Banks Investing In Fintech

So far this year major wall street banks have participated in 24 fintech equity deals according to cb.

Banks investing in fintech. Payments settlement capital markets and data analytics have been longstanding frontrunners in terms of deals. Banks are investing in fintech. Since 2012 the top ten us banks by assets under management have participated in 72 rounds totaling 36 billion to 56 fintech companies according to cb insights. Blockchain meanwhile has cooled since garnering a high level of investor interest in 2015.

Us banks are future proofing by actively investing in fintech startups. The investing trading and wealth management firms on forbes fintech 50 2019 offer more than just the services once exclusive to big banks and traditional financial firms. While investment activity dropped on a quarterly basis in q1 2017 four of the last five quarters have seen over 1 billion invested into fintech start ups in the us backed by venture capital firms. New fintech departments created in banks raise the demand for specialists with skills and expertise in both finance and development.

Only 7 of banks have set up their own fintech labs. The combination of their wealth and resources with the strategic limitations of fintech startups means that banks still have time to prevent their industry from facing widespread disruption. This is across categories like blockchain insurance and lending. Research company cb insights analysed the private market fintech investment activity of the top european banks and their venture arms by assets under management aum from 2012 to q2 2018 as of 11 april 2018.

Banks are ramping up investments in some of their potential competitors. Q219 fintech funding topped 83b boosted by a record quarter of 100m mega rounds. Capitec is listed on the south african stock exchange and is the parent company of capitec bank. This follows a record 2018 where us banks backed 45 equity deals to fintech startups a 180 increase from 2017.

As a result a lot of innovative positions for cybersecurity analysts product managers compliance experts data specialists have flooded the labour market. In 2018 banks backed a record number of deals to fintech startups diversifying their bets across a wider range of fintech spaces. In 2019 ytd us banks have participated in 24 equity deals to fintech companies. Banks investing in fintech startups is also becoming a global phenomenon.

Download the free report for all the details. For example creamfinance europes fastest growing fintech just secured a 21 million deal in series b financing from capitec bank holdings limited capitec.