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A tale of 44 cities
Connecting Global FinTech: Interim Hub Review 2017
Published by Deloitte
April 2017
We want to encourage global
engagement, best practices,
and knowledge sharing, as well
as build bridges between all
FinTech hubs for entrepreneurs
and investors to connect.
Global FinTech Hubs Federation
A tale of 44 cities |
Contents
Contents
3
A tale of 44 cities |
Connecting the global FinTech community
This interim report updates 20 of the Hubs profiled in September 2016 and introduces an additional
24 Hubs that have joined the Federation, bringing the number total number of Hubs profiled to 44.
We have been overwhelmed by the response of the global FinTech community and their desire to
Fabian Vandenreydt Lawrence Wintermeyer collaborate and connect with each other to share best practices and knowledge through the Global
Global Head of Securities Markets, CEO, Innovate Finance FinTech Hubs Federation.
Innotribe & The SWIFT Institute, SWIFT
We welcome members of the Federation to the Innovate Finance Global Summit at Londons
Guildhall on 10 and 11 April 2017.
The next full report will be published in the autumn and be presented at Sibos 2017 where we will
welcome all of the members of the Federation to Toronto.
We would like to thank Deloitte for their continuing support and contribution to making this report
the global FinTech hub report.
We look forward to meeting and working with all of the hubs in the Federation in 2017.
Fabian Vandenreydt,
Global Head of Securities Markets, Innotribe & The SWIFT Institute
Lawrence Wintermeyer,
CEO, Innovate Finance
4
A tale of 44 cities |
Connecting the global FinTech community
The Global FinTech Hubs Federation (GFHF) is an independent and inclusive network of emerging Launched in 2009, Innotribe was created to identify the emerging technologies and innovative
and established FinTech hubs. As the FinTech sector develops globally, it is creating a growing trends surrounding the financial services industry and generate discussions on their potential
international community helping to foster innovation across the worlds financial services industry. impact moving forward. Benefiting from SWIFTs central position, Innotribe provides a platform to
The Global FinTech Hubs Federation is bringing together FinTech hubs to provide a neutral, cross- the global financial community to understand the dynamics behind technology changes and to help
border platform to encourage greater collaboration, engagement and knowledge sharing in this focus on the opportunities for transformation rather than the threats to current market practices.
growing global community.
Deloitte is the largest privately held professional services organization in the world based on Innovate Finance is an independent, not-for profit membership association that represents the
headcount and breadth of capability, delivering audit, enterprise risk, tax, finance, strategy and UKs global FinTech community. Founded in 2014 with support from the City of London and Canary
operations, human capital, and technology services. Wharf Group and with over 250 members, Innovate Finance aims to accelerate the countrys
leading position in the global financial services sector by directly supporting the next era of
technology-led FinTech innovators. The goal is to create a single point of access across sectors to
help foster enabling policies, regulation, and investment.
5
A tale of 44 cities |
Readers note
Readers note
Interim report : new Hubs, same methodology This report uses the same research methodology as the Connecting Global FinTech: Hub Review
Since our inaugural report was launched at Sibos 2016, the number of participants in the Global 2016 report. Full details of this, including how Hubs and Hub Representatives were selected, can
FinTech Hubs Federation has more than doubled. This is a great success for the Federation and to be found in the Methodology on pages 7-12.
recognise this significant growth, the Federation has asked Deloitte to help them create a one-off
Interim report to showcase the 24 New Hubs. For the 24 New Hubs that are the focus of this Interim report, we have completed the full research
approach set out in our methodology. However, for Hubs previously profiled in the 2016 report,
In reading this report, readers should note that the analysis is split into two parts: we have limited the updates to Index Performance Scores and corrections which did not make it
into the previous report.
i. Index Performance Scores:
We took the combined scores of each Hub from three prominent business indices (the World Our ambition for future reports
Bank Doing Business Index, the Global Innovation Index and the Global Financial Centres Index) In FinTech, a lot changes over six months. When we launched our Connecting Global FinTech:
to provide a consolidated Index Performance Score in order to assess the Hubs on a quantitative Hub Review 2016 at Sibos last year, it was the first report globally that attempted to score
basis. A lower Index Performance Score is expected to be more conducive to the growth of FinTech. 21 international FinTech Hubs. At the time, and arguably still, there were no comprehensive FinTech
measures that could be used to objectively benchmark global Hubs and track progress over time.
However, readers should note that Index Performance Scores are not rankings. There are
limitations of using Index Scores, and these are set out in the Methodology section. For example, As the industry continues to mature, and national governments, regulatory and FinTech bodies
four Hubs (Auckland, Bangalore, Lagos and Nairobi) are not currently included in the Global start to publish more data regarding its impact, our ability to better measure and track progress
Financial Centres Index and therefore have an Index Performance Score marked n/a. across Hubs has the potential to become more sophisticated and this can then be reflected in
our analysis.
ii. Hub Indicators:
Hub Representatives were asked to provide a self-assessment of their Hub based on six categories Deloitte are excited to support the Global FinTech Hubs Federation in creating a set of qualitative
and provide a broad overview of their Hub, including the top innovation areas and challenges, and quantitative measures that will underpin future reports and better capture the intricacies
top FinTech companies, investors and others. Readers should note that while not all Hub and complexities of each Hub. We have gathered the lessons learnt from our 2016 report and
Representatives in the 2016 report were GFHF participants, all Hub Representatives in the 24 New are already assimilating a list of refinements that we look forward to sharing with you in the next
Hubs are GFHF participants and this is reflective of the ambition for future reports. Sibos report.
The 2016 Hub profiles have been included at the end of this report. These have been included for reference only as the
self-assessment and narrative data may now be out of date. We will conduct a comprehensive refresh of all Hubs as part
of the full report being published at Sibos in October 2017.
6
A tale of 44 cities |
Methodology
Methodology
The Connecting Global FinTech: Hub Interim Review 2017 The methodology for the FinTech Hub comparison is comprised of three sections: Hub and Hub
Representative Selection Index Performance Score and Hub Indicators.
is published by Deloitte in collaboration with the Global FinTech
Hubs Federation and builds on the initial analysis and research For the Hubs featured in the original Connecting Global FinTech: Hub Review 2016 report, we
updated the Index Performance Scores with recent data. However, the self-evaluation and narrative
undertaken for the Connecting Global FinTech: Hub Review data remain largely unchanged, except where Hub Representatives have changed.
2016. The report takes into account both hard and soft data to
For the 24 New Hubs, the full research was completed based on the methodology below.
compare the status of 44 global hubs (Hubs) on the basis of
the FinTech sector development in that location. Future reports will include a refresh of the full dataset.
Note that since the research cut-off date for this Interim report, the locations covered by GFHF
participants have expanded to include Dubai and Charlotte (North Carolina). These Hubs will be
included in the October 2017 edition of the report.
As contributors to the Connecting Global FinTech: Hub Review report, Hub Representatives have
a responsibility to provide a balanced and unbiased overview of FinTech developments, strengths
and challenges within their Hub.
7
A tale of 44 cities |
Methodology
As the GFHF was still in its infancy when the inaugural report was launched, a broad spectrum 1.4. List of Selected Hubs and Hub Representatives
of ecosystem participants, ranging from industry bodies to regulators and professional services 2016 Hubs (Existing Hubs)
firms, were invited to contribute to the Connecting Global FinTech: Hub Review 2016 as Hub Hub Hub Representative
Representatives. (Example: Deloitte Ireland is not a participant of the GFHF but was asked to contribute
Amsterdam Holland FinTech
towards the inaugural report as the Hub Representative. In the next full version of the report, a GFHF
Bangalore Nathan Associates India [NOTE 2]
participant will replace Deloitte as the Hub Representative for Ireland.)
Brussels B-Hive (formerly Eggsplore)
However, as the GFHF develops and its network of participants expands, the intention is to shift Dublin Deloitte Ireland [NOTE 2]
the roles and responsibilities of Hub Representatives to GFHF participants. For example, Hub Frankfurt Frankfurt Main Finance [NOTE 1]
Representatives selected for the New Hubs in this Interim report are FinTech associations and Hong Kong FinTech HK
bodies who are also participants of the GFHF.
Johannesburg Techstars [NOTE 2]
London Innovate Finance
Deloitte has no influence over the selection of the Hub Representatives.
Luxembourg City Luxembourg for Finance
1.3. GFHF Participants Mexico City FinTech Mexico
Under current guidelines, independent FinTech ecosystem facilitators such as associations, industry Nairobi NEST Nairobi
bodies and organisations who play a role in connecting FinTech startups, investors, institutions, New York Partnership Fund for New York City
policymakers and regulators are open to join the GFHF and become participants. Paris Paris FinTech Forum
Seoul Deloitte South Korea [NOTE 3]
The current list of participants, and criteria for joining the Federation, can be found on the
GFHFs website at: thegfhf.org Shanghai Association of Shanghai Internet Financial Industry (ASIFI) [NOTE 1]
Silicon Valley 500 Startups [NOTE 2]
Singapore Monetary Authority of Singapore [NOTE 2]
Sydney Stone & Chalk
Tel Aviv Startup Nation Central
Toronto MaRS Discovery District [NOTE 1]
Zurich Swiss Finance + Technology Association
8
A tale of 44 cities |
Methodology
Taipei FinTechBase 2. Z/Yen. 2016. The Global Financial Centres Index 20, September 2016. Yeandle, Z/Yen London. Available here:
http://www.longfinance.net/images/gfci/20/GFCI20_26Sep2016.pdf
Tokyo FinTech Association of Japan
3. Cornell University, INSEAD, and WIPO (2016): The Global Innovation Index 2016: Winning with Global Innovation,
Warsaw FinTech Poland
Ithaca, Fontainebleau, and Geneva. License: Creative Commons Attribution CC BY 3.0 IGO. Available here:
https:// www.globalinnovationindex.org
9
A tale of 44 cities |
Methodology
Global Financial Centre Index (GFCI) As the FinTech sector is characterised by early and growth stage companies, the ease of doing
Research indicates that many factors combine to make a financial centre competitive. The Global business is a crucial measure of the viability of a particular Hub. It should be noted that many
Financial Centre Index (GFCI) was created in 2005 and was first published by Z/Yen Group in March governments in countries which have poor DB scores can and do get around this by creating
2007. The GFCI provides profiles, ratings and rankings for financial centres, drawing on two separate enterprise- / free- / technology-zones that remove many of the regular business restrictions.
sources of data: Therefore a lower DB score does not necessarily equate to a poor FinTech ecosystem.
