2018 Global FinTech Hub Report - University Of Cambridge
2018The Future of Finance is Emerging:New Hubs, New LandscapesGlobal Fintech Hub ReportHangzhou2018-11-14
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ForewordAs a new promoter for the global economic and financialdevelopment, Fintech is becoming a focus for each country toignite their economy, and a new Fintech landscape isemerging. At the same time, there is a growing awareness environment, and the availability of digital infrastructure,which may be fundamental for the sustainable developmentof Fintech.Since the first launch of the Global Fintech Hub Index 2018 inAmsterdam in June, we continued to broaden our observationscope, and studied more than 70 cities in 6 continents, anddrew a “30 N” global landscape that included the TOP30global Fintech hubs and many emerging hubs.Time is something we cannot lose, and opportunity is whatwe cannot miss. A slogan for the new Fintech era is moreintegrated, more generous, and more borderless. It representsthe good wishes for an inclusive financial system, where“everyone is born equal” and are calling us to seize themoment, be brave to lead, and to create a new world.1
Key FindingsAsia and Americas Lead, Europe FollowsOut of the TOP7 global Fintech hubs, 6 are in Asia andthe Americas. In Europe, only London comes in at No.4,development is slightly slowerPractice Precedes Regulation, Leadingto Chaotic DevelopmentPractical adoption of Fintech precedes regulatoryactivities, especially in developing countries, which maylead to chaotic development, and hinder thesustainable development of the industryTraditional Financial brace FintechGenerally, traditional financial institutions haverecognised the importance of Fintech. They either relyon their own advantages, or actively seek cooperationwith Fintech businessesThe Fintech Adoption Rate is GraduallyIncreasingChina leads in the number and percentage of Fintechusers. India comes at a close second, while developednations continue to lag behind2
Contents01. 2018 Fintech Hubs01-1. Keywords01-2. Global Landscape01-3. Rankings02. Deeper Insight02-1. Global Fintech Hubs02-2. Regional Fintech Hubs02-3. Emerging Fintech Hubs03. About GFHI03-1. The Index System03-2. Data & Calculation3
2018 Fintech Hubs Keywords Global Landscape Rankings4
2018 Fintech Keywords: 30 N, Regulation, CapitalThe Industry continues to attractRegulationHubs are gradually settled,capital, and the size of investmentnew leaders are catching upgrows simultaneouslyObserve globally more than 70 cities, and select theTOP30 as the global or regional Fintech hubs. Identifythe other cities as new leaders(emerging hubs), therebycreating a ‘30 N’ global landscape1The investment raised for the Fintech industryincreases annually, where the quality and sizeof transactions gradually increases23As each country attaches increasingimportance, the regulatory capability indeveloping countries may become a hindrance30 NFintech is becoming a key competitor for cities, andglobally each country is paying more attention. Theinadequacy of regulatory capabilities in developingcountries may become a hinderanceCapital5
Fintech Global Landscape: Asia and Americas Lead, Europe FollowsNote: The above yellow-numbered cities are the 7 Global Fintech Hubs, the blue-numbered cities are the 23 RegionalFintech Hubs, and the 25 unnumbered cities are the new leaders (Emerging Fintech Hubs)Source: Sinai Lab from Academy of Internet Finance (AIF), Zhejiang University, and Hangzhou Moses Technology6
Global FintechHubsRegionalFintech HubsCityCountryTotalRankingBeijingSan FranciscoNew Hong mAtlantaLos AngelesSeoulTel AvivBerlinTorontoNanjingBangaloreMumbaiSao naSwedenUSAUSASouth 31927TOP30 HubsGlobal Hubs 1-7 Scores Average 75.0 4 in China 2 in USA 1 in UKReginal Hubs 8-30 Scores Average 50.7 9 in Asia 7 in Americas 6 in EuropeSignificant difference between globaland regional hubs Difference in Scores average is 24.3The inadequacy of regulatorycapabilities has already impacted theperformance of Chinese cities Although Chinese cities did well in therankings, the drop in their scores comparedto the first indexing period is material7
