People don’t think that they are not a part of the revolutionary experience when they make a $10 transaction for food. However, after the introduction of fintech, the financial services industry has got a completely new look. In 2021, fintech is all around us. It became so strong that even the global pandemic of COVID-19 didn’t disrupt the market’s growth.
Fintech, or financial technology, was used to create many payment services like Venmo, PayPal, and even digital currencies. If you look at the global market, some countries made a big step with this technology. Here, we would like to have a detailed insight into those who have the best results in this field. Buckle up, and let’s go.
1. The United States
When discussing fintech in the US, we can say that there are two capitals, New York and San Francisco. Among the vital points in this chain, we will find digital wallets and mobile payments. The reason is quite simple, more and more companies opt for doing their business digitally.
The major players on the US market are Robinhood, Coinbase, and Stripe. All three of them are well-known companies with established networks. San Francisco is the world’s most significant fintech hub, while New York is in third place, after London.
2. The United Kingdom
The United Kingdom, and its capital, London, have established themselves as the prime fintech hub on the old continent. It is the home of successful companies like Funding Circle, Monzo, Transferwise, etc. All of these giants employ around 60k, which is pretty impressive.
As a result, we can see that the market generates almost $30 billion in revenue every year. One of the reasons why fintech found fertile ground in the UK is that the government offers efficient tax deductions. Therefore, relying on these services in the UK is the way to go.
3. Singapore
With all the problems humanity faces these days, we can see that many countries have put their investments in fintech on pause, mainly China. Singapore is the country that made the most of the situation, and it has ranked itself high on the list of the highest rate of fintech growth.
Today, we can call it “Asia’s fintech hub” for a good reason. Only in 2019, the government invested more than $735 million. Singapore is on the list of the countries with the most business-friendly environment every year. The government offers exceptional conditions to those interested in starting a business.
4. Lithuania
Quite surprisingly, Lithuania found its place among the countries with the highest rate of fintech growth. Sure, this is something that was a result of hard work and a lot of investments. In the last year or two, this concept has been developing rapidly in this small country.
Lithuania’s capital, Vilnius, is a place where you can find more than 60 ventures. Plus, there are around 170 of them all over the country. The thing that set the stage for this immense growth was careful planning and the business-friendly environment.
5. Switzerland
Switzerland is a country where people work in the financial sector for quite a long time. Sure, you have heard about famous Swiss banks. In the last two decades, the government invested in modernizing its financial system. Nowadays, their system is one of the most advanced ones in the world.
Maybe you didn’t know, but there’s even a city now known as crypto-valley. We are talking about Zug, a small town in the central part of the country. It is the home of numerous startups that have emerged over the years. It’s interesting to know that this is a city where Ethereum was born.
6. The Netherlands
Since the Netherlands is a country with an advanced economy and almost non-existing unemployment rate, it’s no wonder that the rate of adopting new technologies is high. We are talking about conditions perfect for launching a new startup, right?
To get a clear idea about how big the market is in this country, we would like to provide you with some data. The market consists of 350 fintech companies. Furthermore, there are 230k employees in the finance sector and around 250k employees in the ICT sector.
7. Sweden
Stockholm is one of the most important cities in Europe for fintech. Over time, it has established itself as a hub that has some of the most innovative experts. As a result of all these achievements, we can see that it attracts international capital from all over the globe.
When you get familiar with the local market, you will see strong collaboration between SMEs and fintech, manifested in companies like Saldo. Not only that, the market cap of Sweden’s four key banks has declined because people look for alternatives in numerous startups.
To Conclude
When you know that fintech’s main aim is to compete with traditional financial methods. If you take a look at the current situation in the financial market, it looks like a good way to go. So, it’s no wonder that so many countries want to be a part of that. Here, you can see the most successful countries.