Monetary platform ConnectPay has recognized important gaps and inconsistencies within the accessible information on Europe’s fintech trade, prompting the launch of the European Fintech Index (EFI).
Based on ConnectPay, the dearth of uniform and credible information sources, coupled with diversified definitions of ‘fintech’, has made it troublesome to precisely monitor the trade’s growth.
The World Financial institution‘s International Findex Database, the most recent information set, stopped updating in 2021, inflicting many international locations to depend on outdated data. At the moment, solely a 3rd of European international locations use information newer than 2021 to current their fintech ecosystems, which limits the flexibility to make knowledgeable comparisons and choices.
The EFI analyses markets by means of three dimensions: enterprise attractiveness, market attractiveness, and fintech attractiveness, which replicate key strengths and potential areas of development for fintech ecosystems of 32 European international locations. The undertaking additionally seeks to spark discussions on standardising fintech definitions and enhancing market transparency, inviting consultants to contribute to the continued refinement of the Index.
Marius Galdikas, CEO of ConnectPay, stated: “The Index supplies an unbiased view of the info on fintechs. Mixed with the choice to filter information based mostly on case-by-case relevance, it permits decision-makers on any stage — fintechs, buyers, or regulatory authorities — to make data-backed selections that might result in larger trade development.”
The EFI
The general rankings of the EFI could also be stunning for some. As an example, the Index positions vibrant fintech hubs just like the UK and France in ninth and tenth place total.. Alternatively, smaller international locations like Estonia and Luxembourg rank fourth and fifth respectively.
The EFI additionally factors out the problem of inconsistent definitions of ‘fintech’ throughout the trade. As an example, Eurostat and the European Banking Authority (EBA), every have their very own definitions of what a fintech is. Based on Galdikas, various definitions impede correct monitoring of trade’s progress and hopes the EFI will assist increase related discussions.
“It’s extra of a query of what ought to nonetheless fall beneath the time period, and what ought to most likely be omitted. Some rankings go so far as together with pension funds, which may probably skew market information when analysing fintechs particularly.”
Following the launch of the EFI, ConnectPay will invite market consultants to offer insights on enhancing and enhancing the Index.
“The contribution of consultants will probably be important to the success and potential development of the European Fintech Index. In any case, sparking extra conversations that might enhance market transparency, specify the definition of fintech and assist monitor the progress of the trade would already be an important success,” Galdikas stated. “In addition to, by sharing concepts and insights we might replicate on, we would increase the Index sooner or later, making it an much more in-depth and dynamic market evaluation instrument.”