Emerging Fintech Hubs: Asian and European Cities are Making ProgressThere are 25 emerging Fintech hubs in this report. They are selected from more than 70 observed cities. The criteria included Fintech performance andregional influence, etc. In the future, the observation scope will continue to be ne, Chengdu,Chongqing, Xi’an, Manila, HoChi Ming City, Jakarta, KualaLumpur, Bangkok, Dubai,KarachiBarcelona, Frankfurt, Warsaw,Moscow, Geneva, Milan,Brussels, Vilnius, SaintPetersburg, IstanbulBuenos Aires, Mexico CityNairobi, Cape Town11/2510/252/252/258
Fintech Industry: Beijing is No.1 while China and USA onCityRankSao Paolo21ParisBeijing: No.1 Global Fintech industry ranking: No.1 Number of leading Fintech companies:No.1 in the world22 New York3Atlanta13Seoul23London4Tokyo14Los Angeles24Shanghai5Stockholm15Guangzhou25Total funds raised in Fintech: No.2 inthe worldChina 5 cities in China are in the global TOP10,7 cities in the Dublin27Chicago8Toronto18Nanjing28 Out of the TOP10, China is the onlydeveloping countryUSASydney9Tel Aviv19Zurich29Hong Kong10Seattle20Amsterdam30 In the TOP10, 3 are in the USA Top ranking in the digitalization of thetraditional financial sector9
TOP10 Cities with Their Leading Fintech Companies: Beijing andHangzhou Represent China in Leading the WorldBeijingThe largest number ofleading companies: 58HangzhouHighest Funds Raised: 23.9BHighest Average Funds Raised: 1.8BNote: The histogram illustrates Number of Fintech Companies with Total VC Investment Exceeding 50M, the linegraph illustrates the total funds raised ( B) with Total VC Investment Exceeding 50MChinaMost Ranked Cities: 4Most Ranked Companies: 115Highest Funds Raised: 57.8B10
TOP10 Fintech Fund Raising, All from China & USA: Ant Financial LeadsAnt Financial Raised most funds and Ranks No.1, approximately 4 times of No.2, and 13 times of No.10USA accounts for 3 of TOP10China accounts for 7 of TOP10，approximately 6-7 times the volume of funds raised in the USAName: Ant FinancialBusiness: GeneralMost Recent Funding Round:Strategic FinancingTotal Funds Raised:Approx. 20BCity/Country:Hangzhou/ChinaName: JD FinanceBusiness: GeneralMost Recent Funding Round:B RoundTotal Funds Raised:Approx. RMB34BCity/Country:Beijing/ChinaName: Social FinanceBusiness: GeneralMost Recent Funding Round:F RoundTotal Funds Raised:Approx. 2BCity/Country:San Francisco/USAName: Du Xiaoman FinancialBusiness: GeneralMost Recent Funding Round:Strategic FinancingTotal Funds Raised:Approx. 1.9BCity/Country:Beijing/ChinaName: AvantBusiness: Marketplace LendingMost Recent Funding Round:E RoundTotal Funds Raised:Approx. 1.8BCity/Country:Chicago/USAName: Suning FinanceBusiness: GeneralMost Recent Funding Round:Strategic FinancingTotal Funds Raised:Approx. RMB12BCity/Country:Nanjing/ChinaName: LufaxBusiness: Marketplace LendingMost Recent Funding Round:C RoundTotal Funds Raised:Approx. 2.3BCity/Country:Shanghai/ChinaName: ZhongAnBusiness: Online InsuranceMost Recent Funding Round:Strategic FinanceTotal Funds Raised:Approx. 2.8BCity/Country:Shanghai/ChinaName: QudianBusiness: Consumer FinanceMost Recent Funding Round:IPOTotal Funds Raised:Approx. 1.8BCity/Country:Beijing/ChinaName: KabbageBusiness: Marketplace LendingMost Recent Funding Round:E RoundTotal Funds Raised:Approx. 1.6BCity/Country:Atlanta/USA11
Fintech Consumer Experience: China Leads with Hangzhou Ranking ntry/RegionCityRankChina: No.1 Hangzhou1New York11Tel Aviv216 Chinese cities dominate the Fintechexperience ranking TOP10 whileHangzhou ranks 1stShenzhen2Sao Paulo12Zurich22 Applied Fintech to Payment, WealthManagement and Marketplace 14Chicago24Shanghai5Los Hong Kong17Stockholm27London8Boston18Dublin27etc.India at a Close Second 57.9% Bangalore9Atlanta19Singapore29Average percentage of Fintech users isFocused on the Marketplace Lendingconsumer experienceRoom for Improvement forDeveloped Countries London performs best Average percentage of Fintech users is34.2%, much lower than that of ChinaSanFrancisco10Seoul20Tokyo30(83.5%)12
