Market Trends of Germany Fintech Industry
Increase in Investments in Fintech Sector is Fueling the Market
Germany's banking sector secured the most Fintech investment in 2021. Total Fintech investment in the EMEA region grew to a record USD 77 billion in 2021, driven partly by significant M&A activity. For instance, Germany's N26 raised USD 470 million from two separate deals, and U.K. neo banks Monzo and Starling Bank raised USD 144 million and USD 211 million, respectively, the latter from two separate transactions. The German Fintech is second-ranked in Europe for investment which raised EUR 2.1 Billion. This investment will help the Fintech sector grow and tap into a more potential market.
Merger and Acquisition Activity and Startups are Driving the Market
Germany is one of the leading European countries for Fintech. Startups are the driver for innovation in the sectors such as Fintech. In September 2021, more than 190 startups were targeting finance and Fintech. German FinTech funding is projected to reach USD 4.2 billion in 2022. In 2021 investment peaked at USD 6.4 billion. Deal activity in Germany is recorded as 272 deals in total for 2022. These activities are expected to boost the growth of the Fintech sector in Germany and further strengthen the roots in the market.
