We’ve previously highlighted that financial technology funding is on pace to have a record year in 2018. When we take a closer look at the categories that make up fintech, we notice that the Consumer Lending category leads in both Q3 and overall funding.
We’ll highlight this conclusion with some graphics and discussions below.
The Consumer Lending Category Leads Financial Technology In Q3 Funding
To start off, let’s review the amount of funding raised this quarter by each category within financial technology.
The above graphic highlights that the Consumer Lending category leads the sector in Q3 funding with $3.7B. Its funding is 2.5 times the funding of the next category, Business Lending at $1.5B.
Consumer Lending companies offer new ways for consumers to obtain personal loans and have credit risks assessed. They include peer-to-peer lending, micro-financing, big data analytics, and consumer credit scoring services. Some example companies are SoFi, CommonBond, Avant, and Lufax.
Let’s now investigate how the fintech categories’ funding compare with each other historically.
The Consumer Lending Category Also Leads in All-Time Funding
The graph below shows the all-time funding for different financial technology categories. The Q3 funding and growth rates of these categories are also highlighted.
As the bar graph indicates, the Consumer Lending category also leads financial technology in total funding at $33B. Payments Backend and Consumer Payments follow in the second and third place spots with $28B and $27B in total funding, respectively.
In summary, the Consumer Lending category is leading the fintech sector in both Q3 funding and all-time funding. Let's see how the the rest of 2018 shapes up for financial technology!