Global fintech investments nosedive as Chinese fundraising falls sharply, report says
- US remains world’s biggest fintech market with US$12.7 billion in first-half fundraising, according to Accenture
- Fintech investments in China totalled US$820 million in the first half of 2019 vs US$17.7 billion a year earlier, Accenture says
Global investments in fintech firms tumbled 29 per cent in the first half of the year as deal activity in China fell sharply amid an escalating trade war between Washington and Beijing, according to a new report by the consulting firm Accenture.
The value of financial technology deals worldwide in the six months ended June 30 declined to US$22 billion, compared with US$31.2 billion in the same period a year earlier. The number of deals globally, in contrast, increased 2 per cent to 1,561 in the first half of the year.
“There’s been a lot of interest and demand from consumers for new fintech propositions, particularly in the UK and elsewhere in Europe. Fundraising is also moving to support the scaling up of challenger and collaborative fintech, which will cause lumpiness in some [funding] rounds,” said Julian Skan, a senior managing director in Accenture’s Financial Services practise. “However, the question is: How long can that last? Fundraising is likely to reach a plateau soon and will most likely dip going forward.”