Fintech financing

Fintech is still one of the fastest growing sectors, particularly in Asia (1). China’s Tencent has its fingers in many pies, from joint ventures in Fintech research (2) to online brokers (3), while Alibaba moves into Europe with a financial services acquisition (4) and a partnership with UK’s Barclaycard (5).

Indonesian Fintech is helped out by Chinese firms (6) as the state moves to integrate a unified QR payment platform that includes Alipay and WeChat pay (7), expanding financial access to their large unbanked population (8) while Australia offers investment opportunities for young Indonesian savers (9).

Both Grab (10) and Didi (11) have moved beyond ride-hailing and into the Fintech sector with Grab offering micro-financing schemes for SMEs and Didi offering risk-/ and wealth management services.

As Fintech grown the tables seem to be shifting. Rather than banks investing in innovative Fintech startups, it's now Fintechs that are looking at formal financial institutions to invest in (12).

The remarkable aspect of Fintech—to drive financial inclusion of firms that don’t qualify for traditional bank loans—is a major driver of its growth. As Fintech gains size and momentum it will have to find its place somewhere below the highly regulated world of Banking, while still adhering to a minimum level of risk aversion.

 

References

  1. Fintech News Network: 12 Infographics Showcasing the State of Fintech Around the World

  2. Chinese IT Giant Tencent and University of Hong Kong Collaborate on Fintech

  3. Tencent-Backed Online Broker Futu Rises in Trading Debut

  4. Alibaba’s Ant Financial buys UK currency exchange giant WorldFirst reportedly for around $700M

  5. Barclaycard and Alipay expand partnership for UK payments

  6. Exclusive | Akulaku to raise $100m Series D from investors including Alibaba’s Ant Financial

  7. Indonesian state-owned banks team up to launch a payment platform, integrating Ali & WeChat Pay

  8. Sinar Mas and Oriente Target Indonesia's the Great Unbanked With New Fintech Platform Finmas

  9. Australia Fintech Offers Micro Investment Services In Indonesia

  10. Grab launches SME loans and micro-insurance in Southeast Asia

  11. Didi launches financial service products amid tightened regulation - Asian Opps

  12. Fintechs Start Investing in Banks