Asia`s financial industry is booming as fintech funding surged to $10.5 billion in the first nine months of 2016, according to a recent study.Bloo
Asia`s financial industry is booming as fintech funding surged to $10.5 billion in the first nine months of 2016, according to a recent study.
Bloomberg Intelligence analysts Francis Chan and Zhen Qin stated:
“Asia’s financial industry is lining up behind Blockchain, an emerging fintech to promise friction-free, peer-to-peer transactions to help banks and new challengers cut costs for transferring money and other assets.”
“Asia’s Blockchain startups may gain share in the global market after fintech funding surged to $10.5 billion in the first nine months of 2016, more than double the $4.3 billion for full-year 2015.”, as the analysis added.
The region`s total is dominated by China, which comprised over 90%, due to fundraising by internet giants.
A growing number of Blockchain start-ups
As the research explained, the number of blockchain start-ups in Asia may surge in 2016-17 as regional banks push for the technology`s applications.
“R3, a blockchain developer, just launched an Asia-based incubator dubbed the Blockchain Center of Excellence, with support from banks including JPMorgan, HSBC and Mitsubishi UFJ.”, reads on bloomberg.com.
Asia fintech centers trail UK, US and Germany as ecosystems
Ernst & Young (EY), a company focusing on assurance, tax, transactions and advisory services, noted as quoted by the study:
“Singapore, Hong Kong and Australia, Asia’s main fintech centers, trail the U.K., California and New York in areas such as talent, capital and demand.”
“Hong Kong was last of seven locations for talent, Singapore held the same place for capital and Australia for fintech demand.”, as the analysis elaborated.
China leads Asia fintech deals
China has dominated Asia`s fintech investment in 2016, because the financial industry is offering new product opportunities, as the analysis explained.
“In 3Q, venture capitalists closed seven of Asia’s top 10 fintech deals in China, contributing $950 million in funding, or almost 80% of the region’s total.”
The Asian region is obviously impacted by blockchain technology. Future transformations are to be followed.