Global investment in financial technology or ‘FinTech’ spiked in 2014 reaching more than $12B in investment, demonstrating that the digital revolution in the sector is well underway. As fintech companies continue to grow and unbundle banks like Citi, Wells Fargo and Bank of America, established financial players are taking steps to make sure they stay ahead of the trend.
Those are among the many highlights of Accenture’s new report “The Future of Fintech and Banking: Digitally disrupted or reimagined?” which is based on CB Insights data.
The report offers insightful commentary and analysis around Fin Tech’s growth trajectory and how banks can stay competitive against their smaller tech incumbents. Below are some highlights in the Accenture report. The entire 12-page report can be downloaded for free by logging into CB Insights and visiting the Research tab. If you don’t have an account, you can create one for free here (note: if you’ve already hit free trial limits, you won’t be able to get the report).
Global Fintech Investment explodes in 2014
Global fintech investment jumped 201% between 2013 and 2014, breaking the $12B mark across more than 730 deals. The US makes up the lion’s share, but Europe experienced the highest level of growth, with an increase of 215% (year-on-year).
UK and Ireland Continue to Dominate EU Fintech
Whilst the UK and Ireland dominate Europe’s fintech investment, the rest of Europe is showing promise: the most significant levels of investments were in the Nordic countries ($345 million), the Netherlands ($306 million) and Germany ($82 million).
Silicon Valley Increases Their Fintech Investment Pace While UK Slows Down
Fintech investment growth in the UK and Ireland was slightly slower (up 136% to $623 million) although the region accounted for 42% of European investment. Following a relatively slow 2013, fintech investment in Silicon Valley more than doubled (117%), pushing the start-up hotspot over the $2 billion mark, more than the total investment in Europe ($1.48 billion).
To get a copy of “The Future of Fintech and Banking” report for free, login to CB Insights or sign up below and visit the ‘Research’ tab.