France’s economic navigation on Covid-19 and the recent rise in inflation rates globally has been admirable. Several solutions were proposed and adopted. The France 2030 recovery plan of Emmanuel Macron, the French President has already started to give solid results. This article takes a look at the growing fintech industry in France, and how it can become a global leader over the next decade.
Source: Statista
Positive link between French Tech and fintech, making Fintech leaders
Fintech represents 13% of French Tech fundraising, fundraising is obviously an integral part of the signals of dynamism. The sector has been able to record an average growth of all investments of around 50% per year over the last 3 years, with a historic milestone of 600 million euros raised which was crossed in 2019 for 81 fundraisings. This growth is explained by a French ecosystem particularly encouraged by the public authorities.
Lior Derhy, Managing Partner at NewAlpha AM first explains that in 2019 French fintechs continued their development. They have thus become one of the main contributors to French Tech. A large number of success stories increases the growth of this sector and also helps to attract increasingly significant national and international funding. The acceleration of the digital transformation of the leaders of the financial industry is therefore accompanied by an ever-sustained dynamism of entrepreneurs and investors, who would like to contribute to it.
The study report shows that France, in terms of the number of patents filed in artificial intelligence, is the leading European country. As for Great Britain and Germany, they attract more investments in the field of FinTech. French start-ups particularly favor the artificial intelligence sector. Indeed, it is boosted by national or regional initiatives such as AI for Humanity or IA 2021 aimed at positioning France as a leader in the field. In 2017, the applications and technologies sector weighed 178.5 million euros of investment, unlike 114.9 million for FinTech in France, thus positioning this sector in 5th position of the top sector by showing the most raised .
Cryptocurrencies and Fintech in France
Aware of all these potentials, France was the first European country to set up a legal framework dedicated to blockchain and all its financial applications. It is now authorized, despite everything, the use of the Blockchain on a broader field of financial securities, fund shares, negotiable debt securities, shares and unlisted bonds. Note that the observed growth continues to evolve despite recent events. The unfortunate health crisis and the various geopolitical conflicts. Cryptocurrency purchase rates also continue to rise.
It is from this same perspective that Maxim Manturov, Head of Investment Advisory at Freedom Finance Europe, states that: “We also see that with the increase in global tensions, there is a growing interest in buying crypto. -currencies in order to save money that does not belong to any government Trust in payment systems such as PayPal, Visa and Mastercard is declining The fear that the dollar is weaker than we thought is more and more present. We can conclude that the reality is changing very quickly – cryptocurrencies are rising, contrary to the standard fundamentals.”
Source: Statista
What is French Tech for French startups?
This big movement of mobilization of the dynamic territorial ecosystems of France. It values the growth of startups or digital and financial companies. Whether it’s an entrepreneur, a startup already launched, a scale-up in hypergrowth, an international talent or even an investor, several emblematic public schemes have been proposed by the actors of the French state. The latter aim to grow and shine the French Tech ecosystem. But also to provide great support for fintech.
Among its schemes, we have the French Tech Agri20, whose main objective is to bring out technological champions offering breakthrough innovations that meet the main agricultural and food challenges. Similarly, French Tech offers a French Tech Industrial Start-up Desk. Designed with the sole objective that 100 industrial projects are carried out per year by start-ups by the year 2030.
The French Tech Rise is also a French Tech initiative to support the financing of territorial ecosystems. This movement has also set up a new grant to finance initiatives that actively promote their tech ecosystem internationally. The various actions of French Tech do not stop at these few devices. It is also the basis of the Welcome to France program, international talents which brings together talents from all over the world. The government is making attractiveness a priority by launching a very ambitious approach.
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