January 26, 2016
The largest country in the world (by area) often goes unnoticed when it comes to FinTech. There are certain political, economic and social factors contributing to that, which is not the focus of this article. While the Russian FinTech industry definitely has a long way to go, there are some notable players operating in the space. With the growing global attention to the industry, Russian FinTech has a great potential to catch up and develop a conducive environment for FinTech innovation.
The largest segment in the Russian Fintech industry is Digital Payments with the total transaction value expected to reach around $32 billion in 2016 with an annual growth rate of 18% reaching $63 billion by 2020.
Russia’s largest bank has demonstrated a keen interest in financial technology, in particular, bitcoin and blockchain. Last year, SBT Venture Capital, a $100m venture fund backed by Sberbank, shared officially that despite the regulatory rope around the neck of bitcoin, the fund will still be looking at opportunities for implementation.
While the Russian government pursues initiatives to ban bitcoin, the innovation momentum in the country continues to gain speed.
Let’s look at some of the FinTech players in Russia driving innovation momentum that can potentially take the industry to the next level.