Fintech Trends Globally
Fintech startups grows rapidly as financial institutions and financial services forced to keep reinventing in order to preserve their business. Nowadays, people prefer to do their banking through their bank’s online platform or smartphone app instead of driving then lining up to bank conventionally.
Bank digitally, using smartphone to make financial transactions, go online to find a loan, or transfer money across nation or even globe, are the solutions fintech could provides. The trend itself still maturing.
Global investment in fintech grew 67% to $5.3bn between January and March 2016, compared to the corresponding period a year earlier, according to a report released by Accenture. Fintech companies in Europe and Asia-Pacific accounted for 62% of all investments in the first three months of 2016. Investments in these regions have nearly doubled in the quarter on an annual basis.
Recently, DBS Bank reported has signed an agreement with Amazon Web Services (AWS) in a bid to become more "fintech-like" and responsive to customer needs, expecting 50 percent of its compute workload to be in the cloud by 2018.
Though DBS’s step is a positive move towards the trend, there’s a little bit more sobriety on the part of investors in 2016 compared to 2015, or even 2014. The end of 2014 and the beginning of 2015 were perhaps a little bit over-enthusiastic. Accenture’s report cites “relatively low participation” in venture-investing by the banks themselves, which in 2015 invested $5 billion of the $22.3 billion of reported investments. That compares to an estimated $50 billion to $70 billion that banks spend on internal fintech investment each year.