via Flickr CC

U.S. financial technology startups are losing investment share, while it's becoming easier for Asian fintech startups, as noted in a TechCrunch post by Israel-based financial analyst Nikolai Kuznetov.

It's been a steep plunge: U.S. fintech startups last year secured 37.5% of the $2.4 billion invested into the sector, but the number of companies dropped by 68%, according to KPMG. Investments (by amount invested) in Asia grew 150% from Q2 2016 to Q4 2016 as the U.S. dropped consistently.

We're losing to Asia: The five largest investments in the last five quarters were all in Asia. Plus, for the last two quarters, Asian fintech companies attracted about $700 million more in VC funding than did U.S. fintech companies.

Part of the problem: The two states — New York and California — that host the most U.S. fintech startups, ranked last on a recent British Treasury list of places with friendly policies toward fintech companies. Consider this: the EU, China, and India each recently eased laws and regulations that would have limited fintech companies.

Why this matters: This is likely to ring alarm bells for Donald Trump, who despises falling behind, and especially despises falling behind Asian countries. It also could be a symptom of the expected hike in interest rates in the U.S. and the belief that banks are going to grow their bottom line and are less inclined to invest in fintech.

Go deeper

Updated 46 mins ago - Politics & Policy

Voters in Wisconsin, Michigan urged to return absentee ballots to drop boxes

Signs for Joe Biden are seen outside a home in Coon Valle, Wisconsin, on Oct. 3. Photo by KEREM YUCEL via Getty

Wisconsin Democrats and the Democratic attorney general of Michigan are urging voters to return absentee ballots to election clerks’ offices or drop boxes, warning that the USPS may not be able to deliver ballots by the Election Day deadline.

Driving the news: The Supreme Court rejected an effort by Wisconsin Democrats and civil rights groups to extend the state's deadline for counting absentee ballots to six days after Election Day, as long as they were postmarked by Nov. 3. In Michigan, absentee ballots must also be received by 8 p.m. on Election Day in order to be counted.

54 mins ago - Technology

Facebook warns of "perception hacks" undermining trust in democracy

Photo Illustration: Sarah Grillo/Axios. Photo by Jamie Squire/Getty Images

Facebook warned Tuesday that bad actors are increasingly taking to social media to create the false perception that they’ve pulled off major hacks of electoral systems or have otherwise seriously disrupted elections.

Why it matters: "Perception hacking," as Facebook calls it, can have dire consequences on people's faith in democracy, sowing distrust, division and confusion among the voters it targets.

Obama: Trump is "jealous of COVID's media coverage"

Former President Barack Obama launched a blistering attack on President Trump while campaigning for Joe Biden in Orlando on Tuesday, criticizing Trump for complaining about the pandemic as cases soar and joking that he's "jealous of COVID's media coverage."

Driving the news: Trump has baselessly accused the news media of only focusing on covering the coronavirus pandemic — which has killed over 226,000 Americans so far and is surging across the country once again — as a way to deter people from voting on Election Day and distract from other issues.