The future of the Czech and global economy lies in the convergence of financial services and technology, which will facilitate its digitalisation and transformation. This is directly linked to the growing popularity of wealthtech and cryptocurrencies, as tools to protect our finances against rising inflation.

Around a third of European unicorns are FinTechs. The combination of financial services and technology is one of the few areas where Europe excels. And the Czech Republic is no exception. We are experts in the adoption of FinTech innovations, whether it's banking identity, mobile or digital payments. Until recently, Home Credit, with 110,000 employees, was one of the largest FinTechs in the world and trained an entire generation of top international managers.

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Czech fintech

Fintech will therefore play a significant role in the digitalisation and transformation of the Czech economy. According to Fintech Cowboys, there are currently around 100 fintech companies in the Czech Republic. A large number of them have global potential, particularly those providing infrastructure for large banks and insurance companies.

At the Czech Fintech Association, we provide essential mentoring, networking, and lobbying, supplemented by the structured support of Fintech Hub. While we have a stable banking system, there are significant reserves in dialogue, innovation, and the availability of best practices. In general, we should promote fintech as a sector of the future and attract talent.

WealthTech

Before rising inflation, you can protect your finances by, for example, investing. And thanks to Wealthtech, Therefore, technologies used for wealth management are no longer a luxury for the rich. The recent trend is so-called „robo-advisors,“ which can create tailored portfolios for clients. Moreover, this entire process is very fast and inexpensive thanks to automation.

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In addition to the KYC (know your customer) digitisation process and investment process automation, some companies are also beginning to integrate advanced technologies such as artificial intelligence and machine learning into their portfolio creation.

Cryptocurrencies

Less traditional cryptocurrencies are also starting to gain traction as a way to protect savings. Many people now know that there is a finite amount of bitcoin and that this asset, like gold for example, could therefore be a good hedge against inflation.

You can find the Czech Fintech Association's projects HERE

Less well-known, however, are the trends currently shaping the cryptocurrency space. One example is the concept known as DeFi (decentralised finance), which allows for the operation of lending platforms, exchange offices and many other financial applications without the need for a central authority.

In periods of increased volatility, effective investment tools will represent one of the key factors for protecting asset value.

The Czech Republic is one of the richest countries in the world, with a high standard of living to boot. However, we are missing a global brand. Something that would make us the most important players in the industry. But we have the potential to become a leader in the field of fintech.

Just as the Swiss are known for watchmaking, the Germans for precision engineering, and the French for wine, the Czech Republic is still searching for its global brand. Yet we have something to build on. The glass industry, brewing, and automotive engineering are all at a world-class level. In the future, we must focus on sectors with high added value. We have all the prerequisites to become world leaders in cybersecurity, artificial intelligence, or financial technologies.

The Czech Republic as a financial services country

The Czech Republic has a strong base of financial professionals. This is evidenced by high stability, service levels, and profitability. And „start-ups“ play a large part in this. For example, Home Credit was founded from scratch and became a world leader in consumer finance. It also nurtured an entire generation of Czech managers who remain top in the field.

Czech fintech is a source of innovation

There are now over one hundred companies in the Czech Republic in fintech and insuretech. Colleagues and fintech ambassadors at Fintech Cowboys have been mapping them for a long time. A large number of them are brought together by the Czech Fintech Association. Czech fintech companies can benefit from the background of strong financial services, which are among the best and most innovative in the world. This is evidenced, for example, by the level of digital banking or the adoption of electronic payments.

Regulation will trigger changes

However, global competition is also growing, and we must therefore remove barriers to faster development. The long-term and worsening problem is not so much regulation per se, but the application of regulation in licensing and supervision. However, the National Recovery Plan envisages the creation of a (regulatory) sandbox, which would allow fintechs to get off the ground and get started.

Investment in foreign talent

However, a more significant problem remains the long-term vision of how to attract foreign talent to the Czech Republic. Prague and other Czech cities offer a great quality of life, and can therefore be compared to Western Europe or the USA. If we also offer people business opportunities, we have the potential to attract talent from all over the world. They will then attract more and more talent, but they will also serve as inspiration for Czechs in choosing their profession and focusing on fields with high added value, as well as for changing the education system.

We have top experts and the potential for development

We have the potential to export cutting-edge fintech and insuretech globally, for example, in the form of infrastructure services such as risk management solutions, digital customer service, claims processing, insurance claims handling, etc. Furthermore, these solutions often combine finance, cybersecurity, and machine learning, in which we have top experts in the Czech Republic. I would like to see a unicorn in Czech fintech within five years. Let's help fintechs so they can emerge.