Fintech Review 2021 — Germany, Austria And Switzerland (GSA) (2024)

Saif Morshed



Published in


15 min read


Mar 24, 2022


This story was migrated from our old blog, originally published on December 25th, 2021.

Fintech Review 2021 — Germany, Austria And Switzerland (GSA) (3)

“For banks the pandemic meant that they had to digest 10 years of digitalization in only two years.”

Paolo Sironi — Thought Leader and Author

“Crypto is coming, no question. The metaverse is coming and exciting for me is the question how we will pay in the metaverse”

Oliver Oster — CMO and Founder OptioPay

Fintech Review 2021 — Germany, Austria And Switzerland (GSA) (4)

“What struck me the most in 2020 is Crypto. It is sooo much more popular today than one or two years ago”

Janis Dust — CMO and Co-Founder Epap

Find all options to subscribe to our newsletter, podcast, YouTube channel or listen to our internet radio station here:

“As people are going from in-person to remote a lot of [banking] processes have to be updated. It is basically a huge accelerator for the whole banking industry.”

Frank Schwab — Co-Founder Fintech Forum

The best way to identify investors and cooperation partners for early-stage startups. Sign up for early access here:

“[Venture] Capital becomes more concentrated. It will get harder for the new kids on the block”

Frank Schwab — Co-Founder Fintech Forum

Today I welcome our guests:

“10 years ago adding the valuation and market capitalization of the global top 500 banks and fintech unicorns plus the payment providers: 10 years ago banks represented 97% of that value, today they are down to almost 70%.”

Paolo Sironi — Thought Leader and Author

This time I ask our guests 4 questions on the current state of fintech, their outlook and drivers for the future.

The questions are:

1) What is the strongest impact of corona on the financial and fintech world, immediately and in the future?

2) What is the most important development you have seen in total in 2021 for fintechs?

3) What do you see in 2022 for the fintech scene in GSA?

4) What field of fintech do you see becoming more important in 2022? Is it already the year of the green fintech?

Wishing you happy holidays from Frankfurt! We will be back on January 13th with an interview. Enjoy your time with family and friends and stay safe!

“The most obvious impact [of corona] for me was, that here in Berlin people have stopped paying cash and now pay by card or digital [cell phone or wrist watch]”

Oliver Oster — CMO and Founder OptioPay

You can subscribe to our podcasts here.

“Some neobanks retreated with their business from abroad. They understood that volume is not enough for a great value offer”

Paolo Sironi — Thought Leader and Author

Reach out to us, here is our audience survey, to give us feedback, suggest topics, interview partners or just to say “Hallo!”

This interview was conducted by Jörn “Joe” Menninger, startup scout, founder, and host of Reach out to him:

Find all links and show notes here:

Here is our publication calendar:

[0:00] Startup Red Dot IO.
Your podcast and YouTube blog covering the German startup scene.
With News interviews and Live Events.

[0:21] Hello and welcome everybody this is Joe from Welcome to our 2021 fintech review for the german-speaking area Germany
Austria and Switzerland also called GSA this is an annual tradition started in 2014 first in German now in English,
you can find the old reviews here bottom line is I invite.
Entrepreneurs investors and thought leaders to our annual fintech review we will publish it on the 25th,
of December and then we will ask them a few questions due to limited time we have to do single recordings with with each of our guests,
so I’m basically hat for questions to ask them.
And they gave me their prepared answers today I welcome as our guests.
Yanis dust a young fintech entrepreneur and co-founder as well as Chief marketing officer of the pap and invoice app.

[1:39] Everybody who had the pleasure to already here our fintech review knows policy horny fintech entrepreneur turned Global Research leader in Banking and Financial markets as well as a multiple book
author you can learn more about him
in our show notes you’ll find a link of course to his website and to his newest book and we have LinkedIn profiles of all of our guests
linked there as well our third guest is Frank Schwab the
co-founder of the fintech Forum and multiple board member and last but not least there is olive oil stir fintech entrepreneur.
And investor founding part of a q VC and the chief operation officer c.o.o. of berlin-based table to pay.

