24 March 2017
visit nextgenbanking.co.uk

Fintech investment in Asia-Pacific quadruples in 2015

04 November 2015  |  8816 views  |  0 Asia on globe

Investments in non-bank fintech companies across Asia-Pacific has quadrupled over the past year – from about $880 million in all of 2014 to nearly $3.5 billion in just the first nine months of 2015, according to a new report by Accenture

Accenture says the figures are a wake-up call to the local banking community, as large e-commerce conglomerates such as Alibaba flex their financial muscles and push further into traditional financial strongholds. According to the report, the largest share of 2015 Asia-Pacific fintech investment deals were in payments (40%) and lending (25%), which have traditionally been the sole domain of banks.

While the volume of deals over the current year is only slight up on 2014, the value has skyrocketed, due to larger investments in and from China. They include investments from Alibaba and its Ant Financial Services Group subsidiary into Paytm, a mobile payment and commerce platform in India, as well as fundraising efforts by Ping An Insurance Group venture Lufax, which has been developing multiple alternative financing and investment platforms, including peer-to-peer and business-to-customer platforms.

“Major non-traditional financial services companies have been investing in fintech payments in China for the past year,” says Beat Monnerat, senior managing director at Accenture and the company’s financial services lead in Asia-Pacific. “The increasing deal size should serve as a wake-up call to financial services companies in China and across Asia-Pacific that if they do not offer truly useful, customer-friendly digital solutions, competitors will step into the breach not just on the retail front but also in commercial transactions.”

The banks are not entirely resting on their laurels, increasing investments in venture capital funding, incubators and startups and driving through innovations via cloud technology, mobile wallets and blockchain experiments.

The release of the report coincides with the second annual investor day for startups who have graduated from Accenture's FinTech Innovation Lab Asia-Pacific, which seeks to further bridge the gap by parading some of the region's most promising startups before an audience of VCs and local banks.

“Identifying potential areas for more fintech innovation is a key function of our fintech labs,” says Jon Allaway, senior managing director of Accenture’s financial services group in Asean. “For startups, the opportunity is unparalleled: they get to hear from 12 different banks on what those banks need; for the banks, the mentoring helps them identify solutions that are coming to the market soon that may be able to help them serve their customers better.”

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

HKEx backs Hong Kong fintech accelerator

HKEx backs Hong Kong fintech accelerator

02 November 2015  |  4384 views  |  0 comments | 9 tweets | 1 linkedin
HSBC opens Singapore innovation lab

HSBC opens Singapore innovation lab

28 October 2015  |  12921 views  |  1 comments | 16 tweets | 10 linkedin
London Mayor leads fintech trade mission to Japan

London Mayor leads fintech trade mission to Japan

15 October 2015  |  4977 views  |  0 comments | 11 tweets | 5 linkedin
From Unicorns to dragons, meet the new face of banking disruption

From Unicorns to dragons, meet the new face of banking disruption

12 October 2015  |  12119 views  |  0 comments | 25 tweets | 21 linkedin
London fintech investment in first three quarters surpasses 2014 total

London fintech investment in first three quarters surpasses 2014 total

08 October 2015  |  10200 views  |  0 comments | 31 tweets | 21 linkedin
Standard Chartered and Baidu launch Hong Kong fintech accelerator

Standard Chartered and Baidu launch Hong Kong fintech accelerator

06 October 2015  |  6902 views  |  0 comments | 7 tweets | 6 linkedin
Banks face choice to collaborate or compete as fintech disruption hots up

Banks face choice to collaborate or compete as fintech disruption hots up

30 September 2015  |  14815 views  |  2 comments | 46 tweets | 51 linkedin
Securities Commission Malaysia hones in on fintech innovation

Securities Commission Malaysia hones in on fintech innovation

04 September 2015  |  7330 views  |  0 comments | 7 tweets | 5 linkedin
Payments and capital markets sectors dominate fintech M&A activity

Payments and capital markets sectors dominate fintech M&A activity

29 July 2015  |  13113 views  |  0 comments | 19 tweets | 19 linkedin
Singapore pledges S$225m to fintech

Singapore pledges S$225m to fintech

01 July 2015  |  16588 views  |  0 comments | 35 tweets | 27 linkedin
Global fintech investment triples - Accenture

Global fintech investment triples - Accenture

25 June 2015  |  18506 views  |  0 comments | 50 tweets | 28 linkedin
DBS opens dedicated startup space in Hong Kong

DBS opens dedicated startup space in Hong Kong

25 June 2015  |  8969 views  |  0 comments | 11 tweets | 6 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comvisit abe-eba.euParticipate in the survey

Top topics

Most viewed Most shared
French retailer Carrefour launches online bank accountFrench retailer Carrefour launches online...
36022 views comments | 15 tweets | 35 linkedin
Bank of England sets up fintech Community; runs blockchain and AI trialsBank of England sets up fintech Community;...
16762 views comments | 33 tweets | 26 linkedin
hands typing furiouslyMachine Learning: Lessons for Banks From S...
10361 views 0 | 12 tweets | 11 linkedin
Can banks really win in the payments business of the future? – new Finextra reportCan banks really win in the payments busin...
8026 views comments | 23 tweets | 37 linkedin
satellite26 Japanese banks register for Exchange-ru...
7668 views comments | 2 tweets | 1 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job