Instrumental Factors: Business Environment, Financial Sector Development, Infrastructure, Global Innovation Index (GII)
Human Capital and Reputational and General Factors First published in 2007, the Global Innovation Index is the result of a collaboration between Cornell
University, INSEAD, and the World Intellectual Property Organization (WIPO) and their Knowledge
Financial Centre Assessments: in the form of responses to an online survey Partners. GII aims to capture the multi-dimensional facets of innovation by providing a rich
database of detailed metrics for 128 economies that represent 92.8% of the worlds population and
The GFCI is important for the comparison of FinTech hubs, as it relates directly to the 97.9% of global GDP. Since FinTech is inherently disruptive, innovation is a key factor in determining
competitiveness of that particular location as a financial centre. While the Instrumental Factors set whether a particular Hub can foster a successful FinTech sector. In particular, the wide variety of
out above are typically the types of factors that would also go towards determining the strength measures used in the GII would be expected to capture the various innovation components for a
of a Hub in supporting a FinTech ecosystem, strong global financial competitiveness does not technology-related sector. It should be noted that innovation is broader than solely technological
necessarily equate to a strong environment for FinTech. A measure such as GFCI may also be innovation. For example, mobile payments via SMS have been a staple of the African payments
representative of existing entrenched interests backed by an infrastructure and regulatory system system for many years (predating mobile payments in developed markets) the innovation there
that tend towards supporting the status quo. A truly disruptive economic micro-climate also needs was not technical, it was deployment of the right technology in the right context.
that elusive x-factor that enables innovation to naturally occur.
10
A tale of 44 cities |
Methodology
11
A tale of 44 cities |
Methodology
Proximity to expertise: availability and level of talent (financial services, technological and Dropdown Questions
entrepreneurial talent) within the Hubs. For example, is there a vibrant financial services or tech sector 01. What are the top five innovation areas in your Hub?
in the Hub? Is there a balanced mix of skills? Is there a strong STEM education pipeline? If there isnt 02. What are the top five underlying technologies to make those innovations happen?
strong homegrown talent, are there initiatives to attract talent from other Hubs?
03. What are the top three challenges of doing business there?
Innovation culture: Hubs attitudes to innovation. For example, how many entrepreneurs and
Narrative Questions
startups are in the Hub? What is the attitude towards risks and failure? Is there a history
01. What sets you apart from other regional Hubs?
of collaborating to develop new ideas?
02. Who are the big investors?
Government support: extent to which the Hubs government (local and state) supports FinTech. 03. What are the top accelerators and work spaces?
For example, is FinTech on the governments agenda? Has the government enacted or supported policies 04. What are the top FinTech companies in your Hub?
that promote FinTech growth? Does the government provide funding for FinTech companies, events or
05. What is the biggest success story to come out of your ecosystem?
co-working spaces?
06. What does the next 12 months look like?
Dropdown and Narrative Questions
These questions were comparatively subjective. Nevertheless, they constituted an important part Deloitte reviews
of the development of the Connecting Global FinTech: Hub Review. The narratives enabled the To provide an additional layer of depth and challenge to the self-evaluations for the 24 New Hubs,
creation of Hub Profiles for the Hubs, which can be expanded upon in future editions in order to we also reviewed Hub Representatives responses with Deloittes global network of FinTech SMEs.
further develop Hub comparisons. This could include, for example, developing the criteria (such as Challenges and changes proposed by SMEs were presented back to Hub Representatives
market value, or value of investments) for selecting the Top companies, investors or accelerators. for them to accept or reject.
Hub Representatives were asked to select the most significant technologies, innovation areas Responses for Hubs profiled in the Connecting Global FinTech: Hub Review 2016 were reviewed
and challenges in their local FinTech market from a dropdown list provided by the GFHF. Here, with Deloitte SMEs at the time of research and have not been reviewed again in the current
innovation areas refer to the financial services sectors being disrupted by FinTech. Interim report.
Individual Hubs have been the subject of extensive research and data collection, and the relevant The final opinions published are that of the Hub Representatives and not the opinions of the
Hub Representatives have reported both subjectively and objectively derived responses. The future GFHF or Deloitte.
objective will be to increase the standardisation of reporting across global Hubs.
12
Reading guide
Self evau
lation
of the Hu
hub b
in s indi
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High Rank
ea
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Index Performance Scores Hub Indicators
The Index Score is the aggregated total of the These Hub indicators are based on self-
Silic
three indices on the outer circle: assessments from Hub Representatives and
o
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indicate the strength of each component part
G
lley
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Global Fin Centre of their FinTech ecosystem on a scale of Not
er
ng
nm
Ko
Global F
in Good to Excellent.
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Centre
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Doing Business
up
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Global Innovation Index
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INDEX SCORE
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Innovation culture
Frankfurt
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The High Rank and Low Rank scale shows the two
Hubs with higher and lower Index Scores compared
e
r ti s
with the current Hub.
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13
A tale of 44 cities |
Research findings
Research findings
14
A tale of 44 cities |
Research findings
Research Findings
Where is all the activity? interesting developments from emergent Hubs across Eastern Europe, South America and Africa
FinTech is a truly global phenomenon. This that have not yet been represented in our report. As the network of GFHF participants expands, the
interim report is driven by the exciting growth scope of our report will become increasingly comprehensive.
of FinTech hubs globally who have become
members of the Federation and sets the stage Emergent themes from the regions
for our full GFHF Report being launched at When we analysed the data from the 24 New Hubs we profiled and coupled it with additional desk
Sibos later this year. research, a number of interesting regional themes emerged across the globe:
Although level of investment is by no means On the whole, our research found that new European Hubs (particularly those within the
the only factor contributing to the strength of European Union) tended to agree that there is good access to talent in their Hubs. On the
Louise Brett FinTech Hubs, it is a good indicator of activity. other hand, most of these 12 European New Hubs rated regulation in their Hub negatively and
UK FinTech Lead Partner, Deloitte Therefore, a look at the investment landscape regulatory barriers were cited as a common challenge.
on page 19 gives us an idea of where FinTech
activity is at its hottest across the globe. Consistent with this, our research on regulatory sandboxes and regulator collaboration showed
that in Europe, only the UK, Netherlands, Russia, Switzerland and Norway (5 of the total 20 GFHF
Our report now covers 20 Hubs in Europe, 12 in Asia Pacific and 12 from other regions around European Fintech hubs) have committed to a regulatory sandbox and only the UK, French and Swiss
the world and offers a broadly representative overview of the global FinTech landscape. With that regulators have signed FinTech co-operation agreements with other regulators across the globe.
said, there are still a few notable Hubs that have not yet joined the GFHF and therefore have not
been featured in the current report. (For example, Beijing). In addition, we are aware that there are In Asia Pacific, Hub Representatives were more positive about regulation in their Hubs compared
to their European counterparts and with good reason too. Over the last year, we have seen very
GFHF Hubs New Hubs Old Hubs Total positive developments from regulators across Asia and the pace of change has been extremely
encouraging. For example, of the 16 regulators who have either set up or have committed to
Africa 1 2 3
setting up regulatory sandboxes, seven are in Asia. Moreover, Asian regulators have also
Asia Pacific 7 5 12
been proactive in cooperating with other regulatory bodies outside of their region. For example,
Central and South America 1 1 2 as shown on the regulatory collaboration map on page 21, China, South Korea, Hong Kong, Japan,
Europe 12 8 20 Singapore, Australia and India have all signed international cooperation agreements with other
Middle East 2 1 3 regulators; and Singapores MAS has signed more FinTech cooperation agreements than other
North America 1 3 4 regulatory bodies in the world. Although the tangible outcomes of these agreements largely
Grand Total 24 20 44 remain to be seen, cooperation between regulators globally has undeniably become a trend.
15
A tale of 44 cities |
Research findings
Although our research only included two Hubs from the Gulf region, both Hub Representatives Closing remarks
presented very similar self-assessments. For one, both Hubs claimed excellent government As we have seen, FinTech ecosystems continue to evolve at pace across the globe.
and regulator support for FinTech and these are evidenced by the range of initiatives that the
government and regulatory bodies are driving together. For example, the RegLab in Abu Dhabi, As these ecosystems evolve, so too will the report and its methodology for assessing and
the FinTech Hive and 2020 blockchain ambition in Dubai and the FinTech work driven by the EDB presenting the FinTech developments in these Hubs.
in Bahrain.
As identified within the Readers Note section, we are pleased to be working with the Global
In Africa, FinTech developments continue to be concentrated around mobile and social payments. FinTech Hubs Federation to review and refine the methodology and improve the robustness of the
Highly successful FinTechs are rare as low levels of government and regulatory support and lack assessments currently being completed by each Hub.
of quality infrastructure continue to be barriers to scaling.
Without giving away too much, we are very excited about the new Full Report that we will be
In the Central and South America region, Brazil leads the pack by way of investment and number releasing at Sibos in October and look forward to working closely with ecosystem participants
of FinTechs and much of the activity is concentrated in Sao Paulo. Broadly, across the region, across all the GFHF Hubs over the coming months.
corporates and investors are the ones proactively developing the local FinTech ecosystems.
However, there are positive signals that government and regulator support for FinTech is
increasing. For example, Mexicos new financial inclusion strategy is expected to promote
FinTech growth.
Finally, we complete the map with North America. While Silicon Valley and New York continue
to be the indisputable top FinTech Hubs in the USA, and Toronto in Canada with 80% of the
Canadian FinTech activity in this Hub, over the last year we have seen a number of other emerging
Hubs: Chicago, which has been included in this Interim report; and Charlotte, North Carolina,
which will feature in the next GFHF report. Another interesting development in the USA in recent
months has been regulation, particularly in regards to the OCCs FinTech charter. As the USAs
complex and fragmented regulatory environment has been cited as a challenge by US FinTech
Hubs in our research, it will be interesting to review these developments again in our full Sibos
report which will be launched in October.
16
A tale of 44 cities |
Overview Index Performance Scores
Toronto 50
Amsterdam 70
Edinburgh 76
London 11
Dublin 56
126 Prague
167 Moscow
Brussels 127
151 Budapest
Luxembourg City 83
168 Istanbul
Chicago 20 Paris 76
111 Tel Aviv
Zurich 41 55 Tokyo
Silicon Valley 18 99 Abu Dhabi
119 Shanghai
Madrid 132
Mexico City 181 57 Taipei
Lisbon 124
125 Shenzhen
Manama 178
Bangalore n/a
Index Performance Score
New Hubs Old Hubs Lagos n/a
Bangkok 137
125 125 45 Sydney
Nairobi n/a Kuala Lumpur 101
26150 26150 n/a Auckland
Jakarta 255
A lower Index Performance Scores indicates that the
Hub is more conducive to FinTech growth based on 243 Sao Paulo
the amalgamation of three global indices.
17
A tale of 44 cities |
Overview - Hub Indicators
agen
Budapest
Chicago
Brussels
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Overview Hub Indicators
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left to right in alphabetical order.
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18
A tale of 44 cities |
Global FinTech VC deal value 2016
UK $783m
Ireland $524m
Luxembourg $2m
Canada $183m
France $68m
Switzerland $34m
US $6.2bn
Spain $12m
Italy $9m Taiwan $6m
Mexico $72m
Brazil $161m Hong Kong $170m
Source: PitchBook
Compiled by Deloitte
19
A tale of 44 cities |
Map of regulatory sandboxes
The map below shows all live and proposed regulatory sandboxes (and similar regulatory initiatives). Proposed sandboxes are ones on which a formal statement has been made by a regulatory or
government body. Live sandboxes are ones which have already began accepting applications or conducting trials.
