France’s Attractiveness for the development of the Fintech ecosystem : l’Etude de référence Exton Consulting et Finance Innovation en anglais

Some observers predicted that the FinTech phenomenon would slow down worldwide at the end of 2016. However, financial start-ups continue to attract investors and 2018 is already proving to be a record year.

Europe is the region with the strongest growth in 2017 (+121%) and in third place after North America and Asia in terms of invested amounts. The continent has a regulatory framework that favours the emergence of FinTechs (with the European financial passport and the entry into force of PSD2, which paves the way for open banking).

France is also a fertile ground for the emergence of technological and innovative finance projects: the country is known worldwide for its excellent scientific field, and is at the forefront of artificial intelligence. The French, and Millennials in particular, are showing growing interest in these new services which offer them an improved, intuitive and simplified customer experience. This positive societal dynamic is reinforced by the various legislative developments designed to promote mobility and openness towards these alternative players. Bankers and insurers are increasingly willing to work with these start-ups to create sustainable competitive advantages and accelerate their digital transformation.

These are just some of the factors that lead to attractive development opportunities for FinTechs in France.

In this context, Exton Consulting and the Finance Innovation cluster wanted to combine their expertise in order to:

  • provide a complete inventory of the French FinTech ecosystem by highlighting the creation dynamics, the different types of structures (by size, stage of maturity, income level and profitability), the impact on employment, the profile of managers, the level of internationalization of these start-ups, etc.
  • better understand the actors comprising and coordinating this ecosystem, while measuring France’s attractiveness for the development of the sector through key levers: financing mechanisms; acceleration programmes; initiatives by regulators and public authorities to promote financial entrepreneurship, and the degree of collaboration with bankers and insurers.

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