1、Pulse of Fintech H123 July analysis of fintech funding2 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseThe first six months of 2023 were quite challenging for the global fintech market
2、.Some of the challenges were expected high levels of inflation,rising interest rates,the ongoing conflict between Russia and Ukraine,depressed valuations,and a lack of exits;others were less so,including the collapse of several banks in the US.But while both total fintech funding and the number of f
3、intech deals globally dropped from$63.2 billion across 2,885 deals in H222 to$52.4 billion across 2,153 deals in H123,the news wasnt all negative.Despite market turbulence and declining funding in both the EMEA and ASPAC regions,the Americas saw fintech funding climb from$28.9 billion in H222 to$36
4、billion in H123.Several fintech subsectors also saw strong levels of funding in H123.At mid-year,funding in logistics and supply chain-focused fintech was well above all previous annual totals($8.2 billion),while the$1.7 billion funding in ESG-focused fintech was ahead of 2022s total.Looking back on
5、 the first half of 2023,fintech investor sentiment can be characterized as highly selective.Consider some of the key trends weve seen across the fintech sector over the past six months:Increasing focus on operational efficiency,sustainable cash flows,and profitability both from investors and from fi
6、ntechs looking to delay their next funding rounds.Continued resilience of the payments space particularly payments infrastructure.Declining crypto funding in the wake of sector challenges,combined with increasing focus on broader blockchain solutions.Rapidly growing interest in potential use cases f
7、or generative AI,particularly in cybersecurity,insurtech,and wealthtech.Heading into the second half of 2023,market challenges are expected to continue which could make for another bumpy six months.AI is expected to be a hot topic of conversation and likely funding even if fintech activity remains s
8、ubdued.As the market begins to stabilize,however,funding in fintech will likely perk up.Payments,in particular,is well positioned to see funding continue and accelerate,in addition to insurtech and wealthtech.Should market conditions improve,M&A activity could also start to climb again as PE investo
9、rs and corporates look for good deals.Whether youre the CEO of a large financial institution or the founder of an emerging fintech,its critical to consider how your company can grow sustainably and profitably even in these uncertain times.As you read this edition of Pulse of Fintech,ask yourself:How
10、 can we position our organization to weather todays storms while positioning for long-term success?Welcome messageKPMG Fintech professionals include partners and staff in over 50 fintech hubs around the world,working closely with financial institutions,digital banks and fintech companies to help the
11、m understand the signals of change,identify the growth opportunities and develop and execute their strategic plans.Anton Ruddenklau Global Leader of Fintech,Partner and Head of Financial Services AdvisoryKPMG in SingaporeAll currency amounts are in US$unless otherwise specified.Data provided by Pitc
12、hBook unless otherwise specified.3 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseContents Regional insights Americas EMEA ASPACGlobal insights Global fintech funding analysis(VC,PE,M&
13、A)Top fintech trends for H123 Payments Insurtech Regtech Cybersecurity Wealthtech Blockchain/cryptocurrencyFintech segments4 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal finte
14、ch funding in H123 recorded$52.4B with 2,153 dealsGlobal insightsFintech segments|Regional insights5 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal in fintech declines despite s
15、olid increase funding in the AmericasGlobal funding fell from$63.2 billion across 2,885 deals in H222 to$52.4 billion across 2,153 deals in H123.Q223 results were particularly soft,with just under$18 billion invested globally the lowest level of fintech funding seen since Q317.While fintech funding
16、rose in the Americas,from$28.9 billion across 1,323 in H222 to$36 billion across 1,011 deals in H123(including$34.9 billion across 809 deals in the US),funding in the other key regions declined significantly.In the EMEA region,fintech funding dropped from$27.3 billion across 963 deals in H222 to$11.
