The rise of China as a fintech powerhouse has been confirmed by a new survey revealing the world’s leading fintech companies.
Compiled by fintech investment firm H2 Ventures and KPMG Fintech, the survey includes the ‘leading 50′ fintech firms and the ’emerging 50′, with the latter based not on size but on potential, linked to their innovative nature. That can involve the use of cutting-edge technology or new practices and business models.
The stand-out statistic from the leading 50 list was that the three largest firms – Ant Financial, ZhongAn and Qudian (Qufenqi) – are all from China. Moreover, the world’s largest country has five of the top ten, with Lufax in sixth place and JD Finance ninth.
Chinese fintech firms ranked highly because of their innovation, ability to raise capital, scale and reach.
Another major player in global fintech, the US, has considerable strength in depth. As well as three firms in the top ten – Oscar, Avant and Kabbage at fourth, fifth and tenth respectively – the US has 19 companies in the top 50, the most of any single country.
Europe accounts for the two firms in the top ten not from the US or China – seventh-placed Kreditech from Germany and UK-based Atom Bank in eighth.
However, global growth of fintech is perhaps the most telling feature this year, with firms from 29 countries making the 2017 list, compared with 22 in 2016.
This figure is likely to rise further next year. The disruptive nature of technology – and the desire to use fintech to break down barriers – is likely to drive the rising popularity of fintech in business everywhere. The dominance of the US and China to date may be predictable given their economic size and competition, but it is by no means guaranteed to last.
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