what is the history of fintech in europe?
what is the history of fintech in europe?
The history of fintech in Europe is a relatively short one, with significant developments taking place over the past two decades. The term “fintech” refers to the use of technology to provide financial services, and Europe has become a major hub for fintech innovation in recent years. In this essay, we will explore the key developments and milestones in the history of fintech in Europe.
The roots of fintech in Europe can be traced back to the late 1990s and early 2000s when online banking and financial services first emerged. However, it was not until the mid-2000s that fintech began to gain significant momentum in Europe. One of the first notable fintech companies in Europe was London-based TransferWise, which launched in 2011 and revolutionized the way people sent money internationally.
Over the next few years, fintech startups began to proliferate across Europe, with London emerging as a major fintech hub. The city’s reputation as a global financial center and its access to talented tech professionals made it an attractive destination for fintech entrepreneurs. By 2015, London was home to over 44,000 people working in fintech-related jobs, according to a report by Innovate Finance.
In addition to London, other European cities began to emerge as fintech hubs, including Berlin, Amsterdam, and Paris. These cities offered a supportive ecosystem for fintech startups, including access to funding, regulatory support, and access to talent. Many governments in Europe also began to support the development of fintech by launching initiatives and regulatory frameworks designed to promote innovation and competition.
One of the most significant milestones in the history of fintech in Europe was the introduction of the Payment Services Directive 2 (PSD2) in 2018. This regulatory framework, which applied to all European Union member states, aimed to increase competition in the financial services sector and encourage the development of new fintech services. PSD2 opened up the banking sector to new players, including fintech startups, by requiring banks to provide open access to customer data and payment systems.
Today, Europe is home to some of the world’s leading fintech companies, including Adyen, Revolut, and Klarna. These companies have revolutionized the way people access financial services, offering everything from mobile payments to cryptocurrency trading. The European fintech market continues to grow rapidly, with investment in the sector reaching €9.3 billion in 2020, according to a report by KPMG. Even European high speed rail looked for fintech funding.
In conclusion, the history of fintech in Europe is a relatively short one, with significant developments taking place over the past two decades. The emergence of fintech startups in Europe has transformed the financial services sector, offering consumers new ways to access financial services and disrupting traditional banking models. With supportive ecosystems in major cities across Europe and regulatory frameworks designed to encourage innovation, the future of fintech in Europe looks bright.
what is the history of fintech in europe?
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