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Fintech Review 2021 — Germany, Austria And Switzerland (GSA)

This story was migrated from our old blog, originally published on December 25th, 2021.

Executive Summary

  • This story was migrated from our old blog, originally published on December 25th, 2021.

  • This blog post first appeared first on old medium publication (https://medium.

  • The best way to identify investors and cooperation partners for early-stage startups.

  • This time I ask our guests 4 questions on the current state of fintech, their outlook and drivers for the future.

  • 1) What is the strongest impact of corona on the financial and fintech world, immediately and in the future?


Fintech Review 2021 — Germany, Austria And Switzerland (GSA) Startuprad.io brings you independent coverage of the key developments shaping the startup and venture capital landscape across Germany, Austria, and Switzerland.

This story was migrated from our old blog, originally published on December 25th, 2021.



New Blog

This blog post first appeared first on old medium publication (https://medium.com/startuprad-io), and was moved to this blog with the relaunch of our website in summer 2024.


“For banks the pandemic meant that they had to digest 10 years of digitalization in only two years.”Paolo Sironi — Thought Leader and Author

Hello and welcome everyone to our 2021 Fintech Review for the German Speaking Area — Germany, Austria, and Switzerland, also called GSA. This is an annual tradition started in 2014, first in German, now in English. You can find the older reviews in the blog post below:

“Crypto is coming, no question. The metaverse is coming and exciting for me is the question how we will pay in the metaverse”Oliver Oster — CMO and Founder OptioPay


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“What struck me the most in 2020 is Crypto. It is sooo much more popular today than one or two years ago”Janis Dust — CMO and Co-Founder Epap

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“As people are going from in-person to remote a lot of [banking] processes have to be updated. It is basically a huge accelerator for the whole banking industry.”Frank Schwab — Co-Founder Fintech Forum

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“[Venture] Capital becomes more concentrated. It will get harder for the new kids on the block”Frank Schwab — Co-Founder Fintech Forum

Our Guests

Today I welcome our guests:

“10 years ago adding the valuation and market capitalization of the global top 500 banks and fintech unicorns plus the payment providers: 10 years ago banks represented 97% of that value, today they are down to almost 70%.”Paolo Sironi — Thought Leader and Author

This time I ask our guests 4 questions on the current state of fintech, their outlook and drivers for the future.

The questions are:


1) What is the strongest impact of corona on the financial and fintech world, immediately and in the future?


2) What is the most important development you have seen in total in 2021 for fintechs?


3) What do you see in 2022 for the fintech scene in GSA?


4) What field of fintech do you see becoming more important in 2022? Is it already the year of the green fintech?

Wishing you happy holidays from Frankfurt! We will be back on January 13th with an interview. Enjoy your time with family and friends and stay safe!


The Video is set to go live on December 25th, 2021 at 10.00 o’clock CET


“The most obvious impact [of corona] for me was, that here in Berlin people have stopped paying cash and now pay by card or digital [cell phone or wrist watch]”Oliver Oster — CMO and Founder OptioPay

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Fintech Reviews Since 2017

“Some neobanks retreated with their business from abroad. They understood that volume is not enough for a great value offer”Paolo Sironi — Thought Leader and Author


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The Interviewer

This interview was conducted by Jörn “Joe” Menninger, startup scout, founder, and host of Startuprad.io. Reach out to him:LinkedInTwitterEmail

Find all links and show notes here:


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Transcript


[0:00] Startup Red Dot IO.Your podcast and YouTube blog covering the German startup scene.With News interviews and Live Events.


[0:21] Hello and welcome everybody this is Joe from startuprad.io Welcome to our 2021 fintech review for the german-speaking area GermanyAustria and Switzerland also called GSA this is an annual tradition started in 2014 first in German now in English,you can find the old reviews here bottom line is I invite.Entrepreneurs investors and thought leaders to our annual fintech review we will publish it on the 25th,of December and then we will ask them a few questions due to limited time we have to do single recordings with with each of our guests,so I’m basically hat for questions to ask them.And they gave me their prepared answers today I welcome as our guests.Yanis dust a young fintech entrepreneur and co-founder as well as Chief marketing officer of the pap and invoice app.


