Finance (2024)

Financial and insurance activities contributed nearly EUR 120billion to the German GDP. They are part of the service sector which accounts for about 70 percentof the German GDP.

There were 1,717credit institutions active in Germany in 2019, of which 276were private banks. The banking sector has a workforce of around 500,000 people. The total assets of the German banking industry amounted to EUR 8,359billion in 2019.

Germany’s banking sector is varied, offering much more than just private banks. Along with public banks – Germany’s decentralised network of independent regional commercial and savings banks – German cooperative banks contribute to a diversified banking landscape. Germany’s banks themselves are also diversified, supported by the country’s renowned universal banking system.

Frankfurt is not only a prominent financial centrein Europe and beyond – it’s also a source of financial stability. A point of contact for all 27EU member states, Frankfurt’s network of over 200credit institutions, 7,900 financial service companies, 34 higher education institutions, and numerous supervisory bodies places the city in a unique leadership role. Its 100,000-strong workforce in the financial industry fuels growth, and is highly international, with people from almost 200 countries.

Frankfurt is the centre for Euro clearing for banks from the non-euro countries. With market participants connected from 700 locations worldwide, trading volume at Eurex exceeds 1.8billion contracts a year and makes it the market place of choice for the derivatives community worldwide. Frankfurt is also the location in the EU for renminbi clearing.

Germany is highly attractive to foreign FinTech companies and has been named one of the top 10global FinTech hubs. More than 100 international FinTech companies have started business activities in Germany.

Germany’s financial industry is trusted throughout Europe, with high certification standards managed by BaFin, the Federal Financial Supervisory Authority. BaFin supports the function and integrity of the German financial system, supervising more than 1,600 banks, 700 financial services institutions, 500 insurance companies, 6,000 domestic investment funds, and numerous other organisations and institutions. Overall, BaFin maintains trust in the German financial system.

Germany is an excellent location for investment and trade in the financial industry–whether in banking, insurance, private equity, clearingor FinTech sectors, among others. A solid, educated workforce, openness to foreign collaboration, along with stable regulation paired with groundbreaking innovation make Germany the choice for forward-thinking financial leaders, both in Europe and beyond.