore want to play a pioneering role as a “first mover”. Secondly, we have a lot of professionals whose move to Frankfurt is planned as a part of the resettlement of their business division – and who simply have no other choice but to “take it or leave it”.

When all these people live and work in Frankfurt in future, what are the opportunities that such an inflow presents? And what are the challenges?

Stokburger: When the first wave of London bankers comes to Frankfurt, our financial centre will grow further and the city will become more important internationally. But the expansion of existing foreign bank representations in Frankfurt and the foundation of new banks under German law will also create new jobs for German bankers, especially in the fields of risk management, compliance and administration. In addition, any enlargement of the Frankfurt financial centre will certainly help attract further players and operators in the market, such as business consultants, auditors, law firms and private equity funds. The banks resident in London at the moment, on the other hand, will inevitably have to draw up appropriate incentive plans for Frankfurt so as to induce and motivate their employees and executives to move to and remain in the Main metropolis. And for its part, the City of Frankfurt will have to face up to the challenge of providing enough living space for homes along with the sufficient international school places and day-care facilities.

How can the Rhine-Main region best prepare for this influx?

Stokburger: The relocation of capacities to Frankfurt announced up to now must be seen within a longer perspective. It can safely be assumed that the establishment and expansion of specific banking houses that has now been publicised will be followed by a number of others – a great opportunity for Frankfurt as a business location and financial centre, but also a great chance for Frankfurt as a major city. With a view to this imminent influx, as well as any further settlements that may come, the city and the region should act together with a more unified voice and with a greater resolve and should offensively advertise the merits of Frankfurt as a top location. Frankfurt, together with the many towns and municipalities in its environs, has a host of advantages over a mega-city like London – and these benefits should be proactively promoted. A glance at the various construction projects currently in progress in the City of Frankfurt already shows that at least the real estate sector is geared up for growth. To make sure that the integration of new bankers into the urban and social life of the city is as smooth and successful as possible, it is now up to the city marketing and development planning agencies to communicate the cultural strengths and advantages of Frankfurt and its vibrant diversity more effectively. This will help brush up, if not revamp the image of a city that is partially perceived as being too provincial.

You can read more about this topic here:

Picture credits: Boyden

Frankfurt is growing: taller

Frankfurt has a lot to offer: in addition to the culinary delights of Apfelwein and Handkäse, it can also boast the only skyline in Germany that can stand up to international comparison. And the city continues to grow tall.

The city on the River Main is getting ready for growth in the wake of the UK’s exit from the European Union (EU). Between 15,000 and 20,000 people could be coming to Frankfurt every year. Indeed, the first few banks have already decided to relocate their European headquarters to Mainhatten. This is because banks outside Europe need a so-called EU Passport to enable them to do business within the EU. If they have a licence in the UK, they can no longer operate in any EU country after the Brexit has been completed.

As a result, office space and living space are both in demand in Frankfurt. 20 new are to be built during the next few years. Around 300,000 square metres of office space are being planned. The intention is that the new buildings should not just impress with their height, but should also captivate through the charm of their architecture. Here’s an overview:

1. Deutsche Bank Area (2021/2022)

Four glass towers with green landscaped terraces on the podium level are to be built by 2022 at the Roßmarkt location that Deutsche Bank has been using for decades as a trading centre. A mixed-use quarter with four high-rise buildings replaces the old buildings: a 228-metre high hotel and office tower, two 120- and 173-metre high residential towers and a 100-metre high office tower. In an architectural competition, the Netherlands firm UN Studio had prevailed against 14 competitors with this design proposal. The first towers are to be finished as early as 2021. The developers Groß & Partner will be starting the demolition this year.

2. Henninger Tower (2017/2018)

Almost finished is one of the most popular of Frankfurt’s landmarks, which has reinvented itself architecturally: the Henninger Tower is one of the winners of the International Iconic Awards 2015 and was acclaimed as an example of “visionary architecture” in the “Architecture/Domestic” category. The new residential high-rise has a height of 140 metres and is higher than the tower built in 1961, which soared up around 120 metres into the sky. The conspicuous barrel-like pod on top of the tower remains preserved. It contains a restaurant with panoramic view along with a viewing platform on the 38th floor. Additional facilities for wining and dining and for shopping are being created in a plinth building next to the Henninger Tower.