[1:39] Everybody who had the pleasure to already here our fintech review knows policy horny fintech entrepreneur turned Global Research leader in Banking and Financial markets as well as a multiple bookauthor you can learn more about himin our show notes you’ll find a link of course to his website and to his newest book and we have LinkedIn profiles of all of our guestslinked there as well our third guest is Frank Schwab theco-founder of the fintech Forum and multiple board member and last but not least there is olive oil stir fintech entrepreneur.And investor founding part of a q VC and the chief operation officer c.o.o. of berlin-based table to pay.


[2:38] So first let’s get started here are our questions.


[2:45] What is the strongest impact of Corona on the financial and fintech World immediately and in the future.


[2:55] Well the pandemic caused an acceleration of digital adaptation on clients it is like a bank had to digestten years of digital innovation in shifter in only two years that there was an unprecedented shift in particular that involve daddy payment mechanisms and solutionswhich is reflected in the market evaluation of those players if you look at the total market share in terms of market capitalization and private revelation of,the top 25 and regular banks have plus the fintech unicorns and the payment providers you can clearly see that,ten years ago Banks represent that more than 95 and 97 percent of that Sharabut today in 2021 and they are bound to almost 70 percent so that means that the payment providers in particular have been gaining Traction in terms of Market evaluation becauseeveryone is realizing that the fact that they are will poster to Garner most of the benefitat least it in visual benefits of these digital acceleration which was really unprecedented in 2020 and 2021.


[4:09] Right now we see in high demand on let’s say Automation and digitalization.So since people move from,personal to remote a lot of processes have to be updated and it’s basically an huge accelerator,for going digital for the whole banking industry and of course fintech sign in the pole positionto either support banking processes or let’s say being prepared you handling everything remotely online and automated already.


[4:52] So that that happened for sure over the last 18 months,whether you look at vintage store at establish bank or direct thing everything,Marlette cut pushed on and given the investments into the industry the Vintage industry we see some of the highest level ever,and that’s basically means going forward.


[5:24] That the change and digitalization of banking.Increases increases and increases.


[5:37] Go on I said s very strong impact on the entire fintech sector and especially when you take a look at the speed of digitalization,for me it’s like insane because,customers are such or are much more willing to use digital solutions for example the checkout at the point of system which is super important for us a teepee.And in general everything is becoming more digital and I personally also have the trend of buy now and pay later which is driven by kalana and other companies,obviously it’s reinforced by online shopping in Corona times but yeah many many technologies have no almost become mainstream.So I mean here in Berlin people always used to pay cash actually everywhere they’re going.It’s at a supermarket in the restroom all over the place they’re paying cash and think the biggest impact is definitely that people are now really paying with the car door with Apple pay so.With a mobile phone so that’s the most obvious I think.Development since Corona our second question what is the most important development you have seen in total in 2021 for fintech.


[7:01] So I think what is most.Striking are the Investments we have seen so.More or less so it looks like that every week you see three digit Million number.Invested as Sirius B C or D into any given fintech.The highest probably.Pauline payments but also when it comes to let’s say other business models in the Vintage industry.Think of a number 26 and 26 are many many others are also in the hole.Block train vintage the to distributed Ledger Industries you see very very high Investments and funding rounds that that’s.


[8:10] Right now.Most striking and going forward we will see what the impact is of these Investments.I even would would see that in some areas these Investments have because bigger as the spends of established traditional Banksso it’s it’s really very very different than let’s say 34 years ago.


[8:41] Yeah I want to mention two points so first of all the ongoing boost and digitalization which I mentioned before.And secondly what struck me the most this year is crypto so the topic is so much more popular than it was one or two years ago crazy development overall and,now it’s also been Feud even more by things like nft sore web 3 and yeah let’s see what happens when stuff like that arrives in Germany,I have to say that I’m rather cautious about it but it’s super interesting to see what happens in America right now.I think the rise of the metaverse right so crypto is coming and for me one of the big questions in the future will be how how will we be paying.In such worlds and such m versus like is it crypto is it still like.Euro or dollar pound I don’t know and I think this will be like one of the biggest questions and.But since we just started with the metaverse especially in this year the big hype.With Facebook turning the name into m is I think one big signal and.


