Spain's non-banking fintech sector grows 50 percent
The Banco de España's Non-Banking FinTech Industry Observatory, an experimental statistic, reveals a 50 percent increase in Spanish fintech entities with available financial statements between 2018 and 2023. The Observatory, updated since 2020, now publishes information twice annually for the public.
Growth in assets and employment
The Observatory monitors the evolution of Spain's non-banking fintech sector, combining public and private sources to classify and analyze entities by activity, geographical distribution, and vertical type.
Between 2018 and 2023, the number of entities with financial statements grew by 50 percent, accompanied by significant increases in assets and employment.
Business models in verticals such as "Cryptoassets and Blockchain" have consolidated.
The Observatory also provides financial information in terms of national accounting, distinguishing between financial and non-financial institutions based on their financial data.
This initiative aims to understand the development and impact of non-banking fintech entities within the Spanish financial landscape, measuring their size and relevance while differentiating between formally integrated and other financially active entities.
Diverse data sources and classification
The Observatory's methodology relies on a comprehensive data collection from multiple administrative and private sources.
Administrative sources include the Banco de España's Central de Balances and its former Registry of Virtual Currency Exchange Service Providers, the CNMV for crowdfunding and investment platforms, and commercial registries.
Private sources encompass the Spanish Fintech and InsurTech Association (AEFI), Finnovating, the Spanish Crowdfunding Association, and company websites.
Entities are identified, validated for Spanish residency, precise identification, fintech activity, and tax registration, then included in a census.
The Observatory classifies fintech entities into 13 verticals, such as Crowdfunding, Paytech, Wealthtech, Insurtech, Cryptoassets and blockchain, Lending online, Regtech, Marketplaces and aggregators, Neobanks, and Digital onboarding.
Challenges in an evolving landscape
The Observatory provides crucial insights into a rapidly evolving, yet often opaque, sector.
However, the inherent challenges in data collection and definition for unregulated entities underscore the limitations of such experimental statistics.
This highlights the ongoing need for clearer regulatory frameworks to ensure comprehensive oversight and accurate measurement.