According to a recent report issued by Accenture and the Partnership Fund for New York City, investments in financial technology (fintech) nearly tripled in the United States in 2014. The value of fintech investments in the U.S. soared from $3.39 billion in 2013 to $9.89 billion in 2013. This remarkable 191 percent increase follows a 68 percent climb in 2013. Fintech deal values in New York grew to a new high of $768 million in 2014, marking a 32 percent increase.
The report “Fintech New York: Partnerships, Platforms, and Open Innovation,” was released Thursday at the FinTech Innovation Lab’s fifth annual Demo Day event in New York. According to the report, global fintech investment tripled from $4.05 billion in 2013 to $12.2 billion in 2014. The overall market for venture-capital investing increased only 63 percent during that period.
The rate of the value of startup financing rose nearly 200% from 2013 to 2014. The report notes that popular areas for fintech investment in 2014 included payments, lending, trading technologies, and wealth management.
This past year marked a paradigm shift in how financial services companies approach and embrace fintech innovation, as they recognize the vast potential that this strong network provides,”
said Robert Gach, managing director of Accenture Strategy Capital Markets.
An increasing number of banks and insurers are investing in connecting into the fintech ecosystem, whether through accelerator or incubator labs, venture investments or in other ways. We believe this explosive growth in fintech will help drive innovation within some of the world’s largest financial institutions.”
The report also notes that over the next 18 months, strong growth is expected over the next 18 months in blockchain. Blockchain has the potential to assist banks and credit card companies in collaboration efforts to design safer, faster accounting. In light of broad media attention surrounding big data breaches, investment is also expected to increase in cyber security.