Analysis

Fintech by the numbers

Incumbents, startups, and investors adapt to fintech evolution

From disruptive threat to enabling partner, fintech has entered a new phase of its evolution. Our insights track the development of the fintech market and examine how banks, insurers, and investment management companies are tackling fintech transformation initiatives.

Deloitte’s fintech interactive tool—newly updated!

Do you follow the fintech movement in financial services? View Deloitte’s fintech interactive tool to stay updated on changes in the fintech market. This interactive tool tracks competitive fintech startup and investment intelligence across banking and capital markets, insurance, investment management, and real estate. Here are some notable trends through full-year 2020, based on Venture Scanner-reported data as of January 4, 2021, that we’ll continue to track this year:1

  • There were 10 reported venture capital (VC) backed fintech launches observed in 2020. This compares to 98 VC backed fintechs launched in 2019, and 156 in 20182.
  • There were a reported 1,289 funding events that helped 917 fintechs raise $44.5 billion through various rounds through 2020, compared to 1,978 funding events that helped 1,335 fintechs raise $69.9 billion in 2019.
  • 2020 investment of $44.5B dropped by 36% compared to 2019. Of that total, banking and capital markets ($24.4B, down by 36% YoY) and real estate ($11.7B, down by 51% YoY) fintechs received 81% of total funding in 2020. Insurance ($5.0B, down by 12% YoY) accounted for 11%, while investment management ($3.5B, an increase of 64% YoY) accounted for 8% of all investments in 2020.
  • In contrast, M&A deal value grew 706% year-over-year (YoY) to $55.6 billion in 2020 compared to 2019, and the number of deals increased 24% YoY to 164.
  • Focusing only on the fourth quarter of 2020, investment of $8.6B dropped by 59% compared to Q4 2019. Of that total, banking and capital markets ($5.1B, down by 42% YoY) and insurance ($1.5B, increase of 14% YoY) fintechs received 77% of total funding in Q4 2020.
  • The top three countries for investment provided 67% of total funding in Q4 2020. US-based fintech investments stand at $3.5B (41%), Indian investments at $1.3B (16%) and UK-based investments at $0.84B (10%).

1 Source: Venture Scanner data; Deloitte Center for Financial Services analysis
2 All data is retrospectively updated by Venture Scanner as and when new information becomes publicly available. Therefore, the number of new launches for 2020 as well as previous years may increase in subsequent releases.

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