Defining the e-commerce landscape in 2016

E-commerce is a fast paced industry that is only 30 years old and whose landscape has grown in unrivaled size.
With the present bundle, we wish to provide the reader with an introductory overview ofthischanging e-commerce landscape by covering the trends and threats to which it is exposed,  the booming funding milestones it fueled, the momentum gained and where e-commerce might beheaded next.

RegTech Is The New FinTech: How Agile Regulatory Technology Is Helping Firms Better Understand and Manage Their Risks

Regulation is one of a number of services to receive the ‘Tech’ treatment in recent times.  As with its bigger brother FinTech, the definition of RegTech will mean different things to different people in this developing area.  While the name is new, the marriage of technology and regulation to address regulatory challenges has existed for some time with varying degrees of success.  Increasing levels of regulation and a greater focus on data and reporting has however brought the RegTech offering into greater focus thereby creating more value for the firms that invest in these solutions. 

This article is based on research and interviews we undertook with RegTech companies and seeks to explore how firms can benefit from regulatory technology and how they can leverage regulatory focused data to better understand and manage their compliance risks.

We seek to highlight

• RegTech solutions (and underlying technology) which are becoming more prominent in the market

• The benefits of RegTech

• The significance of the experienced financial services professional in the RegTech / FinTech era

• Why Dublin has some work to do to establish itself as a RegTech / FinTech friendly location

• How best to leverage RegTech to plot your Regulatory journey for the future.


The Pulse of Fintech, Q1 2016: Global analysis of Fintech Venture Funding

‘The Pulse of Fintech’ is a quarterly report created by KPMG Enterprise and KPMG Fintech along with CB Insights (the ‘go to’ name for insights related to venture capital investment). Given the significant interest in fintech globally, and its ongoing evolution in terms of market drivers, technologies and potential use-cases, KPMG and CB Insights are partnering to bring you the pulse of fintech on VC investment globally. Each quarter, we’ll highlight key fintech deals, issues and challenges around the world, in addition to key trends and insights related to fintech in key regions, including the North America, Asia and Europe.

The Q1 report saw a big rebound in quarterly funding to the fintech sector, with total investment in fintech companies hitting US$5.7 billion. Globally, VC-backed fintech companies drew $4.9 billion in funding, rising from just $1.9 billion in Q4’15. Larger deals also spurred fintech funding growth in Q1’16. Q1’16 saw 13 $50 million+ rounds to VC-backed fintech companies, a slight rise from the 10 $50 million+ rounds in Q4’15.

This quarter, we examine key global trends along with what’s happening in fintech within key regions, as well as an investigation into robo advisory – a key area of fintech that has been gaining momentum in recent months.

We also examine the following questions:

  • What’s driving the ongoing strength of VC investment in fintech?
  • Why is Europe lagging behind the US and Asia when it comes to investment in fintech?
  • How is InsuranceTech evolving and how is it expected to evolve over the next few quarters?
  • How is the definition of fintech changing and expanding in different regions?

See the full report for details.

Corporate Venture Capital: History and evolution of the CVC sector

Corporate venture capital (CVC) investments were direct equity or equity-linked investments in external entrepreneurial companies. Unlike a traditional venture capital (VC) firm, a CVC’s parent company typically did not make investing in emerging companies its core business. This differentiated “normal” VC investments from CVC investments, with ramifications that will be explored below.

Corporations were making equity investments in startup companies as early as the beginning of the twentieth century. (Henry Ford and Thomas Edison, for example, were both active in this regard.) CVC activities structured as ongoing efforts within corporations, however, did not come about until the 1960s, about a decade after the emergence of modern VC firms. The early movers in CVC were technology-focused companies; by the beginning of the twenty-first century, however, companies from a variety of industries—from consumer packaged goods and media companies to industrial and energy concerns—initiated CVC activities.

CVC growth in the early twenty-first century was propelled by companies seeking new growth as well as a way to defend themselves against disruption. The average tenure of a company on the S&P 500 had decreased from sixty years in 1958 to only eighteen in 2012,1 at least in part because of the widespread availability of low-cost technology, shorter innovation cycles, and expanding global networks that enabled even small companies to disrupt entire industries. In order to avoid being disrupted or falling behind, corporations from a broad range of industries and geographies initiated CVC activities, and both the number and volume of CVC deals increased.


