In 2023, 10.43% of all our sampled startups are operating within the Fintech industry. This places it firmly as the third-largest sector, a noteworthy position eclipsed only by the Software & Data and Healthtech industries. In this article, we showcased the top 10 cities that are at the forefront of hosting Fintech innovation. For those seeking a more profound exploration, a deeper analysis of 100 cities and regional insights awaits StartupBlink PRO users, diving into the ecosystem trends in the Fintech industry.
Fintech Subindustry Analysis
The Fintech industry has 12 sub industries. ‘Fintech – Other’ comprises 32% of all sampled Fintech startups, showcasing the diversity within this vertical. Following that, Financial Services accounts for 26%. You can further discover all 12 sub industries and their shares within the Fintech industry within the Pro version of this report.
Fintech Funding Skyrockets in 2021, Takes a Dive in 2022, Falls Below 2017 Level
Based on Crunchbase’s data. There was a sharp increase in funding for Fintech in 2021 due to accelerated digitization during the pandemic, with a growth of over 200%. However, this surge was short-lived, as funding experienced a substantial 45% decline in 2022, eventually dropping below 2017 levels. The PRO version of this report features 10 years of funding trends for the Fintech industry.
European Dominance in the Top 10
Unlike, Healthtech industry as well as the global rankings, there is no Chinese presence among the top cities for fintech startups, but rather other cities from the region such as Singapore City, Bangalore, as well as a Latin American city Sao Paulo. The majority of cities in the Top 10 consists of European cities such as London, Berlin, Paris and Stockholm and North America with San Francisco, New York and Los Angeles.
Top 10 Cities for Fintech Startups
In this article, we presented the Top 10 cities for Fintech Startups, however, you can access the extended list of Top 100 Cities for Fintech startups in the Pro version of this report.
1. San Francisco, United States
San Francisco continues to stand at the top of Fintech innovation, maintaining its lead as the global startup city for fintech startups. The city’s enduring position highlights the continued strength of Silicon Valley and its pivotal role in shaping the future of financial technologies. San Francisco has over 30 unicorns in this industry, with some of the most notable ones including Stripe, Upgrade, and Carta.
2. New York, United States
New York has climbed one position by securing the 2nd position in the global Fintech rankings. This upward shift underscores the city’s ability to surpass one of the key Fintech hubs in the world, London. New York has 40 unicorns in the Fintech industry such as OpenSea.
3. London, United Kingdom
London, traditionally regarded as a stronghold in the Fintech arena, experiences a modest setback as it slips to 3rd place. Despite this shift, London remains a significant contributor to the global Fintech ecosystem, showcasing as the house of notable Fintech startups such as Revolut, Monzo and Blockchain.com
4. Los Angeles, United States
Los Angeles, ranked 4th, maintains its position in the top rankings. While not experiencing a change in position, its consistent presence among the top highlights the city’s ongoing contribution to financial technology innovation with notable startups and unicorns such as Acorns, ChargeBee Technologies and Sunbit.
5. São Paulo , Brazil
São Paulo in Brazil emerges as a standout performer, surging to the 5th position globally and 1st in Latin America & Caribbean region. This remarkable rise underscores Brazil’s increasing prominence in Fintech, with success stories such as NuBank.
6. Paris, France
Paris, the capital of France, makes impressive strides by climbing three spots to claim the 6th position. The city’s ascent highlights France’s growing influence in the Fintech sector, and also strengthens European cities dominance in the industry’s Top 10. Similar to its counterpart Paris, Berlin showcased a noteworthy ascent, moving up five spots to secure the 7th position.
7. Berlin, Germany
Berlin has witnessed a surge of 5 positions in the Fintech rankings within the past year, firmly establishing itself within the Top 10 globally. Currently seated at an impressive 7th position, Berlin’s current place is four-spot better than its previous standing in the overall global rank. The city is home to 6 Fintech unicorns, namely: N26, Trade Republic, TaxFix, WeFox and Solaris Bank.
8. Bangalore, India
The first Asian Pacific city that appears in the list is Bangalore in India, which experiences a slight decline, moving to the 8th position. Despite this one spot decline, Bangalore remains a key player in the global Fintech ecosystem, with a heavy majority of its unicorns emerging from this industry, such as Razorpay and Cred.
9. Stockholm, Sweden
Stockholm in Sweden demonstrates positive momentum by advancing two spots to claim the 9th position. This rise underscores Sweden’s growing significance in the Fintech sector, as the city becomes a focal point for innovation and development in financial technology.
10. Singapore City, Singapore
Singapore City, despite a notable drop to the 10th position, maintains its status as the top-ranked Fintech city in Asia. The city-state continues to play a crucial role in fostering innovation and driving advancements in financial technology across the region. Each of these cities contributes uniquely to the global Fintech landscape, reflecting the diversity and dynamism inherent in the industry.
Fintech Success Stories
Top Fintech Startups
The following list is the selection of innovative fintech startups from around the world. These companies are at the forefront of financial technology, offering a range of services designed to streamline and enhance the financial experiences for both individuals and businesses. You can further browse startups in the industry on our Global Startup Map.
Top Fintech Unicorns
In the fintech industry, certain entities stand out for their exceptional growth and innovative solutions. These ‘unicorns’—privately held startups valued at over one billion dollars. You can further browse Fintech Unicorns on our Global Unicorn Map.
Top Fintech Exits
A mark of success for startups is transitions from a privately held innovator to a publicly recognized leader through an initial public offering, acquisition or merger. This transition, known as an ‘exit,’ is a pivotal point in a company’s lifecycle and often serves as a testament to its value and impact on the industry. You can further browse Fintech Exits on our Global Exit Map.
Top Fintech Pantheon Members
Pantheon is a term coined by StartupBlink to categorize a group of organizations and startup ecosystem stakeholders that have had a massive impact on startup ecosystems globally. This spotlight features the top Pantheon Members from the fintech industry. You can browse Pantheon members around the world with the Global Map of Startup Pantheon.
How we rank top cities for Fintech Startups?
We ensure accuracy in our rankings by relying on objective, quantifiable data instead of subjective tools like surveys. Our algorithm, based on data from the StartupBlink map and global data partners, minimizes assumptions and focuses on measurable results. Yearly improvements enhance algorithm accuracy, with momentum changes influenced not only by ecosystem achievements but also by these enhancements.
The algorithm is refined using data from the StartupBlink Global Map, covering 10-15% of global startup entities. Scores are determined uniformly, but sample sizes vary by location and data source. To address low sample size issues, we collaborate with 100 Ecosystem Partners, offering government agencies complimentary administrative access to curate datasets. Rankings involving Unicorns and Exits consider startup valuations, applying filters to exclude government entities and corporate spin-offs.
The Methodology used in the 11 industry rankings, including Fintech, is identical to the algorithm of the global rankings while taking into account the startup database of each industry.