Technology
Chart: Fintech Investment in 2016
Chart: Fintech Investment in 2016
Overall numbers are down, but banks step up their game
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
According to a new report by Singapore-based venture capital firm Life.SREDA, last year was a mixed bag for fintech.
On the one hand, the Money of the Future Report pegs 2016 as the first year to have an overall decrease in fintech funding after taking into account any outliers. By their calculations, dealflow slowed in the last couple of quarters of the year, while the amount of funding flowing into fintech fell 6% to $19.1 billion.
On the other hand, the one deal that was considered an outlier was a big one: Alibaba affiliate Ant Financial, the world’s second-largest unicorn (behind Uber), raised a Series B of $4.5 billion in early 2016. That’s the largest ever fundraising round for a private tech company.
Further, for the deals that were done in 2016, one could say there was an element of quality over quantity. Established financial institutions are no longer sitting on the sidelines for fintech – in fact, banks have increased the number of investments in VC-backed fintech companies by 61% since the previous year.
Who’s Banking on Fintech?
Some banks are more active than others.
JP Morgan, at one end of the spectrum, only booked three fintech deals last year, which is the same as they did for 2015.
Companies like Barclays and Goldman Sachs have more of a shotgun approach: get in on as many fintech companies as possible. Barclays invested in 23 deals in 2016 for a 53% increase in activity, while Goldman got in on 17 deals for a 31% bump in activity.
Partnerships and product integrations, accelerators and innovative labs, direct investments and venture debts, corporate VCs and fund-of-fund investments — banks started to use all available mechanisms in order not too lose in the digital war with the new hungry players.
Even though Barclays and Goldman Sachs are both heavy investors in the space, each has a different rationale behind their tactics. Goldman Sachs invests in fintech startups solely with expectations of a financial return, while Barclays and banks such as BBVA are looking for more strategic investments that can also enhance their core businesses.
Regardless of the differing tactics and rationales, it looks like banks are officially in the tech game for good. The question is: can hulking, conservative institutions like banks be agile enough to make use of these upcoming investments – and will they pay off?
Technology
Charted: The Jobs Most Impacted by AI
We visualized the results of an analysis by the World Economic Forum, which uncovered the jobs most impacted by AI.
Charted: The Jobs Most Impacted by AI
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
Large language models (LLMs) and other generative AI tools haven’t been around for very long, but they’re expected to have far-reaching impacts on the way people do their jobs. With this in mind, researchers have already begun studying the potential impacts of this transformative technology.
In this graphic, we’ve visualized the results of a World Economic Forum report, which estimated how different job departments will be exposed to AI disruption.
Data and Methodology
To identify the job departments most impacted by AI, researchers assessed over 19,000 occupational tasks (e.g. reading documents) to determine if they relied on language. If a task was deemed language-based, it was then determined how much human involvement was needed to complete that task.
With this analysis, researchers were then able to estimate how AI would impact different occupational groups.
Department | Large impact (%) | Small impact (%) | No impact (%) |
---|---|---|---|
IT | 73 | 26 | 1 |
Finance | 70 | 21 | 9 |
Customer Sales | 67 | 16 | 17 |
Operations | 65 | 18 | 17 |
HR | 57 | 41 | 2 |
Marketing | 56 | 41 | 3 |
Legal | 46 | 50 | 4 |
Supply Chain | 43 | 18 | 39 |
In our graphic, large impact refers to tasks that will be fully automated or significantly altered by AI technologies. Small impact refers to tasks that have a lesser potential for disruption.
Where AI will make the biggest impact
Jobs in information technology (IT) and finance have the highest share of tasks expected to be largely impacted by AI.
Within IT, tasks that are expected to be automated include software quality assurance and customer support. On the finance side, researchers believe that AI could be significantly useful for bookkeeping, accounting, and auditing.
Still interested in AI? Check out this graphic which ranked the most commonly used AI tools in 2023.
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