The document discusses the rise of financial technology (FinTech) and its disruption of traditional financial services. FinTech is using technology to meet customer demands and create new business models, challenging incumbents. Three key areas being disrupted are (1) payments through services like PayPal, (2) alternative lending platforms that compete with banks, and (3) crowdfunding and crowd-investing that could challenge investment banks. The FinTech sector is growing rapidly through new startups and investment. While Silicon Valley and New York have been leaders, Europe, Asia and other regions are gaining competitive FinTech hubs and startups of their own.
Event: "#FinTech in Asia" - Slide Deck 2nd of February 2015CFTE
Slides used during the "FinTech in Asia" event organised by FinTech Circle and Hosted by Morrison & Foerster. Held in London on the 2nd of February 2015
Mercer Capital's Value Focus: FinTech Industry | Second Half 2016Mercer Capital
Mercer Capital’s newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
Mercer Capital's Value Focus: FinTech Industry | Second Quarter 2016 Mercer Capital
Mercer Capital’s quarterly newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
Diving deep into literally millions of interactions and conversations with different networks such as Facebook, Twitter and Instagram, blogs, forums and news sites in order to bring you analytical info about how social media affects different sectors like:Sharing Economy, Banking and Finance, Ecommerce, Telecom and Fintech.
Fintech M&A: From threat to opportunityWhite & Case
Fintech has evolved from being a disruptive threat to a major
opportunity for financial institutions. The possibilities for
dealmaking and M&A are almost limitless.
Event: "#FinTech in Asia" - Slide Deck 2nd of February 2015CFTE
Slides used during the "FinTech in Asia" event organised by FinTech Circle and Hosted by Morrison & Foerster. Held in London on the 2nd of February 2015
Mercer Capital's Value Focus: FinTech Industry | Second Half 2016Mercer Capital
Mercer Capital’s newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
Mercer Capital's Value Focus: FinTech Industry | Second Quarter 2016 Mercer Capital
Mercer Capital’s quarterly newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
Diving deep into literally millions of interactions and conversations with different networks such as Facebook, Twitter and Instagram, blogs, forums and news sites in order to bring you analytical info about how social media affects different sectors like:Sharing Economy, Banking and Finance, Ecommerce, Telecom and Fintech.
Fintech M&A: From threat to opportunityWhite & Case
Fintech has evolved from being a disruptive threat to a major
opportunity for financial institutions. The possibilities for
dealmaking and M&A are almost limitless.
A look inside the top 4 trends driving the FinTech industry today. How technology is impacting financial services and how they can benefit from advanced data analysis. Presented by Peter Huang, Director of Data at Beyondsoft.
Summary of findings
2018 VC-backed fintech deals and funding set an annual record: In 2018, - VC-backed fintech companies raised $39.57B across 1,707 deals globally. Deals were up 15% year-over-year while funding surged 120% on the back of 52 mega-rounds ($100M+) worth $24.88B combined.
Fintech is happening on global scale with deals outside of core markets (US, UK, and China) accounting for 39% of deals: Fintech deal hubs are starting to emerge globally. The count of unique fintech startups raising funding topped an annual high of 1,463 companies, and the unique number of investors reached 2,745 boosted by an influx of corporate investors.
Early-stage deals, as a percentage, fell to a 5-year low as investors concentrated bets in perceived winners: Global seed and Series A fintech deals grew 5% on an annual basis in 2018, but fell as a percentage of total deals to 57%. US early-stage deals were flat YOY as investors concentrated their bets in established fintech unicorns.
There are 39 VC-backed fintech unicorns worth a combined $147.37B: Q4'18 saw five new unicorns births (Plaid, Brex, Monzo, DevotedHealth, and Toss) and two in the first month of Q1’19 (N26 and Confluent). The cohort’s total valuation in 2018 was boosted by a record year for megarounds to existing unicorns, including Gusto and Robinhood, among others.
Fintech overview for HEIG-VD lecture, December 2016Jérôme Vasamillet
Hello, I'd like to share a presentation I prepared for a lecture at the HEIG-VD engineering and management school in Switzerland, focusing on Fintech with a Global and Swiss overview. Being a long lecture in front of students in International Innovation Management, it looks at Fintech under various angles, and also presents the Startup Weekend Fintech Geneva which I co-organize, as a pre-Fintech startup experience. Hope you enjoy the pack! Jérôme.
(Almost) everything you need to know to start in FintechSophie Guibaud
This workshop will provide readers with a global overview of the Fintech world, market dynamics and how London has managed to become a leading Fintech hub. They will learn about the various business models that fall under the Fintech umbrella (Payments, Money transfer, Crowdfunding, Lending, Data & Analytics) and also discuss new banking models that are trying to inspire and shape the bank of the future.
