This is the time of the year when many consulting, research, and media firms make FinTech predictions. We wanted to do it differently this time but also wanted to put ourselves to the test. Skin in the game is what we are doing here; let’s look back at the predictions we made last year and see where we have reached. In December 2017,we predicted that banks would start buying FinTechs, invest more, and learn to benchmark innovation in 2018[1]. We also predicted that, in the year 2018, you can see new venture arms/funds of FIs/banks cropping up and that you would see more action from the existing venture arms of banks. Some banks may not have these arms or may not call them that, but you will see corporate development and M&A teams getting into action. So, has this prediction really come true?
Let’s take a look at the investment and acquisition deals of 2018:
Analysis of Investment Deals
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Total value of investment deals – 5B USD
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Total number of deals – 139
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59 banks have invested in 94 FinTech companies
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9 insurance companies have invested in 14 FinTech companies
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14 asset management companies have invested in 30 FinTech companies
Here are some of the top investment deals:
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Deutsche Bank, Mitsui Banking Corporation & Goldman Sachs invested USD 900M in Prodigy Finance
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Goldman Sachs has invested USD 250M in Cadre
