Investment in financial technology ventures more than doubled across the world last year, with the UK and US both enjoying record levels of fundraising.
That is according to research by consultancy firm Accenture, which shows that FinTech investment reached $55.3bn (£41.8bn) in 2018, compared with $26.7bn the previous year.
The number of deals worldwide increased by 20%, and rose by 46% and 56% in the US and UK respectively.
But it was China that enjoyed the most investment, with deal value in the country increasing nine-fold to $25.5bn – nearly as much as the global total recorded in 2017.
“Even with the current volatility in global markets, and ongoing macroeconomic concerns, investment in the FinTech sector remains strong,” said Accenture’s financial services group chief executive, Richard Lumb, said.
“The demand for FinTech innovations by financial services companies continues to grow as they face regulatory and capital pressure, competition from new entrants and evolving security threats.”
How FinTech investment has changed since 2010 is shown below:
China accounted for 46% of all investments last year, which was largely thanks to $14bn of funding raised by Ant Financial, perhaps best known for its Alipay mobile payments service.
The value of deals in the US rose sharply to $16.6bn, although there was no single deal worth more than $1bn, despite the country historically having the busiest market.
There were also broad gains elsewhere around the world, with record fundraising in Canada, Australia, Japan and Brazil. Specifically, investments in Japan jumped more than five-fold to $542m.
And in the UK, investment increased by more to $3.9bn as the country launched new Open Banking regulations to make it easier for customers to share financial data with third party providers.
“There was much talk about how uncertainty due to Brexit would grip the success of FinTech from the UK,” Lumb continued. “However, our analysis shows that London, a pioneer in Open Banking, remains the FinTech capital of Europe.
“It’s vital that London continues to foster an environment that encourages competition in the banking industry, irrespective of uncertainty, and that banks continue to modernize their services for the digital age.”
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