17、2 billion across 702 deals in H123,while in the ASPAC region it dropped from$6.7 billion across 583 deals to$5.1 billion across 432 deals.Fintechs focusing on improving efficiencies as investors hold back amid market uncertaintyThe fintech market globally was very slow in H123 as many investors held
18、 back from allocating capital given the breadth of headwinds.As inflation remained high,interest rates continued to climb,exits remained illusive,and start-up valuations saw significant downward pressure,investors enhanced their due diligence processes and put a laser focus on sustainability and pro
19、fitable business models.With funding less certain and the cost of debt rising,many fintechs also tightened their belts focusing on improving their operating performance and cash flows in order to make it through the downturn and better attract investors.US accounts for two-thirds of fintech funding
20、in H123;attracts five of the seven$1 billion+dealsThe US proved very resilient in the first half of the year,attracting$34.9 billion in fintech funding just over two-thirds of all funding seen globally including five of the seven$1 billion+deals of H123(i.e.the$8 billion buyout of Coupa by Thomas Br
21、avo,the$6.8 billion VC raise by Stripe,and the$4 billion acquisition of EVO payments by Global Payments).The EMEA region and ASPAC regions each saw one$1 billion+deal during H123:In EMEA,UK-based energy insights platform company Wood Mackenzie was acquired by Veritas Capital for$3.1 billion,while in
22、 ASPAC,China-based Chongqing Ant Consumer Finance raised$1.5 billion.Global fintech funding falls to$52 billion as headwinds persist Global insightsThe entire tech sector is experiencing fierce headwinds at the moment and fintech is no different.The combination of macroeconomic forces like high infl
23、ation and rapidly rising interest rates,combined with fintech-specific challenges including the collapse of several crypto firms last year and the challenges experienced in the US banking sector earlier this year saw investors being a lot more conservative with their funding.While H223 could remain
24、challenging for fintech funding,as market conditions stabilize,funding will likely rebound.Global insightsFintech segments|Regional insightsJudd CaplainGlobal Head of Financial ServicesKPMG International6 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entit
25、ies provide no services to clients.All rights reserved.#fintechpulsePayments sector remains biggest fintech ticket,attracts over$16 billion in funding in H123The payments sector attracted the largest share of fintech funding in the first half of 2023,including the three largest deals globally.The se
26、ctor remained quite attractive in all regions of the world given the perceived resilience of payments models.Within the payments space,however,there was a strong pullback away from BNPL models as investors focused their fundings on more mature,core banking platforms with strong applicability in all
27、economic conditions.Globally,the payments space also saw some M&A activity as companies looked at acquisitions as a mechanism to achieve scale and power expansion activities.AI and generative AI the talk of H123 poised to drive funding heading into H223Both AI and generative AI attracted a significa
28、nt amount of attention in H123,with both traditional investors and corporates showing keen interest in applications within the fintech space.In H123,the big tech giants drove the most visible activity in the generative AI space particularly in the cybersecurity sector with Microsofts launch of Secur
29、ity Copilot and Googles announcement of its Security AI Workbench.1Interest in AI and generative AI-driven solutions is only expected to accelerate heading into H223;in addition to cybersecurity solutions,both wealth management and insurance applications will likely be high on the radar of fintech i
30、nvestors.Trends to watch for in H223 Strong acceleration in interest and funding in AI solutions aimed at fintech subverticals,particularly cybersecurity,wealthtech,and insurtech.Additional take-private deals in the insurtechspace should public market performance continue to be suboptimal.Continued
31、consolidation in the payments space,not only globally but also within jurisdictions and regionally.Increasing focus on B2B-focused one-stop shop platforms and on B2C single-interface super apps aimed at consumers in emerging markets.Democratization of access to a variety of asset classes through fra
32、ctionalized funding solutions.Global insights1https:/ insightsFintech segments|Regional insightsIt is still very early days when it comes to the application of generative AI to use cases in financial services.But looking forward,it is an area that is attracting enormous interest and funding particul
33、arly in areas like cybersecurity,regtech,and wealthtech.Over the next six months,well start to see an uptick in investors embracing the space as corporates demand ways to leverage generative AI effectively.Anton Ruddenklau Global Leader of Fintech,Partner and Head of Financial Services AdvisoryKPMG
34、in SingaporeDuring the first half of 2023,fintech funding was incredibly subdued as many investors pulled back from making major fundings in the face of myriad market challenges,notably high interest rates fundamentally challenging existing business models exacerbated by other macroeconomic challeng
35、es,geopolitical tensions,and depressed valuations.With uncertainty expected to be the status quo in the near-term,fintech funding is expected to remain subdued heading into H223 although the long-term outlook for the transformation of financial services remains very positive.Here are our top predict
36、ions for fintech in H223:M&A will rise as market conditions improve:at either end of the spectrum-distressed sales,purchases of attractive low valued assets or protective sales or value accretive M&A,lower valuations will support a burgeoning deal market for incumbents,PE and challenger firms.Corpor
37、ate Ventures will embrace start-ups able to help them operate more seamlessly and efficiently:Corporate fundings will likely focus on solutions able to help their corporate customers operate more effectively and transform digitally from cybersecurity platforms to solutions that help improve finance,
38、supply chain,logistics,and payments processes.Interest in AI will continue to accelerate:scaleups will promote their existing AI capabilities as they fundraise and ink up business,whilst new start-up will be incubated and scaled to leverage AI as a step change in operational efficiency and services.
39、Large tech giants will be critical to the development of generative AI fintech solutions given their dependence on robust data and large language models(LLMs).Interest in blockchain and digital asset solutions will increase in the ESG space:With crypto funding is expected to remain soft heading into
40、 H223 as regulators continue to tighten controls and jurisdictions jockey for position as hubs for responsible crypto funding,other blockchain-based solutions will gain more attention from investors particularly solutions aligned with ESG and sustainability(such as carbon credits,supply chain tracea
41、bility,tokenized climate solutions).Investors will continue to prioritize profitability when making investments:The days of major funding in structurally unprofitable companies has passed.Fintech investors will increasingly prioritize companies able to demonstrate top-line revenue growth,a strong gr
42、asp of unit economics and shorter paths to profitability.The payments sector will remain hot across all global markets:Given the breadth and applicability of payments solutions,funding in the payments space will likely remain quite strong;consolidation will likely increase as payments firms look to
43、achieve greater scale and reach,and take advantage of significant scheme changes across all markets.Global insights Top fintech trends for H2231.2.3.4.5.6.7#fintechpulse 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.
