KPMG Pulse of Fintech was published this week and as usual it was packed full of interesting data points regarding the global Fintech industry.
Overall, global Fintech investment remains solid with$8.2 billion invested across 274 deals. Sizable Fintech deals helped to propel this number with the US leading the way. Some of the larger investments during the quarter include:
- Intacct – $850 million
- Concardis – $806 million
- CardConnect – $ 750 million
- Xactly – $564 million
- Merchants’ Choice Payments solutions – $470 million
- Access Point Financial $350 million
- Service Finance Company – $304 million
- Prodigy Finance – $204 million
- TIO Networks – $238.9 million
- Dianrong – $220 million
The median size deal held strongly:
- Angel – Seed Stage – $1.4 million
- Early Stage – $5.5
- Later Stage $16 million
Insurtech is on course for a record breaking year with VC investments standing at $1.53 billion by the end of Q3 for 179 deals. For the entire year of 2016, Insurtech saw $1.79 billion invested in 203 deals.
Regionally, Fintech deals break down as follows:
- Americas – $5.35 billion for 158 deals
- the US claimed $5 billion and 142 deals
- Europe – $1.66 billion for 73 deals
- The UK dominated
- France continued to offer incentives to attract firms
- Numerous Fintech hubs are being set up in Germany
- Asia – $1.2 billion fro 41 deals
- China continued to dominate but deals in Hong Kong, India and Korea were in the top 10
- Early stage deals plummeted
- Insurtech picking up pace
Regarding “trends to watch” KPMG states:
“Globally, Fintech is expected to continue to grow and diversify over the next few quarters. Artificial intelligence, Insurtech , Regtech, and Blockchain are poised to remain hot areas of investment. The rapidly approaching implementation deadline for PSD2 in Europe, and consideration for similar regimes in other markets, including Australia, is expected to put an increased focus on open banking . Over time, the importance of Asia-based Fintech hubs, such as Singapore’s Insurtech innovation hub, is also expected to grow, particularly in the eyes of traditional corporates. As a result, it would not be surprising to see more companies from North America making investments in the region in order to gain more visibility and access to such innovations.”
There is a lot of good information in this report as KPMG has improved the overall caliber of the content created in their quarterly Fintech Pulse report. The take away message is that Fintech, in general, continues to evolve and disrupt financial norms. Emerging verticals such as Insurtech, Blockchain, ICOs and Regtech are gaining traction as innovators target services ripe for improvement.
See the report below.