The growth trajectory of Hamburg's fintech scene continues unabated from 30 financial technology companies in 2017 to 101 in September 2024, according to the Fintech Monitor. All these startups and companies are aiming for optimum digitalization - from big data and loan comparison to payment solutions. At the start of Fintech Day 2024, Dr Andreas Dressel, Senator for Finance, stressed: “We need a strong financial sector to master the challenges of our time.” The Ministry of Finance’s Master Plan for the Financial Sector 2021-2025 plays a role therein and prioritises fintechs and funding. Since 2022, more than 30 financial companies have benefited from the InnoFinTech funding scheme for startups and innovative fintech projects and has a volume of EUR 9 million through 2025. Applications for funds can be submitted to IFB Innovationsstarter GmbH, a subsidiary of Hamburgische Investitions- und Förderbank (IFB Hamburg).
The City of Hamburg's long tradition as a financial centre dates back to the founding of Germany's oldest active stock exchange in 1558. But just how innovative is the local financial scene in the 21st century? More than 160 stakeholders in the local financial sector and founders of fintechs met Thursday (October 10, 2023) in the Design Zentrum Hamburg for the first Hamburg Fintech Day. The focus was on practical tips, success stories, setbacks and networking. Held under the theme of “Butter bei den Fintechs”, the aim was to provide the sector with “lubricants - especially when it comes to co-working, financing and networking”, said Karl-H. Witte, a representative of Finance City Hamburg (FCH) during the opening.
More than 100 fintechs in Hamburg
Culture of innovation needed
The opening panel focused on the spread of B2Bs and what fintechs and financial service providers can learn from each other. Regulation and scalability are among the biggest challenges facing fintechs, according to Dr Dorothea Eckhoff, Senior Project Manager Digital Transformation at Deloitte. This often slows down partnerships between fintechs and banks. The panel also included Max Knopp, Managing Director Germany and Head of Business Operations at Stock Republic, a Swedish company based in Hamburg that has received funding from the InnoFinTech scheme. Knopp called for less "’We've always done it this way’," as "it would help if banks already had an established a culture of innovation.” That means accepting new ideas and taking risks.
Perseverance and fulfilment
Other topics on the agenda included the risks and opportunities of starting up alone or as part of a large corporation. This was a concern for Mirko Krauel, CEO and Managing Director of Otto Payments GmbH, who was instrumental in setting up Otto GmbH & Co KG’s payment service provider - from idea and concept to the BaFin licence for a platform with an annual transaction volume in the billions. "You need people who believe in your idea, even within the group," Krauel stressed, adding: "The mills grind slowly, even though many of the prerequisites are already in place in a group.” Dr Hans-Christian Stockfisch, CEO of Flexvelop, gave insight into the ups and downs of setting up a company. The Flexvelop business model targets B2B customers who want to rent office equipment on a flexible basis. When starting a business, founders should "keep at it. Simplify things - be pragmatic and pay attention to detail". Stockfisch said, adding: "Starting a business is 0 per cent fun, but 100 per cent fulfilling."
B2B and AI as opportunities
Events also focussed on the current situation and developments in the fintech sector. While the B2C market is quite saturated, B2B business models in particular hold opportunities, according to Thorsten Wittmütz, Managing Partner at Next Commerce Accelerator (NCA), as many procedures in the financial sector, e.g., in the back office, have not yet been digitised. Commenting on the use of artificial intelligence, Wittmütz noted: "AI will make our lives easier." However, AI holds more benefits for end customers than for bankers, according to Sebastian Scheib, Senior Investment Manager at Amberra, a strategic investment and venture building unit of the Genossenschaftliche Finanzgruppe. Yet a "dedicated AI agent holds potential”, even though innovation is not the objective, the panellists agreed.
Plans for Hamburg Fintech Day 2025
The female founders of Parto (formerly Participayed), Caplend, Tokenforge and Moneten also received funding from InnoFinTech and closed the conference with pitches on digital money innovations for people in care, blockchain technology for digital assets and financial education for women. Delegates then had ample networking opportunities. A date was also set for the Hamburg Fintech Day 2025, organised by FCH in cooperation with the Ministry of Finance, Finanzplatz Hamburg e. V. and the Chamber of Commerce.
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