As we approach the end of this year, we delve into some fascinating insights about global investment trends of banks/financial institutions in FinTech startups. If you are not familiar with the latest MEDICI Insights on this topic, you can get up-to-date here. This year, we witnessed a total investment of $5 billion by banks/financial institutions in FinTech startups across different segments and regions. In this article, we break down these deals region-wise – North America, Europe & Rest of the World.
MEDICI performed an analysis on 159 deals in total but could only find clear-cut information on 100 deals (see chart below). We believe that the trend is representative of the overall bank-FinTech funding activity. In terms of both volume (53%) and value (47%) of funding deals, we have found that the European banks/financial institutions have been at the forefront, but a lot of their FinTech funding is being been routed to FinTech startups based out of North America. The North American region is the preferred destination of 46% of the deals by volume and 47% by value. Furthermore, Asian banks are gradually emerging as investors and have mostly invested in Asian startups.