Top funded DACH Fintechs and Top DACH Fintech Cities
The global fintech landscape has experienced accelerated change in recent years thanks to expansive funding and the particularly central role the industry played in adapting to the pandemic and post-pandemic. Financial accessibility and digital services expanded rapidly around the world, giving businesses and consumers unprecedented access to banking services and financial convenience.
The latest report from findexable, in collaboration with Mambu, takes a look at a prominent region that is lifting fintech’s trajectory upwards – the DACH countries.
‘Fintech in Europe: The quiet revolution’ report by findexable
Geographically central and bringing together some of the wealthiest consumers on the continent, Germany, Austria and Switzerland are among the leading economic contributors in the region. And the ingredients for innovation have been ripe. DACH is home to an advanced infrastructure and some of Europe’s most skilled technology experts. Germany, Austria and Switzerland account for just 13% of Europe’s population, and house a fifth of developers. Established finance and banking industries have also provided a leg up with greater capital, a large reach to customers and unique problems to solve.
North America and Asia have historically been fertile ground for fintech growth and VC investment. And within Europe, the UK surprisingly continued to attract the most investment as the region’s leading financial hub. Yet fintech’s rising tide has affected every corner of the continent. Over the last half decade, DACH has increasingly attracted more of the global funding pie, emerging as a real rival to the original fintech hubs.
However, the coming years may be a time of uncertainty amid inflation and market volatility. Despite recent success, economic, societal and geopolitical changes are making it more difficult for fintechs to find their way forward. Especially as the focus has shifted from the pandemic-era enthusiasm for the digital economy to driving high growth and scalability for businesses.
DACH fintechs offer a way forward for the continent. By bringing together diverse technical talent with an established financial industry, businesses and consumers in the region are embracing financial innovation like never before.
‘Fintech in Europe: The quiet revolution’ report by findexable
The full report dives into six key factors driving this success:
Set up for success: DACH nations have exceptional technical infrastructure and human capital. From numerous software developers to the highest level of patent applications in Europe, Germany, Switzerland and Austria have all the ingredients for a thriving fintech industry.
Cultural Revolution: A region known for financial conservatism has transformed in recent years to become a fintech pioneer in several areas. DACH populations have embraced digital payments and cryptocurrency trading apps, as old certainties of financial stability have been eroded by rising asset prices and low returns on deposits.
Deep and diverse: DACH’s fintech ecosystem is geographically more diverse than any other in Western Europe, with no one city accounting for a majority of the region’s fintech. This allows pockets of sector-specific innovation to thrive from Crypto Valley in the Swiss canton of Zug to Banking-as-a-Service (BaaS) startups in Berlin and asset management products in Frankfurt.
Continental Powerhouse: After the UK, Germany and Switzerland are the primary destinations for fintech investment in Europe, leaving France in the wake. 2021 saw major funding rounds for fintech in sectors as diverse as insurtech, BaaS and investment, as major US venture capital funds entered DACH with a vengeance.
New uncertainty: From inflation to rising interest rates and geopolitical uncertainty, fintechs globally are entering a new period of uncertainty. A playbook is emerging in DACH, which involves doubling down on core markets and monetizing existing customers, rather than focusing solely on expanding the customer base.
Partnerships and technical agility will be key to navigating this world of change: The companies that succeed will be those that build alliances with other fintechs to distribute their products to customers and consumers, and increase sales by offering products in collaboration with other fintechs .
Read on to see the new normal for fintech in DACH and worldwide, where uncertainty is the new norm and businesses will work to tackle key challenges to deliver success. How can fintechs equip themselves for an environment of constant change?