Russia Proposed
Central Bank of Russia
UK Live
Financial Conduct Taiwan Proposed
USA Proposed Authority (FCA) Financial Supervisory
Federal Reserve Board / Treasury Commission (FSC)
Department / Securities and Exchange
Commission Singapore Live
Monetary Authority of
Singapore (MAS)
Australia Live
Key Australian Securities & Investments
Commission (ASIC)
Proposed
Formal statement made by a
regulatory or government body
Malaysia Live
Switzerland Proposed Bank Negara Malaysia
Live Financial Market Supervisory (Central Bank)
Accepting applications or Authority (FINMA)
conducting trials
Dubai Proposed
Dubai Financial Services Authority Abu Dhabi Live Indonesia Proposed
(DFSA) Dubai International Financial Abu Dhabi Global Market Bank Indonesia (Central Bank)
Centre Authority (DIFCA) (ADGM)
Source: Innovate Finance
Compiled by Deloitte
20
A tale of 44 cities |
M
ap of regulatory collaboration
As this is a dynamic space, the map is accurate to 28th March 2017. Hong Kong 1: UK
India 1: Singapore
Canada UK Switzerland China South Korea Japan 2: UK, Singapore
Ontario Securities Financial Conduct Financial Market Peoples Bank Korean Financial Kenya 1: Australia
Commission (OSC) Authority (FCA) Supervisory Authority of China Services Commission
(FINMA) (FSC) Singapore 8: UK, Korea, India, Switzerland,
Australia, Abu Dhabi, Japan, France
South Korea 2: Australia, UK
Switzerland 1: Singapore
UK 7 : China, Singapore, Korea, Australia,
HK, Canada, Japan
France
Autorit de Contrle
Prudentiel et de Japan
Rsolution (ACPR) and Financial Services
the Autorit des Agency of Japan (FSA)
Marchs Financiers Hong Kong
(AMF) Monetary Authority
(HKMA)
Singapore
Monetary Authority
of Singapore (MAS)
Australia
Kenya Abu Dhabi India Australian Securities &
Capital Markets Authority Abu Dhabi Global Government of Investments Commission (ASIC)
of Kenya (CMA) Market (ADGM) Andhra Pradesh (GoAP)
Source: Deloitte
Compiled by Deloitte
21
A tale of 44 cities |
New Hubs
Abu Dhabi
Auckland
Bangkok
Budapest
Chicago
Copenhagen
Edinburgh
Istanbul
Jakarta
Kuala Lumpur
New Hubs...
Lagos
Lisbon
Madrid
Manama
Milan
Moscow
Oslo
Prague
Sao Paulo
Shenzhen
Stockholm
Taipei
Tokyo
Warsaw
22
A tale of 44 cities |
New Hubs
New Hubs
The following section contains an analysis of the 24 FinTech Hubs that are new additions to the Index Performance Scores Hub Indicators
Connecting Global FinTech : Hub Review report. The analysis captures the following insights: The Index Score is the aggregated total of the These Hub indicators are based on
three indices on the outer circle: self-assessments from Hub
1. An Index Performance Score that combines these key indices: Representatives and indicate the
Global Fin Centre strength of each component part of
Global Innovation Index (released 15 August 2016) their FinTech ecosystem on a scale
Doing Business
of Not Good to Excellent.
Global Financial Centre Index (released September 2016)
Self evau
lation
of the Hu
High Rank
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Doing Business Index (released October 2016) s
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The Index Performance Score can be found in the centre of each Hubs dedicated diagram.
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The topleft quadrant shows how the Index Performance Score compares to other Hubs.
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If a Hub receives a lower Index Performance Score, it can be said that the Hub is more conducive
rt
to FinTech growth. However, the analysis is not designed to rank each of these Hubs, as a more
Zurich
rigorous examination across multiple categories is required for in-depth benchmarking. Future
iterations of this analysis will aim to incorporate more holistic factors outside the global indices
Innovation culture
included in the Index Performance Score. Frankfurt
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The remaining circumference of the diagram captures the qualitative analysis on Hub Indicators.
and Low Rank
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to
la t
Further details on key Hub features, such as workspaces and accelerators, top FinTech investors
it y
io
two Hubs with
m
xi
ro
and the future of the FinTech Hub, are presented thereafter. The insights provided by the Hub
P
are designed to add to the understanding of local FinTech activity and are not opinions of the GFHF n st
a rt u p ty t o
c us
compared with
i
s Pr o x i m
or Deloitte.
the current Hub.
23
A tale of 44 cities |
Abu Dhabi
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Abu Dhabi
ea
s
Hub profile
Oslo
Lu
G
ov
xe
er
m
nm
bo
Global F
ur
en
in
g
Centre
ts
Ci
Ab 32
ty
u
up
Dh
po
a bi
rt
Kua
la Lum
pur
Abu Dhabi, the capital and economic centre of the United Arab
Emirates, is home to some of the worlds largest sovereign wealth
Innovation culture
INDEX SCORE
99
funds. As a free-trade zone, it boasts a strong financial centre;
Warsaw
stable political, regulatory and judicial regimes; a business-friendly
environment; excellent technology infrastructure and availability of
capital. Furthermore, its location in the East-West corridor means
that Abu Dhabi is well-positioned to be the FinTech nexus for the Low
Ran
k
26 sine
Bu ing
MENA region.
Do
n
tio
ss
va
no
41 dex l In
In oba
e
rti s
Gl
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
24
A tale of 44 cities |
Abu Dhabi
Innovation areas
Big investors
Abu Dhabi is home to some of the largest sovereign wealth funds and financial
E-commerce
institutions (e.g., National Bank of Abu Dhabi, the largest bank in the MENA region)
Identity management
and a high concentration of institutional and private wealth.
Payments
Mobile apps
Success stories
P2P crowdfunding
The launch of the RegLab was a milestone success for Abu Dhabi as this marked
the openness and support by regulators and government towards innovation.
Challenges
The collaboration between banks and startups, and the banks innovation
Risk averse culture
strategies more broadly, is also another success story as it highlights the attitude
High cost of office space
of the main institutions towards FinTech.
Limited exit opportunities
The future
In 2017, ADGM plans to host and organise a FinTech Summit. Leading up to
the Summit, there will be a series of FinTech hackathon / demo day events to
showcase the FinTech entrepreneurial scene in the region. ADGM received the
first batch of 11 applications for the RegLab in January 2017 and expects to
complete its assessment for the first batch and open the 2nd batch of application
in Q2 2017.
25
A tale of 44 cities |
Auckland
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Auckland
ea
s
Hub profile
G
ov
er
nm
Au g Global In
Doin ess
en
c nov
kl n Index atio
Busi
ts
an 17 n
d
up
1 Gl
N/ oba
po
A lF
rt
in
Ce
nt
re
Auckland is New Zealands largest and most internationally connected
Innovation culture
INDEX SCORE
n/a*
hub, with a third of the country's population and the largest number
of businesses. The city hosts the entire diverse spectrum of financial
services, as well as the largest concentration of the countrys vibrant
tech sector. Combine this with strong central and local government
support and direct links to the countrys other hubs, Auckland is an Ran
k
Low
ideal environment for innovating FinTech.
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
Hub representative
ro
P
New Zealand Financial
Innovation and Technology
Association (FinTechNZ)
For er s
eig st om * The data for Auckland is not available
CEO n st
ar tup i ty t o cu on the Global Financial Centre Index.
Mitchell Pham s P r o xi m
As such, Auckland has not been given
an Index Performance Score.
Source: Global FinTech Hubs Federation
Produced by Deloitte
26
A tale of 44 cities |
Auckland
27
A tale of 44 cities |
Bangkok
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Bangkok
ea
s
Hub profile
Mad
rid
M
G
ov
ila
er
n
nm
Global F
en
in
Centre
ts
Ba
ng 39
up
k ok
po
rt
The Thai FinTech ecosystem is growing rapidly. In 2016, the number of
Bud
FinTech startups doubled from around 40 to almost 90. Bangkok, which ape
st
Innovation culture
INDEX SCORE
137
their own corporate VCs, innovation labs and accelerator programs for
Moscow
FinTech startups. In Thailand, regulators (the Securities and Exchange
Commission and the Bank of Thailand in particular) play an active role
46
in growing the FinTech ecosystem. For example, the SEC launched
Busi g
Doin
ion
nes
a FinTech competition to promote and support new ideas of Ran
k
vat
s
Low
no
financial innovation.
In
ob x
In 2
Gl de
a l
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
For er s
Hub representative eig st om
n st
ar tup i ty t o cu
Thai Fintech Association s P r o xi m
Acting President
Jessada Sookdhis Source: Global FinTech Hubs Federation
Produced by Deloitte
28
A tale of 44 cities |
Bangkok
There are committees under the National Legislative Assembly, the National
Reform Steering Assembly and the National Startup Committee to improve
FinTech and Financial infrastructure. Some laws and regulations that are currently
obstacles to FinTech development will be proposed to amendment.
29
A tale of 44 cities |
Budapest
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Budapest
ea
s
Hub profile
Mila
n
G
Ba
ov
ng
er
k
nm
ok
Global fi
en
n
Centre
ts
Bu 77
d
up
ap
e
po
st
rt
n
io
at
Mo
sco
ov
w
Inde al Inn
x
Glob
33
Innovation culture
INDEX SCORE
151
mostly known for their excellent technological talent pool and Ran
k
Low
innovative technologies.
e
rti s
41
ss
pe
Busine
Re
ex
Doing
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
CEE FinTech
For er s
eig st om
CEO n st o cu
ar tup i ty t
Zsombor Imre s P r o xi m
30
A tale of 44 cities |
Budapest
The future
Cyber security
The market will continue to mature. Strong enthusiasm and demand will
Banking technology solutions
generate supply. The first Hungarian FinTech accelerator will end its first batch
E-commerce
and it is likely that more similar initiatives will start with banks launching their own
MKB Fintech Accelerator Identity management
accelerator programmes. Startups and corporates will become better connected.
Mosaik Fraud detection and
SparkLab by NN The regulatory landscape for FinTechs will improve with upcoming changes to
mitigation
account opening and account switching regulations.
Challenges
Regulatory uncertainty
Regulatory barriers
Small size of market
31
A tale of 44 cities |
Chicago
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Chicago
ea
s
Hub profile
New
York
Sil
G
ov
ico
er
n
nm
Va
Global F
lle
en
in
y
Ch Centre
ts
ica 8
up
go
po
rt
n
tio
va
no
Hon
Ind bal In
g Kon
g
4 ex
Glo
Chicago acts as the epicenter for all FinTech activity in the Midwest,
Innovation culture
INDEX SCORE
20
representing well over 20,000 financial institutions. It is home to
Zurich
two fifths of the top business universities in the US and over 6%
of the Chicago workforce are focused on the financial ecosystem
contributing to its already significant talent pool. With government
support, Chicago companies are able to quickly innovate to create Ran
k
Low
groundbreaking technology.
