The analysis shows that:

• At the end of 2020, there were at least 215 companies registered in Estonia that could be considered FinTechs.
• The market is continuously being dominated by companies involved in digital asset exchange or digital lending. At the same time, all important sub-fields of FinTech are covered in Estonia and the business models of companies remain diverse.
• Although the business volumes of Estonian FinTechs are still rather modest in comparison to the financial sector as a whole (in 2019 the total assets of FinTechs amounted to 1.03 billion euros), the revenues of FinTech companies reached 235 million euros in 2019.
• Estonian FinTech ecosystem is built on FinTech companies and its development is supported by the strong local entrepreneurship culture and availability of digital infrastructure. Still, obstacles are seen in weak co-operation with the financial sector and amongst FinTechs.
• Location choices of companies are strongly affected by the connection of their founders with Estonia. Although companies value the strengths of the Estonian business environment, location decisions may be changed if enough customers or capital is not available or the company is not able to adjust to the regulative environment.
• The impact of the pandemic on the sector has been modest. The greatest challenges emerge from the regulative environment. Entrepreneurs look forward to a clearer roadmap in the creation of the regulative environment as well as more explanations to regulations and more support (incl. monetary support) for the field.

TalTech School of Business and Governance will continue to monitor the development of the Estonian FinTech sector in the coming years. The research team is grateful to all the parties who contributed to the completion of this report.

The full version of the report is accessible here.