Global investment into Fintech ventures hits $100 bn.

The Fintech surge continued in 2017 and 2018 shows no signs of slowing. We found this chart courtesy of Consultancy UK, which summarises deal values from 2010 to 2017 by region.

 

global fintech 2010 to 2017

 

  • In 2017 sizeable drop in FinTech financing occurred in China even though deal numbers tripled over 2016
  • Some significant deals in US, UK and India; Online lender Kabbage Inc raised $900 million in the US. BGL Group [Compare the Market etc] raised $900 million in the UK
  • The US has accounted for over half of global FinTech financing since 2010

 

Where did all the money go?

fintech focus 2010 2017

 


  • In India, mobile-first financial services company Paytm raised $1.4 billion
  • Lending and payment services companies took 60% of the US total investments made in 2017
  • InsurTech companies took 12% of the global investment pie
  • Annual deal numbers grew 50% from 2016 to 2017

 

 

What next?

Having seen the early days of the internet and the bubble burst before it took over our lives, will the same happen in FinTech? Inevitably, there will be many young start ups fall by the wayside as their solutions are trumped by others or they just can’t find commercially viable outlets for their technology. There are still a lot of good ideas looking for problems to solve in this space.

Digital transformation is the buzzword of the Financial Services sector. Its been characterised by investment in start ups to prove the technology before adoption and integration by the traditional players. The strategy to fund outside the business and then partner or absorb a start-up back into the business is still in its early days. The FS sector is traditionally slow to make big changes, and this is going to create a lag on enjoying the fruits of their technology investments.