44、All rights reserved.Global insightsFintech segments|Regional insights8 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal insightsDealmaking remains markedly subdued as volatility r
45、emains highTotal global funding activity(VC,PE and M&A)in fintech20202023*Source:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Global venture capital funding activity in fintech20202023*Global M&A activity in fintech202
46、02023*Global PE growth activity in fintech 20202023*Global insightsFintech segments|Regional insights$138.8$247.2$209.3$52.44,7397,8437,1432,15302,0004,0006,0008,00010,000$0$50$100$150$200$250$3002020202120222023*Deal value($B)Deal count$85.3$110.7$109.2$24.06211,06785328702004006008001,0001,200$0$2
47、0$40$60$80$100$1202020202120222023*Deal value($B)Deal count$3.6$14.3$11.8$1.112315316248050100150200$0$2$4$6$8$10$12$14$162020202120222023*Deal value($B)Deal count$49.9$122.2$88.3$27.33,9956,6236,1281,81801,0002,0003,0004,0005,0006,0007,000$0$20$40$60$80$100$120$1402020202120222023*Deal value($B)Dea
48、l count9 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal insightsDeal metrics finally subside in tandem with activity after all-time highsSource:Pulse of Fintech H123,Global Anal
49、ysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Global median M&A size($M)in fintech20202023*Global cross-border M&A activity in fintech20202023*Global VC activity in fintech with corporate participation20202023*Global median pre-money valuations($M)by s
50、tage in fintech20202023*Global median M&A size($M)in fintech20202023*Global insightsFintech segments|Regional insights$8.9$40.3$58.8$13.721834931991050100150200250300350400$0$10$20$30$40$50$60$702020202120222023*Deal value($B)Deal count$27.1$62.8$43.7$16.71,0082,1191,88748705001,0001,5002,0002,500$0
51、$10$20$30$40$50$60$702020202120222023*Deal value($B)Deal count$5.1$7.1$9.9$10.0$17.5$32.0$35.2$26.9$35.2$59.3$63.6$50.0$330.0$445.0$314.9$117.82020202120222023*Angel&seedEarly VCLater VCVenture growth$31.7$44.7$60.1$25.4$0$10$20$30$40$50$60$702020202120222023*10 2023 Copyright owned by one or more o
52、f the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal insightsQuarterly figures reveal slowing momentumSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as
53、of 30 June 2023.Total global funding activity(VC,PE and M&A)in fintech 20202023*Global M&A activity in fintech20202023*Global insightsFintech segments|Regional insights$22.8$25.7$29.6$60.7$61.9$70.4$61.9$53.0$103.2$42.9$23.9$39.3$34.5$17.905001000150020002500$0$20$40$60$80$100$120Q1Q2Q3Q4Q1Q2Q3Q4Q1Q
54、2Q3Q4Q1Q22020202120222023Deal value($B)Deal count$7.6$14.7$16.6$46.3$31.5$36.4$25.4$17.5$65.3$11.3$6.4$26.3$21.2$2.8050100150200250300$0$10$20$30$40$50$60$70Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal count11 2023 Copyright owned by one or more of the KPMG International entities.K
55、PMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal insightsVenture capital funding activity remains relatively resilientGlobal venture capital funding activity in fintech20202023*Global venture capital activity in fintech with corporate participation202
56、02023*Global insightsFintech segments|Regional insights$14.6$9.4$12.4$13.5$25.4$30.2$34.0$32.6$32.5$27.4$16.5$11.9$12.5$14.805001,0001,5002,0002,500$0$5$10$15$20$25$30$35$40Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal countAngel&seedEarly VCLater VCVenture growth$8.8$5.1$6.8$6.5$13
57、.4$14.1$18.7$16.7$18.5$13.0$6.7$5.6$7.0$9.70100200300400500600700800$0$2$4$6$8$10$12$14$16$18$20Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal countSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.12
58、 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal insightsTop 10 global fintech deals in H123Source:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(
59、data provided by PitchBook),*as of 30 June 2023.35671.Coupa$8B,San Mateo,US Institutional/B2B Public-to-private buyout2.Stripe$6.9B,San Francisco,US Regtech Series I3.EVO Payments$4B,Atlanta,US Payments M&A4.Wood Mackenzie$3.1B,Edinburgh,UK Institutional/B2B Corporatedivestiture5.Duck Creek Technolo
60、gies$2.6B,Boston,US Insurtech Public-to-privatebuyout6.Moneygram$1.8B,Dallas,US Payments Public-to-private buyout7.Chongqing Ant Consumer Finance$1.5B,Chongqing,China Consumerfinance Late-stage VC8.Paya$1.3B,Atlanta,US Payments M&A9.Generate$880.6M,San Francisco,US Institutional/B2B Late-stage VC10.
