The global fintech list selects 50 well-developed global fintech innovators to form dimensions of valuation, financing, establish time, primary strategy and product or model innovation in 2020. This report will focus on fintech innovation, analyzing the innovation opportunities and challenges in the seven sub-sectors of paytech, insurtech, wealth management technology, bank technology, risk management technology, micro technology, and new financial infrastructure.
In December 9-12, EqualOcean is holding the World Innovators Meet (WIM) 2020. This year, the event's main topic is 'Technology and Innovation Connect the World.' WIM2020 gathers innovators from Asia, Africa, Europe and the Americas to share their knowledge and key achievements, promoting the concept of 'Tech for Equal.'
The essence of fintech is that technology empowers finance and finance services entities. The application and iteration of AI, blockchain, clouding calculation and data empower “new” ability to finance industry. In addition, the demand change for customers and Fierce competition in the industry also simulate a strong start for the “new” financial industry. From global perspective, the adoption rare in china already reached to 87%, which is higher than developed countries. This means that development of China’s fintech developed quickly.
2020 is a particularly special year because of COVID-19. While casing adverse effects, it also forces the digital transformation of the financial industry. The injection of technology is destined to subvert the traditional financial industry. In such a special year, under the influence of the four major elements which are regulatory policies, technological innovation, demand-side and supply-side, and the epidemic, fintech has developed strongly.
EqualOcean selected 50 well-developed global fintech innovators from the dimensions of valuation amount, financing rounding, establishment time, major strategy in 2020, and product or model innovation. EqualOcean released the Global Next 50 in fintech list. Based on this list, the Global Next 50 in fintech report will focus on fintech innovation to analyze the innovation opportunities and challenges for seven sub-sectors of paytech, insurtech, wealth management technology, banking technology, risk management technology, micro technology, and new financial infrastructure.
The innovation of sub-sectors
In 2020, the global electronic payment market has huge potential and fierce competition, and paytech industry has relatively stable financing. In Q3 2020, VC-backed financing increased by 35% year-on-year. In addition, COVID-19 has accelerated the process of digital payment transformation for SMEs, so that paytech to businesses found the opportunities in the COVID-19. From the perspective of China, most of the market share of China's Consumers paytech is occupied by the two giants, while the business payment market is not yet clear, and there is still huge potential for innovativors.
Although insurtech financing suffered a setback in the Q1 2020, the amount of financing quickly recovered in the second quarter. In the Q2 2020, total financing increased by 71% from the previous quarter. Under the COVID-19, the concept of “no contact” has adversely affected the personal insurance of heavy offline channels, and the group insurance of heavy online channels has become a key business of insurance companies, and the attention of group insurance continues to rise. At the same time, in order to attract individual insurance customers, major traditional insurance companies have actively carried out model innovation and product innovation, which has gradually increased the demand for smart solutions in the insurance industry.
The two major sub-sectors of wealth technology and banking technology had not been negatively affected by the COVID-19, and the financing situation is relatively optimistic. In the Q2 2020, wealth management technology increased by 184% from the previous quarter.
The main customers of micro finance include small and medium sized enterprises and low- and medium-income groups, and they solve problems such as financing difficulties. The implementation of supply chain financial technology for small and medium-sized enterprises is not ideal. At the initial stage, the upgrade of supply chain financial technology will become a new outlet for the financial technology industry. Secondly, injecting technological power into consumer finance, which is for low- and medium-income groups, has developed rapidly in recent years and has attracted the attention of various investment institutions. With the intensification of global consumer finance competition, consumers are increasingly demanding diversified scenarios, and the development of new scenarios has become one of the cores of corporate competition.
Financial infrastructure "introduces the old and brings forth the new" has become a new topic in 2020. Major financial institutions are urgently transforming to digitalization. Infrastructure needs to adapt to new financial services, and new infrastructure has become the basis for digital transformation of the financial industry. As the core of financial activities, risk management will still be a hot field of fintech in 2020.
Future of Fintech
Under the balance between innovation and supervision, global fintech companies have shown four major trends: product diversification, scene segmentation, rapid implementation of core technologies and ecological reorganization.
Product diversification: Fintech companies are in the early stage of their start-up and have a single business line. Fintech companies will involve businesses in multiple fields, and business diversification will become the label of future fintech companies.
Scenario segmentation: The development of emerging consumer scenarios has become a strategy that financial companies focus on. Therefore, for fintech, providing newer and more subdivided financial scenario solutions will become the core competitiveness of fintech companies.
The rapid implementation of core technologies: With the decentralized and reproducible characteristics of the blockchain chain, blockchain technology will be the core of competition among financial technology companies. EqualOcean considers that blockchain, which will move from concept to application within three years, would empower various financial scenarios.
Ecological transformation: The integration of emerging technologies into the traditional financial industry stimulates new development models of the financial industry, thereby promoting the fintech progress. In the future, more and more companies will join the fintech ecosystem to reshape the financial ecological chain.
About WIM
Hosted by EqualOcean, the World Innovators Meet (WIM) (click to watch the online event on December 9-11, 2020) is a global event for innovators. It provides limitless opportunities to learn from and connect with the most sought-after technology pioneers.
About WIA
The World Innovation Awards (WIA) are announced at WIM to recognize game-changers across various industries and geographies. Selected by a committee of distinguished experts, entrepreneurs and investors, WIA are designed to acknowledge technology disruptors striving to make a positive impact on a global scale.
See this year's WIA lists and download the research reports in English and Chinese on EqualOcean and 亿欧智库 respectively.
