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FinTech Investment Up 173% in Q3 2021 Compared With Same Quarter Last Year

BCG Introduces FinTech Control Tower to Help Decision Makers Supercharge FinTech Growth Strategies and Releases Q3 State of FinTech Report

  • Q3 2021 fintech investment is 90% higher than all 2020 funding, totaling $34.4 billion globally
  • Megadeals, or funding rounds equal to or over $100 million, are driving the dramatic growth in investment seen in 2021; 101 megadeals were made in Q3 2021 alone, totaling $23 billion—a 250% increase over the same quarter in 2020

Singapore—Boston Consulting Group (BCG) today announced FinTech Control Tower, a first-of-its-kind fintech insights platform to help companies, including banks, insurance companies, and private equity and venture capital firms, see the fintech industry—an industry focused on technology to enable financial services—as it is today and predict how it will look tomorrow. The goal of FinTech Control Tower is to help companies define, refine, or supercharge their business strategies such as merger and acquisition strategies or collaboration across industries, and meet customer demands for better digital service offerings.

FinTech Control Tower was developed over a five-year period and is informed by hundreds of “super user” interviews. The platform sources data and insights for more than 26,000 fintech entities from a vast network of data feeds, industry associations, and consulting experts. Startups, mid-sized companies, and global corporations can analyze trends, compare fintechs for investment viability, and make fast but highly informed decisions on how to accelerate their fintech agenda. Clients with more complex challenges can also take advantage of FinTech Control Tower’s customized research and consulting services to enhance their strategies and chart their next moves.

“There is massive opportunity for corporations across all industries to implement or evolve financial technology offerings,” said Pauline Wray, co-lead of FinTech Control Tower and managing director at BCG in Singapore. “As the industry continues to grow, it’s hard to keep up with the flow of information and spot key trends, emerging competitors, or opportunities for partnerships and investments. FinTech Control Tower puts the right data and insights needed in one place, so users can make their own decisions quickly - whether to invest in, partner with, or create a new fintech entity—to build their businesses and connect with customers.”

Investment Trends Drive Need for the Right Data

The fintech investment surge continues to drive competition and the need for companies to take informed and swift action. Funding trends are driven by two segments—payments and accounts products—with North America leading global investments, according to BCG’s “State of FinTech” Q3 report:

  • Payments and accounts, which each received more than $7.5 billion in investments, accounted for 45% of all investments in Q3.  
  • To date, 2021 investments have reached $93 billion. The total amount of funding in Q3 2021 is the highest in a quarter across 2021.
  • Regionally, the Americas continue to lead in total funding ($56 billion in funding in the first three quarters of 2021).
  • The Americas and EMEA have seen the largest growth in total investments in 2021 compared with the same period in 2020, seeing 163% and 155% growth respectively.
  • APAC has seen the largest growth in investments from Q2 2021 to Q3 2021, with $7 billion raised in Q3 2021, a 97% growth on investments compared with Q2 2021.

FinTech Control Tower is currently being piloted with 50 leading companies, including tier one banks, insurance companies, and private equity and venture capital firms. FinTech Control Tower will be commercially available in January 2022.

To learn more about FinTech Control Tower and how your company can obtain access to the platform, visit: https://fct.bcg.com/

For media inquiries, please contact Brian Bannister at bannister.brian@bcg.com.

About Boston Consulting Group

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
 
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