Accenture predicts strong growth in fintech around blockchain technology, according to a report from its FinTech Innovation Lab Asia Pacific.
The management consultancy giant reports that investors are showing strong interest in cryptocurrency and blockchain technology startups, citing the US$461 million that has been invested in 54 companies during the first nine months of 2015.
Accenture highlights the Singapore-based startup BitX, which raised US$4 million in July through a Series-A round of fundraising, and Hong Kong-based Bitspark, one of seven startups selected for the 2015 FinTech Innovation Lab Asia-Pacific.
The company forecast that blockchain investments in Asia-Pacific will continue to grow, including the potential securitization of physical assets.
Accenture believes that blockchain technology has such potential for growth as it could be used in much broader list of applications:
This is because although much of the blockchain focus has been on front-office applications, blockchain and similar distributed ledger technologies might soon play a role in the entire lifecycle of a trade, including clearing and settlement, collateral management, payments and reconciliation. We also expect distributed ledger technologies to become a critical part of the backbone of future capital markets. This creates multiple opportunities for startups, so banks should pay close attention and have strategies in place for working these technologies into their development roadmaps.
Accenture notes that overall fintech investment in Asia-Pacific region has skyrocketed from about US$880 million in all of 2014 to nearly US$3.5 billion in the first nine months of 2015.
Apparently, the fintech deals in 2015 by segment were 40% in lending, 24% in payments and 16% in markets and wealth management.