InsureNXT-Unicorn session_Final 21 April 2021.pdfAlchemy Crew
These slides aim to share within our community the great achievements from unicorns.
The challenges to get there and the opportunities within our insurance world.
CB Insights Global Fintech Report Q3 2019Jeff Martinez
Q3’19 fintech funding topped $8.9B, a quarterly record when adjusting for Ant Financial’s $14B investment in Q2’ As of Q3, fintech has raised $24.6B in 2019, already surpassing 2017’s annual total. Funding grew on the back of 19 $100M+ rounds worth approximately $4B in Q3’19.
Deals rebounded slightly in Q3’19 but are likely to fall short of 2018’s record as a result of a continued pullback in early stage investing: Fintech deals in Q3’19 grew 6% from Q2'19, but they have dropped in every quarter in 2019 when compared to the same time frame last year. Early stage (seed/angel and Series A) deals fell to an 11 quarter low and funding hit a 7 quarter low.
The US saw deals dip to an 11 quarter low while Asia saw deals spike and nearly surpass the US in Q3’19: The US saw deals dip as a result of a pull back in early stage deals, which also contributed to the overall drop in 2019 global deals through Q3’19. Asia saw deals rebound as China reclaimed the
lead from India as Asia’s top deal hub.
Southeast Asia fintech topped new annual highs: Southeast Asia set a new annual record with $701M raised across 87 deals through Q3’19 . The top 2 deals since 2015 occurred in 2019: a $100M Series B to Singapore based Deserka and a $100M Series C to Vietnam based MoMo.
India and China continued to battle over the title of Asia’s top fintech hub in Q3’19: China saw deals surge to 55 in the quarter, reclaiming the lead from India with 33 deals. India saw $674M in funding, narrowly pulling ahead of China’s $661M.
Challenger banks have raised over $3B in 2019 YTD and Q3’19 saw $1.3B invested a quarterly funding high: Q3’19 saw challenger banks funding bolstered by rounds to unicorns, including NuBank’s $400M Series F, which was the largest reported equity investment to a challenger bank and made
NuBank the highest valued challenger at $10B. Startup focused challenger banks saw competition heat up with deals to Ramp Financial, Mercury, and Stripe, which launched card issuing.
There are 58 VC backed fintech unicorns worth a combined $213.5B: Q3’19 saw 6 new fintech unicorn births (Hippo, Judo, Deposit Solutions, QuintoAndar, Dave , and C2FO), and 3 more have occurred in Q4’19 as of 11/11/19 (Next Insurance, Ebanx , and Riskified ). Other highly valued unicorns continued to raise late stage capital, including NuBank, Gusto, and Stripe, among others, but none signaled an IPO was imminent.
The Inclusive Fintech 50 applicant pool provides new insights into inclusion-focused fintech, itself a subset of the fintech universe. Early-stage inclusive fintechs are developing innovative products, services, business models, and distribution channels to provide solutions for underserved segments. Yet these startups require capital and other resources in order to reach the world’s 3 billion financially underserved people. By highlighting these high-potential companies, we hope to support the efforts of investors, banking partners, and other fintechs working towards a financially inclusive world.
https://runfrictionless.com/b2b-white-paper-service/
A look inside the top 4 trends driving the FinTech industry today. How technology is impacting financial services and how they can benefit from advanced data analysis. Presented by Peter Huang, Director of Data at Beyondsoft.
Summary of findings
2018 VC-backed fintech deals and funding set an annual record: In 2018, - VC-backed fintech companies raised $39.57B across 1,707 deals globally. Deals were up 15% year-over-year while funding surged 120% on the back of 52 mega-rounds ($100M+) worth $24.88B combined.
Fintech is happening on global scale with deals outside of core markets (US, UK, and China) accounting for 39% of deals: Fintech deal hubs are starting to emerge globally. The count of unique fintech startups raising funding topped an annual high of 1,463 companies, and the unique number of investors reached 2,745 boosted by an influx of corporate investors.
Early-stage deals, as a percentage, fell to a 5-year low as investors concentrated bets in perceived winners: Global seed and Series A fintech deals grew 5% on an annual basis in 2018, but fell as a percentage of total deals to 57%. US early-stage deals were flat YOY as investors concentrated their bets in established fintech unicorns.
There are 39 VC-backed fintech unicorns worth a combined $147.37B: Q4'18 saw five new unicorns births (Plaid, Brex, Monzo, DevotedHealth, and Toss) and two in the first month of Q1’19 (N26 and Confluent). The cohort’s total valuation in 2018 was boosted by a record year for megarounds to existing unicorns, including Gusto and Robinhood, among others.