61、Abound(Consumer Finance)$602M,London,UK Consumer finance Early-stage VC14Global insightsFintech segments|Regional insights2910813 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulsePayment
62、sInsurtechRegtechCybersecurityWealthtechBlockchain/cryptocurrencyFintech segmentsGlobal insights Fintech segmentsRegional insights14 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulsePaym
63、ents deal activity slows amid global macroeconomic uncertaintyAfter two years of incredibly robust funding,the global payments space saw both deal value and deal volume decline significantly in H123.Ongoing fears of a global recession,high inflation,and rapid increases to interest rates in many juri
64、sdictions likely contributed to the major slowdown,in addition to the continued downward pressure on valuations.Mature and stable markets particularly the US and Europe attracted the vast majority of payments-focused funding during H123 as investors prioritized risk-averse deals.Key H123 highlights
65、from the payments sector include:US attracts largest payments deals in H123 by farThe US attracted the vast majority of payments activity in H123,including the$6.8 billion VC raise by Stripe,the$4 billion acquisition of EVO Payments by Global Payments,and the$1.8 billion acquisition of Moneygram by
66、PE firm Madison Dearborn Partners.Outside of the US,the largest deal in the Americas was a$60 million raise by Mexico-based spend management firm Clara.In Europe,a$160 million raise by UK-based The Bank of London accounted for the largest payments deal to date in 2023,while Singapore-based Thunes ra
67、ised the largest round in the ASPAC region($60 million).Investors rapidly shift focus to core payments capabilitiesDuring 2021 and much of 2022,investors in the payments space embraced a broad range of payments solutions and opportunities with BNPL companies accounting for many of the largest deals.
68、In H123,this focus shifted significantly,with many investors shifting their attention back to fintechs with core payments processing capabilities and robust business models.Source:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 Jun
69、e 2023.Total global funding activity(VC,PE and M&A)in payments20202023*Fintech Payments Global insights Fintech segmentsRegional insights$29.8$57.5$56.3$16.26981,02687824302004006008001,0001,200$0$10$20$30$40$50$60$702020202120222023*Deal value($B)Deal count15 2023 Copyright owned by one or more of
70、the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseWhat to watch for in H223Continued multilateral fast payments schemeagreements fuel the market demand for digitalpayments across all regions.Increasing focus on single-interfac
71、e paymentsmodels and super apps to expand access in Africa.Continued focus on embedded finance,including agrowing focus on collaborations between traditionalbanks and ERP providers as companies look toenhance the customer experience.Further consolidations as market players look tocapitalize on lower
72、 valuations and good deals.Increasing focus on B2B payments,particularly theuse of real-time payments,as businesses look tooptimize their supply chains,automate processes,and improve their anti-fraud efforts.Global,regional,and local consolidation driving payments sector activityAmid economic headwi
73、nds and increased market volatility,consolidation was a key factor driving funding activity in the payment space.During H123,a number of fintechs embraced acquisitions in order to scale and grow their reach.Global Payments acquired EVO Payments in part to grow its access to markets such as Poland,Ge
74、rmany,Greece and Chile,but also to help scale its activities in North America.Canada-based Nuvei,meanwhile,acquired US-based Paya($1.3 billion)to fuel its US expansion.Growing use of biometrics to authenticate paymentsOver the last six months,there has been a growing focus on the use of biometrics i
75、n order to authenticate payments,particularly on the part of retailers in the US.During H123,US-based Steak n Shake launched the ability for customers to use face biometrics for ordering and payments through a partnership with PopID,2while Panera Bread announced plans to allow customers to pay using
76、 palm recognition via Amazons Amazon One technology.Fintech Payments2https:/ the growing regulatory scrutiny,increased inflation,and decreased customer spend in Q1 and Q223,payments deal activity is shifting very quickly away from the big BNPL fintechsthat grabbed a significant amount of attention a
77、nd funding over the last two years towards fintechs with core payments capabilities and less risk averse business models.Courtney TrimbleGlobal Leader of Payments,Principal,Financial Services KPMG in the USGlobal insights Fintech segmentsRegional insights16 2023 Copyright owned by one or more of the
78、 KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseInsurtech funding bounces back;H123 total nearly exceeds 2022 resultsAfter a large drop-off in funding last year,total funding in insurtech bounced back in in the first half of 20
79、23,with H123 funding nearly exceeding 2022s total.While funding remained well off pace of the banner years seen in 2020 and 2021,the funding is very positive given the declining funding levels in other areas of fintech.The$2.6 billion buyout of Duck Creek Technologies by Vista Equity partners helped
80、 strengthen funding in H123 significantly;the second largest deal of H123 was the$570 million acquisition of benefits administration company Benefitfocus by Voya Financial.Key H123 highlights from the insurtech space include:Public insurtechs being taken private amid rocky public performanceIn 2020
81、and 2021,a number of mature insurtechs particularly in the US went public in order to monetize their fundings.Many of these companies have not fared well in the public markets,particularly over the last year as market conditions deteriorated.During H123,P&C online insurance enabler Duck Creek Techno
