Financial Services in
Berlin
• Important banking and insurance center in Germany with 50,000 employees
• Stock exchange Berlin-Bremen with innovative services
• One of Germany’s most important centers for venture capital
• Increasingly important for E-finance
• Headquarters of leading industry associations
• Proximity to federal and state governments and lobbyists
Why Berlin?
Why Berlin?
Presse- und Informationsamt des Landes Berlin / Thie
Dr. Klaus Mangold, Board Member of DaimlerChrysler and Chairman of DaimlerChrysler Services:
"DaimlerChrysler Services, the
services arm of DaimlerChrysler, is excellently positioned with ist
worldwide activities in the growing markets of financial services and mobility management. We run our global service businesses from our headquarters at Berlin's
Potsdamer Platz, one of the most exciting places in Europe."
Why Berlin?
John Kornblum, Chairman Lazard Germany:
"Lazard ... wanted to beef up its
German operations. We chose Berlin because consultancy work with major companies is a key priority, which means that personal relationships and contacts are of course very important...
The whole country is represented here now ... Decisive for our choice of Berlin was its proximity to the eastern German states and its position at the heart of Europe ..."
Why Berlin?
Rainer Fritzsche, Managing Director Germany/Austria M&G International:
"... We manage our business activities in Germany and Austria from Berlin. But we already have the new EU states in central and eastern Europe in our sights. Berlin is superior to all other German cities as a place to do
business thanks to its location alone. I'm convinced that Berlin's significance as a financial and services center will continue to grow ..."
Thomas Gönner, Manager of the Berlin Branch of Graubündener Kantonalbank:
"Berlin is a political, cultural, and scientific center in Germany and is increasingly becoming a significant retail and service center. The city attracts highly-qualified managers from Germany, Europe and the rest of the world. More than other places in Germany, top-earning
cosmopolitans are moving to the city, and we have been working for them here since the spring of 2001."
Facts and Figures
The services sector is
the mainstay of
Berlin's economy
.
It accounts for 82 % of
the economy - and
that figure is rising.
Source: Berlin Statistics Office
59.030 55.779 41.993 12.724 16.680 15.652 0 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 1991 1995 2002
Services Sector Manufacturing Agriculture, Forestry and Fisheries < 1 % Service Center Berlin
Share of Economy by Sector (in applicable prices)
Facts and Figures
By contrast to other
locations, where jobs
are being cut,
employment in the
service sector in
Berlin is continually
growing.
Source: Berlin Statistics Office
Service Center Berlin
Employment in Berlin by Sector
Land- und Forstwirtschaft; Fischerei < 1 %
472,1 372,1 252,9 1.180,5 1.231,4 1.273,0 0 200 400 600 800 1.000 1.200 1.400 1.600 1.800 1991 1995 2002
Facts and Figures
Banking in Germany:
• Ca. 2,500 credit institutes in Germany; that is a quarter of all those in the EU and 30 % of credit institutes in the eurozone
• Ca. 750,000 employees in Germany; 28 % of those employed in the banking sector in the EU
• Credit institutes in Germany account for approx. a third of the balance sheet of all banks in the euro-zone
• Germany has more banks than any other country after the U.K., 70 % of them are EU banks
• Overall, Europe’s banking market is still organised along national lines: across the EU fewer than 10 % of all banks are foreign
Facts and Figures
BERLIN.FINANZPLATZ DER ENTSCHEIDUNGEN.
Banking in Berlin:
• 22 banks with headquarters in Berlin - of them 3 co-operative banks and 10 regional credit institutes
• Also represented in Berlin are: - 120 German credit institutes - 32 foreign banks
- 14 branches of foreign banks
• Ca. 28,000 people are employed in Berlin’s banking sector.
Facts and Figures
Insurance in Germany:
• Ca. 700 companies active on the German market.
• The German market is the largest insurance market in Europe; market share 25 %.
• Foreign insurers have 20 % of the German market
• The largest 5 companies active in the non-life insurance sector have a market share of ca. 40 %.
Daten und Fakten
Insurance in Germany
Ca. 240,000 people are employed In the insurance industry in Germany, with another 700,000 people self-employed.
