Fintech—Germany—Q&A guide
Fintech—Germany—Q&A guide

The following TMT practice note provides comprehensive and up to date legal information covering:

  • Fintech—Germany—Q&A guide
  • 1. What is the general state of fintech innovation in your jurisdiction?
  • 2. Do government bodies or regulators provide any support specific to financial innovation? If so, what are the key benefits of such support?
  • 3. Which bodies regulate the provision of fintech products and services?
  • 4. Which activities trigger a licensing requirement in your jurisdiction?
  • 5. Is consumer lending regulated in your jurisdiction?
  • 6. Are there restrictions on trading loans in the secondary market in your jurisdiction?
  • 7. Describe the regulatory regime for collective investment schemes and whether fintech companies providing alternative finance products or services would fall within its scope.
  • 8. Are managers of alternative investment funds regulated?
  • 9. Describe any specific regulation of peer-to-peer or marketplace lending in your jurisdiction.
  • More...

Fintech—Germany—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to fintech in Germany published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2020).

Authors: Simmons & Simmons LLP—Christopher Götz; Dang Ngo; Elmar Weinand; Felix Biedermann; Janine Marinello; Jochen Kindermann; Martin Gramsch; Sascha Kuhn; Eva Heinrichs

1. What is the general state of fintech innovation in your jurisdiction?

According to latest statistics, the fintech market has reached a level of saturation. Recent statistics show that after a peak of new companies in 2017 the number of new fintech start-ups in Germany reduced to eight in 2019. As a result of strong competition with non-German fintech companies, several big tech companies and long-established market participants, a substantial increase in new fintech companies in the German market is not expected. There is a trend towards established business models that have proven to be reliable. Established companies benefit from higher funding compared to smaller or new companies for whom access to funding seems to have become more difficult.

2. Do government bodies or regulators provide any support specific to financial innovation? If so, what are the key benefits of such support?

The German government and municipalities support fintech companies in various ways. The Federal Financial Supervisory Authority (BaFin) is the financial regulatory authority in Germany. BaFin set up a dedicated team to support fintech companies

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