The analysis concludes that the US has 81 Fintech firms with valuations over $1bn. That figure gives the US a 51% dominance over the other nations.

“The reasons for this dominance are two-fold: funding and innovation capability,” said Trading Platforms Edith Reads. “The US has more venture capital funding than any other country. This allows entrepreneurs to launch projects without worrying about funding. It also boasts greater innovation capabilities than most countries due to its strong education system that encourages experimentation with ideas and solutions.”

China follows the US with 11 startups attaining the unicorn status. Meanwhile, the UK and India have 10 and 9 institutions, respectively. Brazil and Germany tie in the fifth spot with 7 of these each.

New frontiers for fintech unicorns

The sector is recording growth in countries like China and India. Others, including Brazil and Malaysia, are also following suit, these two countries jointly host over 380 fintech companies, which means they could be home to the next generation of fintech unicorns.

Brazil has been building its fintech ecosystem. For example, it is working towards boosting market competition and expanding the scope of financial education. Moreover, it is implementing open banking, which could support Brazilian businesses in implementing new technologies.

Malaysia’s unbanked and underbanked population provides the right environment for fintech firms to thrive as it has a high mobile penetration rate, a big boon for companies pursuing fintech opportunities. Some estimates say e-payments companies make up nearly 40% of the country’s fintech industry.