Investment Activity in FinTech for the Financially Underserved

This report explores recent investments and exits involving 74 financial technology (FinTech) companies that target financially underserved consumers in the United States. The significant volume of these transactions demonstrates a dynamic and growing consumer finance space providing opportunities for a variety of investors.

• Payments, such as remittances and pre-paid cards, together with specialty credit, such as student loans and small business loans, are the most active sectors among the investments (75% of all transactions);
• Eleven FinTech companies were acquired during the twelve-month period covered by the report;
• Overall, eight FinTech companies completed IPOs in the past three years, with three of them in the period covered by the report;
• The FinTech market focused on financially underserved consumers in the United States is growing in terms of services offered, number of companies offering these services, and range of business models employed.