An evolving ecosystem of startups, incumbents, and investors


Fintech by the numbers

An evolving ecosystem of startups, incumbents, and investors

From disruptive threat to enabling partner, fintech has reached a new phase in the evolution of the financial technology sector. In this maturing fintech ecosystem, startups, traditional financial institutions, and investors are working, growing, and profiting together in a variety of ways. Deloitte Fintech by the numbers examines the nature, type, and scale of engagement between fintechs and both investors and traditional financial institutions, uncovering the trends where fintech development is heading.

Key findings of the Fintech by the numbers report:

  • New company formations are in decline over the past two years.  Startup growth was steady from 2008 through 2010, with a double number of companies entering the market in the following two years. The tide turned negative in 2015, and sharply declined the following year with a 62% drop in startup activity. 
  • Funding in many categories is still on the rise, especially in certain banking and commercial real estate categories.
  • New funding sources are emerging, suggesting that we are entering a phase of consolidation and maturation. While venture capital remains the primary source of funding for fintech startups by far, trends suggest an increasing level of private equity and debt financing. 
  • Fintech acquisitions and initial public offerings (IPOs) are also ramping up, fortifying our general observation about a maturing market. 
  • Startup activity and investor interest varies by geography. Fintechs find a friendly environment for establishment and investment in countries that offer a combination of an educated and entrepreneurial workforce, government incentives around innovation, and large pools of capital looking for investment returns. 
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