Between 2008 and 2013, global investment in financial services technology ventures tripled according to a recent study by Accenture and the Partnership Fund for New York City. Specifically, it grew from $928 million to $2.97 billion in the five-year period.
The report predicted that the global fintech investment will increase to an estimated $6 to 8 billion by 2018.
“Financial services-sponsored venture capital investment will continue to grow as institutions recognize that a go-it-alone approach of in-house development isn’t enough,” Capital One head of digital venture investing Jaidev Shergill said in the report, according to Bank Systems & Technology. Last year, Capital One launched its own fintech venture capital fund.
According to the report, the U.S. is the biggest market for fintech venture capital investment, making up 83 percent of the global market. Additionally, the areas showing the highest increase in fintech investment include mobile, data and analytics, cloud and cyber security.
The study attributes the growth to various factors in the technology and banking space, including the spread of open source and cloud-based technologies that help cut costs for new startups, as well as banks having to cut costs as tougher capital requirements take effect.
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