China Leads Global Fintech Investments, Accenture Finds
25 August 2016 - 9:57AM
Business Wire
Asia-Pacific nearly doubles 2015 fintech
financing in first half of 2016 reaching almost $10 billion; growth
driven by China
Investments in Asia-Pacific financial technology (fintech)
ventures, primarily in China, reached $9.62 billion as of July 31,
more than twice the $4.26 billion invested in the region in all of
2015, according to Accenture (NYSE:ACN) analysis of CB Insights
data.
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Investments in Asia-Pacific have eclipsed North America, which
as of July 31 garnered $4.58 billion in fintech investments; and
also tops Europe, which attracted $1.85 billion in the same
period. However, deal volume remains higher in North America and
Europe, as the Asia-Pacific increase is due to big investments in a
few select fintech companies in China. There have been 192 deals in
Asia-Pacific so far this year, as compared with 509 in North
America and 230 in Europe.
In fact, the top 10 investments in Asia-Pacific fintech ventures
occurred in China and Hong Kong, accounting for 90 percent of
overall Asia-Pacific investments and valued at $8.75 billion. In
total, China and Hong Kong fintech ventures have attracted $9
billion in investments so far in 2016.
“China’s established companies, rather than nascent startups,
are at the forefront of the fintech trend in the region,” said Beat
Monnerat, Accenture senior managing director, Financial Services
Asia-Pacific. “Fintech companies with major backers such as Alibaba
and JD.com are focussed on providing positive end-to-end customer
experiences, which includes payments and lending. This is
transforming China’s financial services industry and is consistent
with the global ‘Fourth Industrial Revolution’, which is bringing
innovation from non-traditional competitors to the financial
services industry.”
Ant Financial Services Group, the financial-services affiliate
of e-commerce giant Alibaba Group Holding that operates China’s
online-payments platform Alipay, closed a $4.5 billion fundraising
round in April. Ping An-backed Lufax, which has started using
the name Lu.com, completed a $1.2 billion round of fundraising
in January. In that same month, China’s second largest
e-commerce company, JD.com, raised $1 billion in new funding for
its consumer finance subsidiary, JD Finance.
In recent years, major Alibaba affiliates and China’s biggest
social network company, Tencent, have also invested in other
smaller startups, such as Fenqile, a micro-loan site which
literally means “happy instalments,” Qufenqi, an electronics
retailer that lets buyers pay in monthly instalments, and India’s
One97 Communications, a mobile internet company whose Paytm is its
flagship brand.
“The fintech trend in China continues to skew toward online
payments and lending, including peer-to-peer (P2P), which is
creating market-share dilution for banks,” said Albert Chan,
managing director financial services China, Accenture. “China’s
banks, whether building their own competitive platforms or not,
should consider investing in collaborative fintech ventures in
order to remain competitive.”
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions – underpinned by the world’s largest
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and technology to help clients improve their performance and create
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people serving clients in more than 120 countries, Accenture drives
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at www.accenture.com.
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