Spain’s Banco Santander leads in fintech investments among top European banks

European banks
European banks have participated in significant investments in several fintech unicorns

According to data from CB Insights, top European banks, led by Banco Santander are investing heavily in areas ranging from wealth management and lending to payments, reg-tech and blockchain.

According to new analysis from CB Insights, Spain-based Banco Santander, through its venture arm Santander InnoVentures was the most active major European bank investing in fintech over the last 5-quarters. Santander and other European banks have also participated in significant investments in several fintech unicorns including Prosper Marketplace, Kabbage, and Symphony Communications.

CB Insights used their database to analyze the fintech investment activity of the top European banks from 2012 to 2017. Here are the key takeaways.

  • Banco Santander leads the way. The firm has made 13 investments in 12 fintech startups. The largest investment it participated in was a $135 million Series E investment in Q3’ 2015 to small business lender Kabbage.
  • Banco Santander has invested in companies in wealth management, lending, payments, regulatory technology, software, and blockchain.
  • The three most active bank investors are Banco Santander, UBS, and Deutsche Bank
  • Approximately 70% of investments made by the major European banks went to fintech companies based in the US.
  • Blockchain technology has the most consistent investor presence. Nearly every major European bank has invested in a blockchain company.
  • The company with the most co-investments from among the banks is R3, a distributed database technology company that leads a consortium of more than 70 of the world’s biggest financial institutions in research and development of blockchain technology in the financial system. The company raised a $107M round of financing in Q2’17 that included participation from HSBC, Credit Suisse, Banco Santander, BBVA, Societe Generale, ING, Deutsche Bank, Royal Bank of Scotland, UBS, BNP Paribas, Barclays Bank, and UniCredit.
  • The top investment in 2017 YTD went to Symphony, a communications and collaboration platform for financial services professionals. Symphony raised a $63M Series C round in Q2’17 that included participation from BNP Paribas among other top firms.

More here [cbinsights]


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