Fintech - Anything but Alternative (Part 2: Alternative Finance)

Fintech - Anything but Alternative (Part 3: Digital Payments)

Fintech - Anything but Alternative (Part 4: Data&Software, Insurtech, Digital Banking, Asset Mgtmt)

Dealmakers in Technology, GP Bullhound

Alexandra Jarvis

Dealmakers in Technology

Growth companies in the Technology sector

GP Bullhound

GP Bullhound is a technology investment bank providing independent strategic advice on Mergers & Acquisitions and Capital raising to leading technology entrepreneurs, companies and investors across the globe. Our passion for technology, our financial acumen and our understanding of the entrepreneur’s journey differentiate our advice from other investment banks. We help exceptional people build exceptional businesses to create more billion-dollar technology companies across Europe.

Thematic (Sector/Industry)

Japan Financials / Thematic (Sector/Industry)

Over the past three years, global venture capital investment into Fintech has risen by 4.7x to $13.6 billion in 2016 and these companies are now creating significant shareholder value: there are now 39 Fintech companies valued at over a billion dollars.The reasons for the strong investment appetite are clear: using technology and data, Fintech firms in developed markets are providing financial services and solutions in more efficient and streamlined ways to fill the gap that legacy institutions have left. Meanwhile, in emerging markets, Fintech firms are building a world-class, digital-first financial services infrastructure.Fintech companies are now firmly established in the mainstream of the financial services market. Indeed, it is a point of debate how symbiotic the relationship between Fintech and traditional financial institutions is. However, we can be certain that there is more to come from the Fintech sector as it leverages the next wave of innovation and we expect investment into the sector to remain resilient.Venture Capital investment into Fintech globally remained robust in 2016 despite a challenging political and economic backdrop, underlining the long-term attractiveness of the sector. Across Alternative Finance, Digital Payments, Data &amp; Software, Insurtech, Digital Banking and Asset Management, there are now some 39 billion-dollar Fintech companies and there is a raft of companies hot on their heels.The Fintech sector is a tale of two regions. Explosive growth in China stems from the opportunities created by under-banked consumer and SME markets, strong growth in e-commerce and a supportive regulatory environment. However, in Europe, with its stronger traditional financial services sector, a focus on disruption is giving way to collaboration and enablement and a “flight to class” has emerged amongst investors targeting more mature segments, such as alternative lending and payments. Category winners are already emerging and consolidation is starting to pick up pace as investors become more selective, and established players look to M&amp;A to accelerate growth.A clear set of messages emerges for European Fintech from our guest experts included in this research. First, there remains a significant market opportunity focused on improving the user experience of financial services. The lines between sectors (lending, banking, payments, wealth management) are also starting to blur from the consumer’s point of view, as digital becomes the dominant channel for interaction. Second, Europe is able to leverage hubs of talent, strong financial services ecosystems and its regulatory environment. Finally, new waves of innovation are on their way to provide even greater value.At GP Bullhound, we work closely with many of the best companies and investors in the Fintech sector. We are passionate about building more category leaders across Europe and know that Fintech is a sector that will continue to shape the way financial institutions deliver services to consumers.This is the first part of our "Fintech - Anything but Alternative" series of insights.

Over the past three years, global venture capital investment into Fintech has risen by 4.7x to $13.6 billion in 2016 and these companies are now creating significant shareholder value: there are now 39 Fintech companies valued at over a billion dollars.The reasons for the strong investment appetite are clear: using technology and data, Fintech firms in developed markets are providing financial services and solutions in more efficient and streamlined ways to fill the gap that legacy institutions have left. Meanwhile, in emerging markets, Fintech firms are building a world-class, digital-first financial services infrastructure.Fintech companies are now firmly established in the mainstream of the financial services market. Indeed, it is a point of debate how symbiotic the relationship between Fintech and traditional financial institutions is. However, we can be certain that there is more to come from the Fintech sector as it leverages the next wave of innovation and we expect investment into the sector to remain resilient.Venture Capital investment into Fintech globally remained robust in 2016 despite a challenging political and economic backdrop, underlining the long-term attractiveness of the sector. Across Alternative Finance, Digital Payments, Data &amp; Software, Insurtech, Digital Banking and Asset Management, there are now some 39 billion-dollar Fintech companies and there is a raft of companies hot on their heels.The Fintech sector is a tale of two regions. Explosive growth in China stems from the opportunities created by under-banked consumer and SME markets, strong growth in e-commerce and a supportive regulatory environment. However, in Europe, with its stronger traditional financial services sector, a focus on disruption is giving way to collaboration and enablement and a “flight to class” has emerged amongst investors targeting more mature segments, such as alternative lending and payments. Category winners are already emerging and consolidation is starting to pick up pace as investors become more selective, and established players look to M&amp;A to accelerate growth.A clear set of messages emerges for European Fintech from our guest experts included in this research. First, there remains a significant market opportunity focused on improving the user experience of financial services. The lines between sectors (lending, banking, payments, wealth management) are also starting to blur from the consumer’s point of view, as digital becomes the dominant channel for interaction. Second, Europe is able to leverage hubs of talent, strong financial services ecosystems and its regulatory environment. Finally, new waves of innovation are on their way to provide even greater value.At GP Bullhound, we work closely with many of the best companies and investors in the Fintech sector. We are passionate about building more category leaders across Europe and know that Fintech is a sector that will continue to shape the way financial institutions deliver services to consumers.This is the first part of our "Fintech - Anything but Alternative" series of insights.

Fintech - Anything but Alternative (Part 1: Key Trends)