Answer ... The German fintech landscape – with its capital in Berlin, where most fintechs are located – is shaped by a winner-takes-all dynamic. As a rule, just one fintech in each segment manages to attract a sufficient number of customers to prove interesting to investors. Fintechs in Germany are closing the gaps left by established companies. Many fintechs have professionalised themselves over the years, changing their business model from business-to-consumer to business-to-business (B2B), and have become part of the value chains of banks and insurance companies as service providers. Furthermore, many start-ups focus on B2B. This trend is promoting cooperation between fintechs and established companies, driven by the synergies between them: established companies have capital, access to customers and the necessary regulatory know-how; while fintechs are innovative and have the technology and the ability to bring new products quickly to market. As it is difficult for fintechs to attract a significant number of customers through their own efforts, this trend of cooperation is expected to continue.

Trending fintech technologies are artificial intelligence in combination with big data and blockchain technology. With regard to blockchain technology, one of the current trends is the tokenisation of assets. Consolidation between fintechs on the market is also increasing. It is becoming increasingly difficult for less successful fintechs to raise additional funding, especially where they are obliged to comply with regulation. Thus, M&A activity has increased significantly. At the same time, a number of well-established e-commerce players have started to develop fintech business models based on their existing customer base.