19 February 2018
visit www.ebaday.com

Europe sets the pace as fintech investment triples in 2014

26 March 2015  |  14696 views  |  0 Keys on Card

Global investment in fintech ventures tripled from $4.05 billion in 2013 to $12.2 billion in 2014, with Europe being the fastest growing region in the world, according to a new report by Accenture.

While the United States still captures the lion’s share of fintech investment, Europe experienced the highest growth rate, with an increase of 215% to $1.48 billion in 2014. The United Kingdom and Ireland accounted for more than two-fifths (42 percent) of the European total, as investment in the region rose from $264 million in 2013 to $623 million in 2014.

In the rest of Europe, the regions that experienced the most significant levels of investment in 2014 were the Nordic countries ($345 million), the Netherlands ($306 million) and Germany ($82 million).

Julian Skan, Accenture managing director overseeing the FinTech Innovation Lab London, sees the figures as representing both a threat and an opportunity for established banks. “Fintech is empowering new competitors and start-ups to move into parts of the banking business but, paradoxically, it is also helping banks to create better, more convenient products and services for their clients," he says. "It is also leading to increased cooperation between traditional banks and innovative start-ups and technology businesses in a way that can result in totally new business models and revenue streams.”

The report was released at the third annual 'Investor Day' of Accenture's FinTech Innovation Lab London. The 14 companies that have so far passed through the programme have raised more than $35 million in new investment, signed nearly 50 contracts to do business with banks and increased revenues by 170% claims the consultancy.

In addition to the fintech investment-data, Accenture conducted an indicative survey of 25 innovation-focused senior banking executives from across the banks that participate in the London and Dublin Labs.

Almost three-quarters of respondents feel their banks have a fragmented or opportunistic approach to dealing with digital innovation, and 40% think the time it takes their organisation to deploy new technology is too slow, either negatively impacting their ability to realise value or providing no net benefit at all.

The vast majority also believe that they lack the skills and culture needed to succeed in the digital age. In addition, although 80% see working with start-ups as a valuable way to bring new ideas to their business, 56% claim that their organisational cultures need to change in order to work effectively with start-ups.

A majority of respondents (72%) expect their banks to increase investment in technology innovation over the next two years. Fifty-six percent say their banks will explore open innovation, such as opening up their intellectual property, assets and expertise to outside innovators to help generate new ideas and discover new areas for growth. Thirty-two percent say their banks will create a corporate venture arm within the next two years. A majority (60%) are also open to sacrificing current revenue in order to move to new business models.

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

Ten more startups board Barclays Accelerator

Ten more startups board Barclays Accelerator

24 March 2015  |  8581 views  |  0 comments | 7 tweets | 11 linkedin
Six undertakes hackathon talent challenge for new fintech incubator

Six undertakes hackathon talent challenge for new fintech incubator

20 March 2015  |  10476 views  |  2 comments | 10 tweets | 7 linkedin
Sixty startups compete for place at Innotribe Startup Challenge finale

Sixty startups compete for place at Innotribe Startup Challenge finale

19 March 2015  |  4709 views  |  0 comments | 16 tweets | 1 linkedin
Government report sets out plan to make UK world's fintech capital

Government report sets out plan to make UK world's fintech capital

18 March 2015  |  13260 views  |  0 comments | 26 tweets | 20 linkedin
Lloyds and AmEx back fintech startup competition

Lloyds and AmEx back fintech startup competition

04 March 2015  |  12184 views  |  0 comments | 20 tweets | 2 linkedin
RBS transforms 'executive wing' into entrepreneurial hub

RBS transforms 'executive wing' into entrepreneurial hub

04 March 2015  |  8206 views  |  0 comments | 12 tweets | 6 linkedin
Worldpay commits $1m to Georgia Tech fintech accelerator

Worldpay commits $1m to Georgia Tech fintech accelerator

03 March 2015  |  5742 views  |  0 comments | 4 tweets | 2 linkedin
Australian banks and tech companies collaborate to create Sydney fintech hub

Australian banks and tech companies collaborate to create Sydney fintech hub

03 March 2015  |  9784 views  |  2 comments | 16 tweets | 8 linkedin
AXA sets up EUR200 million disruptive venture fund

AXA sets up EUR200 million disruptive venture fund

25 February 2015  |  7781 views  |  0 comments | 13 tweets | 11 linkedin
Fintech fund Illuminate Financial invests in  CloudMargin

