The industry is witnessing a record-breaking rise, according to KPMG’s latest Pulse of FinTech report – with Asia firmly in the spotlight. Investments have increased from $2 billion (USD) in Asian markets since 2017, and there has been a surge in global FinTech investment from India, Australia, and Singapore too. The prime draw for FinTech investors continues to target Blockchain and AI systems, with an emphasis on InsurTech and RegTech.
2017 Industry Insights
The topic of global FinTech investment continues to be top of the agenda at TSAM Hong Kong, which returns on 20 September 2018. In our exclusive interview with Eagle Investment Systems’ Marc Rubenfeld, the Head of Eagle Solutions for EMEA/APAC highlighted the FinTech changes, which was a popular topic at last year’s TSAM Hong Kong event. “There are a lot of investment organisations in APAC that until fairly recently have been able to meet their investment and operational data needs using Excel, relying on manual processes and adding headcount where necessary as the business has grown,” Rubenfeld explains. “As employment costs have risen and firms have recognised the need to automate to achieve efficiencies, those methods are no longer feasible. Instead of looking to buy a solution – as EMEA firms did when they moved off spread sheets – firms in Asia are turning straight towards managed services.”
Further industry insights were discussed, including the trends that were predicted to have the most significant impact on asset management developments in the APAC region. “One of the biggest trends from an operational perspective – and this is a theme globally – is achieving scale. Larger firms are getting bigger and a key element of these strategies is the ability to achieve greater operational efficiency,” Rubenfeld outlines. “Firms that have a solid data management platform are better positioned to achieve these efficiencies and are able to realise the benefits more quickly. In APAC we’re seeing firms scale through rapid asset growth and an extension of their investment strategies and as a result there’s a greater need to adopt the same tools and solutions as their counterparts in Europe and North America.”
One of the prevalent questions at TSAM Hong Kong 2017 was: “How is the Role of Technology, Operational and Data Leaders Changing?” The answer: “One thing that struck me is that these leaders are assuming a more central and critical role within organisations as they transform,” Rubenfeld comments. “Because they know the data and how to make it more efficient, they’re being given more and more responsibility to help transform the entire business, not just the operations.”
2018 Global Statistics
With Asia being one of the high-ranking regions today, the celebrations are also reverberating on an international scale. Investment statistics have never been greater, with an impressive $57.9 billion (USD) funded across 875 deals 2018 so far. These high-grossing deals have boosted the level of global FinTech investments, which only adds to the hype of AI software the industry-wide benefits it can yield.
Take a closer look at some of KPMG’s key findings from the first half of 2018 below:
- FinTech funding in Asia soared to 16.8 billion (USD) from 162 deals ($14 billion funded by Ant Financial)
- The median venture capital (VC) deal size in Asia rose from $25million to $37.7 million (USD) – notably the highest increase for any region
- In Europe, FinTech investment advanced to $26billion (USD), as the result of 198 deals
- In the US, $14.2 billion (USD) was invested into FinTech enterprises, including over $5 billion (USD) in VC investment
Key Areas of Success
KPMG predicts that this glowing rate of success will continue to soar for the rest of 2018. Now corporations are recognising the opportunities that FinTech offers, they are seeking to leverage global FinTech investments to tap into an innovative business strategy.
So far, this year’s successes include the following:
- $1.37 billion (USD) has been invested to help companies overcome challenges in financial regulations by using RegTech
- Large rounds of investments for companies using Blockchain systems include: $100 million (USD) going to R3 and Circle Internet Finance in the US, and $77 million (USD) to France’s Ledger
With the insights from 2017 and the numbers from the first half of 2018, we can look towards the FinTech investment success in Asia as an inspiration for future industry success.
The Summit for Asset Management (TSAM) Hong Kong will return on 20 September 2018 and the revamped programme with 3 breakout sessions focusing on Regulations & Compliance, Data, Technology & Operations, and Risk & Performance is available for you to view here.
TSAM will connect you with not only the best speakers in asset management, but you will also get actionable insight and key takeaways that you can apply to your day to day role. To claim your free ticket, register your interest online now
Source: CFO Innovation