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© 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
#FINTECH
Welcome to the Q4’16 edition of KPMG’s Pulse of Fintech
report. In this report, we highlight key trends and insights related
to fintech investment globally and in specific jurisdictions around
the world. In addition to examining Q4’16 specific fintech activity,
we also look back on 2016 as a whole and discuss the key
opportunities and trends for fintech investment in 2017.
Overall, 2016 was a challenging year for fintech investment. The
Brexit vote in the UK and ramifications associated with its
outcome, the US presidential election, a perceived slowdown in
China and significant fluctuations in the exchange rate globally
prompted investors to be more cautious.
This caution likely played a part in the significant decline in total
investment in fintech globally. The decline reflects major
decreases in mergers and acquisitions (M&A) and private equity
(PE) funding related to fintech. However, global venture capital
investment showed an opposite trend, reaching a new high of
US$13.6 billion. The resilience of the VC market for fintech
opportunities suggests that fintech will continue to be an
attractive sector in the future.
During 2016, investors in a number of regions saw some
saturation within the more mature fintech areas, particularly in
payments and lending. Enthusiasm for burgeoning fintech areas,
however, helped keep interest in fintech high overall. Insurance
tech (insurtech), regulatory tech (regtech), artificial intelligence
(AI) and data and analytics each drew significant investor
attention, with a positive outlook for further growth over the next
12 months.
This report explores these results and a number of other global
and regional trends. We also examine a number of questions
that are top of mind for fintech investors today, including:
Will lending and payments continue to attract the most
investment?
Will insurtech and regtech become the next big fintech hot
spots?
What are regulators doing to open the door for fintech
innovation?
How is fintech expected to evolve in 2017?
We hope you find this edition of the Pulse of Fintech report
informative. If you would like to discuss any of the results in
more detail, contact a KPMG advisor in your area.
© 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Dennis Fortnum
Global Chairman,
KPMG Enterprise,
KPMG International
Warren Mead
Global Co-Leader of Fintech,
KPMG International and
Partner,
KPMG in the UK
Ian Pollari
Global Co-Leader of Fintech,
KPMG International and
Partner,
KPMG Australia
Brian Hughes
Co-Leader,
KPMG Enterprise Innovative
Startups Network, Partner,
KPMG in the US
Arik Speier
Co-Leader,
KPMG Enterprise Innovative
Startups Network, Partner,
KPMG in Israel
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professional firms providing Audit,
Tax and Advisory services. We
operate in 152 countries and have
more than 189,000 people working
in member firms around the world.
The independent member firms of
the KPMG network are affiliated with
KPMG International Cooperative
(“KPMG International”), a Swiss
entity. Each KPMG firm is a legally
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describes itself as such.
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