North America Ranks First Globally for VC Fintech Funding – Report

New research has revealed that North America ranks first in the world “for Fintech venture capital funding.”

The new study, conducted by the researchers at Tipalti, “analyzed factors such as global fintech adoption rates, searches for Fintech by country and the regions that have the highest virtual capital funding to uncover the world’s biggest Fintech adoption hotspots.”

As noted in the update shared with CI, North America tops the ranking “as the region with the highest amount of venture capital funding into its fintech industry.” Of the global capital funding that has “gone into fintech in 2022, 56.3% has gone specifically to the North American fintech market.”

Following up in second place is Europe, “receiving the second highest proportion of venture capital funding in fintech. Europe is home to some of the most well-known disruptor banks in fintech, such as Revolut, Monzo and Starling Bank.” Of the venture capital funding into fintech in 2022, 22.2% “went into European markets.”

Rounding out the top three is Asia. Alongside the US, China has one of the biggest fintech markets in the world, and many other Asian countries “have high fintech adoption rates.” Asia has the third largest venture capital funding as of 2022, “with 16.1% of all venture capital funding for fintech going to the continent.”

Further research shows:

Across the six markets that were researched, there “are just three that are above the 60% average for fintech adoption rates as of 2019: the UK, Singapore and Hong Kong. In fact, despite having one of the largest fintech economies in the world, the US has just a 46% fintech adoption rate, the lowest of the six markets.”

Japan had the lowest adoption rate of fintech “amongst the country’s digitally active population, at just 34% as of 2019.” This sees Japan lagging behind other countries in Asia, such as China and Singapore. However, this is largely “due to the innate nature of Japan’s financial environment, which is extremely conservative and risk-averse. As a result, fintech investment is very low in the country.”

China emerges as the country “with the highest fintech adoption rates.” As of 2019, 87% of China’s digitally active population “has adopted the use of fintech.” Tied with India, these two countries have “been leading the fintech market for years.”

You may review the full research here.

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