FinTech in Europe: shaping the financial and payments landscape

• The largest markets for FinTech in Europe are the UK, France and Germany.
• The Netherlands and Sweden produce notable fintechs.
• Ireland, Estonia, and Lithuania are small but high-value centres of FinTech in Europe.
• Payments hubs Malta amd Cyprus compete to lead in crypto assets.

Fintech in Bulgaria

FinTechs: 200+

Strengths: Payments

Bulgaria has seen rapid growth due to its skilled workforce and competitive cost base. Payments is a key segment, hosting many domestic and global players.

Fintech in Cyprus

FinTechs: 300+

Strengths: Crypto Assets, Markets, Payments

A strategic location, low taxes, and light touch regulation have fuelled rapid growth. Cyprus has an appetite for higher risk business and uses this experience to grow in payments, markets and crypto.  

Fintech in Estonia

FinTechs: 225+

Strengths: Blockchain, Core Banking, Crypto Assets, Digital Lending, RegTech

With a digital mindset and decades of experience in digital identity, cloud infrastructure, and decentralised data, Estonia is one of the most vibrant locations for FinTech in Europe. Unicorns including Wise, Veriff and ID.me have roots in Estonia. See more.

Fintech in France

FinTechs: 1,100+

Strengths: BaaS, Crowdfunding, Digital Lending, Enterprise, Insurtech, Neobanking, WealthTech

France is second-largest market for FinTech in Europe by the number of firms and fundraising. Start-ups and global players have driven rapid, export-led growth over the past decade, creating 14 unicorns. Strong ecosystem, universities, and government support position France well for future growth.

Fintech in Germany

FinTechs: 1,000+

Strengths: Capital markets, Deposits, Digital Lending, Enterprise, Insurtech, Neobanking, WealthTech

Germany is the largest fintech market by revenue and has grown 200% in 10yrs, driven by a large domestic market and strong funding. Home to N26, Raisin and more, Germany has strengths in capital markets and enterprise technologies, creating quality at scale.

Fintech in Ireland

FinTechs: 150+

Strengths: Capital Markets, Crypto Assets, Digital Lending, Enterprise, Markets, Payments, RegTech,

Ireland is a high-quality location due to its business environment, large financial centre, and export-oriented mindset. The government have aided growth with early-stage funding and regulatory sandboxes. The number of US crypto giants selecting Ireland as their base for FinTech in Europe is notable.

Fintech in Lithuania                               

FinTechs: 250+

Strengths: BaaS, Crowdfunding, Neobanking, Payments

As a long-standing hub for bank IT centres, Lithuania was quick to identify the opportunity in FinTech. Friendly regulation, fast licensing and Centrolink infrastructure attract the likes of Revolut and Western Union. The industry continues to grow its FTEs (7,000+) and value added, aided by a strong business environment and IT skills.

Fintech in Malta

FinTechs: 100+

Strengths: Crypto Assets, Payments

Light-touch regulation is positioning Malta as a location for higher-risk business, in particular payments and crypto assets.

Fintech in the Netherlands

FinTechs: 850+

Strengths: Capital Markets, Core Banking, Digital Lending, Neobanking, Payments, RegTech, WealthTech

The secret superpower of Fintech in Europe, commercialism and digital infrastructure has created numerous valuable FinTechs, including Bunq and Mambu. Strong IT skills, especially in AI, and quality regulation make the Netherlands well-placed to benefit from lead innovation.

Fintech in Poland

FinTechs: 400+

Strengths: Digital Lending, Enterprise, Insurtech, Neobanking, Payments, RegTech

Poland is the IT centre for Central Europe due to competitive prices and strong math and IT skills. Poland was early to digital financial services, including online lending and mobile payments, for a domestic market of 38m. Traditional strengths are being augmented by growth in Crypto Assets, WealthTech and AI.

Fintech in Spain                        

FinTechs: 400+

Strengths: Digital Lending, Neobanking, Payments, RegTech, WealthTech

FinTech in Spain has grown steadily and further growth can be expected given Spain adopts digital financial services, offers a competitive price point. and leverages language skills for LatAm.

Fintech in Sweden

FinTechs: 800+

Strengths: Digital Lending, Enterprise, InsurTech, Neobanking, Payments, RegTech, WealthTech

Sweden is the IT centre for Northern Europe, highly rated for its digital infrastructure, engineering, and innovation. Unicorns such as Klarna, Tink and Zettle emerged in Sweden before going global. With 99% of all transactions digital, strong funding and skills in AI,  Sweden is positioned for growth.

Fintech in Switzerland

FinTechs: 400+

Strengths: Core Banking, Blockchain, Crypto Assets, Deposits, InsurTech, Markets, Payments, WealthTech

An established global centre of banking and asset management, Switzerland has a vibrant FinTech sector with access to clients and funding. Strengths in Core Banking, Markets and WealthTech are augmented by Digital Assets and Blockchain infrastructure.

Fintech in Ukraine

FinTechs: 400+

Strengths: Custom software, Crypto Assets, Digital Lending, Enterprise, Neobanking, Payments.

Ukraine has a large and resilient IT industry serving global markets. With strong engineering skills, affordability, and unique skills in AI and Cyber, Ukraine will become a key centre for Fintech in Europe.

FinTech in the UK

FinTechs: 3,500+

Key Sectors: BaaS, Core Banking, Crypto Assets, Digital Lending, InsurTech, Markets, Neobanking, Payments, WealthTech

The UK is the largest market for FinTech in Europe, benefiting from a large financial services industry and c. 40% of EU early-stage funding. With 50 unicorns and dominant positions in numerous segments, the UK is well placed to remain at the forefront of innovation and regulatory developments.

FinTech in Europe Trends

The European Central Bank and other stakeholders recognise the importance of FinTech in shaping Europe’s new financial services and payments landscape. From new regulation, to funding and sandboxes, multiple public and private initiatives are under way that will drive long-term growth and uptier value added.