The Top 5 countries where the new FinTech champions are born
The amounts invested globally in the Fintech sector doubled between 2014 and 2015, from $ 17.8 billion to $ 38.1 billion. In France, the latter more than doubled, from $ 65 million in 2014 to $ 18 million in 2015, according to data compiled by VB Profiles. The business intelligence platform presented this week its Landscape of the FinTech sector, in partnership with Deloitte and industry players such as Streamdata.io, Fintech Mag or Kantox.
The authors of this “Landscape” first selected the companies that they considered to be the main Fintechs on a global scale: 1,046 companies were thus selected (note that the definition of a Fintech adopted by VB Profiles is broad. , and notably includes companies such as Mastercard or Visa). They then classified them by major business (mobile banking, payments, investments, financing and insurance), as well as by transversal (technologies such as blockchain, or platforms). Beyond this classification, the landscape is also a dynamic analysis tool for the sector.
France outside the Top 5
First observation of the analysis carried out thanks to the landscape: while nearly half of the companies identified are located in the United States (516 companies), other emerging countries, such as the United Kingdom (133 companies), but especially the India (49 companies), China (31 companies), or even Germany (28 companies) and Australia (24 companies). India and China have a considerable advantage: the size of their market, much larger than other countries.
Another observation is that the number of companies being created in this sector continues to increase. Thus, 522 new companies were created between 2011 and 2015, compared to 288 between 2006 and 2010, ie nearly double. Across France, 58 new Fintechs have been created since 2011. Crowdfunding is unsurprisingly the most attractive business, with 32 new companies that have embarked on the business of lending to individuals or businesses since 2013. mobile payment solutions as well as mobile banking are also attracting new players (13 new companies in each business for three years), as well as crypto-currencies (15 new companies).
Investments that focus on lending and insurance since 2013
In terms of investments also, certain businesses benefit from greater attractiveness to investors. Crowdfunding is once again in the lead, with $ 3 billion that has been invested since 2013 in loan solutions (direct or between individuals). Insurance comes in second, with $ 2.2 billion invested over the past three years. Finally, business tools and software also benefited from strong investor support, with $ 697 million invested.
In France, VB Profiles has identified 46 fundraising activities in the sector (probably since its emergence, editor’s note). The company noted the participation of 35 different investors in its operations, each investing in a single Fintech instead. Only a few investors have invested in several companies at the same time, such as Kima Ventures or 360 Capital Partners (which have made three equity investments each), or even IDInvest and Partech Ventures (two equity investments).
Services still unknown to the general public
Landscape experts have nevertheless sought to moderate the enthusiasm of Tech ecosystems for this sector. 6 out of 10 French people have never heard of Fintech, and only 4 out of 100 French people say they use it, according to a Deloitte study published at the start of the year. It should be remembered that a large number of Fintechs market their white label solutions to banking institutions. The end users of their services are therefore not always aware of using a service developed by a FinTech.
Among the major trends to watch is the emergence of robot advisors, which are changing the profession of financial advisor in depth, as well as insurance, which must completely rethink its economic model to adapt to new uses and new technologies (connected cars, smart homes, etc.).
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