Europe Fintech Market Size (2024 - 2029)

Europe Fintech Market Analysis

The Europe fintech market is estimated at USD 3,600 billion (in terms of transaction value) in the current year and is poised to register a CAGR of more than 10% during the forecast period.
Europe is the cradle of fintech since it is a global leader in the growth of both financial institutions and financial markets. Fintech companies in Europe are worth twice as much as any other tech sector on the continent. The region, which leads the rest of the world in terms of energy and internet access, provides ideal conditions for fintech growth. Furthermore, by 2025, further technological infrastructure will deliver 5G network coverage to 75% of the region's population. With several European countries (e.g., Switzerland, the Netherlands, and the Nordic countries) dominating the 2020 Global Innovation Index, Europe provides a corporate environment suitable for innovation and technology development.

COVID-19 scenarios show European economies contracting by 11% in 2020 and have adversely affected the fintech ecosystem. Fintech agreements have decreased as investors prefer to invest in mature companies rather than early-stage deals. Experts from the Emerging Payments Association found a significant contraction in the market, with fintech funding in Q1 2020 already down by USD 2 billion from Q4 2019. As governments shut down and investors took stock, the industry appeared vulnerable at the start of 2020, hitting a three-year low. In 2020, European fintech raised a total of USD 9.01 billion during COVID-19. The industry looks to have recovered, aided by a transition to digital and banks' increased interest in new infrastructure. Until June 2021, European fintech has raised USD 11.16 billion, trumping the USD 9.98 billion raised across the whole of 2019 - the previous highest year on record.

New venture capital fintech investments in Europe have been growing rapidly since the emergence of the COVID-19 pandemic. Fintech also looks set to maintain its position as the most funded area in European tech. European fintech has attracted an influx of cash from both the United States and Chinese investors, drawn in by the mounting success of the first-generation fintech. That also had a knock-on effect on valuations, meaning there are now more than 30 fintech unicorns in Europe, and several more are soon slated to reach the USD 1 billion milestones. Europe makes up 17% of the global cumulative valuation of fintech (around USD 2.26 trillion), its largest venture capital investment category receiving 20% of all venture capital in Europe: a higher percentage than in Asia and the United States.

Europe Fintech Industry Segmentation

An understanding of the present status of the Europe fintech market, along with detailed market segmentation, current market trends, changes in market dynamics, growth opportunities, and an in-depth analysis of the market size and forecast for the various segments, is provided in the report.

Europe Fintech Market is segmented by Service Proposition (Money Transfer and Payments, Savings and Investments, Digital Lending and Lending Marketplaces, Online Insurance and Insurance Marketplaces, and Other Service Propositions) and Country (United Kingdom, Germany, France, and the Rest of Europe). The report offers Market size and forecasts for Europe Fintech Market in value (USD billion) for all the above segments.