Fintech is a sector that continuously grows with new technology; From 1866 when the first transatlantic cable was laid between New York and London, to the present day where online banking, blockchain, and cryptocurrency are huge players in financial services, fintech has yet to stop expanding.
It is easy to see that the Covid-19 pandemic was a large driving force in the growth of the fintech sector. The pandemic pushed a lot of countries to get involved with fintech due to consumers’ increased demand for digital services. While this is true, there was a great level of growth in the years before the pandemic.
From the start of 2018 to the start of 2020, the city ranked number one for fintech hubs fell off of the top 10 list along with 5 others, meaning 5 new hubs emerged into the top 10.
There was also a large shift in the countries that are home to top 10 fintech hubs:
In 2018, fintech was pretty concentrated in China with 5 of the global hubs in China, 3 in the US, 1 in Singapore, and 1 in the UK.
In 2020, the global hubs are a lot more spread out with 1 global hub in China, 3 in the US, 1 in Singapore, 1 in the UK, 1 in Ireland, 1 in Germany, 1 in India, and 1 in Brazil.
|Leading Fintech Hubs 2018:
||Leading Fintech Hubs 2020:
Why did the location of fintech change so drastically in just two years?
As seen above, in 2020 China dropped from having 5 cities in the top 10 fintech hubs to having just one. The fintech industry as a whole in China has fallen due to the government winding down on online lending. The government has always been hesitant to get on board with the idea of cryptocurrencies because they are used to complete financial transactions that are anonymous and decentralized. Present-day China continues to crack down on crypto, not only affecting crypto in China but crypto all over the world.
As China falls, countries like Ireland, Germany, India, and Brazil have become major players in the fintech market, making their first debut on the fintech hub’s top 10 lists in 2020.
Following the pandemic pushing countries to adopt fintech methods, it is expected for the top 10 fintech hubs to have changed between 2020 and 2021.
What cities will be in the top 10 in 2021? 2030? 2040?