Given the significant interest in fintech globally, and its ongoing evolution in terms of market drivers, technologies and potential use-cases, KPMG is bringing you pulse of fintech investment globally. Each quarter, we’ll highlight key fintech deals, issues and challenges seen around the world, in addition to key trends and insights related to fintech in key regions, including the Americas, the US, Asia and Europe.
Global fintech investment got off to a soft start in Q1’17, with the total invested globally at $3.2 billion, down from $4.15 billion in Q4’16 according to the Q1’17 edition of The Pulse of Fintech – KPMG International’s quarterly report on fintech investment. Fintech M&A dropped in Q1’17, with $920 million in deal volume – down from $1.8 billion in the previous quarter, and less than half of the $4 billion in funding in Q1’16. Venture capital funding to fintechs held relatively steady at $2.3 billion in Q1’17 – a solid result although well below peak highs.
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?