02 Executive Summary
03
THE VIEW: Claudio Alvarez and Carl Wessberg
04 Key Trends
06
Funding for Fintech remains resilient
08
Alternative Finance leading the wayChina cements position as a leader
16 Alternative FinanceEXPERT VIEW: Christian Faes - LendInvest
20 Digital Payments
23
EXPERT VIEW: Jacob de Geer - iZettle
24
EXPERT VIEW: David Fock - Klarna
25
EXPERT VIEW: Oscar Berglund - Trustly
26 Data Software
29 Insurtech
32 Digital Banking
35
EXPERT VIEW: Rishi Kholsa - OakNorth Bank
36 Asset Management
40 Methodology
CONTENTS
EXECUTIVE SUMMARYGP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
Claudio Alvarez
Director
The reasons for the strong investment appetite are
clear: using technology and data, Fintech frms in
developed markets are providing fnancial services
and solutions in more effcient and streamlined
ways to fll the gap that legacy institutions have left.
Meanwhile, in emerging markets, Fintech frms are
building a world-class, digital-frst fnancial services
infrastructure.
Fintech companies are now frmly established in the
mainstream of the fnancial services market. Indeed,
it is a point of debate how symbiotic the relationship
between Fintech and traditional fnancial 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 &
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 fnancial services sector, a focus
on disruption is giving way to collaboration and
enablement and a “fight 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&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 signifcant market opportunity
focused on improving the user experience of fnancial
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 fnancial 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 fnancial
institutions deliver services to consumers.
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 signifcant shareholder
value: there are now 39 Fintech companies valued at over a billion dollars.
Carl Wessberg
Director
3FINTECH: ANYTHING BUT ALTERNATIVE
THE VIEW
From GP Bullhound
KEY
TRENDS
KEY TRENDS
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