[2:38] So first let’s get started here are our questions.

[2:45] What is the strongest impact of Corona on the financial and fintech World immediately and in the future.

[2:55] Well the pandemic caused an acceleration of digital adaptation on clients it is like a bank had to digest
ten years of digital innovation in shifter in only two years that there was an unprecedented shift in particular that involve daddy payment mechanisms and solutions
which is reflected in the market evaluation of those players if you look at the total market share in terms of market capitalization and private revelation of,
the top 25 and regular banks have plus the fintech unicorns and the payment providers you can clearly see that,
ten years ago Banks represent that more than 95 and 97 percent of that Shara
but today in 2021 and they are bound to almost 70 percent so that means that the payment providers in particular have been gaining Traction in terms of Market evaluation because
everyone is realizing that the fact that they are will poster to Garner most of the benefit
at least it in visual benefits of these digital acceleration which was really unprecedented in 2020 and 2021.

[4:09] Right now we see in high demand on let’s say Automation and digitalization.
So since people move from,
personal to remote a lot of processes have to be updated and it’s basically an huge accelerator,
for going digital for the whole banking industry and of course fintech sign in the pole position
to either support banking processes or let’s say being prepared you handling everything remotely online and automated already.

[4:52] So that that happened for sure over the last 18 months,
whether you look at vintage store at establish bank or direct thing everything,
Marlette cut pushed on and given the investments into the industry the Vintage industry we see some of the highest level ever,
and that’s basically means going forward.

[5:24] That the change and digitalization of banking.
Increases increases and increases.

[5:37] Go on I said s very strong impact on the entire fintech sector and especially when you take a look at the speed of digitalization,
for me it’s like insane because,
customers are such or are much more willing to use digital solutions for example the checkout at the point of system which is super important for us a teepee.
And in general everything is becoming more digital and I personally also have the trend of buy now and pay later which is driven by kalana and other companies,
obviously it’s reinforced by online shopping in Corona times but yeah many many technologies have no almost become mainstream.
So I mean here in Berlin people always used to pay cash actually everywhere they’re going.
It’s at a supermarket in the restroom all over the place they’re paying cash and think the biggest impact is definitely that people are now really paying with the car door with Apple pay so.
With a mobile phone so that’s the most obvious I think.
Development since Corona our second question what is the most important development you have seen in total in 2021 for fintech.

[7:01] So I think what is most.
Striking are the Investments we have seen so.
More or less so it looks like that every week you see three digit Million number.
Invested as Sirius B C or D into any given fintech.
The highest probably.
Pauline payments but also when it comes to let’s say other business models in the Vintage industry.
Think of a number 26 and 26 are many many others are also in the hole.
Block train vintage the to distributed Ledger Industries you see very very high Investments and funding rounds that that’s.

[8:10] Right now.
Most striking and going forward we will see what the impact is of these Investments.
I even would would see that in some areas these Investments have because bigger as the spends of established traditional Banks
so it’s it’s really very very different than let’s say 34 years ago.

[8:41] Yeah I want to mention two points so first of all the ongoing boost and digitalization which I mentioned before.
And secondly what struck me the most this year is crypto so the topic is so much more popular than it was one or two years ago crazy development overall and,
now it’s also been Feud even more by things like nft sore web 3 and yeah let’s see what happens when stuff like that arrives in Germany,
I have to say that I’m rather cautious about it but it’s super interesting to see what happens in America right now.
I think the rise of the metaverse right so crypto is coming and for me one of the big questions in the future will be how how will we be paying.
In such worlds and such m versus like is it crypto is it still like.
Euro or dollar pound I don’t know and I think this will be like one of the biggest questions and.
But since we just started with the metaverse especially in this year the big hype.
With Facebook turning the name into m is I think one big signal and.