8
Bu
e
Do sine
rti s
ing ss
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
FinTEx For er s
eig st om
Chairman
n st
ar tup i ty t o cu
s P r o xi m
Jason Henrichs
32
A tale of 44 cities |
Chicago
Investment management
The future
Capital markets
1871
Over the next 12 months, we expect to see state and local government partnering
Risk management
Catapult Chicago with the private sector and NGOs to pursue greater adoption of blockchain as
Tech Nexus
Markets and exchanges
well as creating an innovation friendly environment. 2017 will also see the launch
Techstars Chicago Wealth management
of Currency, a FinTech centre of excellence and development of an innovation-
friendly regulatory stance.
Challenges
33
A tale of 44 cities |
Copenhagen
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Copenhagen
ea
s
Hub profile
Taip
ei
G
Am
ov
ste
er
nm
rd
Global F
am
en
ion in
vat Centre
ts
Co no
p l In 60
up
en a
ha ob
Gl dex
po
ge
n In
rt
ss 8
Bu ing
e
sin
Do
Edin
3
bur
gh
Innovation culture
INDEX SCORE
71
regulators and a tech savvy population. A strong and supportive
Paris
ecosystem consisting of financial, academic, and regulatory
institutions are ready to see FinTechs scale. The Danish market is
mature and the possibilities near limitless: a perfect environment for
k
FinTech startups to thrive and test solutions. Low
Ran
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Copenhagen FinTech
CEO For er s
eig st om
Thomas Krogh Jensen n st
ar tup i ty t o cu
s P r o xi m
34
A tale of 44 cities |
Copenhagen
35
A tale of 44 cities |
Edinburgh
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Edinburgh
ea
s
Hub profile
Ams
t erd
am
G
Co
ov
p
er
en
nm
ha
Global F
ge
en
in
ion Centre
vat
ts
Ed nno Index 66
up
in I
b al 3
ur ob
po
gh Gl
rt
Edinburgh is a significant global financial services centre, home to
sin ng
s
Bu Doi
es
7
large financial institutions and challenger banks. Edinburgh boasts a Paris
Innovation culture
INDEX SCORE
76
as The School of Informatics, the DataLab, StartEdin, and CodeClan.
Edinburgh has all the component parts to enable a thriving FinTech Oslo
ecosystem and in an area of roughly one sq. mile across the city
centre, one can access major FS organisations, deeply experienced
technologists, highly intelligent and practical academics and secure Ran
k
Low
early stage funding. There are not many other cities that have an
'ecosystem concentration like Edinburgh!
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
FinTech Scotland
(Steering Commitee)
For er s
eig st om
n st
ar tup i ty t o cu
s P r o xi m
36
A tale of 44 cities |
Edinburgh
37
A tale of 44 cities |
Istanbul
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Istanbul
ea
s
Hub profile
Bud
ape
st
G
M
ov
os
er
co
nm
w
Global F
en
in
Centre
ts
Ist 57
up
an
bu
po
l
rt
Man
ama
n
atio
Istanbul is advantageously located, being only four hours flight away
nov
from global leading markets such as London and Dubai, where it is
Global In
Innovation culture
INDEX SCORE
168
Index
committed to developing new businesses. Istanbul has a vision to
42
Mexico City
become a regional centre of finance within the next 10 years and this
is incorporated in the governments plans. Turkey has a very strong
banking sector as well as a skillful workforce and digitisation within the
banking sector is creating opportunities for talented individuals to Ran
k
Low
explore new innovative ideas in FinTech.
69 sin
Bu ing
Do
e
ss
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
FinTech Istanbul For er s
eig st om
n st
ar tup i ty t o cu
CEO s P r o xi m
Selim Yazici
38
A tale of 44 cities |
Istanbul
39
A tale of 44 cities |
Jakarta
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Jakarta
ea
s
Hub profile
Joha
nne
sbu
G
Sa
ov
r
o
er
g
Pa
nm
u
Global F
lo
en
in
Centre
ts
76
up
Jak
po
ar
ta
rt
Indonesia has the most to gain from FinTech and is ripe for disruption.
The country has a large unbanked population and high mobile phone
penetration. Its massive MSME market is still mostly uncatered for by
Innovation culture
INDEX SCORE
255
conventional financing, as evidenced by a wide financing gap. The
funding landscape for FinTech has shown significant growth since 2015,
with VC firms (including globally recognised firms, local bank-backed
n
vatio
VCs, and corporate VCs in general) supporting early stage ventures to
nno
91 iness
Bus g
Doi
access to large pools of Indonesia's untapped growth. Ran
k
al I
Gl dex
n
Low
88
b
In
o
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
For er s
eig st om
n st
ar tup i ty t o cu
Hub representative s P r o xi m
FinTech Association of Indonesia
CEO Source: Global FinTech Hubs Federation
Ajisatria Suleiman Produced by Deloitte
40
A tale of 44 cities |
Jakarta
Success stories
Innovation areas
C88 FinTech Group is the biggest FinTech companies in Indonesia, securing Series
Conclave B round from major investor like Telstra. It was funded by Kejora Group since the
D-LAB by SMDV Retail banking
seed stage, and emerged as Indonesias FinTech powerhouse.
Kejora E-commerce
Mandiri Digital Incubator Aggregators
Plug & Play Indonesia In December 2016, new regulations on P2P lending, payment gateway, and
Credit scoring
e-wallet demonstrated commitments by the regulator to support FinTech
Underwriting
development.
41
A tale of 44 cities |
Kuala Lumpur
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Kuala Lumpur
ea
s
Hub profile
Lux
emb
our
G
Ab
ov
g Cit
u
er
Dh
nm
a
y
Global F
bi
en
in
Centre
ts
Ku 43
up
ala
Lu
po
m
pu
rt
r
Innovation culture
INDEX SCORE
101
now embracing the movement. Likewise, the Malaysian regulators,
Tel Aviv
including the Malaysian Central Bank and Securities Commission, have
also joined in the effort to assist the development of FinTech. With the
n
vatio
support of industry players and regulators, coupled with a young
nno
population keen to embrace technology, Kuala Lumpur has the Ran
k
al I
Gl dex
Low
35
b
potential to be a hub of choice in South East Asia.
In
o
e
23
rti s
Bus
Do iness
pe
Re
ing
ex
gu
to
la t
it y
io
n
m
xi
ro
P
For er s
eig st om
Hub representative
n st
ar tup i ty t o cu
s P r o xi m
FinTech Association of Malaysia
CEO
Source: Global FinTech Hubs Federation
David Fong
Produced by Deloitte
42
A tale of 44 cities |
Kuala Lumpur
Capital markets
The future
E-commerce
The results of the successful applicants for the regulatory sandbox is much
awaited. This will set the tone for FinTech in the financial services space, and will
likely also shape the regulations that are to come. The more challenging economic
Challenges
environment in Malaysia will see more startups competing for funding.
Regulatory uncertainty
around applying legacy
regulations to new
technologies
Low access to capital
Skills shortages - technology
43
A tale of 44 cities |
Lagos
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Lagos
ea
s
Hub profile
G
ov
er
nm
La Doing
en
go Business
s Glo
ts
169 N/A bal
up
Fin
po
Ce
nt
rt
re
Innovation culture
INDEX SCORE
n
tio
va
nno
4
11 dex al
I
In lob
e
G
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
For er s
eig st om * The data for Lagos is not available
Hub representative n st
ar tup i ty t o cu on the Global Financial Centre Index.
Fintech Association of Nigeria s P r o xi m
As such, Lagos has not been given an
Index Performance Score.
CEO
Segun Aina Source: Global FinTech Hubs Federation
Produced by Deloitte
44
A tale of 44 cities |
Lagos
45
A tale of 44 cities |
Lisbon
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Lisbon
ea
s
Hub profile
Tel
Aviv
G
Sh
ov
an
er
nm
gh
Global F
ai
en
in
Centre
ts
Lis
bo 69
up
n
po
rt
Since 2016, theres a growing focus in the Fintech ecosystem
reflected by an increase of Fintech groups, startups, events and She
nzh
en
ion
meetups. Portugal holds strong technological capabilities, stemming
vat
from internationally-recognised universities, is an early adopter of
nno
Global I
Innovation culture
new technologies and a trigger of innovation for different Industries.
Index
INDEX SCORE
124
30
The technological infrastructure is developed and robust and the Prague
administrative and legal process for setting up a startup is quick and
easy. However, due to the lack of access to early-stage funding
and regulation in capital raising, most Fintech startups are unable
k
Ran
to scale past seed funding to series A funding. Low
B u D oin
e
si n g
rti s
ess
25
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Portuguese FinTech and For er s
eig st om
InsurTech Association n st
ar tup i ty t o cu
s P r o xi m
CEO
Joo Machado Mota
Source: Global FinTech Hubs Federation
Produced by Deloitte
46
A tale of 44 cities |
Lisbon
Beta-i
Invest Lisbon Success stories
Innovation areas
Invest Braga Three success stories to emerge from Lisbon include: Feedzai, Seedrs and
Pedro Nunes Institute Crowdprocess. Feedzai is a series B startup that raised $17.5 million in 2015;
Second home Lisbon Investment management
Seedrs, the top European equity crowdfunding site which was co-founded by a
UPTech Back-office operations
Portugese entrepreneur, has its software development team based in Lisbon;
Retail banking (neo and digital
and Crowdprocess was considered one of the Lisbons hottest startups in 2016
banking)
by Wired magazine.
E-commerce
Payments
The future
Over the next 12 months, we expect to see an increase in the number of FinTech
Challenges
companies in Lisbon, a growth in talent as well as increased public and private
investment. We also expect to see a focus in leveraging the right regulation for
Investors are risk-averse
the FinTech ecosystem.
Regulatory uncertainty
Small size of market
47
A tale of 44 cities |
Madrid
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Madrid
ea
s
Hub profile
Prag
ue
G
Br
ov
us
er
se
nm
ls
Global F
en
in
Centre
ts
M 68
ad
up
r id
po
rt
n
io
at
Mila
n
ov
Inde al Inn
x
Glob
28
Innovation culture
INDEX SCORE
128
to entry. Blockchain, Big data and P2P networks are among the Ran
k
Low
technologies underlying the innovation in Madrid.
e
D oi
rti s
Bu n
sin e g
ss
pe
Re
32
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Asociacin Espaola de For er s
eig st om
FinTech e InsurTech n st
ar tup i ty t o cu
s P r o xi m
CEO
Jesus Perez
Source: Global FinTech Hubs Federation
Produced by Deloitte
48
A tale of 44 cities |
Madrid
The future
Robo advisors
The next 12 months will see the creation of a dedicated FinTech hub in Madrid,
Payments
further developments to the regulatory environment, increase in capital
Retail banking
investments and more foreign companies locating in Madrid.