The Fintech 2.0 Paper: rebooting financial services

This paper for Fintech 2.0 has been created by santander Innoventures, in collaboration with its partners Oliver Wyman and Anthemis Group.

Many fintechs have succeeded but today they are still operating only at the edges of banking. To help engineer more fundamental improvements to the banking industry, they must be invited inside, to contribute to reinventing our industry's core infrastructure and processes. That can succeed only as a collaborative endeavour, with banks and fntechs working together as partners.

This paper highlights the benefits of collaboration and identifies some of the opportunities dor profitable change in realising Fintech 2.0. We hope the whole industry -both banks and fintechs- recognise the value of this approach and join us in this collaborative journey to fintech 2.0

Opportunities await: How InsurTech is reshaping insurance

Many believe insurance is on the brink of a major disruption, but few are putting InsurTech at the heart of their strategy.

Insurance companies are very much aware of the FinTech revolution: 74% of respondents see FinTech innovations as a challenge for their industry. There is good reason to believe that insurance is indeed heading down the path of disruptive innovation, whether it is the effect of an external factor, such as the rise of the sharing economy, or the ability to improve operations using artificial intelligence (AI).

However, despite these emerging trends, a disconnect exists between the amount of disruption perceived and insurers’ willingness to invest to defend against and/or take advantage of the innovation: 43% of the industry players claim they have FinTech at the heart of their corporate strategies, but only 28% explore partnerships with FinTech companies and even less than 14% actively participate in ventures and/or incubator programs (figure 1).


Incumbent insurers who are currently focused on catching up with their competitors around customer centricity and other current trends are missing the opportunity to become proactive. They need to create a clear and consistent message that will demonstrate their willingness to play in the new InsurTech space and act accordingly – only such an approach will position incumbents to be front-runners in the new insurance era.

FINTECH 100: Leading Global Fintech Innovators Report 2015

Dear Reader, We are pleased to present the second annual ‘Fintech 100’, the best fintech innovators, this year from 19 countries around the world.

The Fintech 100 are those companies using technology to the best advantage and driving disruption within the financial services industry. These companies have a commitment to excellence, superior customer experience and a demonstrated ability to do one thing in a market better than everyone else.

The Fintech 100 includes the leading 50 fintech companies across the globe, and the most intriguing 50 ‘emerging stars’ – exciting new fintechs with bold, disruptive and potentially game-changing ideas – expanding on the success of last year’s list.

The Fintech 100 in 2015 includes:
• 40 companies from The Americas (40%),
• 20 companies from the EMEA (20%),
• 18 companies from the UK (18%),
• 12 Companies from Asia (12%), and
• 10 companies from Australia and New Zealand (10%).

Through our report we have analysed a number of sectors within the financial industry, these sectors are; insurance, transactions, lending and wealth.

The Fintech 100 in 2015 includes:
•25 payments and transactions companies (25%),
•22 lending companies (22%),
•14 wealth companies (14%), and
•7 insurance companies (7%).

The data that was discovered through the report shows an interesting spread of Fintech is the combination of technology and financial services resulting in the disruption of the finance industry and this sector has seen substantial growth over recent years.  Global fintech financing has risen seven-fold over the past three years to an estimated US$20billion for 2015, a rise of 66% on the level of investment in 2014.

In an industry that will soon be irrevocably changed by the disruptive effect of innovation, the companies doing fintech best are those most likely to succeed. Already, some of the world’s major financial centres are equally becoming known as centres for fintech innovation: London and New York, and more recently Sydney.

Fintech is clearly not to be ignored, and the next question one must ask: “who are the most innovating global fintech companies across the globe?”

We’ve selected the ‘Fintech 100’ following extensive global research and analysis based on data relating to five factors:
1.Total capital raised
2.Rate of capital raising
3.Geographic & sector diversity
4.Consumer & marketplace traction
5.X-factor: degree of product, service and business model innovation (a subjective measure that is applied only with respect to companies outside of the Top 50 on the list)

The above assessment criteria reflects the fact that venture capital invested is a relevant measure of innovation which in turn fuels enduring competitive advantage. Venture capitals seek this enduring competitive advantage over and above anything else.

The companies named in this report all take a well-deserved position as the ‘leading 100’. Nonetheless, there are many other exciting and creative fintech companies around the world that are established and emerging. We hope that this report is just the start of the fintech future, and that the ’leading 100’ innovators will soon become a register for all fintech companies.

