A Comparative Analysis of the Fintech Ecosystems in Romania and Estonia

Romania and Estonia both have young fintech ecosystems that are growing rapidly and closing the gap with the more developed ecosystem in Western Europe. Although Romania is larger both in terms of population and GDP, the Romanian fintech ecosystem is almost 4 times smaller than the Estonian one. In this paper the author examines what are the factors that are contributing to the faster development of the Estonian ecosystem and whether some of these factors can be replicated in other countries, besides Romania. My results indicate that factors such as a government that is open to innovation and working with startups, a more international mindset of the startups and better collaboration between fintech startups themselves and between the startups and universities can accelerate the development of the ecosystem and help the startups grow faster. My results both confirm existing studies on the subject and can help the stakeholders in the ecosystem better work together to accelerate the development of the ecosystem and, ultimately, better service their clients. These success factors that have contributed to the faster development of the Estonian ecosystem can most, if not all, be replicated in Romania and other countries in the region to achieve similar, if not better results. The silver line between all this factor is a change in mindset that allows for a better collaboration between the stakeholders in the ecosystem, but also for improved individual business models and more innovative products and services that we can all benefit from.