KYC / Identity management
Crowdlending
Challenges
Regulatory uncertainty
Low access to capital
Limited specific support for
tech. startups
49
A tale of 44 cities |
Manama
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Manama
ea
s
Hub profile
Mos
cow
G
Ist
ov
an
er
bu
nm
Global F
en
in
Centre
ts
M 58
an
up
am
po
a
rt
Bahrain is a long standing financial center in the region and the first Mex
ico C
ity
innovator in Islamic Finance. While Bahrains FinTech ecosystem is still
in early stages of development, the collaboration between public and
Innovation culture
INDEX SCORE
178
private stakeholders in developing FinTech makes Bahrain stand out in
Johannesburg
the global stage. Bahrain has ambitions to be a testbed for startups
nnovation
looking to expand across the GCC and are connecting with other
international hubs to learn from best practice. Specific areas of
bal I
Glo ex
57
Ind
interest for Bahrain include Islamic Finance, crowdfunding, Ran
k
Low
63 sine
Bu ing
payment services and RegTech.
Do
ss
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
50
A tale of 44 cities |
Manama
The future
Compliance
We anticipate a great deal of collaborative activity with the existing financial
Back-office operations
services industry and the Central Bank on embracing new FinTech players, work
Wholesale banking
on adopting new regulation, setting up the regulatory sandbox and introducing
Robo advisors
a new FinTech accelerator in Bahrain that would host new local and international
Islamic Finance
market entrants. Bahrain is also looking to host a series of FinTech events to
further raise awareness, e.g., the AFS FinTech Forum in March.
Challenges
51
A tale of 44 cities |
Milan
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Milan
ea
s
Hub profile
Bru
ssels
G
M
ov
ad
er
rid
nm
Global F
en
in
Centre
ts
M 53
up
ila
n
po
rt
n
tio
Ban
va
gko
Inde l Inno
k
a
x
Glob
Milan is the most attractive city in Italy for launching a startup.
Innovation culture
29
INDEX SCORE
132
Almost one thousand tech companies have established their
Budapest
headquarters in Milan due to its proximity to the rest of Europe and
the presence of major national institutional investors, banks and
multinational tech companies such as Google, Facebook, Microsoft,
Cisco in the city. The city also hosts Borsa Italiana (the local stock Ran
k
Low
exchange) and is the financial centre of the country.
50
Bu
e
Do sine
rti s
ing ss
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
SellaLab For er s
eig st om
Head of n st
ar tup i ty t o cu
s P r o xi m
Stefano Azzalin
52
A tale of 44 cities |
Milan
012 Factory
Banking-as-a-service
P2P technologies Big investors
B!Ventures
Digital Magics Payment solutions Innogest SGR, 360 Capital Partners, Principia SGR, United Ventures, Invitalia
dPixel (public), P101, Panakes Partners, Primomiglio SGR, SellaVentures, Digital Magics,
Fondazione Filarete Dpixel, H Farm Ventures, Finlombarda Gestioni, Quadrivio Capital, Vertis Sgr,
H-Farm Innovation areas
Neva Finventures (CVC) and LVenture Group.
i3P
iStarters
Investment management
LUISS Enlabs Success stories
Nana Bianca Retail banking
There are no large exits or IPOs yet. However, MoneyFarm is an Italian company
Nuvolab Neo bank
that has collected almost $30 million within 5 years. At the beginning of 2016, the
Polihub E-commerce
Sellalab company extended its operations to the UK and announced new partnerships
Lending
Talent Garden with Revolut and Uber. It received $7 million investment from Allianz in September
2016.
Challenges
The future
Risk averse culture
We expect to see FinTech becoming more mainstream with the onset of PSD2.
Regulatory barriers
This will create new investment and entrepreneurial opportunities that will lead
Low access to capital
to greater injection of private capital in the market and a rise of new entrants.
In the next 12 months we will also see other international players entering the
local market by launching local branches or by following M&A strategies.
53
A tale of 44 cities |
Moscow
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Moscow
ea
s
Hub profile
Ban
g k ok
G
Bu
ov
er
d ap
nm
e
Global F
st
en
in
Centre
ts
M 84
os
up
co
w
po
rt
Ista
n bul
ion
The Russian Hub is well recognised for its technological talent pool,
ovat
especially in areas such as cyber-security, data analytics and web
Global Inn
Innovation culture
INDEX SCORE
167
programming. With the ambitious state plan to turn Moscow into a
Index
43
global financial centre and strong government support for innovation, Manama
e
rti s
D o in
B u si n g
pe
es s
Re
ex
40
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Skolkovo FinTech Hub
CEO For er s
Viktor Vekselberg eig st om
n st
ar tup i ty t o cu
s P r o xi m
54
A tale of 44 cities |
Moscow
Success stories
Innovation areas
From an investment perspective, success stories include: Otkritie bank (#6 bank in
Russia) bought 100% equity of Rocketbank in April 2016, Systema JFSC corporate
Cyber security
venture fund invested $5.5 million in Vision Labs and state-owned Sberbank
AlfaCamp Retail banking
(#1 in Russia) and Internet Initiatives Development Fund plan to invest $2.5 million
Generation S Neo bank
each in Promobot. From an exit perspective, in June 2016, the Waves Platform,
HSE Pro FinTech Credit scoring
Innopolis a Russian startup creating crypto assets conducted one of the largest ICOs
Robo advisors
InspiRussia (IPO for bitcoins) of the amount of $17 million.
Internet Initiatives
Development Fund Challenges The future
QIWI Universe
Skolkovo Fintech Hub 2017 will be an exciting year for Russia. On the regulation side, we expect Russias
Regulatory uncertainty
Central Bank, in cooperation with key players of the financial industry, to launch
Skills shortages financial
a regulatory sandbox. This will boost the emergence of FinTech startups in areas
Limited exit opportunities
where current regulation is unclear. From an events perspective, in 2017 Russia
will be one of the two countries hosting the SWIFT Innotribe Innovation Challenge
(along with the African region). In addition, on June 6-7 the Skolkovo Innovation
Centre will also be holding its main startup event of the year the Startup Village,
bringing together over 4000 startups (including, FinTechs) and 800 investors from
all over the world.
55
A tale of 44 cities |
Oslo
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Oslo
ea
s
Hub profile
Edin
bur
gh
G
Pa
ov
ris
er
nm
Global F
en
in
Centre
ts
Os 49
lo
up
po
rt
Lu x
emb
our
g Ci
ty
Oslo has a growing and vibrant FinTech hub, consisting of
approximately 90 companies. The mobile payment market has grown
Global Innovation
Innovation culture
INDEX SCORE
77
exponentially from zero to vast penetration in less than two years, and
the market is now consolidating. Oslo is particularly strong in security, Abu Dhabi
Index
e-ID and authentication solutions, and a growing number of players
22
in robo-investments, savings, and neo-bank platforms are emerging.
The Norwegian government is discussing a regulatory sandbox Ran
k
ing ess
Low
for 2017.
Do usin
6
B
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
Hub representative
ro
P
IKT-Norge
CEO
Heidi Austlid For er s
eig st om
n st
ar tup i ty t o cu
s P r o xi m
56
A tale of 44 cities |
Oslo
Investment management
The future
KYC
DNB NXT In the next 12 months, we expect to see more partnerships and collaborations
Retail banking
Mesh between banks and startups; initiatives that make it easier to enter the FinTech
Start-up Lab Identity management
market; regulatory developments such as a sandbox; and more investments in
The Factory Payments
Norwegian FinTech. Innovations in investment services and InsurTech will also
attract more attention.
Challenges
57
A tale of 44 cities |
Prague
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Prague
ea
s
Hub profile
Lisb
on
G
Sh
ov
en
er
nm
zh
en
Global F
en
in
Centre
ts
Pr 72
up
a gu
po
e
rt
Although the majority of FinTech startups in the Czech Republic were
n
io
at
ov
founded in the last four years, in the Czech ecosystem, benefiting from Brus
Inde al Inn
sels
a strong technical workforce where labour costs are still significantly
27 x
Glob
more competitive than Western Europe, is gaining momentum and
Innovation culture
INDEX SCORE
126
several stars are emerging. As the Czech market population is relatively
Madrid
small, there is strong focus on international expansion and therefore,
for many, the Czech Republic represents an incubator of innovation.
However Czech regulation leaves room for improvement and so far
there are no direct challengers of core banking services, especially Ran
k
Low
in the areas of current accounts and wealth management.
ss
27 sine
e
Bu ing
rti s
Do
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Czech FinTech Association
For er s
CEO eig st om
n st
ar tup i ty t o cu
Markta Brabcov s P r o xi m
58
A tale of 44 cities |
Prague
Success stories
Personal finance management
FinTech success stories emerging from our Hub include Twisto, Zonky and
Payments
Budgetbakers. Twisto is a FinTech that aims to simplify payments through the
Infrastructure
smart use of credit. The company has received a number of recognitions and
Forex
awards including being listed by Forbes as one of Czechs top 20 startups. Zonky
Lending
is one of the first Czech FinTechs in micro and P2P lending. Budgetbakers is a PFM
FinTech with 1.6 million app downloads and more than 1 million of active users.
Challenges
59
A tale of 44 cities |
S
ao Paulo
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Sao Paulo
ea
s
Hub profile
Mex
ico
Cit
G
y
Jo
ov
ha
er
nn
nm
es
Global F
en
in
bu
Centre
ts
rg
Sa 51
up
o
Pa
ul
po
o
rt
Jaka
rta
The Brazilian FinTech Scene is booming. With around 220 startups and
VC investment reaching US$161 million in 2016, Brazil currently has
Global Innovation
more FinTechs and FinTech investment than any other country in Latin
Innovation culture
Doing
Business
123
INDEX SCORE
243
America. In the last couple of years, many of the country's financial
institutions have invested in FinTech by providing investments, support
Index
69
and workings spaces. The Brazilian financial authorities are watching
this sector closely and are studying regulatory models from other parts
k
of the world to further create their own regulation in this field. Ran
Low
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Fintech Committee at
AB Startups
For er s
eig st om
CEO n st
ar tup i ty t o cu
Bruno Diniz s P r o xi m
60
A tale of 44 cities |
Sao Paulo
Challenges
Regulatory uncertainty
Regulatory barriers
Limited exit opportunities
61
A tale of 44 cities |
Shenzhen
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Shenzhen
ea
s
Hub profile
Sha
ngh
ia
G
Lis
ov
er
bo
nm
n
Global F
en
in
Centre
ts
Sh 22
up
en
zh
po
en
rt
n
io
at
ov
nn
Pra
gue
Ind bal I
25 ex
Glo
Doi iness
Bus
78
ng
Innovation culture
INDEX SCORE
125
manufacturing world. The government has ambitious plans and Ran
k
Low
policies to support the development of the fintech industry.
