Dutch FinTech Census 2023 Report

What is the status of the Netherlands as a FinTech country and how can the sector be further facilitated and stimulated?

In brief:

• The report reflects the opinions, experiences and desires of Dutch FinTechs regarding customer demand, talent, regulation and capital
• Moreover, it includes what they see as promoting or challenging factors of the Dutch FinTech market and how the Netherlands compares to other countries
• This edition draws some interesting conclusions regarding the opportunities and barriers for FinTechs that affect their growth and recommendations to further facilitate and stimulate the Dutch FinTech sector

The Dutch FinTech sector has grown significantly, with 861 FinTechs in 2023 (up from 635 FinTechs in 2019).FinTechs are still relatively young and concentrated in the Randstad area. Amsterdam is most attractive, with 40% of the FinTechs based here. The level of financial activity and its international character makes Amsterdam stand out.

In general, the Netherlands is seen by FinTechs as an attractive location for FinTechs, owing to its digital infrastructure, English language proficiency and culture. The biggest challenges for FinTechs are attracting qualified or suitable talent, the general economic climate and geopolitical developments. Dutch FinTechs cite access to existing or new markets, as well as access to new investments as major development opportunities. Moreover, FinTechs no longer see collaboration as one of their biggest challenges, but as an important opportunity for further growth and development. Access to an existing customer base, a stamp of quality and access to investment budgets are the main drivers for cooperation for FinTechs.

Attracting and retaining qualified talent remains a major barrier for FinTech growth, with providing appropriate remuneration being the most significant barrier to staff retention. 56% of FinTechs see remuneration policies as a barrier to attracting and retaining talent.

A remarkable difference between the 2019 edition is that FinTechs have less difficulty to comply with laws and regulations: 62% said they have no problem complying, up from 43% in 2019. However, compliance has a significant impact on the cost and effort required: administrative requirements to comply with laws and regulations is disproportionately high, according to 37% of respondents. Although the government's intention to encourage innovation is visible, FinTechs believe that the government could be more proactive in supporting them: 40% of FinTechs say they would like to see a more active role by the government in facilitating innovation in the sector.