The companies using technology to the best of advantage and driving disruption within the financial services industry.
Fintech Innovators, a collaboration between fintech investment firm, H2 Ventures and KPMG Fintech, recently announced its list of the world’s leading fintech innovators, the 2016 Fintech 100. The annual list 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:
• China fintech continues to dominate, with four of the top five companies on the list
• Global competition is expanding, with 17 countries represented in the top 50 Established companies, up from 13 last year, and 22 countries in the full Fintech 100.
• New fintech subsectors have emerged, including regtech (regulatory technology), with 9 companies on the list
• Insurtech continues its ascent, with 12 companies, almost double last year’s total.
From a geographic standpoint, the continued rise of Chinese fintech is indisputable, with Hangzhou-based Ant Financial taking the top spot in the 50 Established Innovators list, and Qudian, Lufax and Zhong An also in the top five. Oscar, at number three, is both the highest ranked insurtech and the highest ranked US-based company.
In total, the Fintech 100 includes 35 companies from the Americas, 28 companies from EMEA, plus13 from the UK, and 24 companies from the Asia-Pacific region, including 10 from Australia and NZ.
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, just 12 months ago, an increase of more than 40 percent from 2015.
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.”
Christopher Saunders, Partner in the Financial Services Practice at KPMG in Thailand added, “A notable feature of this year’s list is the significant emergence of Fintech disruptors, with 9 of the top 10 companies occupying this space. This is an indication of a rapidly evolving, dynamic global financial technology sector, which is seeking to re-align business models with customer needs. This is very much part of Thailand’s financial sector agenda, suggesting a significant opportunity for growth in Fintech here.”
“We are also seeing greater diversity in offerings, with Regtech, Blockchain and Insurtech now very much a feature.”
• 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
• 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.
1. Ant Financial - China
2. Qudian - 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
The Top 50 Emerging Stars list for 2016 includes companies from 19 countries, with fintechs from countries such as Chile and the Philippines for the first time.
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/.
About Fintech Innovators
Fintech Innovators was formed by H2 Ventures, in collaboration with KPMG Fintech, and publishes information on the world’s most successful, exciting and high impact new companies reshaping the financial services industry using new technologies.
About H2 Ventures
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.
About KPMG in Thailand
KPMG in Thailand, with more than 1,500 professionals offering audit, tax, and advisory services, is a member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
© 2017 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.