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
62
A tale of 44 cities |
Shenzhen
63
A tale of 44 cities |
Stockholm
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Stockholm
ea
s
Hub profile
Fran
kf u r
t
G
To
ov
ro
er
n
nm
to
Global Innovation
en
Index
ts
St Gl
oc 2
up
kh
ol Ce oba
44 ntre l Fin
po
m
rt
Tok
Stockholm has produced the most highly valued technology startups
s
9 ines
yo
Bus ng
i
Do
per capita, second only to Silicon Valley as a region. For financial
technology companies, Stockholm attracts about one fifth of all
Innovation culture
INDEX SCORE
55
investment in Europe. Stockholm hosts several high profile FinTechs
Dublin
such as Klarna and iZettle and is becoming a hub for blockchain and
bitcoin technology. Stockholms strength in technology companies
stems from its early and extensive digital infrastructure, international
business mindset, strong technology education and fluency in English Ran
k
Low
as well as other European languages.
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
Hub representative P
Stockholm FinTech Hub
CEO
Matthew Argent For er s
eig st om
n st
ar tup i ty t o cu
s P r o xi m
64
A tale of 44 cities |
Stockholm
Regulatory barriers
Small size of market
Skills shortages - technology
65
A tale of 44 cities |
Taipei
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Taipei
ea
s
Hub profile
Tok
yo
G
Du
ov
er
bl
in
nm
Global F
en
in
Centre
ts
21
up
Ta
po
ipe
i
rt
s
11 ines
Bu ing
Ams
Do
s
terd
am
Taipei is the capital and the financial centre of Taiwan with over 1900
Innovation culture
INDEX SCORE
57
financial institutions established in the city. It is also a powerhouse for
the IT industry and have cultivated numerous tech talents in the past Copenhagen
2
5
nd
I
G
lo ex
ba
l In
e
rti s
no
va
tio
pe
n
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
66
A tale of 44 cities |
Taipei
67
A tale of 44 cities |
Tokyo
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Tokyo
ea
s
Hub profile
Toro
nto
G
St
ov
oc
er
kh
nm
ol
Global F
en
in
Centre
ts
To 5
up
ky Do
o
po
Bu ing
34 sin
rt
e
ss
Dub
lin
Japan has seen strong growth in the FinTech ecosystem in the past two
years, as FinTech startups, industry players, regulators and government
Innovation culture
have collaborated to build a sustainable and scalable environment for
Global Innovation
INDEX SCORE
55
innovation. Tokyo has a vibrant FinTech network, and the regulators Taipei
have recently launched FinTech-friendly laws around blockchain and
Index
APIs, along with initiatives to support new FinTech startups. As the third
16
largest economy in the world, there is opportunity for both B2C and
k
Ran
B2B players to enter the market. Low
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
FinTech Association of Japan For er s
eig st om
n st
ar tup i ty t o cu
CEO s P r o xi m
Hiroki Kudo &
Hiroki Maruyama
Source: Global FinTech Hubs Federation
Produced by Deloitte
68
A tale of 44 cities |
Tokyo
69
A tale of 44 cities |
Warsaw
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
NEW HUB ey to
ar rs
High Rank
Warsaw
ea
s
Hub profile
Abu
Dhab
G
i
Ku
ov
er
ala
nm
Lu
Global F
en
in
Centre
pu
ts
r
W 45
up
ar
sa
po
w
rt
Poland has a vibrant financial innovation environment and is home Tel A
viv
to a number of global FinTech companies such as Azimo and Atsora.
As a key outsourcing centre for many of the worlds tier 1 banks,
Innovation culture
INDEX SCORE
108
Polands banking sector also has an opportunity to leapfrog other
Shanghai
mature markets in Europe. Warsaw is the leading financial centre in
Central and Eastern Europe and the recently approved Government
tion
Economic Strategy lists FinTech as one of the strategic sectors with the
ova
potential to become a driver of the Polish economy in the future. Ran
k
Inn
Low
Gl dex
al
39
b
In
o
24
e
rti s
Bu
Do siness
pe
ing
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
FinTech Poland
For er s
CEO eig st om
Pawel Widawski
n st
ar tup i ty t o cu
s P r o xi m
70
A tale of 44 cities |
Warsaw
71
A tale of 44 cities |
Old Hubs
Amsterdam
Bangalore
Brussels
Dublin
Frankfurt
Hong Kong
Johannesburg
London
Old Hubs...
Luxembourg City
Mexico City
Nairobi
New York
Paris
Shanghai
Silicon Valley
Singapore
Sydney
Tel Aviv
Toronto
Zurich
72
A tale of 44 cities |
Old Hubs
Old hubs
The following section presents 20 of the 21 FinTech Hubs included in the inaugural Connecting
Global FinTech: Hub Review 2016 report for reference.
As noted within the Methodology section, we updated the Index Performance Scores with recent
data. However, the self-evaluation and narrative data remain largely unchanged, except where
Hub Representatives have changed.
Seoul (South Korea) has been removed from the section below as there are currently no GFHF
participants in South Korea.
The analysis in this section should be read in the same way as for the New Hubs, set out
on page 23.
73
A tale of 44 cities |
Amsterdam
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Amsterdam
ea
s
Hub profile
Dub
lin
G
Ta
ov
ip
er
ei
nm
Global F
en
in
Centre
ion
ts
vat 33
no
up
Am In
al
po
ste
rd ob x
Gl de
rt
am
In
9
Cope
nhag
e n
Innovation culture
INDEX SCORE
70
The Netherlands has one of the strongest entrepreneurial
Edinburgh
environments in Europe, a strong talent pool, and several technology
hubs in close proximity to each other. The FinTech hub is growing, and
regulators are up to speed and are accessible. The financial ecosystem
is mature and payment transaction costs are low. These factors make Ran
k
Low
Holland a hospitable testing ground for startups.
e
rti s
28
pe
Business
Re
ex
Doing
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Holland FinTech
For er s
CEO eig st om
Don Ginsel
n st
ar tup i ty t o cu
s P r o xi m
74
A tale of 44 cities |
Amsterdam
Liquidity management
The future
Compliance
FinTech will be embraced by both politicians and corporations. There is good
Cyber security
collaboration between government research institutions and corporates to bolster
Markets and exchanges
competiveness of the Hub. FinTech in the Netherlands also fosters relationships
E-commerce
with international hubs with a view to becoming a gateway to continental Europe.
Funds management
Supervisory bodies
Challenges
75
A tale of 44 cities |
Bangalore
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Bangalore
ea
s
Hub profile
G
ov
er
nm
Doing
en
Business Glo
ts
130 N/A bal
up
Fin
po
Ce
nt
rt
re
Ba
ng alo
re
Innovation culture
INDEX SCORE
vation
and a low cost of entry. There is an extensive talent pipeline which is
inexpensive and accessible. In addition, government programmes have
Inno
been developed to make it easy for startups to do business as well as
G ex
bal
k
Ran
66
Ind
Low
lo
providing them with financing and tax benefits.
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
76
A tale of 44 cities |
Bangalore
KYC
The future
Credit scoring
The next phase of FinTech in India will see the emergence of new types of
Open data
blockchain extensions and other distributed ledger technologies, continued
Risk proling
progress towards digital financial inclusion by 2020 and developments in
Identity management
next-generation payments. Enabled by the India Stack, India will also see the
emergence of non-payments FinTech companies alternative lenders, alternative
Challenges credit scoring, and artificial intelligence.
77
A tale of 44 cities |
Brussels
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Brussels
ea
s
Hub profile
She
nzh
en
G
Pr
ov
a
er
gu
nm
e
Global F
en
in
Centre
ts
62
up
Br
us
po
se n
ls io
rt
at
ov
23 ex Inn
Ind bal
Glo
Mad
rid
Since the 1970s, FinTech utilities such as SWIFT have established their
Innovation culture
INDEX SCORE
127
base in Belgium, as a result of its favourable investment and tax
Milan
environment, international talent pool, and central location within
Europe. Brussels hosts the headquarters of some of the worlds
largest financial players (such as Euroclear and MasterCards
European headquarters). It also houses the European Commission, Ran
k
Low
and is at the heart of the European regulatory system.
e
rti s
42
pe
Business
Re
ex
gu
Doing
to
la t
it y
io
n
m
xi
ro
P
Hub representative
B-Hive (formerly Eggsplore)
For er s
CEO eig st om
n st
ar tup i ty t o cu
Wim de Waele s P r o xi m
78
A tale of 44 cities |
Brussels
Success stories
Cyber security
All major financial services players, whilst competitors in the marketplace have
Identity management
jointly developed a community within the emerging FinTech scene, collaborating
KYC
on tangible strategic programmes such as identity management, KYC, and the
Wholesale banking
impact of the Internet of Things.
Back-oce operations
The future
Challenges The Ministry of Finance has initiated a digital task force to work on a digital master
plan for the region, which will be put into action and law over the next six months.
Regulatory barriers
The task force focuses on three main objectives: a digital first strategy based on
Small size of market
identity management, a Cyber security and privacy strategy, and the creation and
Limited exit opportunities
support of an entrepreneurial community.
Key financial and technology players have expressed their support in promoting
and building the Belgian digital finance ecosystem.
79
A tale of 44 cities |
Dublin
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Dublin
ea
s
Hub profile
Tok
yo
G
St
ov
oc
er
kh
nm
ol
Global F
en
n in
Centre
atio
ts
ov 31
Inn
up
Du al
po
bli ob x
n Gl de
rt
In
7
Taip
ei
Innovation culture
INDEX SCORE
56
locating there. A high concentration of regulatory (RegTech) focused
Amsterdam
startups are based in Dublin to tackle challenges in supporting the citys
numerous fund management servicing businesses. Technology firms
including Google and Facebook, have selected Dublin as their EMEA
headquarters, resulting in high concentrations of tech savvy talent Ran
k
Low
who understand global business models.
e
18 ines
rti s
Bus ng
i
pe
Do
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Deloitte Ireland
For er s
eig st om
n st
ar tup i ty t o cu
s P r o xi m
80
A tale of 44 cities |
Dublin
FundRecs, founded in 2013, set out on a mission to develop the most efficient,
Innovation areas
powerful and cost effective reconciliation software available. In 2016 they were
named European Startup of the Year at the ICT Spring Conference in Luxembourg.
Funds management
Back-oce operations
Fenergo is quickly becoming the industry standard for Client Lifecycle
Compliance
Management solutions. In 2015, they secured $85m in funding from Insight
KYC
Venture Partners and Aquiline Capital Partners to accelerate their global footprint.
AML
Asset management
The future
Payments
Ireland will see the continued development of the FinTech ecosystem. It is
also expected that Dublin will enhance its position as a global financial centre,
Challenges
with the ability to attract companies and people due to attractive government
Low access to capital programmes.