[10:01] . like a big potential for fintech c as well when there’s something very important to me,that he said is shifted towards rebounding financial services around a couple of ideas,one which you don’t find particularly Innovative is the one of the super apsa that is already dominating different acting in China,and he’s now getting on the desk of the CEOs of payment companieslike PayPal for example announcing that they want to beat one of these but the second is a bit more fitting the purpose which is that the emergence of this is so-called Community Banks so sort of a super rapid but allocated to a special community.



[11:49] My third question what do you see in 2022 for the fintech in GSA,again it’s clip to in my opinion I hope it’s becoming more popular and mainstream here just like the buy now pay later trendyeah and maybe even the technology behind crypto itself which we become more popular what started in America few months ago will be here in 20 22 for sure.So I think in in in these countries in the let’s say more drum speaking countries it will be still about the development of the the fintech infrastructure right,and bringing the the people digital I mean,since Corona boosted it very much we we we do have now.Good good way to compete also with us we’re like Mobile payment Etc has been always been normal.But still in Germany Austria and Switzerland we still do we still need some more development here and.


[12:56] That being said also.What we do with the transaction data here in these countries right we are always very much restricted on the on the analytic side.But looking into PC to as well and not only open banking also open data,what we will do with the data especially the transaction data and what kind of offerings we can tailor to our customers,I would say the journey continues of the biggest bigger.Biggest ones will become even bigger.


[13:36] So that basically means they establish themself.


[13:43] In the marketplace deeper and further on.


[13:50] And of course that also means for the ones who are rather at the starting point it’s not difficult to get the exposure in the attention,that’s something I see because it looks like that the capital concentrates now while.Three four five six years ago the capital was much more distributed.So I would argue it becomes tougher and tougher for New Kids on the Block.To also take a share of this.


[14:35] Changing let’s say overall industry so not only so I would not only look at it finish look at thinking and then,think of fintech switch in the banking industry because I think you can’t separate the two from each other and.So that’s what I think is.Something we will see in the next year not to say in the next year’s.So it’s not only about 20 22 and I think it let’s say for people who want to found,I’ll create a new style but they really need to come with water something very very special so let’s say the.The time where you could trust create a mobile bank or let’s say.You do you have an idea on payment that’s not good anymore for four.


[15:37] Let’s say for fun idea that search for funding.That’s probably another aspect which.


[15:51] The audience may find of Interest.Well I think that there are two things which are particularly relevant the four idea region of Germany Austria and Switzerlandone is a reconsideration of the role of the Neo Banks some of them retrench there from thereand operations that I brought that they need to understand that volume is not enough to generate effective value so they didn’t have yet that mechanism that goes in the direction ofthe soup it up for example they’ve been talking for a few years about being a Marketplace of products but that is not enough absolutely not enough,because it does not create the anoles solution for the clients but just of,it just makes a digital display of different products which are in a sense disconnected and the second of course this was the year of defy,and there’s no better place than Switzerland that to promote if you like Define all of its phases which are also legal and Regulatory as well as technicalso I believe that Germany Austria and Switzerland might have an important role in the evolution of the centralized training school in Fort Worth.


[17:01] Our last question what field of fintech DC becoming more important in 2022.Is it already the year of the green fintech is it already the year of the queen fintech.I think it’s not really about the green fintech itself it’s more what green.Companies or let’s say yes G companies can do with the data with a transactional data,so there’s a good example of a kinetics for instance who are doing my point of view of great product around transactional.Data combining it with for instance their carbon footprint so analyzing what you can how we can offset it at cetera.But there’s still a big development possible Right is still a huge gap and I don’t know if like really the Green Banks Will Survive.In the bull market but in general I think there will be more combination of green and fintech.So that that they are drawer joining forces but pure green player in that market with like.A green approach will be difficult maybe maybe we still need like three four years down the road.


[18:22] So we SE pepper also like a small part of sustainable fintech Serene fantex but.I have to say sustainable fintech that self are definitely becoming more popular but I don’t see this as the year of the green fintech I rather still have the feeling that it’s more difficult to create a sustainable product for the Masters.And that does mean I think that aspect is not important enough because I really am a big advocate of it but.


