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Global Investment in the Fintech Sector Increased 173% in the Third Quarter

The investment in the fintech sector has grown globally. Regionally, the Americas continue to lead in total funding: US$56 billion in funding so far in 2021. The Americas and EMEA (Europe, Middle East, and Africa) have seen the largest growth in total investments in 2021 compared to the same period in 2020, up 163% and 155%, respectively.

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Investment in fintech companies increased 173% in Q3 2021 compared to the same period last year. That is highlighted in the State of Fintech Q3 report, recently published by Boston Consulting Group (BCG).

This increase continues to drive competition and the need for companies to take informed and swift action. Fintech trends are driven by two segments (payments products and accounts), with North America leading global investments.

“The fintech industry is booming not only in Colombia but globally. Fintech companies, for the last two years, have been growing at a significant rate, making them more attractive for sales and investors,” explained Marcial González, managing director, and partner at BCG.

In Colombia, not only has the number of companies grown but also the existing ones are consolidating more and more. According to the last two stages recorded by Fintech Innovation Radar Colombia 2020, 71% of the country’s fintech companies are in the growth and expansion phase.

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To date, 2021 investments have reached US$93 billion. This represents 90% of all 2020 investments

The total amount of funding in Q3 2021 is the highest in a quarter throughout 2021, totaling US$34.4 billion globally.

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Megadeals (investment rounds equal to or greater than US$100 million) are more frequent and have driven the investment growth seen in 2021. The third quarter of 2021 alone saw 101 megadeals, totaling US$23 billion.

Payments and accounts, which each received more than US$7.5 billion in investments, accounted for 45% of all investments in the third quarter.

Regionally, the Americas continue to lead in total funding: US$56 billion in funding so far in 2021.

The Americas and EMEA (Europe, Middle East, and Africa) have seen the largest growth in total investments in 2021 compared to the same period in 2020, up 163% and 155%, respectively.

Asia Pacific has seen the largest increase in investments from Q2 2021 to Q3 2021, with US$7 billion raised in Q3 2021, representing 97% growth compared to Q2 2021.

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(Featured image by stevepb via Pixabay)

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First published in Portafolio, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Helene Lindbergh is a published author with books about entrepreneurship and investing for dummies. An advocate for financial literacy, she is also a sought-after keynote speaker for female empowerment. Her special focus is on small, independent businesses who eventually achieve financial independence. Helene is currently working on two projects—a bio compilation of women braving the world of banking, finance, crypto, tech, and AI, as well as a paper on gendered contributions in the rapidly growing healthcare market, specifically medicinal cannabis.