Fintech Ecosystem: Cities from Developed Countries Lead withNew York, San Francisco and London at the ntry/RegionCityRankThree Leading Cities New YorkSanFrancisco12BostonChicago1112Tel AvivAtlanta2122New York, San Francisco and Londonlead in different aspects New York: driven by traditional finance San Francisco: driven by technicalinnovationLondon3Hong Kong13Dublin23 Beijing4Shanghai14Nanjing24Lead by Developed Guangzhou26Seattle7Shenzhen17Amsterdam27Developing Countries LagBehindLosAngeles8Sydney18Bangalore28 London: driven by regulatory innovation Average score: 64.2 Account for 4 of the 5 Top ecosystemranked citiesAverage score: 58.4, the main reason wasa large lag in the regulatory scoreTokyo9Zurich19Berlin29 Beijing is the only city from a developingcountry that scores TOP5 in ecosystemStockholm10Toronto20Sao Paolo3013
Deeper Insight Global Fintech Hubs Regional Fintech Hubs Emerging Fintech Hubs14
Beijing: Global Fintech Industry Leader, Supported byTechnical Innovation and EconomyAbout BeijingCapital of China, a political, cultural and international centre, the largest land and airtransport hub, it is a world-famous ancient capital and modern cosmopolitan city1Total Ranking144Industry Experience EcosystemKey Advantages No.1 in Global Fintech Industry Rank 1st with 58 leading Fintech companies, including JD Finance, Du Xiaoman Financialand Qudian. These 58 companies received combined funds of 21.2BCriteriaNumber of Fintech Companies with Total VCInvestment Exceeding USD 50 MillionFinancing Received by Fintech Companies withTotal VC Investment Exceeding USD 50 Million( 07.12--6 Innovation Hub in China Market value of TOP200 global tech companies ranks 2nd in the world 186,000 patent applications in 2017 Cluster of startup incubators and innovation labsInstitutions ( 100M) Best Fintech Ecosystem in ChinaMarket Value of TOP200 Global Tech Companies Second largest GDP in China and one of the world's most populous cities Top universities rank 1st in China, and it has 10 global TOP500 universitiesGovernment Policy Support (100 pt scale)68.218 Market value of TOP200 global financial institutions ranks No.2Fintech Regulation Score (100 pt scale)64.222Digitalization of Traditional Financial SectorPercentage of Fintech Users (%)Market Value of TOP200 Global Financial( 100M)Top Universities15
Beijing Opportunities: Regional Integration and the Adoption of RegtechAdoption of Regtech Issued The Plan to Encourage the Development ofDigitalization of the Financial Sector Traditional financial institutions are accelerating their closeFintech in Beijing to promote an industry cluster whereRegtech is the corecollaboration with Fintech companies, e.g. the strategicalliance between China Construction Bank and Ant Financial,and between ICBC and JD Finance, etc.The Integrated Development of Beijing,Tianjin and Hebei Opportunities from the integrated development ofInternational CollaborationBeijing, Tianjin and Hebei, and the establishmentof the Xiong’an New Area The successful hosting of internationallyTalent Traininginfluential conferences such as the Science Expo, Currently accelerating the training of a skilledand Global Fintech Summit brought theFintech labour force by taking advantage of theimprovement of its international right of speechNo.1 Top University resource and otherspecialist research institutions16
San Francisco: Silicon Valley AdvantageAbout San FranciscoHarbour City and world-famous tourist attractions, the birth place of the UnitedNations. San Francisco is located close to the Silicon Valley, which is the global2centre for high technology, venture capital, innovation, and social mediaTotal Ranking2102Industry Experience EcosystemKey Advantages No.2 in Global Fintech Industry Rank 2nd in the number of leading Fintech companies that has raised accumulated fundsof more than 13.1B, and RankCriteria3rdin total funds raisedNumber of Fintech Companies with Total VCInvestment Exceeding USD 50 MillionFinancing Received by Fintech Companies with TotalVC Investment Exceeding USD 50 Million ( 48.07--3 Many Fintech unicorns came from San Francisco Advanced Information Technology Innovation Industry Located close to the top high-tech innovation centre – the Silicon ValleyMarket