Top 10 Fintech companies in the DACH Region

INTRODUCTION

The fintech market size worldwide has been showing promising growth at rapid rates in recent years. According to a report by Statista, the global fintech market size was valued at approximately USD 111.24 billion in 2019. It is expected to grow at a compound annual growth rate (CAGR. of 23.58% from 2020 to 2028.

The fintech market is experiencing significant growth in regions such as Asia-Pacific, North America, and Europe. Countries such as China, the United States, and the United Kingdom lead the way in terms of investment and innovation in the fintech industry. Considering the popularity of fintech, we provide you with a list of the top 10 fintech companies in the DACH Region. However, let's understand what does fintech stands for.

What is Fintech?

Fintech is the combination of the words finance and technology. It refers to the use of technology to provide financial services. The word encompasses a wide range of digital products and services enhancing, automating, or facilitating financial transactions and processes.

Fintech companies leverage mobile apps, online transfers, e-banking, cloud computing, AI, and blockchain to offer more efficient, accessible, and user-friendly financial services than traditional financial institutions. Fintech has disrupted the traditional financial industry, offering new and innovative financial products and services, often at lower costs and appealing to younger generations.

Popular financial Services using software, mobile applications and other technologies

The top 10 available fintech services offered by various businesses in the sectors include-

1. Payment processing platforms
2. Digital wallets
3. Online lending platforms
4. Robo-advisors
5. Cryptocurrency exchanges
6. Personal finance management apps
7. Investment and trading apps
8. Online Transfer of money
9. E-banking apps
10. Validating electronic balance in bank accounts

Amongst the leading European fintech companies, what are the Top 10 brands in fintech?
Fintech companies in GSA (Germany, Switzerland and Austria.
1. 1. N26 - N26 offers mobile banking solutions to customers in the European Union through its subsidiary.
  - Founded Date - 2013
  - Founders - Maximilian Tayenthal, Valentin Stalf
  - Total Funding- USD 1.7 billion
  - Based in - Berlin, Germany
2. The Germany-based company offers international money transfers, investments, overdrafts, and cash withdrawals as well as deposits at stores. Earlier in 2013, the company was known as Paypayer.
1. 2. Trade Republic- Trade Republic helps Europeans with wealth creation through easy, secure, and free access to financial markets.
  - Founded Date 2015
  - Founders- Christian Hecker, Marco Cancellieri, Thomas Pischke
  - Total Funding - USD 1.3 billion
  - Based in - Berlin, Germany
2. Trade Republic is a mobile-only and commission-free broker that brings the opportunity to invest easily. The company works as a broker for a new generation for a more mobile, more intuitive, faster - and permanently free of commission.
1. 3. Bitpanda - Bitpanda is a centralised crypto exchange that provides users access to digital assets.
  - Founded Date 2014
  - Founders Paul Klanschek
  - Total funding - USD 546 million
  - Based in - Austria
2. Bitpanda operates as a trading platform for digital assets facilitating the buying and selling of cryptocurrencies, fractional stocks and metals. The company offers low fees, 24/7 trading, and real-time settlement.
1. 4. Monedo - The fintech firm uses machine-learning technologies to provide access to better credit for the underbanked.
  - Founded Date - 2012
  - Founders - Alexander Müller, Sebastian Diemer
  - Total funding- USD 519.2 million
  - Based in - Hamburg, Germany
2. The company strives to offer access to better credit and a higher convenience for digital banking services. The product offerings include consumer loans, a digital wallet as well as a personal finance manager designed to help customers manage their credit score and plan their spending. Monedo also offers a “Lending as a Service” model, allowing partners to integrate Monedo's credit products via an API into their own platform and services.
1. 5. Solarisbank - The company is a Banking-as-a-Service platform that enables other companies to offer their own financial services via APIs.
  - Founded Date- 2016
  - Founders - Andreas Bittner, Marko Wenthin
  - Total funding- USD 519.2 million
  - Based in - Berlin, Germany
2. The company strives to offer access to better credit and a higher convenience for digital banking services. The product offerings include consumer loans, a digital wallet as well as a personal finance manager designed to help customers manage their credit score and plan their spending. Monedo also offers a “Lending as a Service” model, allowing partners to integrate Monedo's credit products via an API into their own platform and services.
1. 6. TP24- It is a unique B2B asset-backed lender that provides working capital facilities to SMEs and Mid Cap companies.
  - Founded Date- 2016
  - Founders - Ben James, Martijn Corbée, Steve Pike
  - Total Funding- USD 369.3 million
  - Based in - Zurich, Switzerland
2. TP24 provides businesses access to a dynamic revolving credit facility with their debtor portfolio as a guarantee. The fintech firm boasts offices in regions such as Switzerland, Australia, the UK and the Netherlands.
1. 7. Billie - The fintech startup that provides BNPL payment methods operating in the B2B segment.
  - Founded Date- 2016
  - Founders- Aiga Senftleben, Christian Grobe, Matthias Knecht
  - Total funding- USD 349. 2 million
  - Based in - Berlin, Germany
2. Billie is a fintech startup with a mission to reinvent working capital management for SMEs by offering innovative lending products. The company aids SMEs to secure better payment terms by offering a pay-after-delivery product for B2B online merchants.
1. 8. Scalable Capital - The fintech brings people and technology-based investing together with the goal of democratising financial investments.
  - Founded Date- 2014
  - Founders- Erik Podzuweit, Florian Prucker, Patrick Poschl, Stefan Mittnik
  - Total funding- EUR 266 million
  - Based in- Bayern, Germany
2. Scalable Capital is on a mission to become Europe’s leading digital investment platform. In addition to services for private investors (B2C., Scalable Capital pursues numerous cooperations with renowned business clients (B2B..
1. 9. Raisin- The company operates as a savings and investment marketplace that connects retail customers with banks looking to expand deposit reach.
  - Founded Date - 2012
  - Founders- Frank Freund, Michael Stephan, Tamaz Georgadze
  - Total Funding - USD 304. 9 million
  - Based in - Berlin, Germany
2. The company gives access to exclusive savings products from all over Europe. Raisin assures a smooth investment process and the simple management of investments with all of the partner banks via one single platform.
1. 10. SEBA Bank - The fintech firm is a cryptocurrency company that provides a seamless, secure, and easy-to-use bridge between digital and traditional assets.
  - Founded Date - Apr 2018
  - Founders- Sébastien Mérillat
  - Total funding- USD 246. 9 million
  - Based in - Switzerland
2. Its services allow customers to secure, trade, and manage cryptocurrencies, digital assets, and conventional securities all in one place. It also allows customers and clients to have access to convenient and transparent investment solutions for their crypto and traditional assets.>

Changes in traditional financial methods

Traditional finance methods have changed significantly due to technology and innovation in recent years. The modern methods include the rise of fintech companies, alternative financing options, and blockchain technology have disrupted the traditional financial industry. Digital transformation has led to the digitisation of financial transactions such as wire transfers, and e-transfers, and moreover, regulatory bodies have had to adapt to changes to ensure consumer protection. It has also led to the growth of the prime e-banking business.

These changes have resulted in a more competitive and diverse financial landscape, with a wider range of products and services available to consumers.

Conclusion

Fintechs have disrupted traditional finance by offering innovative solutions for accessibility, personalisation, and efficiency. Though challenges exist, fintechs have the potential to reshape the industry and democratise access to financial services.