Reuters reports that companies in the financial technology industry were able to get a significant record to the tune of $39.57 billion in 2018. According to a study conducted by CB Insights, this reflects up to 120% growth when compared to 2017’s records. This is a result of 1,707 deals, which is 227 more than those in 2017.
Perhaps some of the most remarkable contributor to this tremendous increase is 52 the investments over $100 million funnelled towards these companies. The sum total of these funds amounts to a whopping $24 billion.
Some of the biggest contributors to this growth are Ant Financial (which received $14 billion), as well as the so-called fintech unicorns Brex, Monzo and Plaid (all have values above $1 million).
What’s in Store for Fintech in 2019?
With the success of the financial technology industry, experts are weighing in on what 2019 has to offer for these companies. Reporter Madhvl Mavadiya predicts the prevalence of cashless payment methods this year. Mavadiya also sees issues such as immigration and Brexit as areas in which the sector can contribute more.
In terms of economic success, Techcrunch is optimistic of financial technology’s performance. In the past, the publication was correct in foreseeing the relevance of fintech, as well as the increase in market values of companies in this sector.
For 2019, Techcrunch predicts that the Matrix Fintech Index is set to show 200% returns, which would overtake the S&P 500. Moreover, the publication foresees a rise in the number of unicorns, which they project to have a total value of more than $90 billion.
Indeed, financial technology businesses are revolutionising the landscape across many countries. With 2019 being a positive year for the industry, it is set to achieve greater feats, albeit with some challenges.