Fintech in the Community of Madrid
With more than 65% of Fintech activity in Spain,
Madrid is one of the main Fintech hubs in Europe,
growing at yearly rates of more than 20%
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The most attractive Fintech ecosystem in Southern Europe
Madrid is home to the Madrid Stock Exchange, the Bank of Spain and a large number of international financial institutions such as Santander Group, BBVA, Bankinter or OpenBank. This constitutes a very competitive and attractive environment for companies in the Fintech sector, which seek to be close to key players in the market, such as investors, investment funds, central banks and consulting firms.
The Fintech sector in the Community of Madrid has grown at rates of more than 20% per year since 2019 with the development of more than 25 financial subsectors and the creation of skilled jobs, mainly driven by financial digitalization, institutional support, and the increase in demand for Fintech services. This growth continues to maintain its momentum due to the adoption of new technologies such as blockchain, artificial intelligence and neobanking services.
In 2023, the sector moved around 2,000 million euros in turnover, with sustained growth that underlines the importance of the Community of Madrid as a leading financial and technological hub in Europe, and as a strategic link to Latin America and Africa. As a result, the Community of Madrid is a particularly attractive place for investments in Fintech.
Talent concentration and Regional strategies and actions
More than 25 associations and leading companies for the Fintech sector are located in the Community of Madrid driving events, training and the launch of innovation challenges. The Madrid Fintech Cluster brings together commercial companies, financial entities, associations, training centers and institutions. AEFI (Spanish Fintech and Insurtech Association) is co-founder of the Ibero-American FinTech Alliance and the European Digital Finance Association, which bring together 40 countries. Madrid has been the venue where the MOU for the creation of the Global FinTech Alliance was signed, which today unites more than 125 countries in Europe, Asia, Africa, Latin America and America. Finnovating is a B2B connection platform for Fintech and Google for Startups is a space for collaboration and investment.
Madrid has wide range of training offered in key areas so that companies can access an important pool of talent and highly qualified workforce prepared to face the challenges of the Fintech sector.
In the Public sector, it is worth mentioning regulatory measures like the Fintech Sandbox of the Bank of Spain for technology-based financial innovation projects providing potential added value in at least one of the following aspects: a) Facilitate regulatory compliance; b) To be of benefit to users of financial services; c) To increase the efficiency of entities or markets; or, d) Provide mechanisms for the improvement of regulation or the better exercise of financial supervision.
Cooperation in the ecosystem is driven by more than 10 specific co-creation and interdisciplinary coworking spaces in pre-seed and seed phase like Madrid Innovation Lab, Demium or Patio.
Additionally, more than 15 support entities specialised in scaling and growth are specific to the Fintech sector, like BBVA Spark, Santander Explorer or Unlimiteck.
A consolidated Fintech startup ecosystem
The Community of Madrid has 405 Fintech companies founded in recent years with a total valuation of €2.8b that have raised €780M. Financial Management Solutions, Wealth Management, Payments and Insurance are the main subindustries. The predominant client focus is B2B (77% of companies) and 98% of companies have business models based on SaaS, marketplaces or ecommerce platforms. As a result, income comes mainly from commissions (70%) and subscriptions (24%).
Capchase, Clarity AI, Myinvestor, Fintonic, Cobee and Boopos are some of the Tech Companies in Madrid that have closed significant investment rounds in recent years.
Fintech Startups in Madrid
Nr of Tech Companies
405 (6th of European Hubs)
Prominent Fintech Agents in Madrid
Main Fintech Events in Madrid
Fintech: Definition and expected evolution
Fintech is the combination of "finance" and "technology", which encompasses digital solutions to improve and automate financial services. Through applications and platforms, Fintechs facilitate tasks such as payments, savings, loans, and investments, providing a fast and accessible experience. This sector has transformed financial management, allowing people and companies to operate digitally without relying on traditional banks..
The Fintech ecosystem includes services such as electronic payments, P2P loans, automated financial advice, and the use of blockchain to ensure security.
The future of the Fintech industry is promising, with technologies such as artificial intelligence and blockchain driving financial inclusion and operational efficiency. The Fintech market is expected to reach $1.5 trillion in revenue by 2030, with growth in digital payments and embedded finance. The sector will also focus on sustainability and adapting to stricter regulations.
The main challenges are:
- Regulation: Comply with stricter standards to protect consumers and manage financial risks.
- Technology and Security: Maintain high cybersecurity standards by integrating advanced technologies.
- Competitive Advantage and Sustainability: Develop differentiated and profitable business models in a competitive environment and with limited financing.
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