FINANCIAL technology investments in China this year may exceed 2016’s record US$10 billion as companies continue to raise funds for expansion and big banks grow their digital services, according to Accenture Plc. The country’s financial services giants will probably ramp up investments in areas including artificial intelligence, blockchain, big data and cyber security to improve their product offerings, said Albert Chan, managing director of China financial services at Accenture. More money will go into technology such as robo advisors, online lending and investment services, he said. Last year’s record investment in China, pushed by a wave of “blockbuster deals” including US$4.5 billion raised by Alibaba Group Holding Ltd.’s finance affiliate — was more than three times the US$2.97 billion logged in 2015, according to an Accenture statement that cited analysis of CB Insights data. “The investment will continue to sustain at least at this level, if not more, for the year to come,” Chan said. “This year, we are likely to see continued significant investment into fintech in China both from new market entrants and traditional financial institutions.” The China investment drove Asia-Pacific fintech investments to US$11.2 billion last year, surpassing North America for the first time, the Accenture analysis showed. North America attracted US$9.2 billion, while Europe lured US$2.4 billion. The pipeline of potential investments in China this year is already looking promising: JD.com Inc. is spinning off its finance arm for 14.3 billion yuan (US$2.1 billion), while peer-to-peer lender Lufax may also bring its long-awaited initial public offering to market. Lufax completed a US$1.2 billion fundraising in January 2016 that valued the company at US$18.5 billion. Meanwhile, some banks are already exploring new technologies to fend off competition from tech upstarts. In the first half of 2016, more than 90 percent of banking transactions went through online channels at China’s four largest banks. (SD-Agencies) | 