Key Takeaways
- • North America captured 56.3% of global venture capital funding into fintech in 2022, making it the largest fintech VC region, according to research by Tipalti.
- • Europe ranked second with 22.2% of fintech venture capital funding in 2022, followed by Asia at 16.1%.
- • Europe's ranking is supported by disruptor banks including Revolut, Monzo and Starling Bank.
- • Among six markets studied, only the UK, Singapore and Hong Kong exceeded the 60% average fintech adoption rate as of 2019; the US registered 46%, the lowest of the six.
- • China led on fintech adoption with 87% of its digitally active population using fintech as of 2019, tied with India as the top adopters.
Summary
A new study by Tipalti ranks Europe second globally for venture capital funding into fintech, based on analysis of fintech adoption rates, country-level fintech search activity and regional venture capital flows. The research, as reported by FF News, identifies the world's principal fintech adoption hotspots.
North America led the funding rankings, attracting 56.3% of global venture capital directed to fintech in 2022. Europe followed with 22.2%, a share the study attributes in part to the presence of well-known digital challenger banks such as Revolut, Monzo and Starling Bank. Asia ranked third with 16.1% of fintech venture capital funding, supported by China's large market and high adoption rates across several Asian economies.
The adoption data show a different picture. Across the six markets researched, only the UK, Singapore and Hong Kong exceeded the 60% average fintech adoption rate as of 2019. The US, despite having one of the largest fintech economies, recorded a 46% adoption rate, the lowest among the six markets. Japan posted the lowest adoption rate among its digitally active population at 34% as of 2019, which the study attributes to a conservative, risk-averse financial environment that has also kept fintech investment low. China had the highest adoption rate, with 87% of its digitally active population using fintech as of 2019, tied with India as the leading adopters.
North America led the funding rankings, attracting 56.3% of global venture capital directed to fintech in 2022. Europe followed with 22.2%, a share the study attributes in part to the presence of well-known digital challenger banks such as Revolut, Monzo and Starling Bank. Asia ranked third with 16.1% of fintech venture capital funding, supported by China's large market and high adoption rates across several Asian economies.
The adoption data show a different picture. Across the six markets researched, only the UK, Singapore and Hong Kong exceeded the 60% average fintech adoption rate as of 2019. The US, despite having one of the largest fintech economies, recorded a 46% adoption rate, the lowest among the six markets. Japan posted the lowest adoption rate among its digitally active population at 34% as of 2019, which the study attributes to a conservative, risk-averse financial environment that has also kept fintech investment low. China had the highest adoption rate, with 87% of its digitally active population using fintech as of 2019, tied with India as the leading adopters.
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