According to a new report by Accenture (NYSE:ACN), global investment in fintech ventures tripled from $4.05 billion in 2013 to $12.2 billion in 2014.
The study, based on analysis of fintech investment-data from CB Insights, a global venture-finance data and analytics firm, says that while the United States captures the biggest share Europe is the fastest growing region in the world with an increase of 215% to $1.48 billion in 2014.
The United Kingdom and Ireland (UKI) accounted for 42% of the European total, as investment in the region rose from $264m in 2013 to $623m in 2014, followed by the Nordic countries ($345m), the Netherlands ($306m) and Germany ($82m).
The report, which also surveyed 25 senior banking executives involved in technology innovation, suggests that many established banks are not well equipped to deal with the digital revolution. 72% of the respondents feel their banks have a fragmented or opportunistic approach to dealing with digital innovation, and 40% think the time it takes their organization to deploy new technology is too slow, either negatively impacting their ability to realize value or providing no net benefit at all.
The vast majority also believe that they lack the skills and culture needed to succeed in the digital age. Among respondents, four out of five say that when it comes to skills and culture, their banks are minimally equipped for the digital age.
In addition, although 80% see working with startups as a valuable way to bring new ideas to their business, 56% claim that their organizational cultures need to change in order to work effectively with startups.
About the future, a majority of respondents (72%) expect their banks to increase investment in technology innovation over the next two years. 52% say their banks will explore open innovation, such as opening up their intellectual property, assets and expertise to outside innovators to help generate new ideas and discover new areas for growth. 32% say their banks will create a corporate venture arm within the next two years.
The report shows that banks are also open to collaboration with their peers and with organizations outside of their industry, to more effectively adopt innovative technologies, with all survey respondents saying they are willing to do so.
Download the Report, The Future of Fintech and Banking, here.