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2017 | Book

FinTech in Germany

Authors: Gregor Dorfleitner, Lars Hornuf, Matthias Schmitt, Martina Weber

Publisher: Springer International Publishing


About this book

This book focuses on market developments of crowdfunding, crowdinvesting, crowdlending, social trading, robo-advice, personal financial management, online payment and mobile payment in Germany. FinTech companies are an important driver of innovation in the financial industry. By making financial transactions more user-friendly and transparent, these firms potentially contribute to financial stability and economic growth. The authors define and categorize the different market segments that have emerged. They further provide an assessment of current market volumes and make forecasts for the next 5, 10 and 20 years. Particular attention is given to the empirical findings resulting from scholarly research. Furthermore, the authors evaluate how the German FinTech market ranks relative to international standards. This book will appeal to finance and entrepreneurship researchers as well as practitioners from banking and tech industries.

“This book offers a fresh and fascinating look at the FinTech market. The authors provide a rigorous economic analysis of the FinTech market in Germany and offer many insights that are of interest to practitioners, academics, and policymakers alike.”

–Professor Douglas Cumming, Schulich School of Business

“Germany is one of the fastest growing FinTech markets in Europe. This book not only provides a comprehensive and systematic overview on the developments and actors, but undertakes a visionary outlook on the forthcoming decades based on scientific methods.”

–Dr. Thomas Puschmann, Head of Swiss FinTech Innovation Lab

Table of Contents

Chapter 1. Introduction
The Internet and digitization have already turned many elements of the economy upside down. The financial sector is no exception. In recent years “FinTechs”—i.e. businesses that use innovative technologies to provide financial services—have attempted to inaugurate a financial revolution.
Gregor Dorfleitner, Lars Hornuf, Matthias Schmitt, Martina Weber
Chapter 2. Definition of FinTech and Description of the FinTech Industry
Currently there is not a universally accepted definition of the term “FinTech.” The following section provides a brief survey of its use within existing scholarly literature. A definition is formed by means of a general description of the characteristics of FinTechs and an enumeration of the individual segments that make up the FinTech market.
Gregor Dorfleitner, Lars Hornuf, Matthias Schmitt, Martina Weber
Chapter 3. Methodology
The design of this study and the methodology used are described below. The first step was to identify the relevant German FinTech companies and to assign them to the various segments. FinTechs that had their company headquarters in Germany in April 2016 or were involved in significant activity in Germany are regarded as relevant. The FinTech businesses included on the websites,,, and comprise the main focus of this study. The database thus compiled was supplemented by FinTech companies that had already been mentioned on blogs and in the press for start-ups. There are websites that imitate the appearance and character of FinTech companies though they do not offer FinTech services, being merely sales or marketing channels for real estate or insurance brokers. Such “false FinTechs” were not considered in this study.
Gregor Dorfleitner, Lars Hornuf, Matthias Schmitt, Martina Weber
Chapter 4. The FinTech Market in Germany
In the following, we provide overview of the entire German FinTech market. Subsequently, general trends of the FinTech industry are described, and market sizes and developments within the respective subsegments are analyzed.
Gregor Dorfleitner, Lars Hornuf, Matthias Schmitt, Martina Weber
Chapter 5. International Position of the German FinTech Market
A look at the global FinTech markets and the number of newly created FinTech businesses shows that Germany is in fifth place behind the US, the UK, Canada and India (Haddad and Hornuf 2016). However, the study conducted by Haddad and Hornuf (2016) focuses on the European market, since the representativeness of the data regarding Asia provided by CrunchBase is open to question. In terms of the number of newly created FinTech start-ups, Germany boasts the second largest FinTech market in Europe after the UK.
Gregor Dorfleitner, Lars Hornuf, Matthias Schmitt, Martina Weber
Chapter 6. Forecasts for the FinTech Market in Germany
In order to assess not only the present but also the future importance that FinTech companies will have for the German market, we provide a forecast of the size of the FinTech market for the next 5, 10 and 20 years. Despite the current media presence of the FinTech industry, our empirical study shows that it currently has a small volume relative to the entire financial market. Traditional financial institutions or asset managers today claim the largest market shares in the respective subsegments. However, the current state of the market does not rule out the possibility that the markets addressed by FinTechs are developing rapidly, as has been the case with other disruptive technologies, such as those occurring within the music industry or online hotel bookings.
Gregor Dorfleitner, Lars Hornuf, Matthias Schmitt, Martina Weber
Chapter 7. Academic Research
In order to assess the significance of previous findings in this book regarding the development of the market size, drivers of growth, and future projections of the German FinTech market in the academic context, the following section will provide a brief overview of the national and international academic literature. This overview will survey the relevant research pertaining to the donation and reward-based crowdfunding, crowdinvesting, crowdlending, and social trading subsegments. Particular attention will be paid to studies that furnish data pertaining to German FinTech businesses.
Gregor Dorfleitner, Lars Hornuf, Matthias Schmitt, Martina Weber
Chapter 8. Summary
The goal of this book is to provide comprehensive data collected in accordance with scientific standards that are relevant for understanding the German FinTech market. This data is intended to contribute to a clear picture of the importance of FinTech companies for the German financial sector and the economy as a whole. In order to give an indication of possible future developments in the market, forecasts are made on the basis of current figures for the next 5, 10 and 20 years. The fundamentals that characterize the total market for FinTech companies are examined. A particular focus, however, is on the subsegments of donation and reward-based crowdfunding, crowdinvesting, crowdlending, robo-advice, PFM, investment and banking, social trading, credit and factoring, and payments. The comprehensive data that was collected about the market size and market structure of the German FinTech industry should allow for the better assessment of the opportunities and risks of these innovative financial service providers.
Gregor Dorfleitner, Lars Hornuf, Matthias Schmitt, Martina Weber
FinTech in Germany
Gregor Dorfleitner
Lars Hornuf
Matthias Schmitt
Martina Weber
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