Global investment in fintech ventures continues to grow

Global investment in fintech ventures has reached $5.3 billion in the first quarter of 2016, signaling incredible growth year-on-year, new report shows.

According to an Accenture report, this quarter’s global investment represents a 67 per cent jump Y-o-Y, while in Europe and Asia Pacific, the figure rose to 62 per cent, nearly doubling.

The report splits fintech ventures into two categories, disruptive and collaborative. Collaborative target financial institutions as customers, while disruptive are competing against such institutions.

In North America, collaborationists are growing strong – with investments rising from 40 per cent in 2010, to 60 per cent in 2015. In Europe, the disruptors got more funding, rising from 62 per cent to 86 in the same timeframe.

“The drive for fintech innovation is spreading well beyond traditional tech hubs,” said Richard Lumb, Accenture’s group chief executive—Financial Services.

“New frontiers like robotics, blockchain and the Internet of Things are bound less by geography than by the industry’s ability to adopt and scale clever ideas that improve service and efficiencies. The so-called ‘Fourth Industrial Revolution’ is a global phenomenon that brings new innovation and digital companies that compete and collaborate with traditional financial services. Bank customers stand to gain from this.”

But the report sees a ‘grim’ future for the disruptors. They may start off strong, but they usually end up aligning with banks, forming alliances or being acquired by one. It says Atom, a mobile-only bank, with BBVA’s having a stake in it, is a good example.

The full report, Fintech and the Evolving Landscape, can be found on this link.

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