- Moody's says UK large domestic banks’ asset quality will take hit from coronavirus; capital to remain strong
- UK Finance data reveals that credit and debit card activity in the UK fell slightly in June
- FCA seeks views on how to improve the consumer investment market
- UK Finance responds to FCA draft guidance on support for consumer credit and overdraft customers
- Scope says private capital needed to solve demand-supply imbalance in UK affordable housing
- UK homebuyers struggle to take advantage of the Stamp Duty holiday says survey
- Respite for UK savers as inflation falls to 0.2% expired
- Woolard to chair review of unsecured credit market regulation expired
- Juniper Research new study says global mobile business messaging traffic will increase by 10% this year to 2.7tr expired
- aixigo and investify TECH join forces as a consortium to strengthen Sopra Financial Technology's (SFT) range of services in the wealth management business expired
- Mastercard and Handpoint sign partnership agreement to promote greater acceptance of card payments expired
- Brest Métropole, Bibus, Mastercard and CIC launch Open Payment on public transport expired
7th August 2020
CB Insights State of FinTech report sees renewed signs of activity as funding increased after 2 straight quarters in decline
CB Insights State Of FinTech report features data-driven insights from its emerging tech insights platform. It look at FinTech investment trends across the world and in key verticals, partnership activity, active investors, top deals, and more.
After a pronounced pullback in investor activity during the early days of COVID-19, Q2’20 has seen renewed signs of activity as funding increased after 2 straight quarters in decline.
In this report, examples of embedded FinTech are also explored-the integration of financial products by non-financial companies into their service offerings, a key evolution that will help shape the future of FinTech.
Fintech funding rebounded in Q2’20 but deal activity continues to fall. Funding increased 17% quarter-over-quarter (QoQ) to $9.3bn in Q2’20. However, monthly deal activity hit a fresh low of 127 deals in April before picking up the pace in June, which saw 141 deals.
FinTech mega-rounds($100m+) hit a new quarterly high of 28 as the largest companies in the space raised additional funding. Mega-rounds have become more common as successful startups are generally staying private longer. However, the recent spate of IPOs and IPO filings may indicate the start of a shift in this trend.
Asia was the only continent without a dollar funding rebound in Q2’20. North America, Europe, South America, Africa, and Australia all saw an increase in FinTech funding quarter on quarter while funding to Asia-based companies fell 37% to $1.6bn. However, deal activity in all regions was either flat or down.
There are 66 VC-backed fintech unicorns worth a combined $248bn. Q2’20 saw just 1 new FinTech unicorn birth(Upgrade).
FinTech companies continue to mature, with many ready for the scrutiny of public markets. S-1 filings in Q2’20 included Lemonade, nCino, and Rocket Companies.