Small size of market
High cost of living
81
A tale of 44 cities |
Frankfurt
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Frankfurt
ea
s
Hub profile
Zuric
h
Sy
G
dn
ov
ey
er
nm
Global F
en
in
Centre
ts
Fr
an 19
up
kf
ur
po
t
rt
n
io
at
ov
Toro
Inde al Inn
nto
Frankfurt is a hotspot for FinTech with over 300 banks located in the
x
Glob
city. It also hosts the largest Stock Exchange in Continental Europe,
10
Innovation culture
INDEX SCORE
46
Deutsche Brse Group. All the ingredients for a successful FinTech
Tokyo
ecosystem are located within a few square kilometres: a vibrant startup
scene, investors, talent, financial institutions, regulators, and a large
network of service providers with expertise in regulatory issues and
government support. Within Frankfurt Rhine-Main, Darmstadt also Low
Ran
k
17
e
Bu
rti s
Do siness
ing
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Frankfurt Main Finance
For er s
CEO eig st om
n st
ar tup i ty t o cu
Hubertus Vth s P r o xi m
82
A tale of 44 cities |
Frankfurt
83
A tale of 44 cities |
H
ong Kong
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Hong Kong
ea
s
Hub profile
Silic
on V
alle
G
Ch
ov
y
er
ica
nm
go
Global F
en
in
Centre
ts
4
up
Ho
po
ng
K
rt
on
g
Zuric
h
Doi iness
Bus
4
ng
Innovation culture
INDEX SCORE
22
Hong Kong has the natural branding of Asias largest financial centre.
Sydney
This provides an immediate attraction for FinTech and has driven its
development in recent years. Hong Kongs position as Asias super
connector is particularly useful for B2B solutions. Furthermore, its
historical proximity to China makes it hard for other hubs to Ran
k
Low
displace Hong Kong.
14
In
d
Gl
ob ex
al
In
e
no
rti s
va
tio
pe
n
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
84
A tale of 44 cities |
Hong Kong
85
A tale of 44 cities |
Johannesburg
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Johannesburg
ea
s
Hub profile
Man
ama
G
M
ov
ex
er
ico
nm
Global F
Ci
en
in
ty
Centre
ts
59
up
Joh
po
an
n es
rt
bu
rg
Sao
P aulo
South Africa is a key FinTech Hub connecting the African continent
with the rest of the global ecosystem. It is often an entry point for
Innovation culture
Global Innovation
INDEX SCORE
187
international firms doing business on the continent. As there are a
Jakarta
number of banking headquarters in South Africa, it is naturally a
Index
FinTech powerhouse. The startup community spans Johannesburg,
54
Cape Town, and beyond, where innovations are aimed at creating
better services for low-income consumers, as well as for the Ran
k
74 sine
Bu ing
Low
Do
banked and underbanked.
ss
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Techstars
For er s
Director eig st om
n st
ar tup i ty t o cu
Jess Williamson s P r o xi m
86
A tale of 44 cities |
Johannesburg
The future
Digital retail banking
The South African startup community is becoming more attractive and palatable
KYC
to international investors. We expect more foreign venture capitalists to take
Back-oce operations
risks here, thereby creating greater competition with existing South African VCs
Banking-as-a-service
and ultimately better terms for startup founders. Johannesburg is expected to
Data analytics
strengthen its bridges with Cape Town and build connections with the regional
Payments
and global FinTech community.
Challenges
Regulatory barriers
Diculty of securing visas
Poor IP laws for SA companies
Diculty of SA companies
getting money out of South
Africa
87
A tale of 44 cities |
London
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
London
ea
s
Hub profile
L on
don
G
ov
er
nm
Global F
en
in
Centre
ts
Sin 1
up
ga Do
po
po
re Bu ing
7 sin
rt
e
ss
London has the worlds largest financial services sector, supported
n
Global Innovatio
by a booming tech sector. The ecosystem has the Fin of New York,
Innovation culture
New York
INDEX SCORE
11
the Tech of the US West Coast and the policymakers of Washington,
Index
all within a 15 minute journey on public transport. These factors make
3
London one of the greatest connected global cities in the world with
the key ingredients for digital success: capital, talent, regulatory and
k
government support and demographic diversity. Low
Ran
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
Hub representative
ro
P
Innovate Finance
CEO
Lawrence Wintermeyer For er s
eig st om
n st
ar tup i ty t o cu
s P r o xi m
88
A tale of 44 cities |
London
Capital markets
Success stories
Neo bank
Worldpay raised an IPO in 2015 becoming the largest UK FinTech IPO to date and
Retail banking
became the largest tech IPO of 2015. This demonstrated that the UK is not only
Foreign exchange
a great place to start a FinTech business, but that the UK has all the resources to
Wealth management
help companies to scale, be successful and achieve a world class exit.
89
A tale of 44 cities |
L
uxembourg City
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Luxembourg City
ea
s
Hub profile
Paris
G
Os
ov
er
lo
nm
Global F
en
in
Centre
ts
n 12
tio
up
Lu va
no
po
xe
m In
bo al
rt
ur x
g
In lob
Cit
12 de
y
Do sine
Bu
ing ss
59
Abu
Dhab
Luxembourg is Europes leading investment fund centre and home to i
more than 140 international banks and 150 FinTech companies and
Innovation culture
INDEX SCORE
83
over 10,000 people working in the sector. The city is also host to
Kuala Lumpur
multiple accelerators, which are managed by top financial players such
as BNP Paribas. In parallel, the government is particularly accessible
and supportive, offering extensive R&D grants, the implementation of
a highly efficient IT infrastructure and specific regulations adapted to Low
Ran
k
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Luxembourg for Finance
For er s
CEO eig
n st us to m
ar tup i ty to c
Nicolas Mackel s P r o xi m
90
A tale of 44 cities |
Luxembourg City
91
A tale of 44 cities |
M
exico City
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Mexico City
ea
s
Hub profile
Ista
nbu
l
G
M
ov
an
er
am
nm
Global F
en
in
Centre
ts
73
up
Me
po
xic
oC
rt
ity
Joha
nnes
burg
Innovation culture
INDEX SCORE
181
vation
pools of technical and business knowledge. This has attracted many
entrepreneurs with experience from international hubs such as Silicon
Inno
Valley. Moreover, Mexico is one of the largest consumer markets in the
G ex
bal
k
Ran
61
Ind
Low
lo
world with great scope to increase financial inclusion.
47
Bu
e
Do sine
rti s
ing ss
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
92
A tale of 44 cities |
Mexico City
93
A tale of 44 cities |
Nairobi
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Nairobi
ea
s
Hub profile
G
ov
er
nm
Doing
en
Busines Glo
ts
s
92 N/A bal
up
Na Fin
po
iro Ce
bi nt
rt
re
Innovation culture
INDEX SCORE
n/a*
Kenya is the best known FinTech Hub in Africa. It benefits from inflows
of development money as one of the UNs major offices is located
in Nairobi. The technical talent pool is maturing, with improvements
in skills and development. Regionally, Kenya has a stable political
environment and attracts FinTech companies from other parts of Ran
k
Low
Africa, especially in the sub Saharan region.
e
n
io
rti s
80 x at
de nov
pe
In al In
Re
Glob
ex
gu
to
la t
it y
io
n
m
xi
ro
P
For er s
eig st om * The data for Nairobi is not available
n st
ar tup i ty t o cu on the Global Financial Centre Index.
Hub representative s P r o xi m
NEST Nairobi As such, Nairobi has not been given an
Index Performance Score.
CEO Source: Global FinTech Hubs Federation
Aaron Fu Produced by Deloitte
94
A tale of 44 cities |
Nairobi
95
A tale of 44 cities |
N
ew York
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
New York
ea
s
Hub profile
L on
don
G
Sin
ov
er
ga
nm
po
Global F
re
en
in
Centre
ts
2
up
Ne
po
w
Yo
rt
rk
Do sin
Bu
ing ess
8
Silico
n Valle
y
As a leading global financial hub, New York has some of the largest and
Global Innovation
Innovation culture
INDEX SCORE
14
most established financial services institutions actively investing in, and
collaborating with, a myriad of FinTechs. With Wall Street having both Chicago
Index
the largest capital base and greatest need for FinTech innovation, the
4
best technology and engineering talent have come together to create
a vibrant and well-funded ecosystem within walking distance of the Ran
k
Low
market they serve.
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
For er s
Partnership Fund for NYC eig st om
n st
ar tup i ty t o cu
Director, FinTech s P r o xi m
Innovation Lab
Sunny Parikh
Source: Global FinTech Hubs Federation
Produced by Deloitte
96
A tale of 44 cities |
New York
97
A tale of 44 cities |
Paris
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Paris
ea
s
Hub profile
Cop
enha
gen
G
Ed
ov
in
er
bu
nm
rg
Global F
en
in
h
Centre
ts
29
up
Pa
po
ris
rt
n
tio
Oslo
Index Innova
Global
Innovation culture
INDEX SCORE
76
France has comprehensive regulations with respect to FinTech, with
18
Luxembourg City
clearly defined rules for companies looking to scale up. FinTech has
strong governmental and ministerial support. Moreover, Paris is home
to a high concentration of financial institutions and asset managers.
There is strong infrastructure established in payments, insurance and Low
Ran
k
e
in ess
rti s
g
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Paris FinTech Forum
For er s
eig st om
CEO/Founder n st o cu
ar tup i ty t
Laurent Nizri s P r o xi m
98
A tale of 44 cities |
Paris
99
A tale of 44 cities |
Shanghai
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Shanghai
ea
s
Hub profile
War
saw
G
Te
ov
l
er
Av
nm
iv
Global F
en
in
Centre
ts
16
up
Sh
po
an
gh
rt
ai
n
tio
Do usin
B
va
in ess
78
g
no
Inde al In
Lisbo
n
25 x
b
Glo
Innovation culture
INDEX SCORE
119
population along with an under-developed financial industry has Ran
k
Low
opened up new opportunities for FinTech to make a significant impact.
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
100
A tale of 44 cities |
Shanghai
101
A tale of 44 cities |
S
ilicon Valley
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Silicon Valley
ea
s
Hub profile
Sing
a po
re
G
Ne
ov
er
w
nm
Yo
Global F
rk
en
in
Centre
ts
6
up
Sil
ico
po
nV
rt
all
ey
n
tio
va
Inde l Inno
Chic
ago
a
x
Glob
Innovation culture
4
INDEX SCORE
18
Silicon Valley is synonymous with technology innovation, which is now
Hong Kong
aimed at FinTech. With a majority share of venture capital investment,
a majority share of the executive leadership of global technology
companies, and decades of demonstrated excellence in scaling
companies from concept to global leadership, Silicon Valley Ran
k
Low
8
consistently produces winners.
