Alain Clot (France FinTech): “French FinTechs may not be decacorns, but their business models are solid”

Jan 27, 2022 | Publications

2021 was good for French FinTechs, with more than 2,3 billion euros. Unlike other European countries, the ranking is diversified, a sign of a certain solidity. Nevertheless, industry experts note some weaknesses to be addressed in the coming years.

2021, year of FinTech? The French finance start-ups raised 2,3 billion euros, for an average ticket of 25 million euros, i.e. respective increases of 174% and 86% compared to 2020, according to figures from France FinTech, the association which promotes, animates and represents the sector. For Alain Clot, its founding president, the most striking thing about these fundraisers is the diversity of the actors present. “Insurtech, financing, payment, banking or cryptocurrency start-ups…this contrasts with Germany, for example, where two players – Trade Republic and N26 – dominate half of the fundraising of funds. Admittedly, the ranking does not crown decacorns or very large companies, but it embodies a balanced population of FinTechs, ”said the expert. Sofia El Mrabet, lawyer at the international firm Bird & Bird and specialist in FinTechs, nevertheless notes therise of payment start-ups. “They take advantage of the context. Between the Covid crisis and evolving uses – we pay with our cellphones, our watches, and sometimes even with connected rings – dematerialized money transfers are exploding. Today, we no longer ask someone for their bank details, we 'make them a Lydia'. We were witnessing an overdigitalization of money transfers. »

Other strong point of the French FinTech ecosystem, according to Alain Clot: the solidity of business models, based on assumptions that appear reasonable. “Abroad, some models raise questions,” he warns. There are platforms, for example, which adopt very quantitative market share strategies, and acquire their very expensive customers, while struggling to monetize them and retain them beyond the welcome gift. »

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