Fintechs, innovation companies in the financial sector, have been consolidating sales, despite the pandemic, and increasingly see Portugal as a “country of choice” for its international expansion, according to a study released today.
According to the “Portugal Fintech Report 2020”, presented this morning by the Portugal Fintech Association, “most of the 'fintechs' in Portugal are in the verticals of 'payments and transfers', 'insurtech' and 'cryptocurrency', being 43% in the 'seed' phase ”(initial development phase).
In addition to the analysis of the 'fintech' ecosystem in Portugal, the association presented again in this fourth edition of the report the 30 Portuguese 'fintechs' that stood out in 2020 and that to date have already collected, in total, “more than 275 million euros in investment ”.
Highlighting "alternative financing", "payments and transfers" and "'blockchain' and cryptocurrency" as "the verticals with the greatest financing", the association added that "on average, 30% of the financing comes from international investors".
This year, Portugal Fintech also highlighted seven emerging and eight international 'fintechs' operating in Portugal.
“The ecosystem is growing and the proof of that is not only the companies that are standing out for their results and the number of collaborations with mature 'players', but also for the quality of new 'fintechs' being born in Portugal and for the internationals who already look at our country as a 'fintech hub' where they want to be, ”explains Portugal Fintech founder João Freire de Andrade, quoted in a statement.
The report released today reveals that "there is a greater opening of more mature 'players' for innovation" and that they associate themselves with 'fintechs' in order to "accelerate their digitization processes".
The partnerships between Visa and Settoo and between Millennium BCP and Visor.ai are some of the “successful” examples of this cooperation between 'fintechs' and financial institutions mentioned in the report.
In addition to providing data on talent, capital, investment and regulation in the sector, the report released today also includes interviews about the financial innovation ecosystem in Portugal, with personalities such as Manuela Veloso, JP Morgan Chase's head of AI Research, Ben Marrel, founder of the Breega investment fund, Chris Skinner, non-executive director of 11: FS, or André de Aragão Azevedo, secretary of state for Digital Transition.
“New 'players', such as 'fintechs', have brought a new lease of life to the Portuguese market, with new ideas and technologies that, combined with traditional payments, are benefiting consumers looking for an integrated experience. Today, more than ever, due to the current pandemic situation, the industry is embracing the digital world and, therefore, we believe that collaboration is the key to take the sector further ”, says VISA's Head of Fintechs Delivery , cited in the statement.
According to Jana Lvova, “because it believes that this is the right way, Visa has brought several 'fintechs' to its ecosystem, so that they can increase their potential in this very competitive market”.
Portugal Fintech is a non-profit association focused on supporting the growth of financial technology companies, namely by streamlining the relationship of these companies with regulators, talent, incumbents and investors.