2019金融科技趋势观察（英文版）_104页_13mb

2019 Fintech Trends To Watch Summary

Core Content and Key Findings

In 2018, the fintech industry experienced significant growth, with global VC-backed fintech deals and funding reaching a record high. The total funding amounted to $39.57B across 1,707 deals, marking a 120% increase in funding and a 15% rise in deals compared to the previous year. Asia saw a substantial surge in fintech activity, with deals and funding increasing by 38% and reaching $22.65B across 516 deals, indicating a potential shift in the global fintech landscape.

The number of fintech unicorns reached 39, with a combined valuation of $147.37B. Notably, five new unicorns were born in Q4'18, and two in Q1'19. These unicorns were primarily driven by large mega-round investments, which totaled $24.88B in 2018, including 14 in Q4'18 worth $3.8B. This trend shows that while early-stage deals decreased, the focus shifted to scaling and acquiring more market share.

Main Trends and Key Insights

1. Global Fintech Growth

• Fintech deals and funding reached a new record in 2018.
• Asia became a major player, surpassing the US in certain metrics.
• The US remained the top market for deals, but its growth rate slowed compared to other regions.

2. Regulatory Focus

• Regulators are becoming more active, focusing on compliance and oversight, especially for fintech companies.
• There is an increase in regulatory scrutiny, with notable fines for non-compliance.
• Fintech firms are advised to build strong relationships with regulators to avoid roadblocks.

3. Fintech Unicorns and Market Consolidation

• 39 fintech unicorns, valued at $147.37B, were active in the market.
• The number of unicorns increased in 2018, with new entrants and existing unicorns receiving significant funding.
• Consolidation is expected in 2019, especially in the infrastructure and insurtech sectors.

4. Expansion of Fintech into New Markets

• Fintech companies are expanding their offerings beyond their initial use cases.
• Southeast Asia and Latin America are emerging as hotspots for fintech growth, with notable players like Grab, Go-Jek, and NuBank.
• The shift from traditional hubs to new markets is expected to continue in 2019.

5. Fintech and the Battle for Deposits

• Fintech firms are competing for deposits, leveraging mobile payment platforms and banking-as-a-service models.
• Companies like Earnin and Gusto are offering salary-linked benefits to employees, enabling them to access earned income before traditional paydays.
• The focus on deposit acquisition is seen as a strategic move to facilitate future product innovation.

6. Rise of New Investment Platforms

• Fintech is democratizing investing through new platforms and asset classes.
• Startups are creating alternative investment models, targeting new markets and asset classes such as real estate, music royalties, and municipal bonds.
• These platforms are expected to gain traction in 2019, especially among next-gen investors.

2019 Trends to Watch

1. The Battle for Deposits
   Fintech firms will intensify their efforts to capture deposits, leveraging their existing customer base and offering seamless financial products.

2. Fintech Firms Focus on Regulatory Compliance
   As regulatory scrutiny increases, fintechs will need to prioritize compliance and work closely with regulators to ensure smooth operations.

3. Southeast Asia Sees Strong Fintech Growth
   The region is expected to continue its growth trajectory, with a surge in fintech activity and investment.

4. The Next Ant Financial & WeChat Pay
   Fintech platforms in Southeast Asia, such as Grab and Go-Jek, are developing ecosystems similar to Ant Financial and WeChat Pay.

5. Unbundling the Paycheck
   Startups are disrupting the payroll system by offering salary-linked financial services, such as early access to earned income and financial benefits.

6. New Investment Platforms and Asset Classes
   Alternative investment platforms are gaining popularity, providing new opportunities for investors to access diverse asset classes.

7. Fintech Meets Real Estate
   The integration of fintech with real estate is expected to create new investment models and services.

8. Rise of Impact Fintech
   Fintech companies are increasingly focusing on social impact, with a growing interest in creating financial products that address societal issues.

9. Lack of Fintech M&A by Banks
   Banks are not actively acquiring fintech firms, possibly due to regulatory and strategic considerations.

10. No-go for Fintech IPOs
    The IPO market for fintech firms is expected to remain lackluster in 2019, with a focus on private funding and strategic partnerships.

Key Companies and Investments

• Ant Financial became more aggressive in expanding its presence in Southeast Asia.
• Plaid emerged as an infrastructure unicorn and started 2019 with a major acquisition.
• Gusto introduced Flexible Pay, allowing employees to access income before traditional paydays.
• Robinhood faced regulatory scrutiny over its cash management accounts, leading to changes in its offerings.
• Cambr was formed through a partnership between StoneCastle Partners and Q2 Holdings, focusing on digital deposits.

Conclusion

The 2018 fintech landscape was marked by significant growth, regulatory attention, and the emergence of new market leaders. As 2019 begins, the industry is expected to see continued innovation, increased focus on regulatory compliance, and expansion into new markets and asset classes. The competition for deposits and the development of new investment platforms will be central to the industry's evolution.