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Fintech investment deals edge higher in the first half of 2020 compared to 2019, Accenture

Thursday 27 August 2020 12:25 CET | News

The total value of fintech deals globally has risen 3.8%, to USD 23.1 billion from USD 22.3 billion in the first half of 2019, even as the COVID-19 pandemic spread around the world.

According to Accenture analysis of data from CB Insights, a global venture-finance data and analytics company, the investments were led by strong gains in China and Australia and an increase in the UK that helped more than offset a drop in fundraising in the US and some European markets.

The value of deals in the US, the world’s largest fintech market, fell 9.1%, to USD 11.6 billion, with the number of transactions surging 73.5% to 1,013 as hundreds of startups signed up for the government’s Paycheck Protection Program (PPP) to help finance their day-to-day activities.

In the UK, fintech investments climbed 3.8%, to USD 2.7 billion, led by a 5.3% gain in funding to payments startups to USD 1.1 billion and a 66% jump in insurtech deals to USD 212 million. Fintech investments in China nearly tripled to USD 2.3 billion in the first half of 2020, led by the USD 1.3 billion Chinese wealth management platform Lu.com raised in a syndicated loan in April 2020 from a group of banks.

There were also large fundraising gains elsewhere in Asia Pacific. Investments in Australia almost tripled to USD 1.2 billion, making the country the world’s fourth largest fintech market, while fundraising in Japan quadrupled to USD 268 million and jumped 65% in South Korea to USD 162 million.

Investments into payments startups and lending startups took the bulk of global fintech fundraising, accounting for 32% and 20% of the total, respectively, while insurtechs raked in 11%.

Below are some data from the Accenture analysis:

World’s five biggest fintech markets in the first half of 2020 (vs H1 2019 comparison):

  • 1) United States – USD 11.6 billion (-9.1% from USD 12.8 billion)
  • 2) United Kingdom – USD 2.7 billion (+3.8% from USD 2.6 billion)
  • 3) China – USD 2.3 billion (+177% from USD 819 million)
  • 4) Australia – USD 1.2 billion (+189% from USD 401 million)
  • 5) India – USD 889 million (-3.5% from USD 921 million)

Top five fintech deals in H1 2020:

  • 1) Lu.com (China/April 2020) – USD1.3 billion
  • 2) Stripe (US/April 2020) – USD 600 million
  • 3) SecFi (US/Jan 2020) – USD 550 million
  • 4) Revolut (UK/Feb 2020) – USD 500 million
  • 5) WEX (US/Jun 2020) – USD 400 million

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Keywords: fintech, insurtech, lending, investments, Europe, US, China, banking, VC, fundsing, statistics, Stripe, Revolut, Accenture
Categories: Banking & Fintech | Payments General
Countries: United States
This article is part of category

Banking & Fintech