82、logies was taken private in a$2.6 billion deal.Should valuations in the insurtech space remain depressed,there will likely be additional take-private deals as PE firms in particular look for good deals.Continued focus on risk preventionDuring H123,there continued to be a strong focus on the risk pre
83、vention side of insurance,particularly from general insurance carriers.This focus spanned quite a spectrum,from the use of sensors to detect and prevent leaks and fires before a major issue occurs to mechanisms to prevent and mitigate the impact of cyberattacks.Given the difficulty of pricing emergi
84、ng risks,insurers have also shown interest in solutions able to help them understand and quantify specific risks in order to better develop related insurance offerings.Total global funding activity(VC,PE and M&A)in insurtech20202023*Source:Pulse of Fintech H123,Global Analysis of funding in Fintech,
85、KPMG International(data provided by PitchBook),*as of 30 June 2023.Fintech InsurtechGlobal insights Fintech segmentsRegional insights$15.6$12.1$6.0$4.73645183941280100200300400500600$0$2$4$6$8$10$12$14$16$182020202120222023*Deal value($B)Deal count17 2023 Copyright owned by one or more of the KPMG I
86、nternational entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal insurtech funding tilts strongly towards USThe US attracted three of the largest deals in the insurtech space during H123;in addition to Duck Creek Technologies and Benefitfocus,U
87、S-based insurance marketplace Gravie raised$179 million.The largest deals in other regions included a$68.8 million raise by Jakarta-based Qoala and a$110 million raise by Germany-based digital insurance company Wefox.Insurtech M&A activity slowdown driven by broader trends Traditional M&A in the ins
88、urtech space was soft in the first half of the year.Given the relative strength of insurtech funding outside the M&A space,the slowdown can likely be attributed to general market conditions,including global macroeconomic uncertainty and ongoing geopolitical challenges.Once market conditions stabiliz
89、e,there will likely be an uptick in insurtech M&A,particularly driven by corporates looking to make strategic funding in digital technology capabilities.Fintech InsurtechWhat to watch for in H223 Continued focus on take-private deals,particularly involving companies with verystrong technologies and
90、capabilities.The ongoing performance of the remainingpublicly listed insurtechs and additionaltake-private deals should results not improve.An increasing focus on the use of AI tounderpin insurtech offerings,particularly inclaims processes like claims,fraudassessments,and forensics.Heading into H223
91、,insurtech funding will likely remain focused more on insurtechsthat are enablers providers of point solutions across the insurance value chain rather than full stack challengers those competing with incumbent insurance carriers.However,it will be interesting to see what happens with the first gener
92、ation of public insurtech carriers whose valuations,currently,have been significantly impaired in public markets.We may see insurtechs moving away from the full stack model as they realize their core capabilities and competencies center around their enabling technology not necessarily around being a
93、n insurance company.Ram MenonGlobal Head,Insurance Deal AdvisoryKPMG InternationalGlobal insights Fintech segmentsRegional insights18 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseAft
94、er record-shattering 2022,VC funding in regtech slows in H123After soaring to a major record high in 2022,total funding in regtech slowed in H123.The largest deal in H123 was the$155 million acquisition of US-based turnkey crypto platform Apex Crypto by Bakkt;the platforms features range from cleari
95、ng and custody activities to tax services.California-based Accounts Payable automation start-up Tipalti also had a large raise in H123,pulling in$150 million funding.Europe also attracted a series of large deals in the regtech space,led by a$129 million VC raise by UK-based data intelligence firm Qu
96、antexa,a$77 million series A raise by UK-based Yonder,and a$53 million raise by Netherlands-based identity management-focused firm Fourthline.In the ASPAC region,Australia-based all-in-one banking-as-a-service platform Constantinoples$21 million seed round accounted for the largest regtech deal of H
97、123.Key H123 highlights from the regtech sector include:Fraud,financial crime,and risk and compliance platforms remain in high demandFraud and financial crime platforms continued to attract attention from regtech investors in H123,in addition to one-stop shop platforms.Of particular interest was pla
98、tforms using AI/ML to streamline end-to-end AML and KYC;during H123,US-based Quantifind raised$23 million for its financial crime platform focused on this.US and Europe remain leaders in regtechDuring H123,the US and Europe dominated the regtech funding space driven in part by the maturity of their
99、markets and their existing regulatory regimes.While the ASPAC region continued to lag behind,the$20 million seed round by Taiwan-based OEN may be a signal that interest is growing in the area.OEN is a one-stop shop cloud platform offering services ranging from security to cloud management.Fintech Re
100、gtechSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Total global funding activity(VC,PE and M&A)in regtech20202023*Global insights Fintech segmentsRegional insights$11.0$12.0$20.9$1.1294411369121050100150200250300
101、350400450$0$5$10$15$20$252020202120222023*Deal value($B)Deal count19 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseFintech RegtechReal-time compliance a major focus for regtechsGlobal
102、ly,regtechs have continued to focus significantly on responding to the demands of their customers,including the demand for real-time compliance monitoring.In particular,regtechs have embraced the use of AI and automation to develop more robust real-time compliance platforms;they are now looking at g
