The French Fintech ecosystem has largely developed and structured over the last five years: entrepreneurial initiatives in all sectors of the financial industry, organization of the representativeness and attractiveness of the sector, growth of private financing and public, appearance of dedicated acceleration devices, and significant success of several Fintech companies
At the same time, the constructive evolution of relationships between established players and start-ups in the financial industry is democratizing Fintech innovations and is offering attractive development opportunities for all.
On the basis of these findings, the investment manager NewAlpha Asset Management, the start-up INVYO and the firm Exton Consulting have combined their expertise and their complementarities to propose a mapping of the French entrepreneurial Fintech identified at the end of December 2017.
Structurally positioned in the Fintech sector, in direct relationship with entrepreneurs and institutional sector, NewAlpha, INVYO and Exton Consulting have consolidated their identification and classification work. With nearly 300 fintechs analyzed, this cartography is the most comprehensive done to date on the French market.
These companies impact Banking, Insurance and Asset Management businesses by offering new financial products or cross-functional services that enable the financial industry to optimize its management and marketing processes.
The mapping proposed by the three partners classifies Fintech companies by field of activity and by seniority. This cross-visualization makes it possible to analyze the dynamics of Fintech creation in France and to anticipate changes in the sector. Analysis and mapping can be downloaded from https://fintech-insights.com/mapping/fintech-france/
Key takeaways :
• 285 French Fintech were identified at the end of December 2017
• 46% of the companies launched between 3 and 5 years before
• Entrepreneurial dynamics remains strong as 30% of the companies identified were created between 2016 and 2017.
• Fintechs companies position themselves on specific products or niche markets that are not or poorly covered by traditional players, by focusing on innovation to revolutionize customer experience and pricing models.
• All segments of financial services are affected by the growth of Fintech, but still unevenly.
• As in many countries, banking, especially finance and payments were the first to be revisited and constitute the most mature segments. On the other hand, the wave affecting insurers is more recent with 20% of new businesses being created in the last two years.
“Numerous significant financing and acquisition transactions have been observed in France over the past two years. This illustrates the leading role Fintech plays in our financial industry. Given the richness of the French ecosystem, we are confident that this dynamic will continue” says Lior Derhy, Managing Partner at NewAlpha AM.
"The recently implemented DSP2 will intensify Fintech's momentum in France by allowing certain companies offering payment or account information services to benefit from a regulated status and broaden their offerings. This European regulation also paves the way for open-banking and healthy coopetition between start-ups and traditional industry players who will have to work together to better serve their customers" welcomes Sophie Zellmeyer, Director of Fintech & Innovation at Exton Consulting.
"The big challenge now facing France is to make its national champions European or even global leaders, as do Germany or England in the payment or neo-bank sectors. Evidenced by the successive announcements of N26 or Revolut on their international expansion" adds Alexandre Velut, founder and CEO of INVYO.