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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 Q1’17 edition of KPMG International’s Pulse of
Fintech report, in which we explore global trends and deal activity
within fintech.
Globally, fintech investment held relatively steady as the market
undertook a reset following a year of uncertainty across
North America, Europe and Asia. Mergers and acquisitions (M&A)
remained low following a major drop off in Q4’16, while venture
capital (VC) funding to fintech took a small dip quarter over quarter.
Meanwhile, private equity (PE) investment and deal activity rose
slightly.
Corporate investors continued to drive fintech investment, with banks,
insurance companies and other financial institutions recognizing the
need to innovate and making investments accordingly. This quarter,
corporates moved beyond traditional direct VC fintech investment
and looked towards building partnerships and alliances with fintech
companies in order to achieve their objectives.
On a regional basis, both the US and Europe started off the year with
upticks in fintech investment and deal activity — with Europe in
particular experiencing the highest level of investment in years. Asia,
meanwhile, saw fintech investment drop, as the lack of mega-deals
continued, and China introduced new fintech regulations that may
take some time for fintech companies and investors to digest. The
rapid expansion of Asia’s fintech ecosystem across jurisdictions and
strong ongoing interest in fintech in the region, suggest this decline
may be short-lived.
Within fintech, payments and lending continued to dominate deals in
most jurisdictions, although artificial intelligence (AI), the Internet of
Things (IoT), big data, regulatory technology (regtech) and insurance
technology (insurtech) are quickly growing on the radar of investors.
We examine these results and other trends in this quarter’s report.
We also explore a number of questions permeating the fintech
market today, including:
― While Q1’17 was quiet, is the tide about to turn for fintech
investment?
― How is the revised Payment Services Directive (PSD2) driving
fintech activity in Europe?
― What is driving the proliferation of fintech hubs globally?
― Is regtech ready to come into the investor spotlight?
We hope you find this quarter’s edition of the Pulse of Fintech
insightful. If you would like to discuss any of the information
contained in this report, 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
Ian Pollari
Global Co-Leader of Fintech,
KPMG International and
Partner,
KPMG Australia
Warren Mead
Global Co-Leader of Fintech,
KPMG International and
Partner,
KPMG in the UK
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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