If one country and city made a significant impression in 2021 Findexable ’ s Global Fintech Rankings list , it was Israel and its capital Tel Aviv .

Renowned as a location that readily fosters innovation , possesses rich engineering talent and well-funded services , and high-quality educational facilities , Israel ’ s continued growth in fintech seems almost inevitable .

Israel ’ s potential becomes apparent

Investments grow and then plateau

Fintech regains national momentum

Israel ’ s fintech sector initially consisted of approximately 90 startups worth only US $ 13mn . Despite these humble origins , the seeds of a highly profitable sector were sown by the State ’ s support for tech development .

In 2010 , the Treasury spearheaded a new initiative designed to attract financial R & D : a $ 28.5mn subsidy fund over the next five years .

The government ’ s programme appeared to bear fruit , and by 2016 Israeli fintechs were attracting $ 730mn of investment .

However , a brief period of stagnation then ensued : 2017 saw an equivalent amount of investment but significantly fewer exits ( 12 compared to 56 the previous year )

A new period of exponential growth began to capture the market : 2018 = $ 1.05bn investment and 170 exits ; and 2019 = $ 1.96bn and 1,080 exits .

By now , Israel had managed to establish a number of key fintech markets , such as digital payments , business finance , and personal finance . Its ecosystem now included Visa , Mastercard , JPMorgan , Citibank , Barclays , Finastra , and more .

16 August 2021