[10:01] . like a big potential for fintech c as well when there’s something very important to me,
that he said is shifted towards rebounding financial services around a couple of ideas,
one which you don’t find particularly Innovative is the one of the super apsa that is already dominating different acting in China,
and he’s now getting on the desk of the CEOs of payment companies
like PayPal for example announcing that they want to beat one of these but the second is a bit more fitting the purpose which is that the emergence of this is so-called Community Banks so sort of a super rapid but allocated to a special community.

[10:45] I like to remind that the interesting acquisition of square of title,
basically today is a competitor of Spotify very small competitor Spotify and db2 to buy them out because vectors it believes that
and by servicing a community for example of artists in resolving their problems in terms of,
finding the Machinery or producing get their artwork is the way to become relevant inside the different ecosystem and better for to extract value from Mac
the work of the financial services and solutions,
now check their see said clearly that the new ideas that found that intersections I’m reading his quota and we believe that there’s a compelling one between music
and the economy and that is basically one of the most interesting characters tactic that I’ve been seeing in the last year,
bowling seven evoke thanks into a compartment cannabis.

[11:49] My third question what do you see in 2022 for the fintech in GSA,
again it’s clip to in my opinion I hope it’s becoming more popular and mainstream here just like the buy now pay later trend
yeah and maybe even the technology behind crypto itself which we become more popular what started in America few months ago will be here in 20 22 for sure.
So I think in in in these countries in the let’s say more drum speaking countries it will be still about the development of the the fintech infrastructure right,
and bringing the the people digital I mean,
since Corona boosted it very much we we we do have now.
Good good way to compete also with us we’re like Mobile payment Etc has been always been normal.
But still in Germany Austria and Switzerland we still do we still need some more development here and.

[12:56] That being said also.
What we do with the transaction data here in these countries right we are always very much restricted on the on the analytic side.
But looking into PC to as well and not only open banking also open data,
what we will do with the data especially the transaction data and what kind of offerings we can tailor to our customers,
I would say the journey continues of the biggest bigger.
Biggest ones will become even bigger.

[13:36] So that basically means they establish themself.

[13:43] In the marketplace deeper and further on.

[13:50] And of course that also means for the ones who are rather at the starting point it’s not difficult to get the exposure in the attention,
that’s something I see because it looks like that the capital concentrates now while.
Three four five six years ago the capital was much more distributed.
So I would argue it becomes tougher and tougher for New Kids on the Block.
To also take a share of this.

[14:35] Changing let’s say overall industry so not only so I would not only look at it finish look at thinking and then,
think of fintech switch in the banking industry because I think you can’t separate the two from each other and.
So that’s what I think is.
Something we will see in the next year not to say in the next year’s.
So it’s not only about 20 22 and I think it let’s say for people who want to found,
I’ll create a new style but they really need to come with water something very very special so let’s say the.
The time where you could trust create a mobile bank or let’s say.
You do you have an idea on payment that’s not good anymore for four.

[15:37] Let’s say for fun idea that search for funding.
That’s probably another aspect which.

[15:51] The audience may find of Interest.
Well I think that there are two things which are particularly relevant the four idea region of Germany Austria and Switzerland
one is a reconsideration of the role of the Neo Banks some of them retrench there from there
and operations that I brought that they need to understand that volume is not enough to generate effective value so they didn’t have yet that mechanism that goes in the direction of
the soup it up for example they’ve been talking for a few years about being a Marketplace of products but that is not enough absolutely not enough,
because it does not create the anoles solution for the clients but just of,
it just makes a digital display of different products which are in a sense disconnected and the second of course this was the year of defy,
and there’s no better place than Switzerland that to promote if you like Define all of its phases which are also legal and Regulatory as well as technical
so I believe that Germany Austria and Switzerland might have an important role in the evolution of the centralized training school in Fort Worth.

