X-Tech Sectors Grow 67% in 2018
Finnovating has published its annual report in which it analyses the evolution, potential and opportunities of the 6 main X-Tech sectors in Spain. FinTech, InsurTech, PropTech, WealthTech, RegTech and LegalTech. Its growth in 2018 has been one of the largest in the world with 67%, going from 641 companies in January to 1,072 companies at the beginning of 2019.
State of the industry X-Tech
Today, the X-Tech industry generates almost 17,000 quality direct technological jobs with high digital skills. In addition, these 6 verticals can grow up to 65% in the next 12 months. That is, up to 28,000 jobs, according to data extracted by the Intelligence and Scouting team of Finnovating. They say, it is essential to generate an environment that bets on these sectors. Sectors that are called to transform society digitally and culturally.
Spain ranks second in Europe and Latin America in number of FinTech, InsurTech and RegTech with more than 600 startups and scaleups, only surpassed by the United Kingdom. Although by size and volume of investment we see much more advanced countries such as Germany, France, some Nordic countries or Brazil.
By Sectors
The FinTech sector started in 2018 with 292 companies to commence the 2019 with 336 businesses. Although, they expected a creation of 4,500 jobs at the beginning of the year. It is possible that the impact of the Sandbox FinTech will increase this forecast.
The 2018 was the year of consolidation for InsurTech. Being the third most important sector after FinTech and PropTech, which closed 2018 with a growth of 43%. It has positioned InsurTech as the second in size, after FinTech. This sector, which allows us to see properties at a distance with virtual reality, added 259 scaleups and startups in January.
Another industry sector highlight is RegTech, which impacts one of the areas of greatest investment in the financial sector: regulatory compliance. This ecosystem has grown by 37% to the 107 RegTech operating in Spain, undoubtedly a great opportunity to improve efficiency and streamline all compliance processes.
Related to the previous ones, this 2018 we have seen the LegalTech mature to the WealthTech. The former accelerate the digital transformation of the law firms, law firms and legal departments of large companies. At the end of 2018 Finnovating published for the first time its LegalTech map with 100 startups operating in Spain, and by February 2019 there are 122.
The WealthTech, with 88 startups dedicated to creating digital solutions that are transforming the investment management industry, were so far subsumed into FinTech. This sector covers a range of different types of operations and channels, from robbery advisors and quant advisors, trading platforms, reporting, planning, micro-investment and saving tools, etc.
Facts For Optimism
All these figures show how the Spanish ecosystem is a great opportunity to invest, collaborate and acquire highly competitive innovation. Even more so after the recent step forward taken in the development of the sandbox, which in addition to accelerating financial innovation, is expected to generate 5,000 more jobs in the next two years and attract an additional 1,000 million euros of investment. In addition to encouraging greater competition, reducing access barriers and speeding up processes.
- The 6 main X-Tech sectors analysed by Finnovating, an international consultancy specialising in Open Innovation are: FinTech, InsurTech, PropTech, WealthTech, RegTech and LegalTech
- The Spanish X-Tech growth in 2018 has been one of the largest in the world with 67%. It has gone from 641 companies in January to 1,072 companies at the beginning of 2019.
- These industries currently generate almost 17,000 quality direct technological jobs with high digital skills, and are expected to grow by 65% to 28,000 in 12 months.
Media: Finnovating
