Fintech for the underbanked attracts $5.2 billion investment spend in US

Pinterest

Investment activity in fintech companies for financially underserved consumers in the United States totaled more than $5.2 billion between July 2012 and June 2013, according to a report by the Center for Financial Services Innovation (CFSI) and Core Innovation Capital.

The study, supported by Morgan Stanley, looks at 71 equity investments, 11 acquisitions, and 3 IPOs involving more than 125 investors over the past year. It reveals substantial investor interest in the market, which has been identified by banks and non-banks alike as a a dynamic and growing space promising solid returns on investment.

Specialty credit made up 42% of all transactions and 20% of known capital allocation during the period under study, while payments comprised 33% of all transactions and 79% of known capital allocation. The top specialty credit subsectors driving activity were small dollar credit, small business lending, and private student lending. In payments, investments in prepaid card systems, payments networks, and remittance, led the way.

Rob Levy, director of research, CFSI, says: “Fintech companies using technology to reduce costs and increase access to financial services have the potential to innovate the ways consumers borrow, spend, save, and plan.”

The most frequent acquisition targets over the past 12 months were specialty credit companies involved in subprime auto lending.

“This space represents a broad investment opportunity that is quickly coming into focus,” says Arjan Schütte, founder and managing partner of Core Innovation Capital. “In particular, I believe we will see growing opportunity in the auto subprime lending category with a new breed of mobile and data-focused technology companies.”

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Comments

comments

Filed in: Bitcoin News Tags: 

You might like:

US set to allow bitcoin campaign donations US set to allow bitcoin campaign donations
Barclays to open branches in Asda stores Barclays to open branches in Asda stores
Orange and Visa team on NFC m-payments in France Orange and Visa team on NFC m-payments in France
Paying with the bulls: Capital One simplifies m-banking log-in Paying with the bulls: Capital One simplifies m-banking log-in
Bitcoin wallet service Inputs.io cleaned out by hackers Bitcoin wallet service Inputs.io cleaned out by hackers
analysis: Bitcoin primer analysis: Bitcoin primer
Crowd commerce on Level 42 Crowd commerce on Level 42
EVO Payments acquires controlling interest in PKO Bank Polski merchant acquiring arm EVO Payments acquires controlling interest in PKO Bank Polski merchant acquiring arm
© 2017 Virtual Mining Bitcoin News. All rights reserved. XHTML / CSS Valid.
Email
Print