America embraces FinTech industry with huge investments

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FinTech investment in the United States has tripled in the space of 12 months, climbing to $9.89 billion in 2014, up from $3.39 billion in 2013.

The figures are uncovered within ”Fintech New York: Partnerships, Platforms and Open Innovation”, a new piece of research undertaken by management consulting firm Accenture and the Partnership Fund for New York City. The study was unveiled at the annual FinTech Innovation labs Demo Day.

The report highlights the 191 per cent increase in FinTech investment across the United States. Nations around the world are also paying attention to the FinTech industry, as global investment tripled in 2014 to $12.2 billion, from $4.05 billion in 2013.

The payments industry is profiting from increased investment, as well as the lending, trading technologies and wealth management sectors. In 2014, payment companies were involved in the most FinTech deals (29 per cent).

‘‘This past year marked a paradigm shift in how financial services companies approach and embrace fintech innovation, as they recognize the vast potential that this strong network provides,’’ commented Robert Gach, managing director of Accenture Strategy Capital Markets.

In New York City however, popularity within the payments industry has fallen, with spending decreasing to 21 per cent in 2014, down from 33 per cent in 2013.

‘‘An increasing number of banks and insurers are investing in connecting into the fintech ecosystem, whether through accelerator or incubator labs, venture investments or in other ways. We believe this explosive growth in fintech will help drive innovation within some of the world’s largest financial institutions,’’ continued Gach.

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