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Global fintech investment on the rise in 2016 – report

Friday 15 April 2016 | 11:45 AM CET

Global investment in financial technology (fintech) ventures in Q1 2016 reached USD 5.3 billion, a 67% increase over the same period in 2015, a new report reveals.

The percentage of investments going to fintech companies in Europe and Asia-Pacific also increased to 62%, according to the report issued by Accenture, a consulting services company.

Funding for collaborative fintech ventures (38% of all fintech investment in 2010) grew to 44% of funding in 2015, with the remaining investments made in ventures that compete with financial institutions. During 2010-2015, the percentage of funding for collaborative fintech ventures in North America rose from 40% to 60%. In Europe, funding for “disruptors” rose from 62% of all fintech investments in 2010 to 86% in 2015.

The report cites “relatively low participation” in venture-investing by the banks which invested USD 5 billion of the USD 22.3 billion of reported investments in 2015. That compares to an estimated USD 50 billion to USD 70 billion that banks spend on internal fintech investment each year, .

Global fintech investment in 2015 grew 75% (USD 9.6 billion) to USD 22.3 billion in 2015. It was driven by the US fintech sector which received USD 4.5 billion in new funding (44% increase). China`s fintech sector increased 445% to nearly USD 2 billion, as well as in India (USD 1.65 billion), Germany (USD 770 million) and Ireland (USD 631 million).

In Europe, overall fintech investment increased 120% between 2014 and 2015 and the number of deals increased to 51%. Investment in German fintech ventures grew 843% in that period. In Asia-Pacific, fintech investment rose in 2015 to USD 4.3 billion, China reaching to USD 1.97 billion and India to USD 1.65 billion. In Q1 2016, APAC investments increased by 517% compared to the same period in 2015 – USD 445 million to USD 2.7 billion – driven almost entirely by Chinese fintech investments. North American fintech investment grew 44% to USD 14.8 billion in 2015 and the US continued to dominate the sector with 667 fintech deals, a 16% increase.

The report also identified a growing number of “big ticket” deals in the global fintech sector, as it begins to mature. In 2015, there were 94 fintech deals larger than USD 50 million, compared to 52 in 2014 and just 15 in 2013.

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