China fintech continues to lead globally, securing four positions in the top five slot of a recent fintech ranking by KPMG and investment firm H2 Ventures.
The annual list titled 2016 Fintech 100 includes the leading 50 Established fintech companies across the globe, as well as the most intriguing 50 ‘Emerging Stars’ – exciting new fintechs with bold, disruptive and potentially game-changing ideas.
Key highlights include:
Raymond Cheong, Partner, KPMG China, says: “We have seen significant investment in China’s fintech sector in recent years, and an increasing appetite for innovative products, supported by the rapid pace of technology development.”
In total, the Fintech 100 includes 35 companies from the Americas, 28 companies from EMEA, plus 13 from the UK, and 24 companies from the Asia-Pacific region, including eight from China, and 10 from Australia and New Zealand.
James McKeogh, Partner, KPMG China, says: “It is no surprise to see four Chinese companies in the top five. Fintech in China has seen rapid development, fuelled by the demand to address domestic needs, it is likely that we will see more of these players move to the international markets in the future.”
The level of funding has continued to rise for the Fintech 100, with the 50 Established companies attracting an additional USD14.6 billion of capital since last year’s report, an increase of more than 40 percent from 2015.
The 2016 annual list also demonstrates the growing success of fintech disruptors, with more than 90 per cent of the top 50 ventures challenging incumbents or traditional business models.
Meanwhile, the Fintech 100 companies are increasingly attracting a greater share of capital as well, raising more than 65 percent of total global fintech investment over the past year.
The report also highlights a growing and increasingly diverse fintech sector, with the creation of value in new sub-sectors such as regtech and data & analytics. Companies have business models related to lending and insurance are gaining larger share in the full Fintech 100 list.
Toby Heap, H2 Ventures, commented: “The 2016 Fintech 100 demonstrates the acceleration of the disruption taking place in the global financial services industry, with more capital than ever being invested around the world in startups and established ventures that are creating new financial products and solutions.”
Selecting the Fintech 100
The Fintech 100 were selected following extensive global research and analysis based on data relating to five factors:
- Ends -
H2 Ventures is one of the emerging thought leaders in fintech venture capital investment around the world. Founded by brothers Ben and Toby Heap, and based in Sydney, Australia, it invests alongside entrepreneurs and other investors in early stage fintech ventures. H2 Ventures is the manager of the H2 Accelerator - Australia's only dedicated fintech accelerator - and operates out of Sydney's dynamic fintech hub, Stone & Chalk.
KPMG China operates in 16 cities across China, with around 10,000 partners and staff in Beijing, Beijing Zhongguancun, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Hangzhou, Nanjing, Qingdao, Shanghai, Shenyang, Shenzhen, Tianjin, Xiamen, Hong Kong SAR and Macau SAR. With a single management structure across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 155 countries and regions, and have 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
In 1992, KPMG became the first international accounting network to be granted a joint venture licence in mainland China. KPMG China was also the first among the Big Four in mainland China to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong office can trace its origins to 1945. This early commitment to the China market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in the Chinese member firm’s appointment by some of China’s most prestigious companies.