Emerging markets lead fintech deals in first quarter of 2018

Emerging markets lead fintech deals in first quarter of 2018

Figures from machine intelligence platform CB Insights have shown a record rise in the number of global financial technology deals in the first quarter of 2018, with emerging markets leading the way.

The Global Fintech Report showed that the number of fintechs that secured funding in Q1 2018 stood at 323, up from 286 in the final quarter of 2017.

Increase

The total amount of funding reached $5.4 billion, an increase of 30% from $4.2 billion from Q4 2017 and only around 2% lower than the record high of $5.5 billion in the third quarter of 2015.

The research identified a number of fintech trends in the first quarter of the year. While the number of fintech deals in the US dropped by 12% from $2.5 billion in Q4 2017 to $2.2 billion in Q1 2018, funding in developing markets saw a significant increase.

Asia led the way in terms of deals, with funding increasing by 188% from $701 million in the final quarter of 2017 to $2.2 billion in the first quarter of 2018. OneConnect was the main driver of growth, with the fintech firm raising $650 million in funding last month.

Rise

The figures also showed that whilst early-stage investments in Europe fell from 77 in the final quarter of 2017 to 63, there was a rise in overall funding levels, which were driven by more than $100 million being invested into German Bank N26 and UK-based digital challenger bank Atom Bank.