Value of TOP200 Global Financial Institutions Market value of TOP200 global tech companies ranks No.7 in the globe( 100M) Large Talent Pool and Ample VC Investments Rank 3rd in comprehensive strength of top universitiesTop Universities Close collaboration between industry and academic researchGovernment Policy Support (100 pt scale)79.73 Location of the headquarters of internationally famous investment institutions such asFintech Regulation Score (100 pt scale)80.47Digitalization of Traditional Financial SectorPercentage of Fintech Users (%)Market Value of TOP200 Global Tech Companies( 100M)Walden International and WI Harper Group17
San Francisco Opportunities: Bay Area Cities CollaborateCollaboration among Bay Area Cities The cities in the San Francisco Bay Area haveachieved a relationship of resource sharing,Advantages in City Culture Willing to take risks, multicultural, and encouragingcollaboration, complementation and friendlycompetitioninnovation are deeply routed in its city culture, giving thetechnology companies in San Francisco a chance to breakthroughTech Companies Embrace Fintech A large number of leading tech companies actively embraceBalance between Innovation and Risk ControlFintech reforms, relying on big data analysis and excellentconsumer experience Regulation and the encouragement of innovationare relatively balanced, as well as the everimproving laws related to the Fintech industry18
New York: The Best Ecosystem Driven by TraditionalFinanceAbout New YorkLargest industrial and business pivot in the world, including finance, internationaltrade and manufacturing. The most important economic sector lies in its role as the33headquarters for the USA financial industry, known as the Wall StreetTotal Ranking111Industry Experience EcosystemKey Advantages No.1 in Global Fintech Ecosystem The largest city in the USA Second largest GDP in the world Highest Digitalization Level of the Financial Sector in the WorldNumber of Fintech Companies with Total VCInvestment Exceeding USD 50 MillionFinancing Received by Fintech Companies withTotal VC Investment Exceeding USD 50 Million( 100M) Global financial centre with Wall StreetDigitalization of Traditional Financial Sector Market value of TOP200 global financial institutions ranks No.1Percentage of Fintech Users (%) Global Leader in Technology Talent Cluster of top universities and form the largest concentration of higher educationMarket Value of TOP200 Global Tech Companiesinstitutes in the world( 100M) Market value of TOP200 global tech companies ranks No.3 in the 3688.016267.33--1Government Policy Support (100 pt scale)70.714Fintech Regulation Score (100 pt scale)71.718Market Value of TOP200 Global FinancialInstitutions ( 100M)Top Universities19
New York Opportunities: Financial Giants Catch Up in Formulatingtheir Fintech StrategyGlobal Strategy of Fintech Business Traditional financial institutions are pivoting on theirinternational branches, to actively expand theirRegulatory Sandbox Encourages Innovationoverseas Fintech business The US CFPB plans to build a regulatory sandbox, tosupport the financial services industry innovationsThe Supplementary Development of Fintech Companiesare Igniting New Growth for New Finance Fintech startup companies are achievingsupplementary development in the sub-divisionof the financial services industry, igniting newgrowth20
London: Pioneer in Regulation, Global TOP3 in EcosystemAbout LondonAs the political and economic centre of UK, London has the highest GDP per capitanationwide. Its financial industry, commerce and tourism development reachedpremier prestige in the world4Total Ranking483Industry Experience EcosystemKey Advantages Global Financial Centre Undoubtedly a global financial centre Cluster of world-leading financial institutions, including HSBC, Barclays and StandardChartered Bank, etc.CriteriaNumber of Fintech Companies with Total VCInvestment Exceeding USD 50 MillionFinancing Received by Fintech Companies withTotal VC Investment Exceeding USD 50 Million( 014--2Government Policy Support (100 pt scale)79.04Fintech Regulation Score (100 pt scale)87.11 Market value of TOP200 global financial institutions ranks No.3 globallyDigitalization of Traditional Financial Sector Cluster of Top Research UniversitiesPercentage of Fintech Users (%) Rank 2nd in comprehensive strength of top universities in the world, including UniversityMarket Value of TOP200 Global FinancialInstitutions ( 100M)College London, and Imperial College LondonMarket Value of TOP200 Global Tech Companies Global Pioneer in Fintech Regulation( 100M) Best Fintech regulation in the world Pioneering regulatory innovation, the first regulatory sandboxTop Universities21