Fintech overview for HEIG-VD lecture, December 2016Jérôme Vasamillet
Hello, I'd like to share a presentation I prepared for a lecture at the HEIG-VD engineering and management school in Switzerland, focusing on Fintech with a Global and Swiss overview. Being a long lecture in front of students in International Innovation Management, it looks at Fintech under various angles, and also presents the Startup Weekend Fintech Geneva which I co-organize, as a pre-Fintech startup experience. Hope you enjoy the pack! Jérôme.
(Almost) everything you need to know to start in FintechSophie Guibaud
This workshop will provide readers with a global overview of the Fintech world, market dynamics and how London has managed to become a leading Fintech hub. They will learn about the various business models that fall under the Fintech umbrella (Payments, Money transfer, Crowdfunding, Lending, Data & Analytics) and also discuss new banking models that are trying to inspire and shape the bank of the future.
InsureNXT-Unicorn session_Final 21 April 2021.pdfAlchemy Crew
These slides aim to share within our community the great achievements from unicorns.
The challenges to get there and the opportunities within our insurance world.
CB Insights Global Fintech Report Q3 2019Jeff Martinez
Q3’19 fintech funding topped $8.9B, a quarterly record when adjusting for Ant Financial’s $14B investment in Q2’ As of Q3, fintech has raised $24.6B in 2019, already surpassing 2017’s annual total. Funding grew on the back of 19 $100M+ rounds worth approximately $4B in Q3’19.
Deals rebounded slightly in Q3’19 but are likely to fall short of 2018’s record as a result of a continued pullback in early stage investing: Fintech deals in Q3’19 grew 6% from Q2'19, but they have dropped in every quarter in 2019 when compared to the same time frame last year. Early stage (seed/angel and Series A) deals fell to an 11 quarter low and funding hit a 7 quarter low.
The US saw deals dip to an 11 quarter low while Asia saw deals spike and nearly surpass the US in Q3’19: The US saw deals dip as a result of a pull back in early stage deals, which also contributed to the overall drop in 2019 global deals through Q3’19. Asia saw deals rebound as China reclaimed the
lead from India as Asia’s top deal hub.
Southeast Asia fintech topped new annual highs: Southeast Asia set a new annual record with $701M raised across 87 deals through Q3’19 . The top 2 deals since 2015 occurred in 2019: a $100M Series B to Singapore based Deserka and a $100M Series C to Vietnam based MoMo.
India and China continued to battle over the title of Asia’s top fintech hub in Q3’19: China saw deals surge to 55 in the quarter, reclaiming the lead from India with 33 deals. India saw $674M in funding, narrowly pulling ahead of China’s $661M.
Challenger banks have raised over $3B in 2019 YTD and Q3’19 saw $1.3B invested a quarterly funding high: Q3’19 saw challenger banks funding bolstered by rounds to unicorns, including NuBank’s $400M Series F, which was the largest reported equity investment to a challenger bank and made
NuBank the highest valued challenger at $10B. Startup focused challenger banks saw competition heat up with deals to Ramp Financial, Mercury, and Stripe, which launched card issuing.
There are 58 VC backed fintech unicorns worth a combined $213.5B: Q3’19 saw 6 new fintech unicorn births (Hippo, Judo, Deposit Solutions, QuintoAndar, Dave , and C2FO), and 3 more have occurred in Q4’19 as of 11/11/19 (Next Insurance, Ebanx , and Riskified ). Other highly valued unicorns continued to raise late stage capital, including NuBank, Gusto, and Stripe, among others, but none signaled an IPO was imminent.
The Inclusive Fintech 50 applicant pool provides new insights into inclusion-focused fintech, itself a subset of the fintech universe. Early-stage inclusive fintechs are developing innovative products, services, business models, and distribution channels to provide solutions for underserved segments. Yet these startups require capital and other resources in order to reach the world’s 3 billion financially underserved people. By highlighting these high-potential companies, we hope to support the efforts of investors, banking partners, and other fintechs working towards a financially inclusive world.
https://runfrictionless.com/b2b-white-paper-service/
A very interesting report explaining how a collaborative model is taking place between traditional banks and FinTechs, whose strengths and weaknesses are very much complementary to each other.
The future of fin tech and financial servicesVarun Mittal
In this roundtable, held as part of the investment summit — “ Deal Day” powered by EY in November — we hosted 22 senior financial services executives investors and FinTech founders to talk about the evolving trends around FinTech innovations and investment in the next 12 months.
