French Fintechs innovate in new financial challenges

It is an extremely positive assessment that the France FinTech association draws up on the activity of French start-ups in financial services in 2022, even if concerns are now emerging. French fintechs are innovating in new areas such as ESG criteria (Environmental, Social and Governance), cybersecurity of VSEs-SMEs, real estate, crypto assets and embedded finance.

2.9 billion euros in financing in 2022

In 2022, entrepreneurs in the Fintech sector raised €2.9 billion in equity financing in 146 transactions. This represents an average fundraising of 20 million euros. This amount, which does not take into account the debt, represents almost 30% more than in 2021. With less than 100 Fintechs in 2015, France lists almost ten times more today, rejoices France Fintech.

We are seeing the first consequences of a rise in macro-economic and geopolitical uncertainties

For France Fintech, 2022 has been a record year. However, the association observes the first consequences of a rise in macro-economic and geopolitical uncertainties at the end of the year. If in the first half of 2022, the sector recorded strong growth in the sector with 2.2 billion euros in fundraising, the total amount raised in the second half is significantly lower with only 715 million euros in 62 operations.

In the field, French fintechs cover all areas of innovative finance, i.e. banking and insurance services, asset management, payments, crypto-assets, regtech (regulatory compliance ) and business services. This corresponds to the creation of 40,000 jobs.

Only 1 fintech out of 4 is profitable

These young companies have begun their internationalization. One in four fintechs is present internationally. They develop their sales, since a third makes more than 1 million euros in turnover. Profitability is lagging behind with only 27% declaring themselves profitable. But it must be recognized that a high proportion is still in a start-up phase.

France Fintech salutes the 4 new successes of 2022, Qonto, Payfit, Spendesk and Younited

France Fintech salutes the 4 new successes of 2022, Qonto, Payfit, Spendesk and Younited, whose valuation exceeds 1 billion euros. In 2022, the most dynamic areas in terms of fundraising were insurtech, banking services, operational services and financing activities.

France Fintech highlights the marked growth of innovative solutions to certain challenges in 2022. This is the integration of ESG criteria (Environmental, Social and Governance) with carbon footprint measurement and responsible investment solutions; cybersecurity and the response to increased risks, particularly among VSEs and SMEs; real estate and proptech for investment, rental management, guarantee of unpaid rents and real estate loans; “new generation” savings, which concerns “impact” oriented offers, crypto-assets, or those accessible from reduced amounts; embedded finance, known as “embedded finance”, ie services and financing associated in particular with e-commerce, local shops, and split payment BNPL – Buy Now, Pay Later – as well as packaged offers.

Deployment both “B to B” and “B to C”

The year 2022 also sees the most important fintechs ensure the development of both their “B to C” and “B to B” offers. Two vertical businesses, however, faced difficult circumstances. This is the “Web3-crypto-decentralized finance” domain, which has gone through a contrasting year. France Fintech believes that France is asserting itself as the continent’s benchmark because 6 of the top 10 operations in Europe were carried out in France.

” L’French crypto ecosystem very focused on security and execution solutions, should prove resilient »

But the association notes that the global crypto sector is experiencing a very turbulent end to the year following the XXL size bankruptcy of the FTX platform – valued at $ 32 billion at the start of 2022 and now bankrupt -, with losses recorded by some participants and strong valuation corrections. ” Our ecosystem, very focused on security and execution solutions, should however prove resilient thinks France Fintech.

Another area under pressure is that of activities related to split payment (BNPL or Buy Now Pay Later) which also experienced related turbulence. For France Fintech, this is due to the rise in rates and, on the other hand, to the European directive on consumer credit. ” These were reflected in particular by a sharp correction in the valuations of the European leaders thinks France Fintech.

The France Fintech association created in 2015

The France Fintech association was created in 2015 on the initiative of entrepreneurs. It brings together companies using innovative and disruptive operational, technological or economic models, aimed at addressing existing or emerging issues in the financial services industry. The association is chaired by Alain Clot and Kristen Charvin is its General Delegate. Its steering committee brings together the founders and directors of Anaxago, Epsor, Jenji (Silae), Kriptown, Lydia, +Simple, October and Younited.

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French Fintechs innovate in new financial challenges

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