Study: Czech Republic positioned as fintech leader with promising growth prospects

According to a report from the Boston Consulting Group, the financial technology sector is poised for substantial growth by 2030. Staff

Written by Staff Published on 01.07.2023 13:12:00 (updated on 01.07.2023) Reading time: 1 minute

According to a recent study conducted by Boston Consulting Group (BCG), the financial technology (fintech) sector is poised for significant growth, with the global turnover projected to reach $1.5 trillion by 2030. The Czech Republic, in particular, stands out as a Central European leader in the fintech market, offering a fertile ground for innovative start-ups and a well-established ecosystem, reports Newstream.

Helena Toušková, a financial technology expert at BCG, highlighted the Czech Republic's favorable position, "The Czech Republic is already a Central European leader in this segment, which is also evidenced by the number of new fintech start-ups in the last few years." She attributed this success to the availability of financing options for promising start-ups and the accommodating approach of Czech banks.

The study indicates that by 2030, fintech will constitute a quarter of the banking sector's value, a significant increase from the current less-than-a-tenth share. While payments will remain the largest field within fintech, accounting for one-third of total turnover, other sectors such as loans and insurance will also see substantial growth.

The Czech Republic has already witnessed notable trends in its fintech landscape. In the past five years, insurtech companies, focusing on technology-driven insurance solutions, have accounted for 14 percent of newly founded fintech companies. This represents a substantial increase from the four percent recorded between 2012 and 2017.

While North America currently holds the largest share of the global fintech market, the study predicts that by 2030, the East Asia and Pacific region, led by countries like China, India, and Indonesia, will emerge as the primary driver of fintech revenues, estimated at $600 billion. These developing economies benefit from a large number of fintech companies, a significant population without adequate access to banking services, and a tech-savvy youth and middle class.

The Czech Republic's position as a fintech leader offers promising prospects for the country's economy and innovation landscape. With an established fintech market and a growing number of start-ups, the Czech Republic is well-positioned to capitalize on the projected growth of the sector and contribute to its global expansion.

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