Who’s who in the fintech zoo?

Overwhelmed by the rapidly changing fintech landscape? Help is at hand as The Fintech Blog’s Michael Halloran delivers the definitive round up of the current state of play.

Their ‘Global Fintech Landscape’ Infographic provides a detailed overview of today’s global fintech market, comprehensively assessing multiple countries, companies, and industries. Best of all, the information is beautifully delivered in easy to understand infographic form.

Key findings include a global move to increase both private and public sector funding, with notable government support for fintech startups. In the UK £860 million is earmarked for development in the National Cyber Security Program, Hong Kong has funnelled$250 million towards an innovation and technology fund and in the USA investment in accelerators, incubators and competitions has tripled.

New York and London are highlighted as the two major “fintech frontrunners”; however, increased traction for fintech services is being seen in European countries such as Sweden, Finland, Netherlands, Norway, and Denmark. With global fintech investments from 2010 to 2015 reaching $49.7 billion, the USA is driving the global fintech boom, with their fintech investment total reaching $31.6 billion which is significantly higher than the next biggest investors. The UK and Ireland are far behind at $5.4 billion while the rest of Europe in total only reached $4.4 billion.

Along with service-based investing and digital-based equity crowdfunding, digital financial advice (or ‘robo-advice’) continues to dominate fintech. There are a variety of reasons for the rapid adoption of fintech solutions by consumers; most importantly, consumers are drawn to the simplicity and ease of setting up an account (43.4 percent). Consumers are also attracted to the lower rates and fees that fintech companies are able to offer (15.4 percent) and the increased accessibility to a variety of products and services (12.4 percent).

The Infographic highlights that ‘democratisation’ has evened-out the financial planning field as consumers – who may not be high-net worth individuals – now have access to sophisticated market services.

The fintech category attracting the highest amount of investment was finance/lending (19 percent), followed by processing/payment (14 percent), mobile wallet/white label (10 percent), and authentication/security/fraud analysis (7 percent). It’s also important to note that banks – threatened by the rise of independent fintechs – have started to invest in fintech startups, especially in the categories of big data and analytics, lending, payments, and money transferring. Big players such as HSBC, Citi Bank, and Barclays have entered the field.

The Fintech Blog asserts that noise around the value of big data and analytics has caused “data analysis for better decision making” to rise to the top of the trending fintech startups (18.8 percent). This is followed by payments and international transfers (14 percent) – increasingly important in a more globalised economy – and lending (13.4 percent).