Israel is rapidly emerging as a fintech powerhouse with players in the sector attracting global attention as well as billions of dollars in venture capital. In 2019, equity investments in Israeli fintech reached an all-time high of US$1.8 billion, representing a 107% increase over 2018, and a 300% increase over the prior five years. The figure placed Israel fifth in global fintech investments after China, the US, the UK, and India.
Israeli fintech startup ecosystem is broad and diverse. Out of the 529 active Israeli fintech companies, 22.8% operate in trading and investing, making it the largest fintech sub segment. It is followed by payments and money transfer, making up for 20.8% of all active Israeli fintech companies, enterprise solutions (16.3%), and anti-fraud, risk and compliance (13.4%).
Israel has established itself as a frontrunner in fintech. It was recently ranked the world’s top 12th fintech hub by Findexable, with Tel Aviv being recognized as the leading fintech hub In the Middle East and North Africa (MENA) region, ahead of Dubai, Cairo and Manama. Despite Israel’s already comfortable position on the global fintech stage, growth is set to accelerate on the back of major developments coming up.