The Netherlands is doing well as a fintech country. Since 2019, the fintech segment in our country has grown even further with 226 start-ups for a total of 861. Amsterdam is very popular; no less than 40% of fintech companies are located in the capital city. This and more is evident in the EY 2023 Dutch FinTech Census Report.

In the study, EY correlated the attractiveness of a country of residence with four criteria: demand (demand for fintech services), talent (attracting and retaining suitable staff), policy (directed government support for fintech) and capital (ability to attract capital). ). To find out how the Netherlands compares to other countries, France, Lithuania, Germany, Sweden, England, Italy, Singapore and Australia were also examined.

Incredibly enough, the Netherlands did not really excel in any of these areas. For example, the Netherlands only once ranked second (talent), twice ranked third (demand and policy) and ranked fourth (capital). The UK, for example, came out twice on top (policy and capital) – but on the other hand also has a ‘moderate’ fifth and sixth place for demand and talent criteria respectively.

Therefore, the question that can be asked is what makes the Netherlands so attractive to fintech? A question EY researchers have no doubt answered: digital infrastructure, English language skills, and a pleasant living and working climate, among others, are considered important differentiating factors.

Recommendation

However, the Netherlands also faces a number of challenges. Attracting and retaining qualified and suitable talent, the general economic climate and current geopolitical developments are seen as the most important issues. According to EY researchers, Dutch policy makers should therefore work to remain attractive (or become more attractive) to fintech companies.

To help policy makers do this, EY has laid out thirteen recommendations on paper, divided into three themes: ‘ambition and strategy’ (politics to stimulate growth and development), ‘guiding function’ (creating a directive function to drive cooperative incentives) and policies and regulations (protecting consumers and promoting competition in the fintech sector).

For example, the consultant writes that policy makers should put fintech ambitions and strategies clear on paper. “A clear plan confirms the added value of fintech for the Netherlands,” the researchers wrote. “This strengthens the ambitions of Dutch fintech parties and attracts foreign investors and international fintechs.”

Setting up a central body to manage all things fintech is another important tip. The researchers point to the UK Center for Finance, Innovation and Technology as an example.

To prevent unwanted mixing of public and private functions, according to EY, roles, mandates and partnerships should be clearly written down on paper.

Know more? The complete study (including thirteen recommendations) from EY is Here look for.