Lending firms dominate the fintech funding scene, pulling in nearly two thirds of all investment in digital banking startups in 2015, according to CB Insights.
Since 2010, digital banking startups around the world have received over $10.3 billion in funding, says CB Insights.
Of the four broad categories identified by the firm - lending, banking/personal finance, investment management, and bill payment/money transfer - lending has constantly attracted the most investment but has seen its popularity soar in the last two years.
In 2015 mega deals such as SoFi’s $1 billion Series E and Lufax’s $485 million round saw lending startups pull in 63% of all digital banking investment dollars, up from 43% in 2010 and nearly three times more than any other category. Lending also accounted for half of all deal activity during the year.
By contrast, the dollar share for bill pay and money transfer startups has dropped from 43% in 2011 to just 24% in 2015. Investment management startups have also seen a drop off in funding, from a 22% dollar share in 2013 to just eight per cent last year, while banking and personal finance outfits continue to attract the smallest share of money, just five per cent in 2015.