China fintechs take the top three rankings, five of the top ten
SINGAPORE, Nov. 15, 2017 /PRNewswire/ - Fintech Innovators, a collaboration between fintech investment firm H2 Ventures and KPMG Fintech, today announced the 2017 Fintech100.
The Fintech100 includes the 'Leading 50' fintech firms around the globe, ranked based on innovation, capital raising activity, size and reach; and the 'Emerging 50', exciting new fintechs that are at the forefront of innovative technologies and practices and are often pursuing new business models.
Key highlights from the 2017 Fintech100 include:
- China fintechs take the top three places on the list, and Chinese firms account for five of the top 10.
- Global fintech innovation continues to accelerate, with 29 different countries represented in the Fintech100, up from 22 countries in 2016.
- Asia Pacific (ASPAC) is on the rise, with 30 fintechs on this year's list, while the UK and Europe, the Middle East and Africa (EMEA) dominate the Emerging 50 with 26 companies. The US placed 19 companies on the full list, the most of any country, and three in the top 10.
- 'Disruptors' dominate — fintechs focused on disrupting traditional models represent 73 of the Fintech100.
- Lending and payments focused companies continue to lead in terms of sectors, with 32 and 21 respectively on the full list. Fifteen companies are in transactions/capital markets and 12 are in insurtech.
Overall, the Fintech100 includes:
- 41 companies from the UK and EMEA
- 29 companies from the Americas (North and South America)
- 30 companies from ASPAC (including Australia and New Zealand).
Ian Pollari, Global Co-Lead of KPMG Fintech, commented: "Disruptive fintech companies continue to dominate the Fintech 100, representing strong interest from investors in business models and management teams that are seeking to radically change the industry paradigm.
"That said, the importance of 'enablers' - companies working in cooperation with financial services institutions to steadily improve products and services - has remained steady. Across the 2017 list, there are 27 such enablers; working across accounting, insurance and banking."
Ben Heap, Founding Partner at H2 Ventures said: "Capital continues to flow into the fintech sector reflecting investor confidence in the future potential of these firms. Twelve companies on this year's list have raisings over US$100M, including ZhongAn's US$1.5B raise in conjunction with its recent IPO on the Hong Kong Stock Exchange.
"The top 10 are a strong reflection of the diversity of fintech innovation. There are fintechs with lending and payment platforms, insurtech, digital banking and companies applying big data to fintech. Superior data and analytics capability notably will be a requirement to be a great financial services firm in the future, be it a traditional bank or a game changing fintech start-up."
The Top 10 companies in the 2017 Fintech100
- Ant Financial - China
- ZhongAn - China
- Qudian (Qufenqi) - China
- Oscar - US
- Avant - US
- Lufax - China
- Kreditech - Germany
- Atom Bank - UK
- JD Finance - China
- Kabbage - US
Other key insights from the 2017 Fintech100 report
- Aggregate capital raised remains significant — The top 50 companies have raised US$4.8B in the last year alone and over US$27B in aggregate capital over their lifetimes. The 'Emerging 50' have raised over US$600M in the last year and just over US$1B in total, since founding.
- Major funding rounds dominate investment — Twelve companies on the Fintech100 had raisings over US$100M, notably ZhongAn's US$1.5B raise in conjunction with its recent IPO on the Hong Kong Stock Exchange.
- 'Disruptors' continue to stand out — Fintechs focused on disrupting technologies continue to dominate, accounting for 73 of the Fintech 100. These are companies that are radically changing their industry paradigm for all players.
- Lending and payments lead — The number of lending and payments related businesses continue to stand out in this year's Fintech 100, with 32 and 21 respectively.
- Open banking around the world — Open banking regulation in the UK, Europe, the US and Australia has been a major catalyst for innovation, with 15 companies working in the related areas included on the Fintech100.
How is the Fintech100 selected?
The Fintech100 were selected following extensive global research and analysis based on data relating to five factors. Two criteria are related to capital raising reflecting the emphasis that venture capitalist investors place on the ability of firms to innovate in order to generate a long term sustainable competitive advantage.
- Total capital raised
- Rate of capital raising
- Geographic diversity
- Sector diversity
- 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)
View the full Fintech100 list or download the report at fintechinnovators.com.
About KPMG Fintech
The Financial Services industry is transforming with the emergence of innovative new products, channels and business models. This wave of change is driven by evolving customer expectations, digitalization, as well as continued regulatory and cost pressures. KPMG is passionate about supporting clients to successfully navigate this transformation, mitigating the threats and capitalizing on the opportunities. KPMG Global Fintech comprises professionals in over 35 fintech hubs around the world, working closely with financial institutions and fintech companies, to help them understand the signals of change, identify the growth opportunities and to develop and execute on their strategic plans.
About KPMG International
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 152 countries and have more than 189,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
About H2 Ventures
H2 Ventures is a thought leader 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 – a leading fintech, data and A.I. accelerator.
SOURCE KPMG International