London Opportunities: Expanding its Regulatory Leadership, andUnleashing the Potential of Financial InstitutionsRegulatory LeadershipAccelerators and Incubators E.g. Startupbootcamp Fintech accelerator programme The FCA started Project Innovate in October 2014 Barclays RISE Encourage the trialling of self-regulation within the industry Techstars and Accenture’s Fintech Innovation Lab(the first P2P industry association in the world), and Incubators such as Level39, Silk Venturesencourage the industry to develop virtual sandboxes orumbrella sandboxesMuch to Happen for the Digitalizationof the Traditional Financial Sector In November 2016, the regulators encouraged largefinancial institutions such as HSBC to collaborate withCapital Drives the Growth ofFintech Companies As a global financial centre, there are manyglobal investors, such as Accel, Anthemis Group,startups Among the leading UK banks, Lloyds Banking Group iscurrently ahead of the pack in terms of its early adoption ofFintech and “open banking”. The next best is Barclays, withHSBC and RBS seemingly the stragglersBalderton Capital, Index Capital, Octopus, etc.22
Shanghai: Balanced Industry, China’s InternationalFinancial CentreAbout ShanghaiLocated in the Yangtze River Delta in China, the Chinese commercial and financialcentre, topped Forbes “Best Cities for Business on Chinese Mainland” in 20175Total Ranking5514Industry Experience EcosystemKey Advantages Fintech Industry Ranks No.2 in ChinaRank5thin the number of leading Fintech
Beijing: Global Fintech Industry Leader, Supported by Technical Innovation and Economy Capital of China, a political, cultural and international centre, the largest land and air transport hub, it is a world-famous ancient capital and modern cosmopolitan city About Beijing Criteria Score Global ranking Number of Fintech Companies with Total VC Investment Exceeding USD 50 Million 58 1 Financing .
FinTech waves – Italian FinTech Ecosystem 2020 2 Research goals and methods 3 Executive summary 5 Update post COVID-19 8 1 Financial services trend 10 Global trends 11 Europe trends 13 Italian trends 16 2 The FinTech market 26 FinTech environment 27 Global trends 29 Europe trends 39 Italian trends 45 3 Italian FinTech ecosystem 53 4 The investor
Overall fintech investment Inclusive fintech investment Inclusive Fintech 50 applicants 4 inclusivefintech.com Fintech investment is booming. In 2018, a record USD 111.8 billion1 was invested in fintech, and the sector garnered extensive media coverage2 and interest.3 But despite fintech's growing profile—and even though it can help unlock trillions of dollars in value4 by reaching
FinTech and the Automotive Industry There are many synergies between FinTech and the automotive industry Highly regulated industries Focused on promoting consumer/user experience Data is critical to all aspects of the industry FinTech - Changing the Game Automotive industry now embracing FinTech, propelled by:
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3 PwC Global FinTech Report FinTech has had a staggering effect on the market in the past year. Funding for FinTech projects i
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Only a few paper examines the expansion of Fintech lending to small businesses.Gopal and Schnabl(2020) find that finance companies and Fintech lenders substitute banks in small business lending market after the Global Financial Crisis, while Balyuk et al.(2020) document the differential effects of banking lending on Fintech growth
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