Fintech in Germany - statistics & facts
Germany boasts the second-largest fintech industry in Europe, trailing only the UK in terms of users, revenue, assets under management, and leading companies. This strong position is underscored by the presence of N26, one of Europe’s most prominent digital banks, which had over eight million users at the end of 2023. The robust growth and adoption of fintech services in Germany highlight its significant role in the broader European fintech landscape.
In 2023, Germany had the second-highest fintech user base in Europe. Over 84 million people used fintech services in Germany, compared to 98.5 million in the UK. With 2.96 billion U.S. dollars, Germany also had one of the leading fintech sectors in Europe in terms of revenue, second only to the UK. The same pattern could be seen when it came to leading fintech unicorns in Europe, with only UK-based companies having higher market valuations than N26.
Germany's fintech industry, though facing recent challenges, remains a significant player in the European market. As digital banking gains popularity, traditional banks still hold a strong position, indicating a dynamic and competitive landscape that will shape the future of finance in Germany.
In 2023, Germany had the second-highest fintech user base in Europe. Over 84 million people used fintech services in Germany, compared to 98.5 million in the UK. With 2.96 billion U.S. dollars, Germany also had one of the leading fintech sectors in Europe in terms of revenue, second only to the UK. The same pattern could be seen when it came to leading fintech unicorns in Europe, with only UK-based companies having higher market valuations than N26.
Cooling fintech sector with plummeting investment activity
The number of fintech companies in Germany has increased significantly over the last decade, with 2023 seeing close to 700 fintechs across the country. At the same time, however, the fintech growth rate has slowed down recently. In 2023, only 16 new fintech businesses were founded, compared to over 50 per year between 2016 and 2021. This slowing growth rate is indicative of the challenges the fintech sector has faced in recent years. Investment into fintechs also plummeted in 2023, with less than one billion U.S. dollars of total investment recorded. The largest investment deal of the year was a venture capital investment into IntegrityNext, valued at 109 million U.S. dollars.Digital banking is going strong despite challenges
Despite recent challenges both in terms of growth rate and investment activity, digital banking has not stopped growing. The number of neobanking users in Germany has consistently increased in recent years. The expanding user base led to the rising value of customer deposits held at digital banks, as well as the increasing value of loans provided by such institutions. Finance app downloads have also surged, indicating the growing popularity of digital banks. However, the banking apps of traditional banks still prevail in terms of overall usage and market penetration, showing that while digital banks are gaining ground, traditional banks remain dominant.Germany's fintech industry, though facing recent challenges, remains a significant player in the European market. As digital banking gains popularity, traditional banks still hold a strong position, indicating a dynamic and competitive landscape that will shape the future of finance in Germany.