Fintech fund Illuminate Financial invests in CloudMargin

25 February 2015  |  5943 views  |  0 comments | 5 tweets | 6 linkedin
JPMorgan Chase creates $3 million prize pot for innovation challenge

JPMorgan Chase creates $3 million prize pot for innovation challenge

24 February 2015  |  6996 views  |  0 comments | 16 tweets | 5 linkedin
FinTech Acquisition Corp builds $100 million war chest

FinTech Acquisition Corp builds $100 million war chest

20 February 2015  |  8167 views  |  0 comments | 10 tweets | 3 linkedin
Toronto opens fintech cluster

Toronto opens fintech cluster

18 February 2015  |  14757 views  |  0 comments | 20 tweets | 5 linkedin
London tech sector attracts record US investment

London tech sector attracts record US investment

11 February 2015  |  9227 views  |  0 comments | 20 tweets | 11 linkedin
Investment in fintech startups soars

Investment in fintech startups soars

10 February 2015  |  23634 views  |  0 comments | 51 tweets | 31 linkedin
Standard Bank builds PlayRoom to push startup culture

Standard Bank builds PlayRoom to push startup culture

29 January 2015  |  7436 views  |  0 comments | 7 tweets | 8 linkedin
Seven startups make the cut for third FinTech Innovation Lab

Seven startups make the cut for third FinTech Innovation Lab

07 January 2015  |  10567 views  |  0 comments | 18 tweets | 11 linkedin
Data science to the fore in UBS Innovation Challenge

Data science to the fore in UBS Innovation Challenge

08 December 2014  |  9489 views  |  0 comments | 7 tweets | 2 linkedin
Citi to launch global accelerator programme

Citi to launch global accelerator programme

02 December 2014  |  17412 views  |  0 comments | 11 tweets | 14 linkedin
BNY Mellon establishes Silicon Valley innovation centre

BNY Mellon establishes Silicon Valley innovation centre

18 November 2014  |  10596 views  |  0 comments | 10 tweets | 7 linkedin
Deutsche Bank partners tech giants on innovation labs - WSJ

Deutsche Bank partners tech giants on innovation labs - WSJ

17 November 2014  |  15141 views  |  0 comments | 14 tweets | 6 linkedin
Bank spend on innovation set to soar

Bank spend on innovation set to soar

29 October 2014  |  13397 views  |  2 comments | 43 tweets | 31 linkedin
CBA launches Innovation Lab

CBA launches Innovation Lab

16 October 2014  |  8600 views  |  1 comments | 6 tweets | 9 linkedin
CME venture fund finds value in big data

CME venture fund finds value in big data

10 October 2014  |  6916 views  |  0 comments | 5 tweets | 3 linkedin
Accenture brings Fintech Innovation Lab to Dublin

Accenture brings Fintech Innovation Lab to Dublin

09 October 2014  |  12303 views  |  0 comments | 15 tweets | 12 linkedin
Westpac launches innovation challenge

Westpac launches innovation challenge

18 September 2014  |  6344 views  |  0 comments | 4 tweets | 6 linkedin
Amex invites applications for financial inclusion innovation lab

Amex invites applications for financial inclusion innovation lab

15 September 2014  |  9331 views  |  0 comments | 6 tweets | 4 linkedin
Deutsche Bourse launches 'Open Innovation' forum

Deutsche Bourse launches 'Open Innovation' forum

01 July 2014  |  9039 views  |  0 comments | 13 tweets | 2 linkedin
FCA to foster fintech innovation; Treasury pushes P2P, APIs and virtual currency

FCA to foster fintech innovation; Treasury pushes P2P, APIs and virtual currency

30 May 2014  |  16398 views  |  1 comments | 25 tweets | 17 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.vasco.comVisit https://www.capgemini.comvisit www.nextgenbanking.co.uk

Top topics

Most viewed Most shared
Saudi central bank provides sandbox for banks to try out Ripple techSaudi central bank provides sandbox for ba...
11297 views comments | 16 tweets | 12 linkedin
ABN Amro moves escrow accounts to the blockchainABN Amro moves escrow accounts to the bloc...
8853 views comments | 15 tweets | 13 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
8744 views 10 comments | 22 tweets | 26 linkedin
Aussie real-time payments platform goes liveAussie real-time payments platform goes li...
8717 views comments | 15 tweets | 43 linkedin

Featured job

Competitive base + commission + benefits
UK or Germany

Find your next job