THE FINTECH 100: THE RACE IS ON AS GLOBAL FINTECH COMPETITION HEATS-UP

Fintech Innovators, a collaboration between fintech investment firm, H2 Ventures and KPMG Fintech, today announces the world’s leading fintech innovators, publishing its Fintech 100 list for 2016. Key findings include:

  • The UK occupies 13 of the top 100 spots, down from 18 in 2015
  • Atom Bank makes it into the top 10 established innovators
  • China has 8 companies in the list, half of which are in the top 10 established innovators
  • The US holds almost quarter (24) of the top 100 places
  • Insuretech continues its ascent, with 12 companies, almost double last year’s number

UK Fintech is second only to the US in prominence on this year’s top 100 fintech list and maintains a spot inside the top 10 established innovators with Atom Bank coming in sixth. However, the continued rise of Chinese fintech is indisputable with four of the top five companies on the list coming from China. Hangzhou-based Ant Financial takes the top spot in the 50 established innovators, and Qudian (Qufenqi), Lufax and ZhongAn also feature in the top five.

This year shows a marked increase in global competition with 17 countries represented in the top 50 established companies, up from 13 last year, and 22 countries in the full Fintech 100 list.The fintech 100 includes 35 companies from the Americas, 28 companies from the EMEA –  plus 13 from the UK, and 24 companies from Asia-Pacific.

The level of funding has continued to rise for the Fintech 100, with the 50 Established companies attracting an additional US$14.6 billion of capital since last year’s report, an increase of more than 40 percent in just 12 months.

Warren Mead, Global co-lead of KPMG’s Fintech practice added:

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“This year’s Fintech 100 shows that the UK continues to be a powerhouse for global Fintech. The UK’s regulatory framework encourages innovation, there is excellent access to capital and skills and London is the world’s leading financial centre. But the emergence of China as a market leader, and the increasing globalisation of fintech means that UK policy makers, regulators and the industry will have to continue to work hard to maintain our position.”

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.

“The continued dominance of China, which rapidly rose last year to take the top spot, tells only part of the story. We are seeing the emergence of exciting fintech players in countries across the world, from India to Israel, from Portugal to the Philippines.”

Ian Pollari, Global co-lead of KPMG’s Fintech practice added:

“One of the striking features of the year’s list is the growing success of fintech disruptors, with more than 90 per cent of the top 50 ventures challenging incumbents or traditional business models.”

“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, and the continued growth in insurtech and blockchain,” he said.

Highlights from the Fintech 100 report

  • China now tops the global rankings – within three years, China’s fintech ventures have gone from only one company included in the top Established 50 rankings in 2014, to this year China featuring four of the top five companies and eight of the top 50
  • Greater geographic diversification – the Established 50 list includes fintech companies from 17 different countries compared to 13 countries last year, with companies from France, Mexico, South Africa and Singapore appearing for the first time
  • Disruptors dominate – nine of the top 10 companies on the list are fintech ‘disruptors’ (and 46 of the top 50)
  • Lending returns to the fore – 32 of the 100 have business models related to lending (up from 22 last year)
  • Insurtech continues its climb – with 12 insurance fintech companies in this year’s list, almost double last year’s total
  • The emergence of regtech – with nine fintech companies focused on regulatory solutions in the list this year
  • Mega funding rounds – the size of deals/funding rounds above US$1 billion have continued to rise, including Ant Financial, Lufax and JD Finance
  • The aggregate level of capital raise continues to rise – with the Established 50 reaching a total of US$14.6 billion of capital raised since last year’s report (12 months ago), an increase of more than 40 percent from 2015.

The Top 10 companies in the Fintech100 2016:

  1. Ant Financial – China
  2. Qudian (Qufenqi) – China
  3. Oscar – USA
  4. Lufax – China
  5. ZhongAn – China
  6. Atom Bank – UK
  7. Kreditech – Germany
  8. Avant – USA
  9. Sofi – USA
  10. JD Finance – China

Emerging stars list

The Top 50 Emerging Stars list for 2016 includes companies from 19 countries, with fintechs included from countries such as Chile, the Philippines, and Mexico for the first time.

Selecting the Fintech 100

The Fintech 100 were selected following extensive global research and analysis based on data relating to five factors:

  1. Total capital raised
  2. Rate of capital raising
  3. Geographic and sector diversity
  4. Consumer and marketplace traction
  5. X-factor: degree of product, service and business model innovation (a subjective measure that is applied only with respect to companies appearing on the 50 Emerging Stars list)

The full Fintech100 2016 can be viewed at http://www.fintechinnovators.com/.