According to a new report by Accenture, investment in fintech ventures tripled from $4.05 billion in 2013 to $12.2 billion in 2014 with Europe experiencing the greatest growth in terms of new investment. Although the United States still receives the majority of investment, Europe experienced the highest growth rate, with an increase of 215% to $1.48 billion in 2014. Within Europe, the United Kingdom and Ireland accounted for more than two-fifths (42 percent) of the European total, with the Nordic countries, Netherlands and Germany representing the next largest markets for investment.
Commenting on the report, Julian Skan, Accenture managing director overseeing the FinTech Innovation Lab London, “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, released at the third annual ‘Investor Day’ of Accenture’s FinTech Innovation Lab London highlights the growing globalization of fintech and how London in particular is becoming a rival to a Silicon Valley in its significance for fintech. Moving forward one can expect to continue to see investment flow into Europe and London in greater volume thus benefiting the European payments space as well the global payments landscape.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments for Mercator Advisory Group
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