HONG KONG: Global investment in financial technology (fintech) ventures grew 10% in 2016, to US$23.2bil, driven primarily by a wave of blockbuster deals in China, according to a report by Accenture.
In a statement, Accenture said fintech financing in Asia-Pacific in 2016 eclipsed that of North America for the first time, more than doubling, to US$11.2bil from US$5.2bil in 2015.
It said North America attracted US$9.2bil in fintech financing in 2016, and Europe attracted US$2.4bil.
The number of fintech deals rose sharply in all major geographies, to nearly 1,800 from approximately 1,200 in 2015.
However, the growth in total value of fintech investments was due mainly to China and Hong Kong, where just 3% of the deals accounted for nearly 43% of total fintech investment globally.
“Over the last five years, global fintech financing activity has grown by 56% percent per annum,” said Accenture financial services group chief executive Richard Lumb said.
“For many years Silicon Valley, New York and London were the dominant centers of innovation and demand, but now fintech has spread like wildfire around the world, and Asia-Pacific has become the rising star.
“The swing of investment from west to east is largely driven by the greater opportunity for new entrants to use fintech to define the new fabric of the industry than in the west. As a result, global competition among fintech ventures has never been greater, and financial institutions that are equipped to tap these ventures for innovation are better positioned than ever,” he said.
According to Accenture, China and Hong Kong alone accounted for US$10.2bil, or 91%, of Asia-Pacific’s US$11.2bil in fintech investments in 2016, due to several blockbuster deals.
In fact, all of the 10 largest fintech investments in Asia-Pacific last year were in China and Hong Kong; together those 10 deals accounted for 82% of all Asia-Pacific fintech investment in 2016.
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