FinTech - It’s not just a Silicon Valley thing
Marc Robert-Nicoud, CEO of Clearstream Holding
This week I had the opportunity to attend an event in Tel Aviv with a Luxembourg delegation, looking at how Luxembourg and Israel can work together to drive forward FinTech developments. Tel Aviv is currently a major centre for innovation in this field; the FinTech and cybersecurity industries are two of the strongest fields within the Israeli startup community.
According to Deloitte, there are over 400 FinTech companies throughout Israel - many of which are well known through the Bitcoin community, for example, decentralised social networking community Synereo or instant messaging with bitcoin app GetGems.
Luxembourg has also become an attractive place for the development of new financial technologies - for established players and young FinTech companies alike. About 150 FinTech companies are located here, providing solutions ranging from payments and virtual currencies to data, analytics and reporting. The government has made significant investments in IT infrastructure through its LuxConnect initiative.
Following the strategic priority it has given to digital banking and FinTech innovation in financial services, the Luxembourg Bankers’ Association (ABBL) even has created a “Digital Banking and FinTech Innovation” Cluster. The Cluster, represented at ABBL’s Board of Directors by Deutsche Börse’s Jeffrey Tessler, aims to support the banking community in embracing FinTech innovation and creating a credible, competitive and reliable FinTech ecosystem.
One interesting thing that these examples show is that it’s not just Silicon Valley that’s driving the next wave of technological development forward. It’s heartening to see how widespread innovation is, and in many ways countries like Luxembourg and Israel actually have distinct advantages in terms of being able to quickly position themselves as places perfectly tailored to the needs of FinTech startups.
As part of Deutsche Börse’s collaborative approach to FinTech, we are actively involved in many interesting initiatives. We’re looking forward to working with both local and international FinTechs in the future to harness the developments of the fourth industrial revolution.