Categories: Bitcoin Business

China And Hong Kong Doubled Fintech Investment In 2016, Passing US For The First Time

Click here to view original web page at www.forbes.com

China surpassed the U.S. in financial technology (fintech) investment for the first time in 2016, according to Accenture’s analysis of data from CB Insights, the authoriative global venture-finance data and analytics firm.

Fintech financing in Asia-Pacific doubled to $11.2 billion from $5.2 billion in 2015 while fintech investment in the U.S. was $9.2 billion and in Europe it was $2.4 billion. Global investment in fintech was $23.2 billion.

Hong Kong harbor

The growth in total value of fintech investments was due mainly to a few very large investments in China and Hong Kong, where just 3 percent of the deals accounted for nearly 43 percent of total fintech investment globally. The two accounted for 91 percent of all the fintech deals in Asia-Pacific.

Ant Financial Services Group — the financial-services affiliate of e-commerce giant Alibaba Group that operates China’s online-payments platform Alipay, led the deal making when it closed a $4.5 billion fundraising round in April. Lufax, backed by Ping An, the Chinese insurance company, completed a US$1.2 billion round of fundraising in January and has started using the name Lu.com.

In that same month, China’s second largest e-commerce company, JD.com, raised US$1 billion in new funding for its consumer finance subsidiary, JD Finance.

“Over the last five years, global fintech financing activity has grown by 56 percent per annum,” said Richard Lumb, group chief executive for financial services at Accenture. “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.”

Albert Chan, Accenture’s managing director for financial services in China, said some Chinese financial services firms are taking a proactive defense.

“Well aware that they’re facing disruption from outside the industry, many of China’s financial services companies are making investments in fintech companies and exploring cutting-edge solutions such as blockchain technology. The result is robust competition in payments and lending from non-traditional players and established financial institutions working collaboratively with startups to explore fintech solutions in other parts of the business,” he said.


“Alibaba and JD.com were two major fintech investors this year, as they focus on providing their customers with end-to-end services including payments and lending.”

Fintech deals in North America and Europe were more numerous, but smaller, Accenture concluded.

According to tracking data from CB Insights, the number of fintech deals outside Asia-Pacific in 2016 increased 48 percent, but the reported amount of dollars invested fell 24 percent.

Lumb said the fintech industry in the west will remain under pressure from political uncertainty, high valuations and pressure tests on their business models.

“The winners will be those who understand how to tailor their innovations and compress their time-to-market and are able to leverage traditional financial institutions to their advantage.”

This year look to be another big year in Chinese deal-making. Ant Financial acquired Texas-based Moneygram in January and in February invested $200 million in Kakao Pay, a mobile finance subsidiary coming from South Korean m-commerce platform Kakao. In February Reuters reported Ant Financial was looking to raise about $3 billion in debt to fund more acquisitions.

Another significant player is Hong Kong Credit China Fintech Holdings which has raised $554 million for Asian acquisitions outside China. It started the year with a $30 million investment in San Francisco-based BitFury Group which offers hardware and software for blockchain and bitcoin development.

Twitter @tomgroenfeldt

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Bitcoin Is Up Against An Extremely Important And Powerful Resistance Zone On The Monthly Chart: The Kijun-Sen (Base Line)

We can identify the price action causes of why price is finding it difficult to move higher by analyzing longer… Read More

43 mins ago

BTC ATM goes missing and no one notices

When you think of thieves stealing an ATM, the mind jumps to the idea of an exciting crime. Maybe there’s… Read More

43 mins ago

Major Swedish Bank Orders Negative Interest Rate on Euro Deposits

Sub-zero interest rates have become the norm in some countries, especially in Europe. Nordic nations such as Sweden and Denmark… Read More

43 mins ago

Researchers Concur Current Bitcoin Market Cycle is Only Just Beginning

Bitcoin price cycles can be influenced by a number of factors, FOMO and public sentiment is one, and mining profitability… Read More

43 mins ago

Hopes for Bitcoin as China’s Renminbi Drops to 11-Year Low

A recent plunge in the bitcoin price is looking to negate some of its losses as China’s currency weakens to… Read More

43 mins ago

Why Bitcoin Rules in the ‘Insane’ World of Negative Interest Rates

Central banks around the world are on a negative rate binge to further a compelling case for bitcoin.. | Source:… Read More

43 mins ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More