103、enerative AI as a mechanism to further enhance their real-time compliance monitoring,assessment,and decision response solutions.Cyber trends likely to drive funding in regtechOver the last year and more,cyber attacks have continued to grow more complex and sophisticated,becoming increasingly challen
104、ging and time consuming for organizations to manage.This trend is leading to growing recognition of the need for robust cyber platforms similar to those developed for preventing,identifying and responding to financial crimes particularly platforms using AI technologies to provide a more sophisticate
105、d response.This could drive additional convergence in solutions focused on the two areas.What to watch for in H223 Continued focus on M&A,as evidenced bythe H123 announcement of the$10.5 billionacquisition of financial risk software firmAdenza by Nasdaq.Strengthening interest in the integration of A
106、I,generative AI,and automation in end-to-endcompliance platforms.Growing funding in regtech as companieslook to adhere to the EUs new DigitalOperational Resilience Act(DORA)and theCorporate Social Responsibility Directive(CSRD).Strengthening focus on one-stop shopplatforms that integrate regulatory
107、complianceas a key component.Increasing interest and funding in regtechsolutions related to ESG and sustainability.The regtech space is evolving at a level of maturity now where we would expect to see growing consolidation as companies pull an array of regtechs under a single umbrella.The recent ann
108、ouncement of the acquisition of risk software firm Adenza by Nasdaq for$10.5 billion is an excellent example of this,with the deal expected to extend Nasdaqs value proposition into the management of risks and regulatory issues.Fabiano GobboGlobal Head of RegtechKPMG InternationalGlobal insights Fint
109、ech segmentsRegional insights20 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseCybersecurity funding globally was very solid in H123 on pace to surpass 2022 totals,although the level o
110、f funding remained far below 2021s outlier record high.The number of deals in the cybersecurity space was substantially lower in H123 compared to H222,likely reflecting the desire of PE and VC investors prioritizing a smaller number of more certain bets.The largest deals of the quarter included a$49
111、3 million VC raise by France-based digital asset security firm Ledger and a$250 million acquisition of Switzerland-based cryptocurrency custody firm Metacoby US-based settlements firm Ripple.Key H123 highlights from the cybersecurity sector include:Continued acceleration on the use of AI and automat
112、ionIn H123,investors in the cybersecurity space continued to focus significantly on AI,prioritizing bigger plays focused on amping up bigger platforms to incorporate AI-based cybersecurity tools and technologies.This trend has accelerated quite a bit since late 2022,with anything to do with security
113、 automation high on the radar of potential investors.The big tech giants have also prioritized AI-based cybersecurity solutions within their own platforms:During H123,Microsoft launched Security Copilot a generative AI-powered defense and response system,3while Google announced its Security AI Workb
114、ench a B2B-focused solution aimed at enabling security firms to leverage generative AI.4Fintech CybersecuritySource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Total global funding activity(VC,PE and M&A)in fintech:cy
115、bersecurity20202023*Global insights Fintech segmentsRegional insights$2.0$4.3$1.5$0.9596382250102030405060708090$0$1$2$3$4$52020202120222023*Deal value($B)Deal countGlobal YOY funding in cybersecurity tracking above 2022 at mid-year3https:/ 2023 Copyright owned by one or more of the KPMG Internation
116、al entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseMature platform companies and tech giants continue to drive consolidationWhile M&A activity was soft in H123,there continued to be active interest in acquisitions and consolidations,primarily driv
117、en by mature financial services-focused platform players and large tech giants looking to add new tools to their toolbox or to expand their security capabilities.The large number of small and mid-sized start-ups with bespoke cybersecurity solutions makes the sector particularly ripe for consolidatio
118、n as larger players look to better respond to their customers needs and wants.Cloud security gaining attentionCloud security continues to be an active area of cybersecurity funding,driven by companies grappling with how to keep their data secure in the cloud or across multiple cloud providers.In rec
119、ent years,regulators have also increased their focus on cloud security(e.g.the EUs Digital Operational Resilience Act),guided by the realization of how fast companies made the cloud transition during the pandemic and awareness of the growing threat of cyberthreats and cyber risks to the resilience o
120、f organizations.What to watch for in H123Fintech CybersecurityWhat to watch for in H223Rapidly increasing focus on platforms thatallow customers to consolidate their antiquatedsecurity activities and disparate security tools.Evolving privacy and data regulations will likelykeep data security and clo
121、ud security top ofmind for both corporates and investors.Growing use of AI and automation across thecybersecurity spectrum.Everyone needs to automate.If companies cant find the indicators of compromise more quickly,theyll need to deal with the inevitability of attackers finding easier and faster way
122、s into their infrastructure even in the cloud.This recognition is driving a lot of interest in the space,particularly from insurance companies looking to better understand and manage the underwriting process related to cybersecurity risks.Charles JaccoAmericas Cyber Security Services,Financial Servi
123、ces Leader,PrincipalKPMG in the USGlobal insights Fintech segmentsRegional insights22 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseTotal funding in wealthtech was incredibly soft in