3. Tower 90 (2018)

In Frankfurt’s Europaviertel district, opposite the “Grand Tower”, a new tower block with hanging gardens is to rise up on the former Telenorma site by 2018. “Tower 90” is the name that has been given to the 90-metre high building with 28 floors, in which around 212 apartments are being created. The site covering 13,700 square metres will also house a 60-metre hotel tower and an extensive supermarket.

4. Grand Tower (2019)

Looming 172 metres into the Frankfurt sky, Germany’s highest high-rise residential building will soon take its place in the immediate vicinity of the Skyline Plaza. 401 condominium apartments are planned on 47 floors. Penthouse flats with up to 270 square metres will also available in the tower located at the intersection of the Europa-Allee and the Osloer Straße. The luxurious character of the skyscraper will be underscored by a variety of available services. The building shell is scheduled to be ready at the end of 2017, and residents will be able to move in from mid-2019 onwards. The lower floors with the facade’s glass honeycomb structure on the “Skyline Plaza” shopping centre site are already constructed.

5. Porsche Design Tower (2018)

The first European residential high-rise from the luxury and lifestyle brand Porsche Design is to be built in the new development area on the premises of the former freight station (Emser Bridge in the Europaviertel). It is destined to be around 100 metres high and offer fully furnished suites and penthouse apartments in Porsche Design by the end of 2018. It won’t just be striking inside, however: the unusual face of the building is designed to have loggias that jut out like open drawers from the facade.

6. Cascada – Rising Residences (2018)

Construction work on the 60-metre high Cascada – Rising Residences in the Europaviertel has already begun. The base structure of the residential tower is to be built in a C-shape and embrace a central garden. As is the case with the other new residential high-rise projects, a mixture of different apartment sizes and types is also envisaged in this project. The homes will be ready for occupancy as early as 2018.

7. The Marieninsel (2019)

In the heart of Frankfurt’s banking district, directly opposite the twin towers of Deutsche Bank, the so-called Marieninsel is under construction with two new office towers. The 155-metre high Marienturm with around 44,900 square metres of rental space is to be ready for occupancy in early 2019. The 40-metre high Marienforum covering 11,700 square metres is scheduled to be completed in 2018. The interior of the buildings is being conceived by the Milanese designer Patricia Urquiola. The newly created Marienplatz site on the area is to accommodate an appealing spectrum of bars, restaurants and retail outlets.

8. Omniturm (2018)

Life like it is in New York: the new “Omniturm” in the banking district is intended to combine living, hotel offers, cuisine, business, offices and public spaces under one roof with a unique urban flair. The 183-metre high glass skyscraper is planned as an “innovative mixed-use high-rise”. Completion is scheduled for the end of 2018.

9. One Forty West (2020/2021)

The 140-metre high “One Forty West” is being built close to the exhibition grounds, on the site where a former university tower was spectacularly demolished by a controlled explosion a few years ago. A hotel will be moving into the first 15 of the 40 floors, three floors are reserved for service apartments, and up to 300 apartments are to be installed on the upper floors. The topping-out ceremony for the new building is planned for the first quarter of 2019.

10. Axis

Two further new residential towers will already be ready for occupancy at the end of 2017 at the address Europa-Allee 165: the first owners are already living in the 60-metre high “Axis”. The “Praedium”, which is also 60 metres high, is well on its way to completion. The 19 storeys of the building have room for 242 freehold apartments, eight shops, a restaurant and an office area.

11. Drei Schwestern (Three Sisters)

Downtown living: that’s the possibility opened up by the “Three Sisters” high-rises situated directly next to the “MyZeil” shopping centre starting in mid-2020. The heights planned for the three residential towers are 44, 60 and 85 metres. They are designed to contain up to 500 small apartments as well as rentable common dining areas for larger celebrations and social events. In addition, the project is to be given a new name.

