The Federal Ministry of Finance commissioned a survey of the German FinTech market. The study provides a good insight into a rapidly growing industry.
The study "FinTech Market in Germany" identified 346 active FinTech companies in Germany. The study focuses on the financing and asset management segments. These include providers of crowdinvesting, social trading, and robo-advice.
Banks are showing great interest in collaborating with startups: 87% of the surveyed financial institutions are already collaborating with a FinTech company. And for good reason: financial startups are rapidly conquering the market.
Three- to four-digit growth rates
Robo-advisors, i.e. providers of automated asset management, in particular, have recorded extremely high growth rates. Over the past two years, assets under management increased by an average of €1,200 million annually, reaching €170 million in 2015. Social trading and crowdfunding also achieved triple-digit growth rates. FinTechs in the payment segment transferred an estimated €17 billion last year.
According to the study, the market volume for FinTechs in Germany was €2.2 billion last year. The authors predict a rapid increase in the coming years. In the middle of three scenarios, they expect a market volume of €58 billion in 2020, a further doubling to €97 billion in 2025, and a market volume of €148 billion in 2035. The study already estimates the potentially addressable market for FinTechs at €1.7 trillion.
Across Europe, the study ranks the German FinTech market second after the UK. Within Germany, the authors counted the second-largest FinTech companies in Munich, after Berlin, and ahead of Frankfurt and Hamburg.