124、H123 not a surprise given the range of factors driving uncertainty in the global market,both within the fintech sector and beyond.The only$100 million+deal in H123 occurred in the US the most mature of the wealthtech markets globally;a$100 million raise by Avenue One a platform geared to simplifying
125、 funding in single-family rentals.Key H123 highlights from the wealthtech space include:AI use cases focusing on KYC and CDDSimilar to fintech and the tech space more broadly,investors in wealthtech also showed increasing interest in AI-enablement and the use of AI to drive unique solutions during H
126、123.In the wealth management space,this focus predominantly revolved around customer due diligence(CDD)and know-your-customer(KYC)solutions.Solutions related to transaction monitoring have also gained some attention as wealth management companies look to reduce the number of false positives and the
127、amount of manual effort and intervention.Interest in wealthtech in the ASPAC region growingWhile still a relatively small percentage of the market in the ASPAC region,interest in wealthtech offerings is growing.The increasing middle class in less developed jurisdictions in the region has started to
128、drive demand for new banking products outside of simple cash accounts,including solutions with funding capabilities.Robo-advisors are a growing role in catering to this growing pool of customers providing easy access to trading and an array of funding opportunities.Fintech WealthtechSource:Pulse of
129、Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Total global funding activity(VC,PE and M&A)in wealthtech20202023*Global insights Fintech segmentsRegional insights$0.2$1.7$0.8$0.233616117010203040506070$0$1$22020202120222023*Deal
130、value($B)Deal countWealthtech investors hold back in H123 amid global uncertainty23 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseIncreasing interest in solutions focused on fractiona
131、lized assetsFor many years,a number of asset classes have been locked only accessible to high net worth individuals and investors.Recently,there has been growing interest in solutions that make these asset classes more accessible to general investors primarily through the enablement of fractionalize
132、d fundings.Real estate and infrastructure funding solutions have been of particular interest to investors,as evidenced by the$100 million raise by Avenue One.Wealthtech M&A activity expected to remain low as corporates focus on partneringWhile the wealthtech space saw a small number of M&A deals in
133、H123,corporates interested in the space have primarily prioritized the forging of partnerships with wealthtechs rather than outright acquisition deals.Fintech WealthtechWhat to watch for in H223Growing focus on the use of generative AI inorder to support wealth manager decision making,to improve rob
134、o-advisory capabilities,and toenhance personalization for clients across thewealth management spectrum.Increasing integration of embedded finance andwealthtech offerings.Further democratization of wealth managementadvice and opportunities given the growing numberof self-directed learning platforms.W
135、ealthtech is in a bit of a lull at the moment.The uncertainty globally is causing investors to sit on the fence with the hopes that the market will improve in H223.Theres also a lot of new technologies being talked about,but start-ups have yet to really harness them for wealthtech use cases.Generati
136、ve AI is a good example of this.Theres a lot of discussion about how it could help industrialize the advice process for wealth managers or to generate proper advice for retail customers;but such solutions and related fundings are still a bit further down the pipe.Leon OngPartner,Financial Services A
137、dvisoryKPMG in SingaporeGlobal insights Fintech segmentsRegional insights24 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseFunding in crypto and blockchain falls back to Earth in H123F
138、intech Blockchain/cryptocurrencySource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Total global funding activity(VC,PE and M&A)in blockchain and cryptocurrency20202023*Global insights Fintech segmentsRegional insights
139、$6.1$29.8$25.4$4.47851,9571,88053605001,0001,5002,0002,500$0$5$10$15$20$25$30$352020202120222023*Deal value($B)Deal countAfter two years of incredible funding,the crypto and blockchain space saw funding fall dramatically in H123,although funding levels remained on par with 2020 results.Like the tech
140、 sector more broadly,the crypto and blockchain space saw investors pulling back in the wake of growing economic uncertainty,including ongoing concerns about a potential recession,high interest rates,and the significant pressure on valuations.The collapse of several crypto-focused companies during 20
141、22 also affected investor confidence;the subsequent increasing focus on due diligence and governance likely slowed the speed of crypto deals even further.Key H123 highlights from the crypto and blockchain space include:Funding in crypto and blockchain remains geographically diverseWhile funding in t
142、he crypto and blockchain space was soft in H123,funding continued to show geographic diversity with$100 million+megadeals in France(Ledger$493 million),the US(GammaRey$320 million,Apex Crypto$155 million,WorldCoin$115 million),Switzerland(Metaco$250 million),and Canada(Blockstream$125 million).US ti
143、ghtens enforcement of crypto companies;drives interest to other jurisdictionsDuring H123,the SEC took significant steps to strengthen its enforcement of crypto platforms and exchanges,initiating legal proceedings against Coinbase,Binance,and Bittrex.5The SEC also reopened the comment period related
144、to proposed changes to rule 3b-16 of the Securities Exchange Act in order to further expand on the definition of an exchange.6With the US increasing scrutiny of crypto platforms,other jurisdictions have gained more prominence in the eyes of investors and start-ups,including Singapore and Japan.5http
145、s:/ 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseSingapore in particular is seen as a strong forerunner given it already has regulations in place,including its Payment Services Act a
