The Netherlands: Europe’s Fintech Launchpad
With a rich financial heritage and future-focused mindset, the Netherlands has rapidly risen as one of Europe’s leading fintech hubs. From breakthrough startups to global players, more than 860 fintech companies are active in the Dutch ecosystem. Why do so many firms flock to the country to drive innovations across payments, embedded finance, blockchain, digital banking, AI and impact investing? To start:
- As one of the world’s best countries for business, the Netherlands offers key ingredients for growth: a trusted regulatory framework, top-tier talent, swift adoption of new technologies, robust digital infrastructure and seamless access to the EU market.
- The larger Dutch tech ecosystem is one of the strongest in Europe – and one of the most lucrative, with a total valuation of more than €240 billion.
- The Netherlands has surged to the 3 spot in Europe for venture capital in fintech, along with hosting one of Europe’s best ecosystems for startups, scaleups and unicorns, according to Dealroom.
If you’re looking for a place to accelerate and scale your fintech venture, the Dutch ecosystem delivers an unbeatable return on investment.
Europe’s fastest-growing fintech ecosystem
The EY Fintech Census describes the Dutch fintech sector as a mature yet rapidly evolving market. It is the ideal laboratory for an industry that is quickly transforming the way we handle money. When it comes to the future of banking and financial investments, Dutch fintech is leading the transition from brick-and-mortar buildings to online, AI and blockchain instruments powered by deep tech and lightning-fast digital connectivity.
Key to this dynamism is the diverse and collaborative nature of the Dutch ecosystem – an ecosystem that continues to build momentum. Global players like Plaid, Lemonade, Airwallex and ClearBank have all chosen the Netherlands as their EU base in recent years, placing them alongside homegrown champions such as Adyen, Backbase and Bunq.
As a case in point, investments in Dutch fintech grew by 39% year-on-year in the first half of 2024, driven by initiatives like the €200 million Dutch Future Fund II. This growth stood out during a time of overall decline in fintech investments across Europe, highlighting the strong fundamentals of the Dutch ecosystem.
Innovation at the core
Propelled by science and cross-sector collaboration, the Netherlands is at the forefront of multiple fields of fintech innovation. The country specializes in fast-growing segments such as payments, regtech, SME lending, venture capital, Web3 solutions and open banking. Moreover, the Dutch triple helix connects universities, companies and government to accelerate R&D in next-generation technologies while ensuring access to talent, funding and test environments.
For example, the Netherlands excels at AI and blockchain, home to leading research hubs with dense industry ties like Amsterdam Science Park. In quantum computing, the national network Quantum Delta NL works with companies to shape the future of secure financial transactions. In machine learning and data science, innovation hubs like the TU Delft Fintech Lab act as a gateway for smarter financial systems.
A clear, conducive regulatory environment
The Netherlands’ regulatory landscape clears the runway for fintech growth. Operating with a “Twin Peak” model of independent supervision, the Dutch system is anchored by two primary regulators: the Dutch Central Bank (DNB) and the Authority for Financial Markets (AFM). The DNB oversees prudential aspects for fintechs, while the AFM supervises conduct (e.g., market integrity, transparency, consumer protection), including crypto-asset parties under MiCA regulations. These tier-one authorities are respected worldwide for their clarity, credibility and quality, supporting innovation through the DNB and AFM’s joint InnovationHub while maintaining high standards and open channels of communication.
These regulatory advantages parallel the Netherlands’ stable, transparent and business-minded government policies. The Dutch tax system offers several attractive features for international fintech companies, including an extensive treaty network, participation exemption options and upfront tax rulings in advance. For companies looking to bring in talent from abroad, the Netherlands has a special tax regime providing a 30% facility for expats. (Refer here for the latest terms and conditions as Dutch tax authorities continue to adapt the facility.)
A leader in sustainable and inclusive finance
Once the birthplace of the stock market, the Netherlands is blending its famed financial expertise with modern ESG leadership. The country ranks among the world’s leading green finance hubs, bolstered by regional initiatives like The Hague’s ImpactCity. This makes the Dutch ecosystem a top choice for organizations like Draper Richards Kaplan Foundation and Sparo, both of which set up European headquarters in The Hague to pursue social impact-focused finance and venture philanthropy.
Here too, the Netherlands’ ability to bring together public and private actors proves vital. From green bonds, carbon credits and impact investing to climate fintech, inclusive lending and financing for UN Sustainable Development Goals, there are endless possibilities for fintech ventures geared toward a more inclusive, sustainable economy.
Dynamic, diverse and fueled by talent
The Netherlands’ fintech industry benefits from a highly educated, multilingual and digitally proficient workforce, coupled with dense networks of entrepreneurs and business leaders. The fintech ecosystem employs more than 15,000 people, a key part of the Dutch tech sector.
Meanwhile, tech-savvy Dutch consumers are embracing fintech solutions for everyday transactions, using digital wallets, payment services and financial management tools. High consumer demand mirrors an even larger market for enterprise-level solutions. Approximately 75% of Dutch fintech firms focus on B2B services while 25% target consumers, reflecting the robust quality of the Netherlands’ business ecosystem.
These factors explain why some of the most respected fintech innovators choose to work in the Netherlands, such as CAB Payments, Modulr, XTransfer and Inshur (Uber’s insurer). It is why homegrown powerhouses like ABN Amro, ING, Rabobank, Adyen, Mollie and Buckaroo thrive with their headquarters here. And it’s why the Dutch ecosystem continues to grow its deep roster of banking operations, led by BNP Paribas, MUFG, Commonwealth Bank of Australia, Bloomberg and Deutsche Bank.
A place where people and businesses thrive
The Netherlands is more than a business hub – it’s a great place to live. Ranking among the world’s top countries for quality of life and happiness, Dutch society offers a complete package of sustainability, multiculturalism, personal fulfillment and connectivity. English is widely spoken – a decisive asset for fintech firms – and Dutch cities are well-known for their excellent infrastructure, public transport and work-life balance.
In fact, 88% of fintech firms see the Netherlands as a highly attractive living destination. This allows companies to recruit talent from across the globe, with 30% of the country’s startup workforce consisting of international professionals. It adds up to a talent pool that is highly motivated, global in outlook and eager to push toward new frontiers.
Whether you’re looking to establish your European headquarters, build your next breakthrough product or tap into a digitally connected market that’s at the heart of financial transformation, the Netherlands is the launchpad for your fintech success.