Financial start-ups in Asia experienced a new record in investments of $4.5 billion in 2015, representing a figure that is four times more that last year’s, making the continent one of the most key markets globally for the technology revolution that will help financial services in the industry.
The amount of investment in P2P lenders, payment service providers and insurance companies based online was calculated at $19.1 billion, a 60 per cent increase in the amount of investment made in 2014.
Asia saw the benefit of greater paced investments which were driven by large funding rounds into the financial technology sector in both China and in India, who have huge markets in which consumers are constantly using their mobiles to purchase products, such as insurance or goods. It is a technological trend that is set to rise.
China has had their investments increase by three times the amount the U.K has over the last two years as the total for investments spiked to $2.7 billion.
Zennon Kapron the founder of Kapronasia which is a financial research company based in Shanghai said:
“Naturally, because growth in the region is quite high, you should expect to see continued investment.”
China and India, due to their vast populations and quick adoption rates to the latest technologies, are important key players in the fin-tech industry for companies who are seeking to challenge the major market players such as banks, insurance companies and credit card operators.
In India 1.27 billion people don’t have access to a bank account and just 252 million people have internet, however companies that want to leverage the technology that gives people entry to financial services, which work particularly well on mobile devices, see this as a good opportunity.
Harish HV, partner at Grant Thornton based in India said:
“The rising number of people getting used to smartphones and new technologies in India will result in more funds flowing into the fintech solutions providers in the near-term at least.”
Some of the top fin-tech companies in the world in terms of valuation are located in China such as the online lending operator named, Lufax and also the internet insurer company Zhong An Online Property And Casualty Insurance.
Lufax recently finalized a $1.2 billion funding round at the beginning of this year and Alibaba Group Holding Ltd’s financial department called, Ant Financial Services Group, is expecting to raise funds of around $3 billion, assuring its strong place in the market for 2016.
One97 Communication, an Indian mobile payment service, managed to get the sixth place on the fin-tech list of global leaders, emphasizing the value investors see in such companies within the area.