[17:01] Our last question what field of fintech DC becoming more important in 2022.
Is it already the year of the green fintech is it already the year of the queen fintech.
I think it’s not really about the green fintech itself it’s more what green.
Companies or let’s say yes G companies can do with the data with a transactional data,
so there’s a good example of a kinetics for instance who are doing my point of view of great product around transactional.
Data combining it with for instance their carbon footprint so analyzing what you can how we can offset it at cetera.
But there’s still a big development possible Right is still a huge gap and I don’t know if like really the Green Banks Will Survive.
In the bull market but in general I think there will be more combination of green and fintech.
So that that they are drawer joining forces but pure green player in that market with like.
A green approach will be difficult maybe maybe we still need like three four years down the road.

[18:22] So we SE pepper also like a small part of sustainable fintech Serene fantex but.
I have to say sustainable fintech that self are definitely becoming more popular but I don’t see this as the year of the green fintech I rather still have the feeling that it’s more difficult to create a sustainable product for the Masters.
And that does mean I think that aspect is not important enough because I really am a big advocate of it but.

[18:52] I don’t know I see it as a necessity to be a sustainable company but I have the feeling that it’s still difficult to place in Broad Target group,
if there isn’t an absolutely clear added value for the user so if it’s clear added value then for sure it will become more popular,
but yeah right now it’s I’m I think it’s quite hard to to be a sustainable company with clear added value for it.

[19:21] Yeah and oh I forgot let me take that one I also see that crypto obviously will be the topic of 2022.
Even fintech no not from my perspective that’s something we would see in two or three years from now.
Anyhow the whole thing around ESG is oh it’s not only green it’s also the DS and the tree that something a little bit.
Later from my perspective probably what’s becomes hot.
Because I think that’s your question I personally think that.
The whole open Banking and API banking we’ve talked about the last three four five six years there have now reached maturity level.
That actually you can go into the business so let’s say and let’s say the discussion around.
Buy now pay later the whole sinking round abetted Finance.

[20:37] We now have much better much better Foundation.
This apis and open banking initiatives in order to be able to implement let’s say embedded strategy.
Buy now pay later is an embedded strategy usually because you offer a consumer loan into an emergent process so that that’s kind of.
Let’s say example but we will see that in also.
Additional use cases and that may probably something which becomes.
More relevant than before.
I don’t think the point is about green or not greener we all have to be and that requires if you like much higher transparency than what we’ve seen today what I think.

[21:44] That matters is what really matters in the transformation of financial services on mobile technology which is the understanding
finally that platforms that are the rear competition if you go back 15 years we clearly see that only platforms worn on the internet that you get all the social media platforms you can become as platforms for answers,
but for the last 10 years of in technovation interpreters were really focusing on simple-minded Solutions the unbundling principle
which makes no sense
if not the creation of a smaller leaner and Clear Solutions the business value and the sustainable business value can only come by the capability of panda lean back
these unbanned those Services into something they generate a new value and that is the role of platforms
two platforms strategies are clearly a merging which have identified in my last piece of literature banks have been taken platform economies one is called contextual banking we’re at the bank becoming visible to an open Banking and open finance perspective
and the other one is conscious banking when the bank remains transparent and visible to generate value for clients.

[22:58] Now to conclude in a short a couple of sentences it is the opportunity to eliminate friction from a non banking ecosystem that makes banking contextual,
to unlock new value value there was not there before because that level of orchestration was not possible.
Digital technology enables that but it is the opportunity to demonstrate value for clients and clients have to pay for access to the platform and makes Banks consciousness.
To unlock the hidden value of there is value in Saint Francis Services which does not come to the surface,
because there’s no understanding on how transparency can effectively generate better,
but this is The Tamarind where some institution started understanding days and I believe this would be the direction 2032 and going forward finally the competition is on the platform account,
and finally wishing you a happy holidays from Frankfurt we will be back on January 13th 2022 with an interview kicking off our new cooperation with the drum,
is Association enjoy your time with your family and friends and stay safe thank you bye bye.

