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Financial Technology in Germany - Market Research Report (2014-2029)

David Riemeier David Riemeier Frankfurt, Germany Last Updated: October 2024 WZ SP64.01DE Spotlight Report

Revenue

€1.9bn

2024

€1.9bn

Past 5-Year Growth

Profit

€X.Xm

Employees

14,695

Businesses

828

Wages

€XXX.Xm

Financial Technology in Germany industry analysis

Regardless of their operational focus, almost all industry players have recorded consistent sales growth since 2019, albeit with high costs that are reflected in a negative profit margin. The coronavirus pandemic in particular helped the industry to increase confidence, as consumers refrained from making cash payments for hygiene reasons and increasingly used electronic means of payment instead. Industry turnover has risen by an average of 11.7% annually since 2019 and is expected to amount to 1.9 billion euros in the current year.In the current year, industry players operating in the financing product segment continue to benefit from the high base rate, as traditional financing options at credit institutions, savings banks and cooperative banks are associated with high interest rates for consumers. At the same time, growth in the asset management product segment is likely to be lower than during the period of low interest rates, as many consumers prefer the combination of high interest rates and personal advice on site, are sceptical about technological innovations and, with rising interest rates on traditional savings products, are more likely to use the services of their main bank than the products and services of fintechs with slightly higher interest rates on average, but without the personal component. At 2.5%, industry turnover is likely to grow less strongly this year than last year.For the period from 2024 to 2029, IBISWorld forecasts an average increase in turnover of 7.9% per year to 2.8 billion euros. In addition to the degree of digitalisation, the future development of the industry is primarily dependent on the development of the business climate, as companies form the most important customer market. Demographic change is likely to slow down sales growth, as many older people lack the technical affinity for dealing with online payment and financing methods. Internationalisation and the expansion of business activities to the European domestic market offer opportunities for growth.

Trends and Insights

  • Recruiting qualified specialists is essential for the industry. However, this is associated with major challenges, which is why industry players often recruit skilled workers from abroad.
  • Digital payments have been on the upswing since the start of the coronavirus pandemic. The contact restrictions have contributed to consumers increasingly using contactless payment methods.
  • The industry has been consolidating since 2019. However, market concentration remains low as the various business areas in the industry are clearly delineated from one another. This allows individual players to become the leader in their respective niche.

Everything you need in one report

  • Reliable market estimates from 2014-2029
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Access hundreds of data points and trends

  • Market estimates from 2015-2030
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
  • PDF report or online database with Word, Excel and PowerPoint export options
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 11.7 % over the past five years, to reach an estimated €1.9bn in 2024.

Trends and Insights

The start-up climate in Germany is characterised by uncertainty, financing bottlenecks and a focus on profitability

  • The business climate for start-ups in Germany, including fintechs, is currently characterised by uncertainty and caution.
  • Additional trends and insights available with purchase
Financial Technology in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

The industry is dependent on recruiting qualified labour from abroad

  • According to the latest FinTech Startup Monitor from 2021, English was the official working language for 57% of all German fintechs and 25% of founders studied abroad.

Biggest companies in the Financial Technology in Germany

There are no companies that hold a large enough market share in the Financial Technology in Germany industry for IBISWorld to include in this product.

Products & Services Segmentation

Financial Technology in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Digital payment transactions, Asset management and Financing. Digital payment transactions is the largest segment of the Financial Technology in Germany.

Trends and Insights

Digital payments gained trust and importance due to the impact of the coronavirus crisis

  • With an expected volume of more than 54 billion euros in the current year, digital payments are the largest business segment in this industry. This includes mobile wallets, peer-to-peer payments and real-time payments.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Fintechs are companies (often start-ups) that offer technologies related to financial services. Depending on their focus, they specialise in payment transaction services, asset management, financing or insurance. As these companies often do not have a licence from BaFin, they enter into partnerships with full-service banks but are still considered an independent sector. Both private and corporate customers are important customer markets for fintechs.

What's included in this industry?

Products and services covered in the Financial Technology industry in Germany include Digital payment transactions, Asset management and Financing.

Companies

Companies covered in the Financial Technology industry in Germany include .

Purchase this report to view all major companies in this industry.

Related Terms

Related terms covered in the Financial Technology industry in Germany include crowdfunding, factoring, initial coin offering (ico), neobank, peer-to-peer payment, peer-to-peer lending, robo advice and social trading.

Industry Code

WZ 2008

WZ 62.0 - Financial Technology in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Recruiting qualified specialists is essential for the industry. However, this is associated with major challenges, which is why industry players often recruit skilled workers...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Factors that influence volatility in the industry
  • Key success factors for businesses to overcome volatility

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Digital payments have been on the upswing since the start of the coronavirus pandemic. The contact restrictions have contributed to consumers increasingly using contactless p...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Purchase this report to unlock analyst insights.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The industry has been consolidating since 2019. However, market concentration remains low as the various business areas in the industry are clearly delineated from one anothe...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

In order to conduct banking business, fintechs require a licence from BaFin in accordance with Section 32 of the German Banking Act. This means that the requirements for indu...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

High levels of investment are required to set up a fintech company. Since many industry players have only been on the market for a very short time, the profit margin is very ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Financial Technology industry in Germany in 2025?

The market size of the Financial Technology industry in Germany is €1.9bn in 2025.

How many businesses are there in the Financial Technology industry in Germany in 2024?

There are 828 businesses in the Financial Technology industry in Germany, which has grown at a CAGR of 3.8 % between 2019 and 2024.

Has the Financial Technology industry in Germany grown or declined over the past 5 years?

The market size of the Financial Technology industry in Germany has been growing at a CAGR of 11.7 % between 2019 and 2024.

What is the forecast growth of the Financial Technology industry in Germany over the next 5 years?

Over the next five years, the Financial Technology industry in Germany is expected to grow.

What does the Financial Technology industry in Germany include?

Digital payment transactions and Asset management are part of the Financial Technology industry in Germany.

How competitive is the Financial Technology industry in Germany?

The level of competition is low and increasing in the Financial Technology industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • There are no industries to display.

International industries

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.