Startups are now the future, and it’s in the fintech industry where this growth is most evident. While places like Silicon Valley and Palo Alto come to mind for all things tech, Europe has its fair share of fintech startups that are leading the way for innovation.
The Economic Times reports that Indian-based startups are even moving to countries like the Netherlands and the United Kingdom, citing global investment interests and stable regulations as big draws. The same article goes on to state that some startups are even considering moving their parent companies abroad. Such movement speaks to how tech insiders are now placing Europe as the land of startup opportunity.
The growth is all across Europe
Europe’s fintech startup hubs aren’t just relegated to the Netherlands and the UK. Sweden placed second in the Global Innovation Index report last year; the Nordic country is home to music giants Spotify and fintech company iZettle. In fact, one-fifth of Stockholm’s population works in tech. Continuing this trend, truck delivery service Volta and mobile banking service Rocker are among the list of fintech startups that insiders are most excited about.
Down south, Lithuania is steadily growing as a tech hub in its own right. The fintech sector grew by 24 percent last year, and Silicon Canal has placed Lithuania as Europe’s second largest fintech hub. The range of such startups proves that fintech isn’t just relegated to mobile payments (although that does make up the majority of the industry), with Europe looking to pave the way towards a new economic future.
European governments have helped accelerate the fintech industry’s growth by creating regulations that require banks to share customer data with fintech service providers. This spirit of collaboration is at the heart of the fintech industry, and the fact that European regulators have caught on means that fintech’s future remains bright.
The dominance of cryptocurrency
As mentioned previously, the majority of the fintech market is still comprised of mobile payment services. And cryptocurrency fintech startups are still continuing to take advantage of this growing trend, particularly as more businesses are looking to invest and buy using cryptocurrency. Fortunately, platforms have evolved to keep up with the demand for trading digital currency.
Indeed, the cryptocurrency boom is funneling fintech growth around the world. Our post on New York City’s blockchain businesses outlines how such startups continue to push through despite its lukewarm reception from businesses and government regulators. With no universal standards set in place, getting traditional financial institutions on board remains an uphill battle.
There’s no denying that fintech is indeed the future, and we now have tools that allow us to adequately mitigate risk. This is where US regulators can learn a thing or two from Europe’s successful startup environment: the exchange between American banks and fintech startups isn’t as open, which in turn fuels the misconception that cryptocurrency and similar ventures are too risky to invest in. Supporting fintech companies is a win for all involved, as these services allow other industries to spur innovation in today’s digital age.