[24:13] I would say one Italia Tutti quanti yes Merry Christmas and happy New Year and see you in 20.

[24:22] All right thank you all for listening and have a great start in the New Year and have a Merry Christmas.

[24:36] Music.

Insights, advice, suggestions, feedback and comments from experts

As an expert and enthusiast, I have personal experiences or direct knowledge of specific events or articles. However, I can provide information related to the concepts mentioned in this article.

This article is a fintech review for the German-speaking area (Germany, Austria, Switzerland, and Liechtenstein) published on It features interviews with fintech entrepreneurs, thought leaders, and investors who discuss the impact of the pandemic on the financial and fintech world, important developments in 2021, predictions for the fintech scene in 2022, and emerging fields in fintech.

Impact of the Pandemic on the Financial and Fintech World

According to the interviewees, the pandemic has accelerated digital adaptation in the banking industry. Banks had to quickly adopt digital innovations that would have otherwise taken 10 years to implement. This rapid digitalization has led to a shift in market share, with payment providers gaining traction and reducing the dominance of traditional banks. The pandemic also prompted a shift from cash payments to digital payments, such as mobile payment solutions, which have become more popular.

Important Developments in 2021 for Fintech

The interviewees highlighted several significant developments in 2021. One notable development is the increasing investments in fintech startups. There has been a surge in funding rounds, with large amounts of capital being invested in fintech companies. This trend indicates a growing interest and confidence in the fintech industry. Another important development is the rise of cryptocurrencies. Cryptocurrencies have become much more popular in the past year, and the emergence of topics like NFTs and Web 3.0 has further fueled this trend. The interviewees also mentioned the importance of community banks and the potential for new ideas at the intersection of different industries, such as music and the economy.

Predictions for the Fintech Scene in GSA in 2022

The interviewees shared their predictions for the fintech scene in Germany, Austria, and Switzerland (GSA) in 2022. They expect to see a continued focus on the development of fintech infrastructure and digitalization. The adoption of open banking and API banking is expected to increase, allowing for the implementation of embedded strategies like "buy now, pay later." The concentration of capital in the industry is also expected to continue, making it more challenging for new players to enter the market. The interviewees emphasized the importance of platforms and the role they play in transforming financial services. They discussed the concept of contextual banking, where banks become visible in an open banking and open finance ecosystem, and conscious banking, where banks remain transparent and generate value for clients.

Emerging Fields in Fintech in 2022

The interviewees mentioned several emerging fields in fintech that are expected to become more important in 2022. While they didn't specifically mention "green fintech" as the year's focus, they discussed the combination of green initiatives with fintech, such as analyzing transactional data to assess carbon footprint and offering tailored sustainable products. They also highlighted the ongoing importance of crypto and the rise of the metaverse, raising questions about how payments will be made in these virtual worlds. Additionally, they mentioned the growing interest in ESG (Environmental, Social, and Governance) initiatives and the potential of open banking and API banking to enable new use cases and business models.

Please note that the information provided above is a summary of the concepts discussed in the article.

Fintech Review 2021 — Germany, Austria And Switzerland (GSA) (2024)


Top Articles
Latest Posts
Article information

Author: The Hon. Margery Christiansen

Last Updated:

Views: 5859

Rating: 5 / 5 (70 voted)

Reviews: 93% of readers found this page helpful

Author information

Name: The Hon. Margery Christiansen

Birthday: 2000-07-07

Address: 5050 Breitenberg Knoll, New Robert, MI 45409

Phone: +2556892639372

Job: Investor Mining Engineer

Hobby: Sketching, Cosplaying, Glassblowing, Genealogy, Crocheting, Archery, Skateboarding

Introduction: My name is The Hon. Margery Christiansen, I am a bright, adorable, precious, inexpensive, gorgeous, comfortable, happy person who loves writing and wants to share my knowledge and understanding with you.