China dominates world ranking of fintech firms
( chinadaily.com.cn )
China reaffirmed its status as a world leader in the financial technology industry when it secured five of the top 10 places in a ranking of the sector's best-performing companies of 2017.
Nine Chinese companies featured in the top 100 Leading Global Fintech Innovators, an annual list compiled by UK-based advisory firm KPMG and Australian investment company H2 Ventures for the financial technology sector, which is also known as fintech.
Last year, eight Chinese companies made the list.
"China continues to dominate the fintech landscape," said H2 Ventures partner Ben Heap. "These firms are continuing a trend that is several years in the making and highlights the extraordinary rise of the fintech industry in China."
Alibaba affiliate Ant Financial remains the most successful global fintech company, according to the report. The third-party payment company runs several businesses, including mobile payment platform Alipay.
Chinese online property insurance company ZhongAn climbed three spots to claim second position in this year's ranking. The company is a joint venture between Alibaba, Tencent, and Ping An Insurance.
Lending company Qufenqi was third on the list. It offers smartphones, laptops, and other consumer electronics devices to students and professionals on monthly installment plans. Ant Financial is among the lead investors in the company.
The authors of the report ranked companies based on several factors, including total capital raised and the rate at which capital was raised.
The 100 companies on the list raised a combined $5.5 billion over the last 12 months.
Almost half of the companies on the list are involved in payments and lending. However, three entrants are involved in data and analytics, and four provide blockchain and digital currency services, indicating a growth in diversity in the industry, according to authors of the report.
Eight companies from the United Kingdom made this year's list, down from nine last year. The UK had 13 on the list in 2015. One UK company– digital banking platform Atom Bank – made the top 10.
Nineteen enterprises from the United States featured on the list, the most from any single nation. Twenty-two US companies were ranked in 2016.
While China and the US performed strongly this year, 29 different countries are represented in the list, with companies from South Korea, Mexico, and Poland included for the first time.
"It is noteworthy that 19 countries are represented in the top 50," the report states. "It is clear that no one nation or region 'owns' fintech innovation – fintech is a global phenomenon."
Chinese online financial asset trading company Lufax was sixth on the list, while JD.com affiliate JD Finance was ninth. The company offers a range of financial services, including risk management, payment services, and insurance.
Four more Chinese companies feature in the top 50, including online lending firm WeLab and financial services search platform Rong360. Two Chinese firms entered the list for the first time: 51Xinyongka, which runs a mobile app that manages credit card bills, and lending company Dianrong.
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