Fintech investment hits record high in 2018
Global investment in fintech start-ups reached the highest level on record during 2018 with a total disclosed transaction value of $30.8 billion, according to a report published on Thursday.
The UK leads fintech in Europe
Jonathan Simnett, director and fintech specialist at Hampleton, said: “In the latter half of 2018, the UK continued to lead the way in fintech in Europe, breeding a new generation of innovators with record levels of investment following the lead of new unicorns like Monzo and Revolut.“Retail banking has led the charge in upgrading digital consumer experiences, whilst incorporating fintech into core banking products, whereas investment banks have been more focused on integrating robo-advisory services.”Related fintech articles:
- Transferwise: How a currency transfer startup grew into a fintech giant
- Agility in finance: How is digital changing the face of banking?
The report identified a key trend as the widespread adoption of biometric technologies among consumers, including the growing use of smartphone fingerprint authentication and facial recognition for payments."Though AI continues to show promise as firms adopt algorithms and advanced modelling techniques for investment decisions, change is more likely to resemble a gradual process than a quantum leap into new data sources and methods," said Hampleton."Winners in fintech are primarily emerging at a regional rather than global level, in similar fashion to traditional retail banking, reflecting differing business and regulatory conditions."
Fintech investment: US and China lead the way
The report said that while the UK leads the way in Europe, breeding a new generation of innovators with record levels of investment in 2018, even the biggest British fintech firms were dwarfed by America’s Stripe, Robinhood and SoFi. "These, in turn, are outclassed by China’s Ant Financial, recently valued at $150 billion."Mr Simnett added: “Going forward, it is anticipated that the largest fintech firms will soon realise value through IPO in 2019. Meanwhile, most start-ups that have grown large enough to gain traction, attract a strong customer base and produce a profitable balance sheet, will remain small enough to be acquired by fintech and traditional incumbents leading to an ongoing process of consolidation and M&A.”Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online DirectorySubscribe to Relocate Extra, our monthly newsletter, to get all of the international assignments and global mobility news.©2024 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.