5 Best FinTech Hubs in the World!

You should know the names of the top European fintech companies by now (which are more like large corporations in reality). If you're not familiar with them, you can find out more about them right here. 

Outside of Europe, you've probably heard of a number of other well-known fintech businesses, such as Stripe or the enormous Ant Group (that is or is not going to have the biggest IPO of all time, the mystery remains). Where do they typically have their headquarters, or where do they start? What are the world's top fintech hotspots, and where can you find them?

1. Singapore

Singapore has lately made major inroads into the Fintech industry. It is a prominent business hub that competes with Hong Kong for dominance in the Asian market. As a result, it is unsurprising that it is considered as one of the world's major fintech hubs. There have been some suggestions that it has benefitted from the country's present political circumstances (or at least it is the best-placed to lure businesses that could decide to move). 

In the city, there are various industry organisations that assist fintechs, as well as more than 20 incubators and accelerators. Singapore has a diverse ecosystem of financial technology companies spanning from regulatory technology to payments, as well as blockchain technology firms.

The fact that DBS Bank is located in Singapore, which is possibly the most innovative and forward-thinking financial institution in the world, is unquestionably advantageous. Furthermore, Temasek Holdings, the country's sovereign fund, has made substantial investments in fintech, including Policybazaar, Ant Group, and the super app Go-Jek, to name a few examples.

It is a significant challenger to Hong Kong as a financial services centre in the region, and it is well-positioned to benefit from the region's fintech boom.

2. New York

Despite the fact that the West Coast, especially Silicon Valley, is more known for its tech culture, New York should not be underestimated. It is the financial capital of the United States and a global financial centre. As a result, it is unsurprising that it is one of the world's major fintech hubs. 

When it comes to ranking tables, New York City and London are usually tied for first place, thus it stands to reason that the city's fintech ecosystem is rather strong. A highly skilled labour force, as well as a broad range of startup accelerators, contribute to the country's growing financial sector. Among the well-known brands in the market are Betterment, an automated financial advisor, and insurance Oscar.

While being a few streets away from the world's major banks and insurance companies facilitates collaboration, working with them is not always a terrific option or a good idea in general. Although not all large financial centres, such as Frankfurt and Zurich, are fintech centres, the truth remains that they are. You demand more than that, and New York meets all of your needs.

3. Hong Kong

Hong Kong has continuously placed among the world's leading fintech centre since the advent of Fintech during the Great Recession. The city, like New York and London, is strongly reliant on financial services, which account for over 20% of its GDP. As a result, the growth of fintech activities was quite expected. Furthermore, the government's strong and supportive stance toward fintech was critical to its growth.

Despite recent turbulence, Hong Kong, which remains an important Asian financial hub, has been relatively unscathed. Ant Group chose this site for its first public offering (IPO) (still might list there, things are in flux at the moment). Time will tell whether the new restrictions have a negative impact on the city's corporate reputation, since a few other surrounding cities, such as Singapore, are not sitting on their hands in their efforts to attract fintech businesses.

4. Silicon Valley / San Francisco Bay

Silicon Valley is, without a doubt, the world's most important technological hub. Apple, Google, and Facebook, to mention a few, are all present. There is a substantial amount of technical innovation that begins there. As a result, it's no surprise that it's one of the world's major fintech hubs. 

There are various startup accelerators and incubators in a number of disciplines, including payments, insurance, and regulatory technology. Venture capital firms having a presence in San Francisco and a strong presence in the fintech sector also contribute considerably to the development of the ecosystem.

Stripe, Coinbase, Plaid, and Chime are just a few of the successful companies based in the San Francisco Bay Area. There are also Big Tech companies there, such as Apple and Google, who are getting increasingly active in the financial arena. Aside with Covid-19, the current immigration policy has an impact on the market. The prosperity of Silicon Valley is built on the brilliance of immigrants.

5. London

That's reasonable; this isn't exactly breaking news. Many individuals are aware that London is usually referred to be the "World's Fintech Capital." This is without a doubt the greatest fintech centre in the world. It should come as no surprise that the fintech industry is booming in the city because it is a major banking and financial services hub in the globe. 

There are several reasons for this, including easy access to money through a robust angel investor network and Venture Capital firms with offices in London, access to a large pool of foreign talent, and access to supporting services such as legal and consultancy. Even in the middle of the Covid-19 financial crisis, it continues to be Europe's clear leader in terms of investments in fintech businesses. A few provincial cities, such as Edinburgh and Manchester, are also contributing to the wealth of the UK and London.

Many of Europe's major fintech startups are headquartered in London, including TransferWise, Revolut, SoftBank-backed OakNorth, and many others. It is crucial to emphasise, however, that Brexit is on the horizon. The political and economic uncertainty in the United Kingdom's capital has yet to have a substantial impact on the city's fintech industry. 

Will London's status as a major fintech centre be maintained? Hopefully, nothing big will occur in the near future. It takes years to build a healthy ecosystem, and London has all of the required components. That is not to say that other cities in Europe and abroad will not strive to capitalise on the situation and recruit fintech firms...

What else?

Other big fintech hubs, such as Paris and Amsterdam, as well as Shanghai, may be argued to be included, but these are just a few examples. There are also a spate of new ones to consider, such as those in So Paulo and Vilnius. Fintech is a quickly expanding industry, and the environment is expected to change considerably as more businesses emerge and some fail.

Fintech is prevalent in everything we do and in our daily lives, thus it is only reasonable that it should be present in every country on the planet.