With a growing level of venture capital funding, Fintech is scaling up and diversifying beyond its monoline roots. In parallel traditional financial services providers are joining in. The focus is moving towards Asia – in terms of market opportunity and the domicile of many of the world’s largest Fintechs.
Innovation is the key success factor within the Fintech industry. It combines technology with financial services to create new products and services that disrupt the market by creating new values to a changing clientele. Keeping an eye on growing and emerging businesses is critical in this fast-paced environment. Fintech companies must understand and track their competition. Likewise, more traditional financial services players must plan how to respond or get involved.
Fintech100 – a collaboration between KPMG International and H2 Ventures – brings traditional players and pure Fintech companies together and ranks the Top 50 established and the Emerging 50 Fintechs globally. It explores the key trends and characteristics that are driving success – taking into account total capital raised, the rate of capital raising, geographic diversity, sectoral diversity, and the x-factor (the degree of product, service and business model innovation).
In terms of regions represented, Chinese Fintech companies still occupy three places among the top 10 closely followed by India. Overall, 42 of the top 100 are from Asia-Pacific, compared to 26 from EMEA and 22 from the Americas.
As in previous years, payment and transaction services still account for over a quarter of the Fintech companies represented in the top 100. These are followed by wealth (19), insurance (17) and lending companies (15). Interestingly, the number of wealth, insurance and multi-sector companies is growing quicker than the payment and lending business which were basically the more traditional areas of innovation with regard to Fintech in previous years.
The analysis of the composition of the new Top 100 also shows an increasing number of Fintech companies rapidly globalizing their business. Early movers in Fintech innovation with previous monoline propositions are diversifying into a broader set of customer needs. Fast growing open banking services are driving competition. Fintech companies use their access to customer data to create faster, more personalized and more innovative services corresponding the needs of their clients. This is best seen at so-called neo-banks. Neo-banks have digital as the only or predominant channel for engaging with customer and challenge either the products, the user experience or the business models of traditional banks.
The competitive situation but also the possible innovations lead to a dynamic market place for financial services.
The study presents the following main highlights of services offered by the top 100 Fintech companies in the financial services industry:
For further insights you may read the full Fintech100 report.