While top-tier investment banks cut their fintech budgets in 2017, that reduction was more than made up by increased spending from Tier 2 and 3 players, according to a report out from Boston Consulting Group.
Strategies for fintech spend are also diverging, says BCG.
Bank investment strategies also diverged. Tier 2 & 3 players invested mainly in industry- wide fintech initiatives, whereas Tier 1 banks, which have been active buyers of fintech equity for longer, took a more balanced approach, often seeking competitive advantage through standalone investments.
Overall fintech spend in the capital markets space was down, however, as venture capital firms cut their investment, according to the report. ”
Investment was less than half that of the previous two years, and the lowest since 2012, with venture capital firms in particular reducing their funding.
