FinTech - Central & Western Europe

The largest market will be Digital Assets with a AUM of US$12.82bn in 2024.
The average AUM per user in the Digital Assets market is projected to amount to US$166.10 in 2024.
The Digital Assets market is expected to show a revenue growth of 16.56% in 2025.0.
In the Digital Payments market, the number of users is expected to amount to 306.00m users by 2028.
Total AUM in the Digital Assets market is projected to US$12.82bn in 2024.
The distinctive characteristics of KPIs within the FinTech sector preclude their combination and presentation as a singular number representative of the whole FinTech industry.

Definition:

Fintech, abbreviated for financial technology, refers to the use of technology to improve and automate traditional financial services and processes. This includes a variety of products and services such as online banking, mobile payments, peer-to-peer lending, digital wallets, and financial management tools. Fintech companies often use advanced technologies such as artificial intelligence, blockchain, and big data to create new financial products and services that are more efficient, accessible, and user-friendly than traditional financial institutions. The Fintech market includes startups, established financial companies, and other companies that use technology to disrupt and innovate in the financial services industry.

Structure:

The five markets in Fintech include digital payments, digital investments, digital capital raising, digital assets, and neobanking. The market for digital payments includes digital trade transactions, mobile point-of-sale payments, and digital transfers. Digital investments include robo-advisors and neobrokers. Digital capital raising consists of crowdfunding, crowd investing, crowd lending, and marketplace lending. The market for digital assets includes cryptocurrencies, NFTs, and DeFi, and the neobanking segment focuses on digital banks.

Additional information:

The market includes transaction values, revenues, assets under management (AUM), users, average revenue per user, average transaction value per user, average AUM per user, and user penetration rates. The transaction values in the digital payments segment refer to consumer transactions made through the internet or mobile wallets. The revenues shown are from the income generated by cryptocurrency exchanges, online trading platforms, and neobanks. The market only shows B2C revenues and users for the above-mentioned segments and subsegments; B2B and B2G revenues are not included. Further definitions for each market can be found on the respective pages.

Digital Payments: Mobile POS Payments, Digital Commerce & Digital Remittances
Online Crowdfunding (equity and reward based)
Digital Investment, incl. Robo-advisors and Neobrokers
Marketplace lending (peer-to-peer platforms) for businesses & personal loans
Neobanking
Cryptocurrencies
NFT
DeFi

Metasearch engines / lead-generation business models
InsureTech or insurance related services
Business-to-business payments
Credit scoring and API management

The fintech market is rapidly evolving, with digital payments, digital investment, digital capital raising, digital assets, and neobanking emerging as some of the most significant trends. Digital payments have seen an unprecedented surge in popularity, with consumers increasingly relying on mobile payment solutions for their day-to-day transactions. Digital investment platforms are also gaining traction, with individuals seeking low-cost and easy-to-use investment options. Additionally, digital capital raising has become an attractive option for startups and SMEs, as it provides an efficient way to access funding. The rise of digital assets, such as cryptocurrencies and NFTs, has also created new opportunities for investors and traders. Finally, neobanks have disrupted the traditional banking industry by providing innovative, customer-centric solutions that cater to the needs of today's digital-savvy consumers.
The growth in the fintech market is driven by several factors. Firstly, the increasing adoption of smartphones and the internet has made digital solutions more accessible to consumers, leading to a surge in demand for fintech services. Secondly, the COVID-19 pandemic has accelerated the shift towards digital payments and investments, as consumers have had to adapt to remote and contactless transactions. Thirdly, regulatory changes have enabled fintech companies to compete with traditional financial institutions on a more level playing field. Finally, advancements in technology, such as AI and blockchain, have opened up new possibilities for fintech innovation, driving further growth in the market.
The fintech market is expected to continue its rapid growth trajectory, driven by ongoing technological advancements, changing consumer behavior, and regulatory support. Digital payments are likely to remain a dominant trend, as consumers increasingly prefer the convenience and speed of mobile payment solutions. Digital investment platforms are also expected to grow in popularity, as more individuals seek to manage their finances online. Additionally, the rise of digital assets and neobanking is likely to continue, as these trends reshape the financial landscape. Overall, the fintech market is expected to remain dynamic and innovative, with new solutions and services emerging to meet evolving consumer needs.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Digital market, in a PDF format.

Over the last 10 years, fintech has evolved from a niche and elusive industry trend into a transformative force in the global financial landscape. Initially associated with small startup ventures, fintech today includes multibillion-dollar enterprises. During the last decade, the fintech sector has witnessed a substantial surge in the number of companies, with a notable concentration in the Americas. Concurrently, there has been a remarkable uptick in fintech users globally, particularly in digital payments, where the global user base is forecast to exceed 3.5 billion in 2024. Despite the growing number of fintechs and the expanding user base, investment activity has slowed down notably in recent years, with 2023 recording the lowest value and number of investments since 2017.