Europe Fintech Market 2020-2025

October 22, 2020
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EUROPE FINTECH MARKET

INTRODUCTION

FinTech refers to the unification of technology into services, propounded by financial services companies. The main aim of FinTech is to improve the use and delivery of financial services to its customers. The technology in the Europe Financial market has been there for many years, it’s only in the last few years that the fintech has gained huge significance in Europe.

 

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Majority of FinTechs in Europe were founded after the financial crisis of 2008 because many banks were engaged in recovery while the FinTechs focused on providing better financial services to the consumers without the need of being physically present. In Europe, Fintechs have partnered with the financial institutions to provide more innovative and world class experience to its customers.

 

 European Consumers have started liking the FinTech and positive responses from the consumers have been driving the innovators to find new approaches of delivering financial services.

 

EUROPE FINTECH MARKET SIZE

FinTech market in Europe has experienced various fluctuations from 2014 – 2019, however it saw a robust growth in 2019 and attained a value of XX billion. Europe FinTech market is more active than that of Asia and the USA and it accounts for almost 20% of all European global investments.

 

The FinTech investment is expected to rise in Europe as more and more fintechs are capturing larger deals. The rising trend of investment in the FinTech market shows that the industry is heading towards maturity. The rise in new technology has pushed innovation in this sector.

 

 

As far as the relative size of the FinTech segments is considered, Digital payments top the chart followed by personal finance, alternative lending and alternative financing.

 

EUROPE FINTECH MARKET DYNAMICS

The FinTech market has seen tremendous growth in Europe and the major reasons for this are: high adoption rate by the European consumers and open banking. Increased convenience to the consumers, cost saving ability of the FinTechs have helped the European people to stick to the services offered by the them.

 

Therefore, FinTechs have started expanding in terms of capitalization, sophistication and have become major competitors for each other. Adyen is the chart leader based on its valuation followed by Nexi. Adyen generated net revenue of €497 million which is up by 42% YOY and Nexi’s revenue stood at €984 million which is up by 7.1% YOY.

 

The companies have been investing in innovation, quality and security in order to compete with the market players and the spending on innovation are at a record high level.

 

The financial sector, which did not see any major change in the last 2 decades, has now been redefined by the entry of startups and it has been evolving since then. The startups brought in the technical innovation because of which the money started flowing into the FinTechs.

 

Partnerships and mergers between the FinTechs and Financial institutions aim at providing better user interface and more innovative solutions to the consumers.

Trend of partnerships has already evolved in the market and many FinTechs have started a B2B revolution which aims at providing services to the larger players in the market. This is likely to change market dynamics where B2B FinTechs would provide digital transformation and solutions to most of the market players.

 

Tech giants pose a serious threat to the existing banks and financial institutions, hence, acquisitions and partnerships of existing banks and financial institutions with the FinTechs can reduce this threat which have already suffered because of the emergence of the FinTech market.

 

FinTechs in Europe have not only focused on providing online payments, point of sale, flexible payment solutions for platforms but the sector has also started focusing on unified commerce which aims at creating the best consumer experiences on any channel.

 

The existence of top players in the European fintech market would never have hurdled the success and entry of new player but the COVID-19 crisis has not only posed a threat to the new entrants but the the existing players as well.

 

COVID IMPACT ON EUROPE FINTECH MARKET

The COVID-19 pandemic has affected the market in various ways. The new startups are less likely to enter the market as the investment by the venture capitalists is at a decline. Also, the early stage deals of the FinTechs have been fluctuating which signals that the small players are at a risk of running out of money.

 

The deals in FY 2020 have declined from 169 during January- March to 148 between April and June. Major reasons for this decline in the deals are the outbreak of the COVID-19 pandemic and the crisis faced by economies all over the world.

 

The government funding is helping the FinTech market to cope up the losses and the consumers would resort to FinTechs rather than standard banks as these do not require physical presence and help people in restricting mobility.

 

As stated earlier the B2B will catch up more pace in this sector, however, the smaller firms will go out of business. The current time offers great pricing so the companies will engage in capital attraction after more detailed return on investment (ROI) analysis and would continue to focus on more user-friendly innovation.

 

The fact that the non-financial institutions will also try to enter the FinTech market after some merger or partnership cannot be ruled out, given that they adjust to market changes swiftly. The sector is full opportunities and profit for the existing players, if they continue to adjust to the market changes in a swift manner and cope up with the damage caused by the pandemic.

 

COMPANIES PROFILED

Sl noTopic
1Market Segmentation
2Scope of the report
3Abbreviations
4Research Methodology
5Executive Summary
6Introduction
7Insights from Industry stakeholders
8Cost breakdown of Product by sub-components and average profit margin
9Disruptive innovation in the Industry
10Technology trends in the Industry
11Consumer trends in the industry
12Recent Production Milestones
13Component Manufacturing in US, EU and China
14COVID-19 impact on overall market
15COVID-19 impact on Production of components
16COVID-19 impact on Point of sale
17Market Segmentation, Dynamics and Forecast by Geography, 2020-2025
18Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025
19Market Segmentation, Dynamics and Forecast by Application, 2020-2025
20Market Segmentation, Dynamics and Forecast by End use, 2020-2025
21Product installation rate by OEM, 2020
22Incline/Decline in Average B-2-B selling price in past 5 years
23Competition from substitute products
24Gross margin and average profitability of suppliers
25New product development in past 12 months
26M&A in past 12 months
27Growth strategy of leading players
28Market share of vendors, 2020
29Company Profiles
30Unmet needs and opportunity for new suppliers
31Conclusion
32Appendix

 

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