Bu ing
Do
sin
es
s
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
For er s
500 Startups eig st om
n st
ar tup i ty t o cu
Entrepreneur in residence s P r o xi m
Mike Sigal
Source: Global FinTech Hubs Federation
Produced by Deloitte
102
A tale of 44 cities |
Silicon Valley
103
A tale of 44 cities |
Singapore
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Singapore
ea
s
Hub profile
L on
don
G
ov
er
nm
Si
ng
Global F
en
in
ap
Centre
ts
or
3
up
po
rt
Ne
wY
ork
Innovation culture
Silicon Va INDEX SCORE
11
lley
support for FinTech is strong with S$225m committed to the
development of FinTech projects and proofs of concept. Other
initiatives include the Regulatory Sandbox, Cloud Computing
2
Busin
Doin
Guidelines, Strategic Electronic Payments, FinTech Office, MAS
g
ess
Innovation Lab, International Technology Advisory Panel and Ran
k
Low
Talent Development.
e
rti s
6
Index
pe
Re
Globa
ex
l Innovation
gu
to
la t
Hub representative
it y
io
n
m
Monetary Authority
xi
ro
P
of Singapore
Chief FinTech Officer
Sopnendu Mohanty
For er s
eig st om
n st
ar tup i ty t o cu
s P r o xi m
104
A tale of 44 cities |
Singapore
Success stories
Allianz Digital Labs Innovation areas
MDAQ is backed by prominent investors, valued at over $250m. Also, it is
Aviva Digital Garage
BASH
noteworthy that, as well as startups, incumbent financial institutions in Singapore
Investment management
Block 71 are proactively embracing FinTech.
Citibanks Corporate and
Compliance
Consumer Innovation Labs Cyber security
The move by the MAS to bring in industry talent to drive FinTech forward paid rich
Exellerator Wealth management
Fatfish MediaLab
dividends and positioned the MAS as the leading regulator to drive progressive
Robo advisors
FocusTech Ventures thinking in FinTech innovation.
HSBC's Innovation Lab
InspirAsia Challenges The future
Lattice80
Metlifes Lumenlab
Singapore successfully hosted the FinTech Festival in November 2016. Initiatives
Regulatory uncertainty
Ocbc Open Vault being run and in the pipeline include: the Unified Point of Sales (UPOS) roll-out of
Risk averse culture
SPH Plug & Play terminals, Central Addressing System (CAS) payment technology, Trade Finance
Standard Chartered Banks Underdeveloped startup
distributed ledger proof of concept, SoCash cash withdrawal technology, and
Startupbootcamp FinTech ecosystem
TCF-PnP Program
Banking-as-a-Service.
The Joyful Frog Digital Incubator
UBS Evolve
105
A tale of 44 cities |
Sydney
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Sydney
ea
s
Hub profile
Hon
g Kon
G
g
Zu
ov
ric
er
nm
h
Global F
en
in
Centre
ts
11
up
Sy
dn
po
ey
rt
Fran
kfurt
Innovation culture
INDEX SCORE
45
Australia has robust wealth management and superannuation sectors
Toronto
and holds the lions share of the customer base in its region. It is the
Doing
Business
15
gateway ecosystem into Asia, especially South Asia with many global
banking brands setting up their Asian headquarters in Sydney.
There is a deep and skilled talent pool with high levels of mobile Ran
k
Low
penetration and internet banking.
n
io
at
ov
n
19 ex l In
Ind oba
e
rti s
Gl
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Stone & Chalk
CEO For er s
eig st om
Alex Scandurra
n st
ar tup i ty t o cu
s P r o xi m
106
A tale of 44 cities |
Sydney
Challenges
107
A tale of 44 cities |
T
el Aviv
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Tel Aviv
ea
s
Hub profile
Kua
la
Lum
G
W
ov
pur
ar
er
sa
nm
w
Global fi
en
n
Centre
ts
38
up
Te
po
lA
viv
on
rt
ti
va
21 ex nno
Ind bal I
Glo
Shan
gh ai
The Israeli Hub is mostly known for its technological talent pool
Innovation culture
INDEX SCORE
111
which includes special units of army-trained entrepreneurs who
Lisbon
are bold, innovative and creative. Israel has a strong risk-taking spirit
where failure is seen as an opportunity to learn, and there is an
entrepreneurial hunger to succeed in scale. The fact that the Israeli
market is very small creates ventures that design their products Ran
k
Low
that cater to the European/US markets from the get-go.
52 sin g
Bu oin
D
e
ss
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
108
A tale of 44 cities |
Tel Aviv
Success stories
Cyber security
CheckPoint is the largest pure-play security vendor globally and remains a leader
Fraud detection and
in the 2016 Gartner Magic Quadrant for Unified Threat Management. They secure
mitigation
more than 100,000 businesses and millions of users worldwide and has the
Robo advisors
industrys highest malware catch rate.
KYC
Analytics
Other success stories include FundTech which was acquired in 2015 for $1.25bn
and Payoneer which raised $180m in October 2016.
Challenges
The future
Signicant time dierence We foresee an increase in the number of venture capital-backed companies that
Small size of market focus on InsurTech and AI. Financial services will become more digital and digital
Isolated market banks, such as Pepper, will emerge. We expect the increasing number of foreign
R&D centres being set up in Israel, e.g., JP Morgan R&D centre, to be a continuing
trend.
While Israel is a small and isolated market, it can be seen as an advantage in terms
of international collaboration. It forces the local industry to focus on larger global
markets. As such, the payments and trading systems that emerged in Israel are
geared globally.
109
A tale of 44 cities |
Toronto
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Toronto
ea
s
Hub profile
Syd
ney
G
Fr
ov
an
er
kf
nm
ur
Global F
en
in
Centre
ts
To 13
up
ro
n to
po
Toronto is recognised as one of the largest and most stable financial
rt
centres in the world that encompasses a diverse tech and
academic community. Nearly 80% of fintech startups in Canada Stoc
k holm
Innovation culture
INDEX SCORE
50
l Innovation
40-60% of their FinTech innovation budgets to areas such as artificial
Tokyo
intelligence, cybersecurity and blockchain. Venture-capital financing
22
Busine
Doing
in Canadian FinTech was up 74% from 2015 to 2016, its highest level
Index
Globa
15
since 2000. This growth continues to attract global banks, investors
ss
and startups that are looking to set-up shop and expand their Ran
k
Low
FinTech innovation in Toronto.
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
MaRS Discovery District
For er s
CEO eig st om
Ilse Treurnicht
n st
ar tup i ty t o cu
s P r o xi m
110
A tale of 44 cities |
Toronto
Success stories
Innovation areas
Founded in 2006, Shopify is an e-commerce company which provides software
for online stores and retail point-of-sale systems. Shopifys initial public offering
Alternative lending
in 2015 valued the company at $1.27 billion and today it has more than 1,750
Payments
employees around the world.
Cyber security
500 startups Risk Management
Creative Destruction Lab The future
E-Commerce
Digital Media Zone (DMZ) 2017 will see a growing focus on Artificial Intelligence and Cyber security in
MaRS Toronto. As well as this, we expect to see further regulatory developments,
One Eleven Challenges particularly as the regulatory sandbox develops, and more connections with
Techstars
other international hubs. The next Sibos conference will also be held in Toronto
Regulatory barriers
in October 2017.
Lack of competition in
domestic market
Talent leakage
111
A tale of 44 cities |
Zurich
Self evau
lation
of the Hu
hub b
in s indi
ix k ca
ey to
ar rs
High Rank
Zurich
ea
s
Hub profile
Chic
ago
Global Innovation
G
Ho
ov
Index
ng
er
1
nm
on
Global F
en
in
Centre
ts
9
up
Zu
ric
po
h
rt
Sydn
ey
Innovation culture
INDEX SCORE
41
Zurich is the largest financial centre in Switzerland, a country famed
Doing
Business
31
for its quality, reliability, security and stability. As an innovation nation Frankfurt
e
rti s
pe
Re
ex
gu
to
la t
it y
io
n
m
xi
ro
P
Hub representative
Swiss Finance +
For er s
Technology Association eig st om
n st
ar tup i ty t o cu
CEO s P r o xi m
John Hucker, CFA
Source: Global FinTech Hubs Federation
Produced by Deloitte
112
A tale of 44 cities |
Zurich
Success stories
Innovation areas
Knip, raising over $20m and going global to disrupt insurance. Temenos, the classic
story of a great entrepreneur becoming an industry leader with core banking
Investment management
platforms. Recently, it was a highlight to see Eric van der Kleij bring his expertise
Compliance
to the Kick Start Accelerator in Zurich.
Cyber security
Cryptocurrencies
The future
Insurance
Sibos 2016 was a big hit. The future for Zurich will focus on strengthening the
Internet of Things
vibrant ecosystem, expanding internationalisation with visits to/from other hubs
and doing more to promote the many advantages of Switzerland as a FinTech hub.
Challenges
113
A tale of 44 cities |
Acknowledgements
Acknowledgements
We would like to thank the Deloitte FinTech Leads below for their support on this report.
Deloitte FinTech Lead Office Location Deloitte FinTech Lead Office Location
Claudio Fiorillo Argentina Kirsti Merethe Tranby Norway
Chris Wilson Australia Daniel Martyniuk Poland
Olivier de Groote Belgium Joao Carvalho Portugal
Will Cornelissen Canada Ilya Etko Russia
Jennifer Qin China Mohit Mehrotra Singapore
Stepan Husek Czech Republic Thys Bruwer South Africa
Alan Saul Denmark Rodger George South Africa
Michel de la Belliere France Juan Prez de Ayala Spain
Hans-Juergen Walter Germany Victor Kotnik Sweden
Dr. Paul Sin Hong Kong Daniel Kobler Switzerland
Akos Demeter Hungary Thomas Wan Taiwan
Monish Shah India Cneyt Krlar Turkey
David Dalton Ireland Rajeev Lalwani UAE
Meirav Hickry Israel Kent Mackenzie UK
Paolo Gianturco Italy Louise Brett UK
Takahisa Ohira Japan Michelle Collignon USA (Chicago)
Patrick Laurent Luxembourg Joe Guastella USA (New York City)
Jean-Pierre Boelen Netherlands Thomas Jankovich USA (New York City)
Michael Millard New Zealand Alaina Sparks USA (San Francisco Bay Area)
Joseph Olofinsola Nigeria
114
Thank you
Many thanks to the representatives from the global FinTech Hubs included in this report and
those who have supported its development.
Sharing insights on the success stories, development areas and challenges for FinTech hubs
contributes to greater knowledge sharing and engagement amongst the global FinTech
community. As this community continues to grow, fostering and supporting cross-border
dialogue is key to sustaining a better financial services future.
If you would like to know more about the Global FinTech Hubs Federation, the initiative seeking
to connect the global FinTech community, please click here.
This publication has been written in general terms and therefore cannot be relied on to cover specific situations;
application of the principles set out will depend upon the particular circumstances involved and we recommend that
you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte
LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific
circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining
from action as a result of any material in this publication.
Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its
registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000
Fax: +44 (0) 20 7583 1198.