State of FinTech in the 2nd Quarter of 2021

CB Insights continuously monitors the FinTech industry to provide useful, data-based observations on the most important FinTech trends. Their 2nd quarter report has some illuminating information. In particular, the 2nd quarter of 2021 turned out to be the largest on record for FinTech funding, with FinTechs raising USD 30.8 billion. The digital lending, banking and SMB FinTech sectors saw the most pronounced deal activity growth, and funding to South American-based FinTechs had the greatest growth in funding received (153%). The report also highlights the most important trends in the following key FinTech sectors:

  • Payments – payment companies raised over USD 8 billion, a quarter-on-quarter (QoQ) increase of 25%.
  • Banking – banking companies saw a 59% QoQ increase and a funding increase of 43%.
  • Digital lending – deal activity to digital lending companies exploded to nearly USD 7 billion, a QoQ growth of 76%.
  • Insurance – InsurTech funding surged by 79%, largely due to mega-round funding growth.
  • SMB – funding to FinTechs focused on SMBs grew 37% to USD 5.9 billion, its strongest funding level in over a year.
  • Real estate – despite a 20% decrease in number of deals, late-stage mega-rounds pushed real estate FinTech funding to USD 3.2 billion, a QoQ increase of 25%.

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