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Global fintech funding was $1.32 billion in Q2 2016, down 25% from $1.77 billion in Q1 2016, according to Strategy& .
That’s down 51% from Q1 2015 when global fintech funding reached $2.7 billion. DeNovo only includes nonpublicly traded fintechs in its calculations, and excludes data from China.
Although total fintech investment declined, investment in insurtech (a subcategory of fintech) increased to $277 million in Q2 2016, up 12% from Q1 2016. There are a number of drivers behind this increase: It’s attracting more attention. The first areas of fintech to attract significant investment were banking services and payments. But as the market for fintechs in these areas becomes increasingly crowded, investors are starting to look elsewhere.
Specific areas of insurtech are attracting greater attention . Investment in unmanned aerial vehicles (UAVs), also known as drones, used by the commercial insurance industry increased as much as 62% in H1 2016, according to Strategy&. Insurance firms are interested in using drones for claims and risk management. For example, drones can be sent to examine damaged roofs, or to examine the impact of a natural disaster.
We’ve entered the most profound era of change for financial services companies since the 1970s brought us index mutual funds, discount brokers and ATMs.
No firm is immune from the coming disruption and every company must have a strategy to harness the powerful advantages of the new fintech revolution.
The battle already underway will create surprising winners and stunned losers among some of the most powerful names in the financial world: The most contentious conflicts (and partnerships) will be between startups that are completely reengineering decades-old practices, traditional power players who are furiously trying to adapt […]