The Top 10 companies in the Fintech 100 for 2015 are:
1.ZhongAn (China)
2.Oscar (USA)
3.Wealthfront (USA)
4.Qufenqi (China)
5.Funding Circle (UK)  
6.Kreditech (Germany)
7.Avant (USA)
8.Atom Bank (UK)
9.Klarna (Sweden)
10.OurCrowd (Israel)

You can read all about these companies, and many others, in the report

The State of IoT Technology in Europe and Israel

In our latest report, we’re focusing on the European and Israeli Internet of Things (IoT) sector in 2015 and early 2016.

In the report – which you can download below free of charge – we take an in-depth look at the bigger funding and exit trends in the European and Israeli IoT sector, and we also provide an overview of the main deals that have taken place in the region, and the companies and investors involved in such transactions.

The State of European and Israeli IoT Industry report is kindly powered by Nokia Growth Partners (NGP), an independent, global venture firm backed solely by Nokia. NGP has backed multiple IoT companies across the world and has more than $1 billion in assets under management, including its $350 million IoT fund.

Our data partners, Dealroom, have also collaborated extensively in the research and production of this report.

Decoding Financial-Technology Innovation

Decoding Financial-Technology Innovation

Start-ups are eyeing a wider revenue pool across a growing and broader range of products and services.

The next wave of the financial-technology revolution that started only a few years ago has arrived, and this time the impact will be broader. The earlier wave mostly hit payment transactions, which was an easy area to disrupt but represents only 6 percent of global banking-revenue pools...

Annual banking research 2015

Annual banking research 2015

For global banking, the roller-coaster ride of the past 10 years is at last coming to a halt. A new reality is taking hold. Return on equity (ROE) is stable at 9.5 percent (the third consecutive year in which returns were in line with the longterm [1980-2015] average), and profits are rising. Banks have begun to lower operating costs, and their risk costs have also fallen. But this pause in the action may be short-lived. There are few loan-loss provisions left to release, and margins continue to fall across the globe. Cost-cutting is about the only cylinder still firing in the profit engine. Meanwhile, banks are under attack from new technology companies and others seeking to poach their customers. To date, banks’ losses to attackers have been little more than a Executive Summary 3 rounding error. But as digitization accelerates, banks will be in a battle for the customer that will define the next 10 years for the industry.

Cutting through the noise around financial technology

Cutting through the noise around financial technology

Banking has historically been one of the business sectors most resistant to disruption by technology. Since the first mortgage was issued in England in the 11th century, banks have built robust businesses with multiple moats: ubiquitous distribution through branches, unique expertise such as credit underwriting underpinned both by data and judgment, even the special status of being regulated institutions that supply credit, the lifeblood of economic growth, and have sovereign insurance for their liabilities (deposits). Moreover, consumer inertia in financial services is high. Consumers have generally been slow to change financial services providers. Particularly in developed markets, consumers have historically gravitated toward the established and enduring brands in banking and insurance that were seen as bulwarks of stability even in times of turbulence. The result has been a banking industry with defensible economics and a resilient business model. In recent decades, banks were also helped by the twin tailwinds of deregulation, a period ushered in by the Depository Institutions Deregulation Act of 1980 (DIDRA), and demographics (e.g., the baby boom generation coming of age and entering their peak earning years). In the period between 1984 and 2007, U.S. banks posted average returns on equity (ROE) of 13%. The last period of significant technological disruption, which was driven by the advent of commercial Internet and the dotcom boom, provided further evidence of the resilience of incumbent banks. In the eight-year period between the Netscape IPO and the acquisition of PayPal (one of the winners of this era) by eBay, more than 450 attackers – new digital currencies, wallets, networks, etc. – attempted to challenge incumbents. Fewer than five of these survive as stand-alone entities today. In many ways, PayPal is the exception that proves the rule: it is tough to disrupt banks.


FinTech is by far the most dominant vertical in European tech when it comes to investments. In 2015, FinTech accounted for more than 10% of all funding going to European tech companies for a total of €1.8 billion, and Europe has the potential to become a global leader in financial technology – with the UK leading the way.

In this report, we deliver an in-depth view on the state of FinTech in Europe, analysing all the funding deals, M&A transactions and IPOs that we meticulously tracked throughout 2015. We also cast an eye to the future of the European FinTech scene.