Ever since the fintech industry has become mainstreamed into our lives, there have been many companies (e.g. startups) that have transformed their hometowns into new fintech hubs. There are numerous reasons why it is beneficial not only to the fintech business owners, but also to their city. When a fintech startup is launched, the town also receives recognition. This comes in the form of new streams of revenue from the businesses that support the startup (e.g. a coffee shop) and tourism. New business opportunities are created, which attracts new talent and boosts the local and state (country) economies. Plus, these cities have regulations that are conducive to this industry. Each year, there is a new city that is added to the fintech hub list. Here are some interesting ones.
- Vilnius, Lithuania — Aside from being the country’s capital, Vilnius has always thrived in tourism. Now, it is positioned as the “gateway” to Central and Eastern Europe as well as the European Union for fintech companies in China. Revolut and Google recently received the European banking license and an e-money license in Europe. This means Revolut can issue more fintech products (e.g. alternative lending) and Google can create digital currency and provide a payment platform in Europe. Also, Technopolis is building a 26,700 square-meter fintech center at a cost of €51.9 million ($57.9 million).
- Boston, USA — Boston is a hub for U.S. finance and insurance industries, and it is also known as a fintech hub. There are 25 new fintech companies in many areas, such as personal finance, cryptocurrency, and trading. These entrepreneurs are in the best location for funding as well.
- Montréal, Quebec, Canada — Like Boston, Montréal is a financial hub. However, the creation of the Montréal FinTech Station may overshadow it. The complex will be 25,000 square feet and will house 20 to 30 startups. This new center will also hold conferences and workshops.
- Malta — This small island country has a new fintech strategy to lure startups and protect investors. The Malta Financial Services Authority (MFSA) created this strategy, Vision 2021, and published it in a Consultation Document. It outlines the regulations for the new hub as well as how Malta will cater to the fintech industry. Malta is positioning itself as a place where startups can test their concepts in a “fintech environment.”
These cities are embracing fintech and realize the financial benefits that come from being a fintech hub. Fintech has already transformed our lives (e.g. cryptocurrency), but the innovations that will be produced in these new hubs will take fintech to the next level.