The Rise of FinTech_ How Is It Revolutionizing The Future of Finance_.pdfAnil
The evolution of FinTech (Financial Technology) drastically transformed the way traditional financial institutions – insurers and banks functioned. To thrive, global companies, retailers, and large tech giants realized the need to reinvent the value chain of financial services.
Accelerating the change: London FinTech 2015-2016 Trend ReportStartupbootcamp
This report highlights the most important trends of 2015 within the FinTech space and looks forward to what we can expect to see in 2016. As more startups enter the market there is increasing need to understand this shift and monitor what is happening.
The convergence of non-traditional rivals and heightened global regulation are creating new digital opportunities for banks. To seize the high ground, banks need to think like disruptors and apply modern digital tools, techniques and partnership strategies.
From competition to partnerships banks, fin techs, and neobanks _ medicivinaykumar2984
This article from MEDICI talks about banks, FinTechs, and Neobanks going from being competitors to being in partnerships. Read about it all only on MEDICI.
Financial Technology: Insights into an Exploding IndustryCory Brooks
Financial Technology will dramatically change your life; it may have already. This powerpoint gives the market overview FinTech as well as sector overviews concerning digital payments, online lending, and InsurTech.
IMAP Fintech Sector Leaders share insights into the global Fintech sector.
They look at the short- and long-term effects of the COVID pandemic and which subsectors stand to lose and who ultimately stands to benefit. Sharing their thoughts on key themes disrupting the sector, including payments, digitalization, lending and mobile, they examine
how these have been impacting M&A activity and valuations.
They provide an overview of the most active players, as well as expectations for this key sector moving forward.
1. The Rise and Rise of FinTechSpecial Feature
FINANCEMONTHLY 32 www.finance-monthly.com
For many decades, Wall Street and the commercial banking
community have enjoyed relatively relaxed competitive
environments while earning attractive financial spreads.
The financial crisis of 2008 and the emergence of FinTech
are beginning to shake-up the
landscape.
”Innovation in finance is deliberate and
predictable; incumbent players are most likely
to be attacked where the greatest sources of
customer friction meet the largest profit pools”
[World Economic Forum - The Future of
Financial Services]
If there were ever a textbook example of the chart from
Clayton Christensen’s Disruptive Innovation thesis, it
would arguably be that describing the rise of Fintech.
Simply put, FinTech is technology working hand-in-hand
with financial services, creating tools and services to
meet today’s demands. These demands are being driven
by millennials, or those who have grown up in a world
that’s digitally connected 24/7. Their behavior is linked
to the rise of FinTech, and the emergence of new business
models and companies.
“73% of millennials imagine buying financial
services through Internet giants such as Google,
Facebook and Apple. That’s because 49% believe
innovation in finance will come from those
currently outside the industry”.
[KPMG, China]
The term FinTech was originally coined for the back
and middle office areas to assist customers of financial
organizations - a technology for financial institutions and
their services. That definition has evolved greatly, and
today FinTech disruption in financial services is being
seen across all verticals including Payments, Lending,
Insurance, Asset Management and Equity Finance.
The FinTech Map covers all financial services sectors.
Connecting dots across different service types offers a
glimpse into the future of bundled services - through they
will be offered through separate companies.
Today, emerging companies are carving up traditional
sectors, and delivering superior services based on
technology and data analytics. Let’s examine three areas
making a difference today.
Payment Services
Ground zero, and the first casualty of financial disruption:
payments. With the emergence of Pay Pal and newer
platforms such as Apple Pay, revenue and margin pressure
is being applied to VISA, MasterCard and AMEX. The next
phase of disruption is the creation of a cashless world and
mobile money. Traditional money aggregators’ profits will
suffer if the challenge is unmet. In fact the largest players
are supporting the change by investing in innovation and
by setting up FinTech accelerators.
Alternative Lending
Lending has been a big beneficiary of the rise of
sophisticated social networks - those which connect people
for business or investment ends. The lending Club, Lending
Tree and Prosper, are among a more noticeable group of
emerging platforms. They serve capital requirements of
sub-prime borrowers and major institutions alike. Their
efficient business models raise the technology bar and soon
are expected to chip away at servicing the needs of SME
and the traditional corporate world. Commercial banks,
with their significant infrastructure costs will struggle to
compete, and over time may lose ground through margin
erosion and uncompetitive service levels. Some banks are
forming partnerships with alternative lenders as a way to
participate and learn. Others are investing in alternative
marketplace technology to level a tilted playing field.
Capital Raises through Crowdfunding and crowd-
investing
One disruptive category with the potential to alter the
future of Investment & Commercial Banking and Wall
Street is the raising of capital through crowdfunding.
