Investment in fintech firms is expected to jump 66% to over US$20bn in 2015, with a fresh batch of Chinese firms sharing the rewards, according to a new report released by KPMG and Australia's H2 Ventures.
The figures come from an annual study that lists the leading 50 established fintech companies across the globe, and the most intriguing 50 ‘emerging stars’.
The rise of the Chinese startup is a standout this year, with Shanghai-based ZhongAn taking the top spot in the 50 Established Innovators list, and Qufengi fourth. Last year WeCash was the only representative from China to appear on the list. This year there are seven Chinese companies in the Fintech 100, reflecting increased venture capital levels and interest in the country's emerging fintech sector.
In total. the Fintech 100 includes 40 companies from The Americas, 20 companies from Emea, 18 from the UK, and 22 companies from Asia-Pacific region, including 10 from Australia and NZ.
Payments is the sector most at risk of disruption, says KPMG. Startup growth in payments, currencies and transactions sees this segment now representing 25% of the Fintech 100, a substantial uplift on last year.
The insurance industry is also beginning to emerge as a hot new market for investment, with the top two companies on the list hailing from this sector, and a total representation of seven firms, compared to none last year.
Over a quarter of the cohort are already established as service suppliers to financial institutions, compared to just seven last year, demonstrating increasing levels of collaboration between startups and banks and a shift away from 'disruption' to 'co-creation'.
Ian Pollari, global co-lead of KPMG’s fintech practice says: "It is positive to see the development of the fintech ‘enablers’, which are seeking to provide services and capabilities to financial institutions. This needs to form a core part of how incumbents seek to respond to the threats and opportunities that come from disruption.”
He says that ten companies from the emerging list will be invited to attend a KPMG International & Matchi Fintech Summit in London on February 10-11th to pitch their ideas to leading financial institutions, venture capital funds and investors. They will also receive professional services support from KPMG firms, plus membership and discounted deal-success rates with Matchi, the online fintech match-making platform.