Fintech financing in Asia Pacific in 2016 was more than that of North America, according to a newly released report from Accenture.
This growth was driven primarily by a wave of blockbuster deals in China, where just 3 percent of the deals accounted for about 43 percent of total fintech investment globally.
Fintech financing in Asia-Pacific in 2016, more than doubled, to US$11.2 billion from US$5.2 billion in 2015.
The report indicates an increase in the number of fintech deals in all major geographies, to about 1,800 from 1,200 in 2015.
"For many years Silicon Valley, New York and London were the dominant centers of innovation and demand, but now fintech has spread like wildfire around the world, and Asia Pacific has become the rising star," said Richard Lumb, Group Chief Executive - Financial Services at Accenture.
China rules fintech investments
Together, China and Hong Kong accounted for US$10.2 billion, or 91 percent, of Asia-Pacific's US$11.2 billion in fintech investments in 2016.
According to Lumb, the shift of investment from West to East is largely due to the greater opportunity for new entrants who can leverage fintech to define the new fabric of the industry than in the West.
"Alibaba and JD.com were two major fintech investors this year, as they focus on providing their customers with end-to-end services including payments and lending," said Albert Chan, Managing Director, Financial services China, Accenture.
All of the 10 largest fintech investments in Asia-Pacific last year accounted for 82 percent of all Asia-Pacific fintech investment.
One interesting point is that while the number of fintech deals outside Asia Pacific in 2016 increased 48 percent, the reported amount of dollars invested fell 24 percent.
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