12. Winx (2017)

In the middle of this year, the shell construction of the “Winx” office tower is to be finished on the so-called “Maintor-Areal” site next to the Schauspiel Frankfurt theatre. The 110-metre high tower will accommodate offices and restaurants totalling 42,000 square metres. Its location directly on the River Main will offer a fabulous view of the city and river.

13. One (2021)

The 49 floors of the hotel and office tower “One” are to be completed by 2021. The 190-metre high tower, which will rise up in front of the entrance to the Kap Europa congress centre in close proximity to the Tower 185, Pollux and Castor high-rises, will be available for a mixture of hotel and office use.

14. Blue Horizon (2018)

“Blue Horizon” is a new residential tower that will be erected on the site of the former Hesse Association of Statutory Health Insurance Physicians (KVH) by the end of 2018. The old 19-storey office building is being gutted and will then be reborn as a residential high-rise with 118 apartments and a total area of 9,000 square metres. Four commercial units are to be established on the ground floor. The facade is being designed in a natural sandstone look.

15. Westend Ensemble (2018)

In the prime Westend district of the city, prestigious apartments for owner-occupation are being created by 2018 in the listed building formerly used by the Regional Post Directorate.  The building, which is located directly opposite the exhibition grounds, is being completely gutted and lovingly refurbished with great attention to detail. The Senckenberg Carré, situated next to the historical section of the former “Oberpostdirektion”, will be completely demolished and replaced by a new structure containing rental apartments. The Westend Ensemble will be rounded off by an elegant high-rise with a view over the Frankfurt skyline.

Up-to-date news about these projects can be found at Skyline Atlas.

Picture credits: Groß & Partner

歓迎される – Welcome

Frankfurt am Main will be the future EU location of the finance companies Mizuho Securities, Daiwa Securities, Sumitomo Mitsui Financial Group and Nomura. But why are foreign banks deciding in favour of Frankfurt? And what are the chances and challenges presented by moving? Here’s an interview with Dr. Oliver Wagner, Managing Director of the Association of Foreign Banks in Germany (VAB).

Why are foreign banks coming to Frankfurt?

Dr. Oliver Wagner: There’s a whole bundle of motives involved when banks choose Frankfurt. From the regional perspective, it’s not only the central location of the Rhine-Main area in the heart of Germany, the good transport connections thanks to the international airport and the central railway station with its ICE links, and the motorway network, it’s also the comparatively inexpensive office rents and the comprehensive IT infrastructure that count. This is supplemented by the closeness to the German stock exchange, the just under 200 banks who are represented in the Frankfurt region – including around 160 foreign banks – with their 70,000+ employees, and the presence of diverse consultants, auditors and law firms. Independent of the location Frankfurt, another decisive factor is certainly the effective, reliable and open-minded supervision of the Federal Financial Supervisory Authority (BaFin) and the Bundesbank, which also provides for dialogue and, to a major extent, documentation in the English language. That’s hardly an exhaustive list, but it’s worth stressing that Frankfurt has never promised tax reductions or other benefits and privileges, which are incentives we have certainly heard from other locations.

What are the greatest challenges faced by a company that is now relocating its EU headquarters in the wake of Brexit?

Wagner: It’s impossible to give a general answer to that question since it very much depends on the available structures that one can build upon. Banks not active in Germany before have to apply for appropriate authorisation from the supervisory authorities, and experience shows that can take around a year. That also applies to companies that have been operating up to now on the basis of the EU Passport. They also need a new permit and will be particularly expanding their back-office employees and infrastructure. If additional business domains such as broker-dealer operations are to be newly set up, this will require extensive investment. The key question is how one can continue to utilise the structures that already exist, possibly through channels of outsourcing. In general, it’s clear that a number of regulatory and tax issues will have to be faced.

And what are the greatest opportunities?

Wagner: First of all, I believe that Brexit is not a positive development, either for the European Union or for the United Kingdom. In an era of globalisation and networked markets, a mosaic of fragmented markets means additional costs and effort for almost all the parties involved. If one tries to find a positive side in this disruptive event, it might be the chance for companies to readjust themselves, question the status quo, and reassess previous practices.

What should definitely be borne in mind during the Brexit negotiations from the standpoint of the financial sector?

