Investment Banks Spent More on Fintech in 2017

by Denise Bedell on April 17, 2018

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 ┬átheir 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.