The European financial sector is witnessing a tectonic shift resulting in the relocation of continent’s fintech hub. Until now, London has been the financial hub of the entire continent. The United Kingdom boasted of housing some of the best fintech companies developing cutting edge products. However, Brexit has poured water over the country’s big plans.
With Britain’s eventual exit from the European Union, the focus of fintech market has shifted from London to Berlin. The change is evident in the German Finance Ministry’s recent report. According to the report, even tough Brexit has made German look much favorable in the eyes of financial companies, it is not completely responsible for the country’s emergence as a fintech powerhouse.
The data presented in the report shows that the country has about 433 fintech companies within its borders, out of which 346 are active. These companies operate in a range of fintech sectors including financing, asset management, crowdfunding, crowdlending, blockchain technology and more. Previous year’s figures indicate that these platforms have handled over 270 million euros worth of funds in one year.
The blockchain technology is favored in the financial and banking industry for its potential to enable automation of various operations.