Financial-technology investments in China may exceed the last year`s record of $10 billion as companies continue to raise money for expansion and big
Financial-technology investments in China may exceed the last year`s record of $10 billion as companies continue to raise money for expansion and big banks invest in digital services, according to Accenture.
“The investment will continue to sustain at least at this level, if not more, for the year to come.”, said Albert Chan, managing director of China financial services at Accenture, in an interview with Bloomberg (bloomberg.com).
“This year we are likely to see continued significant investment into fintech in China both from new market entrants and traditional financial institutions.”, added Chan.
The companies investing in financial services in China will probably turn to areas like artificial intelligence, blockchain and the so-called big data and cyber-security to improve their product offerings, commented Chan.
Last year China accounted for about 20 percent of world`s financial technology investments, as a report of CBInsights found. Cryptocoinnews.com noted that the deals are far more substantial in the region with 43 percent of the global funding that took place in Asia in 2016, reported their publication.
Big investments in China look promising with the financial deals of companies like the payments and investments business JD.com Inc. and the peer-to-peer lender Lufax. JD.com Inc. sold its finance arm for 14.3 billion yuan ($2.1 billion) in cash while retaining a share of its future profits, while Lufax fundraised $1.2 billion in January 2016, reported Bloomberg.
At the same time, some banks are exploring new technologies to counteract the competition of tech start-ups. In the first half of 2016, more than 90 percent of banking transactions went through online channels at China`s four largest banks, as Bloomberg Intelligence analysts explained.
“The early success of the new entrants to the market inspires more traditional financial institutions to follow suit. “, said Chan who expects to see more such initiatives. “There will continue to be a capital influx in this area.”, added he in an interview with Bloomberg.