At the end of January every year, the Financial world meets in Paris for the Paris Fintech Forum. For 2 days (Jan 29-30), over 2,600 attendees from 72 countries will gather at the heart of Paris to listen to 240+ CEO’s from banks, insurance, telco, regulators and of course fintech startups from all continents. With the Brexit looming, Paris Region is poised to become Europe’s Financial Hub – so this event is one not to be missed!

Before you go, you might want to get a better idea of what’s happening in the Fintech world in France. We’ve invited the expert INVYO to present their analysis of the 2018 mapping of the French Fintech Ecosystem. INVYO is a market intelligence platform in Fintech, building SaaS solutions powered by machine learning to help financial institutions see tomorrow’s opportunities in their industry. Today, its cofounder & CEO Alexandre Velut shares his insights to keep-up with the industry trends in France.

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The French Fintech ecosystem has experienced a rapid growth in the last five years [Note from PRIME: with Paris Region, a financial hub in Europe, leading the way]. The country is home to more and more global success stories in all segments of the financial industry, supported by increasing private and public investments.

At the same time, the strengthening of the relationships between more established players and start-ups is bringing new perspectives for the industry, with the ability to move and innovate faster. Recent announcements confirm this trend: Compte-Nickel, a pioneer in neobanking, was acquired by BNP Paribas last year; Pumpkin, a payment mobile solution, was acquired by Arkéa the same year; and Lumo, a renewable energy crowdfunding platform, is now owned by Société Générale.

On the basis of a recent report published by our company INVYO, the most advanced Europe-based market intelligence platform in Fintech, in partnership with France-based investment fund NewAlpha and consulting firm Exton Consulting, it appeared to us that France today accounts around 450 Fintech companies.

The study also revealed that the biggest growth opportunities for Fintech in France were the following:

  • Insurtech which represents 17% of the Fintech start-ups in France, and of which one-third were created in the last two years;
  • Crypto, blockchain and ICOs is also booming with regulators actively contributing to create the framework of a supportive regulatory environment;
  • Lending with more platforms being created in niche markets such as green projects or real estate;

Challenges still remain for players in the country to go one step further. Among them is the ability for a French Fintech start-up to scale faster to establish itself on the global playground. The French state is investing massively in the ecosystem through its VC arm BPI. Other Fintech-only VC funds have emerged like NewAlpha Asset Management, BlackFin Capital Partners or Truffle Capital.

Preparing and educating more students in strategic industries like AI and blockchain will also be a key game changer in the long term.

[Note from PRIME : Paris Region has announced its AI plan for 2021 with a focus on training and education including:

  • The launch of a PhD-level scholarship with €4 million in funding to facilitate the recruitment of PhDs in companies;
  • The growth of the talent pool through AI training courses specifically geared toward jobseekers and professionals looking to develop their skills;
  • The opening of the first AI high school in France

Contact us to receive the presentation of the Paris Region AI plan for 2021]

The ecosystem is still growing with 30% of start-ups created in the past two years alone. The gap is tightening with the UK, though the UK will remain a major Fintech hub.

The diversity of talents is what makes our country so attractive. Many successful entrepreneurs who went to the US or the UK are now coming back to innovate in France. Success stories like Ledger, a crypto-currency wallet (€68M raised), or Alan, an insurtech start-up (€35M raised) are good illustration of our ability to lead the way in disruptive innovations and establish leading players not only locally but globally.

I have good faith that France will give birth to more Fintech champions in the near future!

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Alexandre VELUT – Founder & CEO at INVYO

Alexandre Velut is co-founder & CEO of INVYO, a SaaS company that uses big data and Natural Language Processing (NLP) to help financial institutions see tomorrow’s opportunities in Fintech. As a Fintech Explorer, Alexandre has been sharing his vision of the sector with industry pioneers over the past 4+ years. He regularly speaks at events and writes about the future of banking. He also serves as an advisor/mentor in various Fintech ecosystem worldwide.

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About the Paris Fintech Forum

The Paris Fintech Forum (Jan 29-30, 2019) is the most exclusive digital finance & fintech event in Europe. It addresses all key issues at the heart of the news of digital finance in general and Fintech in particular.

All the week around the Paris Fintech Forum, from January 26 to February 2nd, is dedicated to events and networking opportunities: https://www.parisfinanceweek.com/