Financial Crime World

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FINANCIAL INCLUSION AND COMPLIANCE IN SPAIN: A THRIVING FINTECH MARKET

The Spanish financial landscape is undergoing a significant transformation, with the fintech sector experiencing rapid growth and innovation. According to data from Finnovating, the number of fintech companies in Spain increased by 15% over the past year, reaching 462 firms as of March 2021.

Key Highlights of Fintech Growth in Spain

  • The fintech sector offers a range of digital solutions for payments, wealthtech, tax and accounting, lending, and more.
  • Over 12,000 direct jobs have been created due to the proliferation of fintech activity in Spain.
  • Traditional banking sector is increasingly partnering with fintech companies rather than competing with them.

Investment and Regulatory Framework

Spanish fintech firms have received high investments, with a total of €192.9 million raised in 2019. The government has also established regulatory frameworks to support the growth of fintech businesses, including:

  • Law 7/2020
  • Directive (EU) 2015/2366 on payment services in the internal market (PSD2)

Case Studies: Successful Fintech Innovation in Spain

Two examples of successful fintech innovation in Spain are:

  • Revelock: a company that offers financial institutions a platform to detect, prevent, and remediate fraudulent activities.
  • BNext: a mobile-first neobank that provides users with a card and a linked mobile marketplace for various banking products.

Experts predict that credit processing will emerge as the next battleground of fintech innovation in Spain, with improvements being implemented on:

  • Customer experience
  • Service
  • Capital costs
  • Bad debt provisioning

Spanish fintech companies are expected to provide SME loan facilities with improved digital registration and approval processes.

Partnerships and Investments

Companies such as Credolab and Strands are already leveraging their technology to enhance the credit processing and lending processes of financial institutions in Spain. These partnerships and investments demonstrate the growing importance of fintech in the Spanish economy.