FinTech Investments Increase by 11% in 2016

According to the firm PitchBook, the total investment in Fintech technologies have increased by 11% (to 17B). This was also the first year that China outpaced the US in investment by over $1b. The UK took 3rd place, most likely due to skepticism of Brexit.

A common theme amongst all investments can be found in artificial intelligence. Specifically, using AI instead of humans to perform stock trades and manage portfolios. Many investors believe that the lack of emotion and implicit bias provide an edge in investment. This technology can also be used to help with regulation to ensure trades are meeting requirements. I believe that AI will help reduce the current overhead brought by human traders.

Fintech continues to be a growing field. It will be interesting to see the movement of AI in FinTech for 2017.

Reference: http://www.forbes.com/sites/lawrencewintermeyer/2017/02/17/global-fintech-vc-investment-soars-in-2016