The Spanish banking sector suffered drastic changes in the last decade given the impact of the financial crisis, which highlighted the need for reforms in the sector. Different mergers and acquisitions transformed the banking panorama.
Today, the Spanish online financial industry grows exponentially. The financial sector has a clear priority: culminate the process of digital transformation and serve as an agent of change for other sectors. The Spanish main business association (CEOE) is pushing to promote a data-driven culture, the digital identity and a cashless society while promoting electronic ways of payment.
The Spanish Fintech ecosystem has shown an incredible performance in the last months. Since 2016, the number of start-ups increased by 117 to more than 300, particularly in the areas of insurance, crowdfunding, financial management, wealth management, corporate lending and payments. Now, Spain ranks 6th among the countries with more Fintech start-ups in the world.
Business Opportunities for Swiss SMEs
Despite the Spanish Fintech industry is on the rise, comparatively with other innovative countries, it is at an early stage and many companies lack of maturity. This is why some of the biggest Spanish financial institutions are investing abroad, looking for the best digital solutions.
Broadly speaking, business opportunities are mainly in the collaboration with financial institutions, specifically in helping them in the process of digital transformation. There is a switch in the sector mind-set. Today Fintech companies are less seen as competitors, but as collaborators.
According to Spanish Fintech companies, the technologies that will generate more impact in the sector will be Blockchain (67%), Big Data Analytics (45%), Artificial Intelligence & Machine Learning (45%), Onboarding & Digital Identification (24%) and Cloud Computing (8%).
- New Mobile Banks: The Spanish market has welcomed new mobile banks in the last months. For example, Ferratum BanK. A year before, the first mobile bank made in Spain was born. imaginBank, which already has more than 500,000 customers. In addition, the pan-European bank N26 is increasing its presence in Spain. Telco’s like Orange Bank and MásMóvil are preparing their market entry.
- Blockchain: This technology is gaining momentum and its future is bright in the financial sector. Companies offering solutions in this matter that fit sector challenges and improve efficiency, will have a niche to take advantage off, especially those companies with proven results and experience. Transactions, cryptocurrencies, investment management and digital identity are fields where this technology has great potential.
- Biometrics: The implementation of biometric identification in taking an important role in the path of digitalization. At the moment, there are several entities that allow customers to operate with this system and further solutions are being studied and implemented.
- Chatbots: The use of this type of bots can help to improve customer service of banks, thanks to its availability 24/7. Some of the main Spanish banks are already using this technology to provide a better service, reduce costs and event increase sales.
- Robo-Advisors: In less than three years, the automated managers have gone from not existing in Spain to manage almost one hundred million euros. Transparency and the saving of commissions are keys in its rapid adoption. Experienced companies may found in Spain a growing market where to market their solutions.
Fintech get together @ Madrid, Spain 2018
Fintech Get Together’ is the tailor-made event to promote Swiss companies and Switzerland as a business location for the Fintech industry.