The last 12 months have seen a significant shift in the countries attracting most fintech funding.
The U.S. once dominated globally, while the U.K. led in Europe. But now China and Germany are in the ascendant. China's fintech scene is being boosted by huge private funding rounds, while the UK is suffering, and Germany is benefitting, from Brexit related uncertainty.
This means the dynamics of the global fintech ecosystem are changing as funding and focus shifts away from the original fintech hubs. The US and UK can no longer be complacent when it comes to potential threats to their fintech crowns.
Marketplace lending, for example, is the largest segment of the alternative finance market across Europe and the US, but it's now taking off in a big way in China. The largest platforms in the US are Lending Club and Prosper, while Zopa and Funding Circle dominate in the UK, and Lufax is a huge player in China. Low interest rates are a primary driver of marketplace lending's growth as investors turn away from legacy investment options and toward alternatives offering better returns.
And consider than Zhong An, China's first digital-only insurance provider, launched in 2013 and has already underwritten 630 million policies.
As you can see, this very fluid fintech environment is creating winners and losers before your eyes…and it’s also creating the potential for new cost savings or growth opportunities.
After months of researching and reporting this important trend, Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider's premium research service, has put together an essential report on the fintech ecosystem that explains the new landscape, identifies the ripest areas for disruption, and highlights the some of the most exciting new companies. These new players have the potential to become the next Visa, Paypal or Charles Schwab because they have the potential to transform important areas of the financial services industry like:
- Retail banking
- Lending and Financing
- Payments and Transfers
- Wealth and Asset Management
- Markets and Exchanges
- Blockchain Transactions
If you work in any of these sectors, it’s important for you to understand how the fintech revolution will change your business and possibly even your career. And if you’re employed in any part of the digital economy, you’ll want to know how you can exploit these new technologies to make your employer more efficient, flexible and profitable.
Among the big picture insights you'll get from The Fintech Ecosystem Report: Measuring the effects of technology on the entire financial services industry:
- Fintech investment continues to grow. After landing at $19 billion in total in 2015, global fintech funding had already reached $15 billion by mid-August 2016.
- The areas of fintech attracting media and investor attention are changing. Insurtech, robo-advisors, and digital-only banks are only a few of the segments making waves. B2B fintechs are also playing an increasingly prominent role in the ecosystem.
- It's not all good news for fintechs. Major hurdles, including customer acquisition and profitability, remain. As a result, many are becoming more willing to enter partnerships and adjust their business models.
- Incumbents are enacting strategies to ensure they remain relevant. Many financial firms have woken up to the threat posed by fintechs and are implementing innovation strategies to stave off disruption. The majority of these strategies involve some interaction with fintech firms.
- The relationship between incumbents and fintechs continues to evolve. Fintechs are no longer viewed exclusively as a threat, nor can they be ignored. They are increasingly viewed as partners, but that narrative alone is too simple — in reality, a more nuanced connection is taking hold.
This exclusive report also:
- Assesses the state of the fintech industry.
- Gives details on the drivers of its growth.
- Explains which areas of fintech are gaining traction.
- Outlines the range of current and potential models for fintech and incumbent interaction.
The Fintech Ecosystem Report: Measuring the effects of technology on the entire financial services industry is how you get the full story on the fintech revolution.
To get your copy of this invaluable guide to the fintech revolution, choose one of these options:
- Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fast-moving world of financial technology.