A new report from the Boston Consulting Group (BCG) has revealed that equity capital funding within the fintech market was down 52% as of 2017.
The report, Fintech in capital markets 2018: Boosting productivity through technology innovation, showed that last year fintech ventures received $570mn in funding.
This marks a significant fall when compared to the $1.18bn in investment seen in 2015 and the $1.20bn seen in 2016, being the lowest level of fintech equity investment recorded since 2012.
Further, the number of deals fell to just 70 in 2017, a substantial drop compared to the 185 recorded in 2016 - statistics that are worrying in the way of financial innovation.
"As digitalization takes hold in capital markets, weak investment is a hindrance that may undermine growth and open the door to competitors," BCG said.
"Technology must be put at the heart of strategic decision making and recognised as the key enabler of innovation and new revenue streams."
For more information, see the full Fintech in capital markets 2018: Boosting productivity through technology innovation report.