Frankfurt is set to become a disruptor in Berlin’s plans of becoming Europe’s and Germany’s FinTech hub as Frankfurt sets its sights on beating Berlin to the podium.
A recently launched project known as TechQuartier in Frankfurt brings together 120 founders of FinTech companies to share ideas. According to The Local, a German news site, the project reflects how the banking world in the city is attempting to play catch up in the growing sector.
Of course, while Frankfurt may be riding the wave that is seeing more startups in the city, it’s reported that most founders of companies will eventually move to Berlin.
According to the report, since 2012 €734 million has been given to FinTech companies located in Berlin, five times more than what Munich receives.
Not only that, but the city has around 179 FinTech firms, which is more than Frankfurt, Munich and Hamburg combined.
One factor is down to the fact that Berlin is more affordable, which in turn makes it more attractive for talented individuals to flock to the city, particularly young talent that is just starting out and is keen to take advantage of affordable housing.
Last month, ESMT Berlin, a state-accredited private business university announced that it was accepting bitcoin as a currency for all payments including tuition, making it the first German educational establishment to do so.
It’s reported that the university hailed bitcoin as ‘the most well-developed blockchain application.’
As a contender for the FinTech hub top spot, Germany has demonstrated that is knows what it’s doing to get the likes of London, New York or Singapore thinking.
In May, Germany and Austria funded a bitcoin financial crime research project, focused on organized financial crime specifically committed with virtual currencies.
Not only that, but a collaboration between Canadian financial institution ATB Financial, German software multinational SAP, blockchain startup Ripple Laps and German bank ReiseBank AG demonstrated the use of blockchain technology, which saw an international payment taking only 20 seconds instead of several working days in July.
Of course, while there are many cities within Germany that have the potential to become Europe’s FinTech hub, it’s important that Germany doesn’t solely rely on Berlin or Frankfurt if it wants to compete with other countries.
By providing an ideal working environment in several cities, Germany could broaden its scope making it a strong FinTech competitor.
Featured image from Shutterstock.