[18:52] I don’t know I see it as a necessity to be a sustainable company but I have the feeling that it’s still difficult to place in Broad Target group,if there isn’t an absolutely clear added value for the user so if it’s clear added value then for sure it will become more popular,but yeah right now it’s I’m I think it’s quite hard to to be a sustainable company with clear added value for it.


[19:21] Yeah and oh I forgot let me take that one I also see that crypto obviously will be the topic of 2022.Even fintech no not from my perspective that’s something we would see in two or three years from now.Anyhow the whole thing around ESG is oh it’s not only green it’s also the DS and the tree that something a little bit.Later from my perspective probably what’s becomes hot.Because I think that’s your question I personally think that.The whole open Banking and API banking we’ve talked about the last three four five six years there have now reached maturity level.That actually you can go into the business so let’s say and let’s say the discussion around.Buy now pay later the whole sinking round abetted Finance.


[20:37] We now have much better much better Foundation.This apis and open banking initiatives in order to be able to implement let’s say embedded strategy.Buy now pay later is an embedded strategy usually because you offer a consumer loan into an emergent process so that that’s kind of.Let’s say example but we will see that in also.Additional use cases and that may probably something which becomes.More relevant than before.I don’t think the point is about green or not greener we all have to be and that requires if you like much higher transparency than what we’ve seen today what I think.


[21:44] That matters is what really matters in the transformation of financial services on mobile technology which is the understandingfinally that platforms that are the rear competition if you go back 15 years we clearly see that only platforms worn on the internet that you get all the social media platforms you can become as platforms for answers,but for the last 10 years of in technovation interpreters were really focusing on simple-minded Solutions the unbundling principlewhich makes no senseif not the creation of a smaller leaner and Clear Solutions the business value and the sustainable business value can only come by the capability of panda lean backthese unbanned those Services into something they generate a new value and that is the role of platformstwo platforms strategies are clearly a merging which have identified in my last piece of literature banks have been taken platform economies one is called contextual banking we’re at the bank becoming visible to an open Banking and open finance perspectiveand the other one is conscious banking when the bank remains transparent and visible to generate value for clients.


[22:58] Now to conclude in a short a couple of sentences it is the opportunity to eliminate friction from a non banking ecosystem that makes banking contextual,to unlock new value value there was not there before because that level of orchestration was not possible.Digital technology enables that but it is the opportunity to demonstrate value for clients and clients have to pay for access to the platform and makes Banks consciousness.To unlock the hidden value of there is value in Saint Francis Services which does not come to the surface,because there’s no understanding on how transparency can effectively generate better,but this is The Tamarind where some institution started understanding days and I believe this would be the direction 2032 and going forward finally the competition is on the platform account,and finally wishing you a happy holidays from Frankfurt we will be back on January 13th 2022 with an interview kicking off our new cooperation with the drum,is Association enjoy your time with your family and friends and stay safe thank you bye bye.


[24:13] I would say one Italia Tutti quanti yes Merry Christmas and happy New Year and see you in 20.


[24:22] All right thank you all for listening and have a great start in the New Year and have a Merry Christmas.


[24:36] Music.





Key Takeaways

  • This article covers a significant development in the DACH startup and venture capital ecosystem.

  • The DACH region (Germany, Austria, Switzerland) continues to be one of Europe's most dynamic startup markets.

  • Startuprad.io provides independent coverage of the German-speaking startup ecosystem for founders, investors, and ecosystem builders.

Frequently Asked Questions

What are the key facts about Fintech Review 2021 Germany, Austria?

This story was migrated from our old blog, originally published on December 25th, 2021.

How does this affect the German startup ecosystem?

1) What is the strongest impact of corona on the financial and fintech world, immediately and in the future?

What are the latest startup funding trends in the DACH region?

Startuprad.io tracks venture capital and startup funding across Germany, Austria, and Switzerland. Explore our pillar coverage pages for the latest data.

About the Host

Joern "Joe" Menninger is the host of the Startuprad.io podcast and covers founders, investors, and policy developments across the DACH startup ecosystem. Through more than 1,300 interviews and nearly a decade of reporting, he documents the evolution of the European startup landscape. Follow Joern on LinkedIn.

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