Wagner: Transition periods should certainly be agreed. It is foreseeable that it won’t be possible to regulate everything in the coming months up until the end of March 2019 so that a legally incontestable and smooth shift can become made on March 20th, 2019. This legal certainty for products and services is necessary, not least for the sake of financial stability.

Who is settling in the Financial Centre Frankfurt?

“Japanese banks warned very early on about the consequences of Brexit and are now among the first to react,” says Hubertus Väth, Managing Director of Frankfurt Main Finance. “Next, we’re now expecting decisions from the American and European banks, and we’re also confident as far as they are concerned.” Exactly who the financial companies are who will be coming to Frankfurt is shown below with an overview of selected key figures in comparison to the Deutsche Bank Group.



Frankfurt Marathon

Frankfurt Marathon – Runners Celebrate after 42.195 KM

On Sunday, October 30, 2016, runners from 104 countries tested their endurance in the 35th Frankfurt Marathon. Behind the Germans, the French and British, with 589 and 360 runners respectively, made up the largest participant groups. In addition, runners from Belarus, India, Madagascar and even one from Greenland were drawn to the marathon in the Mainmetropolis. Thirty percent of the 15,850 participants, the second most in the race’s history, came from abroad for the sporting event and combined their experience with shopping, museum visits and even an early Glühwein. For the prominent field of professional runners, the Frankfurt Marathon is particularly popular. Due to its generally flat course, with a total elevation change of only 27.8 meters, the Frankfurt Marathon is considered the third fastest course in the world. Thanks to the many professional athletes from around the world, the Frankfurt Marathon is the only German city besides Berlin that has been awarded a Gold Label from the International Association of Athletics Federations.

According to the Frankfurt police department and event organizer estimates, around 500,000 spectators came to watch the race and enjoy the nearly 100 parties featuring bands and DJs along the course. The marathon came to an end after 42.195 kilometers in Frankfurt’s Festhalle, where runners crossed the finish line and continued on to a red carpet leading to the finisher’s party. Participants celebrated their accomplishment in a disco atmosphere with music, lighting effects and the enthusiasm of the spectators. The last runner crossed the finish line at 4:25 PM, marking the close of 2016’s Frankfurt Marathon. At the Festhalle, around 7,000 people watched broadcasts from the race, the awards ceremonies and, of course, further enjoyed the huge party to honor the finishers of the 35th Frankfurt Marathon.

FinTechGermany Award

CFS Survey: the issue of cyber security must be on every financial industry agenda

The issue of cyber security is of central importance. Germany’s financial industry is in firm agreement on this point, attributing it a significance of high (20%) to very high (75%). This is shown by a current survey of financial institutions and service providers in the Financial Centre Germany conducted by the Center for Financial Studies. However, the industry is also largely in agreement (78%) that the issue is not being sufficiently addressed at the moment.

Most of the financial industry only expecting some measure of support from FinTechs

Only 8% of the survey participants expect significant support from FinTechs in the area of cyber security. Half of them (51%) believe their company will receive at least some measure of support. On the other hand, 29% are anticipating little support from FinTechs, and 7% none at all “The issue of cyber security is a key topic for the future, and in fact it is tailor made for young technology companies. I therefore expect we will soon see more start-ups in this area,” Professor Volker Brühl, Managing Director of the Center for Financial Studies, interprets the results.

Cyber security can become a competitive factor in the future – Establishing European data centres is seen as important to crucial

The large majority of the financial institutions (86%) is in agreement that the issue of data security can become a competitive factor for financial service providers. Only 12% do not believe this is a relevant point. Since a large amount of data from European users is stored by social networks in the US, the necessity of providing data centres for critical data in Europe is under discussion. The majority of the financial industry (59%) believes it is important to establish such data centres, while 26% regard this as crucial. On the other hand, 12% see little relevance in where data centres are located.

“The study demonstrates how important a world-class data infrastructure is for today’s financial sector. The Financial Centre Frankfurt sets the bar pretty high with dozens of data centres and the DE-CIX internet exchange. More than half of the German data centres are located in Frankfurt and the surrounding region. Our status as the Data Capital of Germany is irrefutable and makes us an even more attractive location for FinTechs,” comments Hubertus Väth, Managing Director of Frankfurt Main Finance e.V.

