Fintech Investments most in China followed by India, says Accenture

Investments in Asia-Pacific financial technology (fintech) ventures, basically in China, came to $9.62 billion starting July 31, more than double the $4.26 billion invested in the area in all of 2015, as indicated by an Accenture analysis of CB Insights data India stood second in this investigation, with investments of $339 million.

"China's established companies, rather than nascent startups, are at the forefront of the fintech trend in the region," said Beat Monerrat, Accenture senior managing director, Financial Services Asia-Pacific. "Fintech companies with major backers such as Alibaba and JD.com are focussed on providing positive end-to-end customer experiences, which includes payments and lending. This is transforming China's financial services industry and is consistent with the global 'Fourth Industrial Revolution', which is bringing innovation from non-traditional competitors to the financial services industry."

Investments in the APAC locale have surpassed North America, which starting 31st July 2016 saw investments worth $4.58bn in fintech. Notwithstanding, deal volume stays higher in North America and Europe, as the Asia-Pacific increment is because of enormous investments in a couple select fintech organizations in China. There have been 192 deals in Asia-Pacific so far this year, as contrasted and 509 in North America and 230 in Europe.

The main ten investments in the APAC district happened in China and Hong Kong, representing 90 percent of general Asia-Pacific investments and esteemed at $8.75 billion. Altogether, China and Hong Kong fintech ventures have pulled in $9 billion in investments so far in 2016.

Ant Financial Services Group, the financial-services subsidiary of e-trade mammoth Alibaba Group Holding that works China's online-installments stage Alipay, shut a $4.5 billion raising money round in April. Ping an upheld Lufax (Lu.com) finished a $1.2 billion round of raising support in January. Qufenqi, a hardware retailer that gives purchasers a chance to pay in regularly scheduled payments, and India's One97 Communications which works the Paytm brand.

The fintech trend in China continues to skew toward online payments and lending, including peer-to-peer (P2P), which is creating market-share dilution for banks," said Albert Chan, overseeing executive financial services China, Accenture. “China’s banks, whether building their own competitive platforms or not, should consider investing in collaborative fintech ventures in order to remain competitive."

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