Last year saw the highest level of investment in FinTech start-ups on record, with a total disclosed transaction value of $30.8 billion. This was an increase of $16bn on 2017, according to figures from the Fintech M&A Market Report from mech mergers and acquisitions advisor Hampleton Partners. The average funding round has doubled in size compared to 2017, with the average venture round in the Asia-Pacific region reaching almost double the global average. The FinTech M&A transaction value of $50 billion from 189 transactions achieved in the first half of 2018 was not replicated, however, as second half activity cooled, recording 160 transactions and a total disclosed transaction value of around $13 billion. The adoption of biometrics, emerging AI tech and regional growth were cited key trends powering FinTech's growth.
The application of blockchain technology in the financial services realm is shaping up to transform the sector. Faster and securer transactions are among the expected advantages, while increased automation is likely to impact the need for human involvement in a variety of processes. And while security is an issue in network-based systems, the blockchain transaction process is viewed as adding additional layers of defence against cybercrime. These issues were discussed by a panel of experts during the World Alternative Investment Summit Bermuda, held at the Fairmont Southampton. Blockchain is part of a wave of digital advancement reshaping how businesses interact and move digitised assets of value.
According to McKinsey, financial institutions will see profits decline 20%–60% by 2025 if they fail to evolve digitally. Share this article with your clients to help them sustain growth in the changing market. This guide helps the average internet user understand the meaning of some FinTech buzzwords – Bitcoin, blockchain and cryptocurrency. A giant change is coming for banking in the UK – Open Banking. This new directive will require the largest UK banks to give third parties access to their data, down to the level of current account transactions.
The Big Data movement is finally keeping up with its promise to bring us always more data about everything and everyone in our environment. At the same time, we learn that investment in FinTech has grown ten times over the last five years to reach US$ 19 billion (EUR 16.3 billion) in 2015. FinTech is a technology intensive industry. Globally the objective of FinTech can be set as "providing better and more efficient financial services than the banks with less expenses and especially less human means." However, if the goal is to provide services at a significantly lower cost than established players, FinTech requires high-end technology developments, making it a capital-intensive sector.
In 2017, there are many options for customers to choose in order to do a transaction. They can decide to use service from any fintech, or they might use service from a bank. In general, fintech and bank give similar services such as online banking, credit card and debit card processing. However, there are differences between fintech and banks. In fact, both have their roles and advantages.