Don't miss out! Join us at
2024 featuring Fraud Fight Club on April 25th
arrow icon

Banks & FIs Double Up Investments in FinTech Startups

Post by:
January 1, 2021
Post by:
No items found.
January 1, 2021
Banks & FIs Double Up Investments in FinTech Startups

We are witnessing that slowly (but steadily) banks are buying into the new paradigm of partnering with FinTechs in different ways—it makes sense, considering the investments in the FinTech industry reached $58 billion in value in 2018. Incumbents on both sides (banks and FinTechs) are working towards coming together to meet growing customer expectations and stay relevant in a technologically growing world (concerning banking).

In 2018, we saw 159 deals made by FIs/banks with FinTech companies ($5 billion was the total amount invested in those rounds in the startups). 

Note: The above-mentioned investors might have partially invested in the deals.

In 2019 (January to July), the total value of investment deals (total in all the rounds by all the investors) was 5.52 billion USD compared to 5.0 billion in 2018 (January to November). There were 204 deals where 84 banks invested in 127 FinTechs, 46 insurance companies invested in 56 FinTechs/InsurTechs, and 31 asset management companies/investment management companies invested in 40 FinTechs.

Here are the top investment deals that took place in 2019 (January to July):

  • Goldman Sachs was one of the investors that invested in the $300-million Series E round in Carta
  • Allianz was one of the investors that invested in the $300-million Series D round in Lemonade
  • Goldman Sachs was one of the investors that invested in the $250-million Series E round in Marqueta
  • New Investment Solutions, an asset management company, invested $230-million in DMI Finance

It’s interesting to note that much capital has come from incumbents’ venture capital arms which include—but aren’t necessarily limited to—Barclays Venture, Santander Innoventures, Allianz Life Ventures, ABN AMRO Digital Impact Fund, and CommerzVentures.

Furthermore, to explore and utilize emerging technologies, older financial institutions are now organizing to innovate by developing labs to foster innovation and actively partnering with FinTechs that offer expertise in areas beyond their strengths.

Create secure frictionless customer experiences using modern identity solutions

Join over 1,000 businesses that rely on Prove across multiple industries, including banking, FinTech, healthcare, insurance, and e-commerce. Contact us today.

Prove: the world’s most accurate identity verification and authentication platform

Trusted by 1,000+ leading companies to reduce fraud and improve consumer experiences. Contact us today to learn how you can frictionlessly secure your digital consumer journey — from onboarding to ongoing transactions.

Keep Reading...Read our latest white-paper on this subject!

Tap the button below to read our latest white-paper on the subject as industry leaders.

Accelerate your onboarding

Contact us to learn how leading companies are using Prove Pre-Fill to modernize the account creation process by shaving off clicks and keystrokes that kill conversion.

Create frictionless customer experiences

Get in touch to find out how we can help you identify your customers at every stage of their journey and offer them seamless and secure experiences.

Schedule a demo

Let our expert team guide you through our identity verification and authentication solutions. Select a date and time that works for you.

Schedule a demo

Find out how we can help you deliver seamless and secure customer experiences that comply with PSD2/SCA. Select a date and time that works for you.

Interested in more information about Prove Pre-Fill?

Download the Report

Download Aite-Novarica Group’s full report about Prove Pre-Fill, including a product overview, customer results, and how the product works.

Interested in more information about MFA?

Download the guide now to learn how you can improve security, cut down on fraud, and create the best possible customer experience.