Global FinTech investment hits all-time high

Investment in financial technology ventures increased by 18% to hit a record high of $27.4bn (£19.9bn) in 2017, according to research by consultancy firm Accenture.


Wednesday 28

Global FinTech investment hits all-time high

This was mostly thanks to a sharp increase in investments across the US, UK and India, while the number of deals worldwide rose significantly from 1,800 in 2016 to 2,700.


Deal value jumped by around a third in the US, nearly quadrupled in the UK, and increase almost fivefold in India, underscoring the continued appetite for innovation in insurance banking and capital market startups.


“Much of the growth, particularly in the U.S. and UK, has been driven by big new investment flows from China, Russia, the Middle East and other emerging economies,” Accenture senior managing director, Julian Skan, said.


“Also fuelling growth was the rapid rise of InsurTech ventures where traditional carriers see new opportunities. India’s boom was driven by strong demand for cashless services following the country’s demonetisation events.”


The research involved analysis of financial technology investment data from CB Insights, finding that total funding between 2010 and 2017 reached $97.7bn, with US startups accounting for 54%.


The number of FinTech deals during that time grew at an annual rate of 35%, while total investment increased by 47% per year.




Although FinTech investment appears increasingly attractive, the level of funding in China declined by 72% to $2.8bn in 2017 after a series of mega-deals the previous year.


The average deal size in the county in 2017 was $19m, down from $186m in 2016, although China still experienced a number of large transactions.


Global investment in startups developing payments and lending took the bulk of funds in 2017, accounting for about 30% each of the total, while those offering insurance-related services garnered 12% of funds.


“This investment reflects the soaring demand within financial services for new digital innovations, as these technologies prove their value and applicability in the market,” Accenture Financial Services group chief executive, Richard Lumb, said.


“That will continue to position FinTechs for a vital role in helping reshape the financial services landscape.


“For markets like the UK, where slower economic growth and industry uncertainties due to Brexit have been an issue, it is an encouraging sign.”


Most popular

  1. Six in 10 investors open to cryptocurrencies

    Six out of 10 investors with no current exposure to digital currencies like Bitcoin and Ethereum would consider including them in their investment portfolios.


    Tuesday 13

    13 March 2018

  2. Automation to almost double in next three years

    Very few companies are prepared for an expected surge in automation over the next few years, with the use of artificial intelligence (AI) and robotics set to almost double by 2021.


    Friday 9

    09 March 2018

  3. Majority of financial services firms leaving customer data at risk

    Some 69% of financial services companies across Europe are not able to secure consumer data effectively, despite incoming regulation potentially hitting these firms for hundreds of millions of pounds.


    Monday 5

    05 March 2018

White paper

  • Quarterly InsurTech Briefing Q1 2017

    Why InsurTech? A Pressured Insurance Value Chain

    By Andrew Sagon, Andrew Johnston and Matthew Wong

    InsurTech is a burgeoning phenomenon that is modernising the insurance industry. It is disrupting the traditional value chain whereby insurers offer loss protection, and shifting the emphasis to risk mitigation. Incumbents face disintermediation as investors in search of higher yields pour money into insurance-linked instruments in the capital markets. And entrepreneurial businesses are targeting friction costs and inefficiencies within every aspect of the traditional value chain.



  • Insurance big data – float like a butterfly, sting like a bee

    Nimbleness and agility will unlock potential

    By Elinor Friedman, Andrew Harley and Klayton Southwood

    Recent Willis Towers Watson surveys in the U.S. have shown that P&C and life insurers in developed markets are taking seriously the potential of big data and predictive analytics to improve their businesses. Nimbleness and agility, rather than brute force, are likely to be key to realizing that potential.

    Download PDF

  • The new era of insurance analytics

    Driven by technology, toolkits and talent

    By Claudine Modlin and Graham Wright

    Advanced analytics is helping some insurers offer innovative products and solutions. What do insurers need to know about the changing nature of analytics and whether it is worth the investment? Claudine Modlin and Graham Wright discuss technology, toolkits and talent — topics that may help you decide.

    Download PDF

  • How can we manage the dynamic nature of cyber-risk?

    Risk transfer is part of a comprehensive solution

    By Adeola Adele, Patrick Kulesa, Kevin Madigan and Alice Underwood

    Given the dynamic nature of cyber-risk, taking a multidimensional approach that integrates board governance, technology solutions, behavioral change and risk transfer solutions can help reduce risk to a manageable level.

    Whitepaper Form