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FinTech in Europe: A Visualisation of Investment Trends

The financial technology sector has evolved enormously after the global financial crisis of 2008, and we seem to have entered a new phase in this exciting industry.
To understand exactly what the impact of FinTech in the different spheres of this complex world has been, it can be helpful to visualise the data on investments in European countries from 2008 to today.

Of the results that we can clearly identify from this map and the related chart, one of the most surprising is the fall in investment following the divisive Brexit vote in 2016, which might have frightened some investors who have notoriously been intrigued by the idea of investing money in UK-based companies in recent years.

One of them ought to be the dramatic shifts in the banking, finance, and insurance plan industries that are shaking the foundations of the European monetary scene with new banking firms and cash transfer businesses that are slowly but steadily consolidating their role at the top of the before inaccessible and relatively elite monetary scene.

In this map and chart, venture capital investments are still considered to be the main source of funding for FinTech companies. The huge drop in investments in the UK, and on a smaller scale all over the European countries we took into account, must not be seen as a “loss of faith” in this industry, but rather as a switch to private funding methods, which is generally perceived as a sign of a consolidating industry.

The uncertainty following the Brexit vote has, however, caused some stir in the financial technology industry sector. This has led to the rise of the German market, which has slowly but steadily gained an advantage on the UK-based investment scene.

Part of the attraction to the UK and the main factor that has contributed to the exponential growth of this sector over the years is the reliance on international talent, which is the main reason why regulations on immigration will be so crucially important in the coming months.

It’s anyone’s guess what the impact of a deal or no-deal Brexit will be on the booming FinTech industry, and there seems to be no actual consensus even amongst highly respected experts. For now, visualising the data and acknowledging this sector as one of the most prominent not only in Europe but all over the world, can be useful to familiarise ourselves with this relatively new way of perceiving the different facets of financial services.

Nicola Clothier
Nicola Clothier is CEO of Accurity GmbH, a Swiss-based employment service provider. Nicola has an Honours degree in English Literature from Stirling University and more than 20 years’ experience in Swiss employment, and personnel leasing up to executive level throughout Europe.

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