Bitcoins not expected to gain in importance as a payment method in light of data security concerns

Bitcoins are supposed to be particularly suited to preventing hacker attacks in payment transactions. However, the majority of the financial industry (73%) does not expect bitcoins to gain in importance as a payment method in light of such concerns.

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Accelerator FFM

The first class of Start-ups have begun their four-month program at Accelerator Frankfurt, an independent accelerator that gets startups investment-ready by finding cooperation partners, customers and investors. The first wave consists of eight startups: Alyne (RegTech, compliance as a service), Beeeye (credit scoring using machine learning), Cindicis (contextual intelligence platform), Fenror7 (Cybersecurity for enterprises) Pronteo (peer to peer FoodTech), Schnellspesen (FinTech, automated expense management), Secured Touched (Cybersecurity for mobile devices) and Wroomer (efinance platform for used cars). Commenting on the program kick-off, Accelerator Frankfurt’s Founder Ram Shoham stated, “The program would not be possible without the help or our strategic partners AtoBe, Beiten Burkhardt, d-fine and die firma, each providing the startups with necessary services that will help to accelerate their learning curve and probability of success.”

Frankfurt Main Finance would like the congratulate the eight Start-ups which were selected from more than 150 applicants. Furthermore, start-up accelerators play an important role in the ever expanding Frankfurt FinTech ecosystem. FMF has long supported efforts to attract accelerators to the Frankfurt Rhine-Main region and will continue to do so. Accelerator Frankfurt brings together expertise and mentors from Germany, Israel and Scandanavia, creating a perfect example of private initiative and international cooperation. Successful start-ups are an important stimulus for the local economy, creating jobs and attracting investment to the region.

The Accelerator program will end with a demo day in January 2017.

Women in FinTech

On Monday, September 22, 2016, the kick-off meeting of Women in FinTech was held in the offices of Frankfurt Main Finance. Initiated by Marguerite Arnold, the event series is intended to address how to increase the proportion of women entrepreneurs and in the FinTech sector in general. Amongst the many themes discussed in the evening, including financing opportunities, legal conditions, information channels, and networking, all agreed that there is a need to increase the visibility of women in the FinTech and finance sectors. The next Women in FinTech evening will take place on October 25th and explore the legal requirements and procedures for founding a Start-up.

Start-Up Grind

On Thursday, September 22, 2016, the Frankfurt Startup Grind chapter hosted their seventh event. Hosted on the 48th floor of PWC’s building in Frankfurt’s Westend, breathtaking views of the Financial Centre to accompanied conversations between members of Frankfurt’s vibrant FinTech community before the formal programming. Speaking at the event were Hartmut Giesen and Andreas Wiethölter. Giesen, of Sutor Bank, manages business relations and is responsible for the strategic development of the Sutor Startup-Platform. Andreas Wiethölter is the CMO and Managing Director of Deposit Solutions, a Hamburg-based FinTech which launched ZINSPILOT as a B2C product in 2014. The video from the event can be found at Startup Grind Frankfurt’s Facebook.

Upcoming Frankfurt FinTech Events:

BCG Study: Frankfurt Most Attractive Destination for London’s Bankers

A recent survey by the Boston Consulting Group (BCG) examines financial centres which could be viable alternatives to a post-Brexit London. Nearly 360 decision makers from banks in the United Kingdom, USA and Germany evaluated nine potential locations on fourteen criterion, including but not limited to infrastructure, business environment, stability, lifestyle factors, access to markets and institutions. The results of the online survey, conducted in June 2016 before the UK’s EU referendum, shows the Financial Centre Frankfurt am Main leading the ranks. Dr. Wolfgang Dörner, Senior Partner and Director of BCG’s Frankfurt office, explains that “the economic and political stability in Germany combined with access to a highly qualified talent pool make Frankfurt am Main a leading choice in location.” According to the study, around twenty percent London’s financial services jobs could shift to other global financial centres. Uncertainty still prevails for most in London’s financial centre, but one thing is certain: Frankfurt is ready and well positioned to welcome those in need of a new home.


Press release from Boston Consulting Group (German).