Some in the industry today still write-off crowdfunding
as niche; the domain of 3D printers, smart-watches and
struggling movie-makers. That very complacency has the
potential to significantly raise the stakes and potential for
disruption.
Capital Raising platforms have already begun to fill the
post global crisis funding gap to serve the Startup and
small company market. In coming years, traditional
intermediaries and investment banks stand to see
aggressive competition as experienced platforms begin
raising capital for multi-million dollar projects and global
institutions. Capital Raising platforms have already
iterated several times in the last 3 to 4 years, and will soon
take center stage with larger offerings.
“We are not too far away from seeing companies
such as Facebook raising money through
crowdfunding directly with their one billion
users. They are already investing in payment
systems - which could also connect borrowers
and investors around the world”.
Or Institutional investors? Why would Fidelity, Blackrock
or PIMCO not want to create their own exchange to deal
directly with public companies? We are already discussing
change with small and large organisations looking to tap
into future opportunities.
FinTech has broken into the last bastion of financial markets,
Wall Street. From New York to London, Frankfurt to Hong
Kong, industry insiders are peering from behind monitors to
witness the emergence of a revolution in finance that has been
several years in the making.
FinTech
THE RISE AND RISE OF
The industry accelerates but has yet to reach
cruising speed
Grow Advisors is proud to support the growth of FinTech around the world. We offer consulting and professional services on crowdfunding,
crowd investing and p2p finance globally. Our advisors develop platforms that connect startup ecosystems, set up marketplaces and co
-investment models, structured investment instruments, and find innovative ways to create finance solutions globally.
Sources:
https://newsroom.accenture.com/news/growth-in-FinTech-investment-fastest-in-european-market-according-to-accenture-study.htm
https://newsroom.accenture.com/news/accenture-and-top-banks-in-asia-call-for-applicants-for-FinTech-innovation-lab-asia-pacific-2015.htm
http://www3.weforum.org/docs/WEF_The_future__of_financial_services.pdf
http://www.gic.com.sg
https://www.cbinsights.com/blog/singapore-sovereign-wealth-fund-deals/
Executives in FinTech business feel they are on the right
track, and moving fast. Investment in this space tends
to support this. According to Accenture, investment in
FinTech more than tripled between 2008 and 2013, and
grew by more than 200 percent globally in 2014. Growth
in overall venture-capital investments grew by 63 percent
in comparison. This trend is not going unnoticed and
FinTech is expected to attract more players, with greater
innovation and disruptive ideas.
The growth of FinTech will be uneven, and
surprise many.
Statistics from 2014 reveal that Europe is gaining ground
in harboring FinTech, and will give Silicon Valley and
New York strong competition. The United Kingdom
(and Ireland) leads the European pack, with the Nordic
countries, the Netherlands and Germany making inroads.
Further afield, Asia will become a leader in many
sectors.
The largest (though yet to be regulated) alternative
lending market in the world is China. It has several key
pieces of the puzzle to allow it to become similarly placed
in other sectors too.
Activity in Singapore and Hong Kong is now more intense
than at any time in the past. Conferences, forums, white
papers and more - all directed at making these hubs the
next FinTech capital.
If based on investments alone, Singapore is perhaps the
most interesting for FinTech. According to CB Insights,
the Government of Singapore Investment Corporation,
GIC Private Limited (GIC), and other sovereign wealth
funds such as Temasek Holdings, have made important
investments in FinTech in recent years. Square, the
mobile payments startup, received US$150 million from
Singapore’s GIC, raising its value to US$6 billion. Last
month the Monetary Authority of Singapore announced
its plan to invest a further US$225 million over the next
five years under the “FSTI” scheme to provide support
for the creation of an ecosystem for innovation aimed at
financial institutions to set up their R&D and innovation
labs in Singapore.
Cities and regions across the globe will compete for
FinTech Startups by enhancing their ecosystems and
enacting new regulation. While European FinTech hubs
will play a role, the next race might well be for Asian
supremacy. In April this year, Accenture together with ten
financial institutions announced a call for applications to
join the FinTech Innovation Lab Asia Pacific, with the aim
of finding the best FinTech innovators in the region. Just
one example of many where Asia is increasingly making its
presence felt among FinTech entrepreneurs and investors
alike.
The future of innovation and technology continues to
develop - and at a faster pace than in the past. There are
many possibilities for emerging countries and regions to
participate.
Technology is enabling change in financial services. That’s
welcome news for everyone, not only for those leading
the innovation, but also for governments, investors and
customers alike.
Fasten your seat-belts, let us show you the future.
The Future of FinTech