The most important insurance centers in Germany are:
• Munich (26,000 employees)
• Cologne (25,000 employees)
• Hamburg (24,000 employees)
Facts and Facts
Special Features of Germany as a Center of the Insurance Industry:
Low "Insurance Penetration Rate" (Ratio of premium volumes to GDP) on an international level:
Switzerland, Britain, Japan > 13,0 %
Netherlands 11,0 %
USA, France 8,5 %
Germany 6,7 %
Low "Insurance Density" (Policies per capita):
Switzerland 3,700 EUR
Germany 1,500 EUR
"The reason for higher insurance penetration in other countries is ... the considerably larger role that life insurance plays in
saving for retirement and wealth management." (GDV*)
Berlin's Insurance Profile:
• Fifth largest insurance center in Germany (based on sales)
• 18 insurance companies are based in Berlin
• 1.41 billion EUR in gross premiums (2001)
• 8,500 brokers and salesmen
• Ca. 15,000 employees
BERLIN.FINANZPLATZ DER ENTSCHEIDUNGEN.
Facts and Figures
12 % of venture
capital is invested
in Berlin
.The sector
forecasts an
increase
in 2003, and more
venture
capital overall.
GermanyFacts and Figures
Slight gain in number
of companies
Facts and Figures
More than half of all
VC capital went to
companies involved
in software and
biotechnology.
Facts and Figures
By far the most
capital goes to
software-and biotechnology
projects
.
The highest
average investment
volume goes to the
chemicals and energy
sector.
Facts and Figures
Europe has the
highest
concentration of
wealth in private
hands in the world.
Cap Gemini Ernst &
Young forecast an
increase to $ 12.3
trillion
by the year
2007.
Development of Worldwide Private Wealth by Region
HNWI - High net worth individuals = more than 1 mio. $ in financial assets Source: World Wealth Report 2003, Merill Lynch/Cap Gemini Ernst & Young
Facts and Figures
Most of the
world’s
"High net worth
individuals" (HNWI's)
live in Europe.
Their number has
risen continually in
the past few years by
contrast to other
regions.
The World Wealth
Report 2001names
Berlin as one of the
regions with the
highest potential for
growth.
Regional Developments In Private Wealth
HNWI - High net worth individuals = more than 1 mio. $ in financial assets Source: World Wealth Report 2003, Merill Lynch/Cap Gemini Ernst & Young
7 of the 50 largest German banks have their headquarters in Berlin:
• Bankgesellschaft Berlin
• Landesbank Berlin Girozentrale
• Berlin-Hannoversche Hypothekenbank
• IKB Deutsche Industriebank
• Dexia Hypothekenbank Berlin
• Deutsche Hypothekenbank
• DKB Deutsche Kreditbank
The Sector
Insurers Headquartered in Berlin: Life Insurers:
• ABC Lebensversicherung Aktiengesellschaft
• Deutsche Lebensversicherungs-Aktiengesellschaft • IDEAL Lebensversicherung • Protektor Lebensversicherungs • SKANDIA Lebensversicherung Non-Life-Insurers: • Adler Versicherung
• DARAG Deutsche Versicherungs- und Rückversicherungs AG
• IDEAL Versicherung
• Feuersozietät Berlin Brandenburg
• OVAG - Ostdeutsche Versicherung Also Pensions- und Sterbekassen
Venture Capital Firms Headquartered in Berlin:
• AdCapital
• AS Venture
• Berlin Capital Fund
• Berlin Seed Capital Fund
• BLS Technologie-Fonds • bmp • capiton • DKB Wagniskapital Unternehmensbeteiligungsgesellschaft mbH • ECONA AG • gbb Beteiligungs • IBB Beteiligungsgesellschaft
• IMH Industrie Management Holding Treuhand
• IUVENTA Finance
• Mediport Venture
• PEPPERMINT.Financial Partners
• SPARK
• Vattenfall Europe Venture
Important Federations and Associations in Berlin:
Banking
• Association of German Banks (BdB)
• Association of Public Banks (VÖB)
• Association of German Savings and Giro-Banks DSGV
• Association of Private Building Societies
• Association of Financial Service Providers (FiFa) Insurance
• German Insurance Association (GDV)
• Association of German Insurance Sellers (BVK) Venture Capital
• Association of German Venture Capital Companies (BVK)
Networks and
Initiatives
Long stock market tradition in Berlin:
created in 1685 by the Grand Elector of Brandenburg Frederick Wilhelm merger of regional markets Berlin and Bremen in March of 2003 to form the "Berlin–Bremen Stock Market"
Berliner Wertpapierbörse
Networks and
Initiatives
Structure of the
Stock Market in
Berlin:
Networks and
Initiatives
Structure of
Over-the-Counter
Trading:
Networks and
Initiatives
Human Capital:
• Berlin's Humboldt University,
Chair of Banking and Stock Markets
• Berlin's Free University, Institute for Banking and Finance
• Insurance Studies at at University of Applied Sciences (FHTW) and at Berlin Vocational Academy
• Ca. 1,000 banking and insurance salesmen take Chamber of
Commerce exams each year