146、nd its Digital Token Payment Act,and is in the process of issuing regulations related to stablecoin issuances.Continued focus on blockchain technology opportunities,particularly in ESG spaceAs interest in crypto remained soft,interest in other solutions leveraging blockchain-based technologies conti
147、nued to attract interest from investors.In particular,investors have shown continued interest in blockchain-based solutions related to the tracking and tracing of carbon credits,and the traceability of food fromfarm-to-table.Sandboxes remain key for development of blockchain solutionsGiven the nasce
148、nt nature of many blockchain-based solutions,jurisdictions around the world have continued to embrace the sandbox approach to helping drive solutions development while also creating mechanisms to better understand the use,impact,and value of such technologies.During H123,theEuropean Commission launc
149、hed a regulatory sandbox for distributed ledger technologies.7The outcomes of the European Comissions sandbox will be particularly interesting to watch given its multi-jurisdictional focus and reach.Fintech Blockchain/cryptocurrencyWhat to watch for in H223Emergence of more non-USD stablecoins,parti
150、cularly in Asia,as real-world use casescontinue to emerge for stable coins includingtrade finance,SME lending,and cross-bordertransactions.Increasing focus on the NFT space,with moreinvolvement from non-financial institutions.Growing focus on blockchain solutions targeted atthe ESG and carbon credit
151、s space.Strengthening interest from banks interested inasset tokenization,particularly as a means totokenize and fractionalize assets to expand accessto asset classes to different segments of investors.7https:/digital-strategy.ec.europa.eu/en/news/launch-european-blockchain-regulatory-sandbox/Blockc
152、hain is such a new area of development.The more you study it,the more you can understand the full implications of it and the considerations related to it.This is one reason why so many jurisdictions are implementing regulatory sandboxes from the EU,South Africa and Kazakhstan to Qatar and ADGM in th
153、e Middle East.These sandboxes will continue to be critical,not only for testing blockchain-based technologies but for creating ecosystems in which companies can work together to determine and create new value.Debarshi Bandyopadhyay Director,Financial Services,Blockchain&CryptoKPMG in SingaporeGlobal
154、 insights Fintech segmentsRegional insights26 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseIn H123,fintech funding in the Americas reached$36.1B with 1,011 dealsGlobal insights|Finte
155、ch segments Regional insights27 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseTotal fintech funding in the Americas rose from$28.9 billion in H222 to$36 billion in H123,although it re
156、mained relatively weak compared to the level of funding seen between H220 and H122.While the region attracted a number of sizeable transactions all in the US total deal volume dropped significantly;deal volume in Q223 was particularly weak,falling to a twelve-quarter low.Given the amount of funding
157、still available in the market,the decline in deals volume likely reflects a number of factors,including investors being much more selective about the deals they go after and valuation differences between what sellers want and what buyers are willing to pay.Key H123 highlights from the Americas inclu
158、de:US attracts majority of fintech funding in the AmericasThe US accounted for the vast bulk of fintech funding in the region,including six deals over$1 billion:Coupa($8 billion),Stripe($6.8 billion),EVO Payments($4 billion),Duck Creek Technologies($2.6 billion),Moneygram($1.8 billion),and Paya($1.3
159、 billion).Outside of the US,only two countries attracted$100 million+funding rounds:Mexico,which saw a$175 million raise by SMB-focused fintech Kapital,and Canada,which saw a$125 million raise by bitcoin infrastructure company Blockstream.Crypto funding in the US on pause;blockchain interest persist
160、sFollowing on the collapse of a number of crypto companies in 2022 and the increasing focus of the SEC on crypto companies,many traditional investors in the US pulled back from the space during H123.While there were a handful of larger crypto deals in H123,including the$155 million acquisition of Ap
161、ex Crypto in the US and the$125 million raise by Canada-based Blockstream,funding was incredibly low relative to the last few years.Non-crypto focused blockchain-based technologies continued to attract interest,as evidenced by the$320 million acquisition of remittance-focused technology company Gamm
162、aRey by fintech data analytics company GoLogiq.Payments sector remains resilientCompared to other sectors,the payments space showed strong resilience in the first half of 2023,with most of the largest transactions in the Americas occurring in the space.This resilience likely reflects the robustness
163、of payments business models,which work both in good economic times and in bad ones.B2B payments were particularly high on the radar of investors during H123,evidenced by the$8 billion buyout of spend management platform Coupa by Thomas Bravo,and the$4 billion acquisition of payments services provide
164、r EVO Payments by Global Payments.The size of these deals highlights the importance of scale in order for payments companies to be able to compete effectively in an increasingly mature sector.Regional insights AmericasGlobal insights|Fintech segments Regional insightsFintech funding in the Americas
165、strengthens in H12328 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseRegional insights AmericasTrends to watch for in H223Growing focus on AI and generative AI use cases in the areas o
166、f financial planning and wealth management.Increase funding as the financial markets normalizeand there is more certainty that inflation is going down and that interest rates are stabilizing.Growing diversity of geographic locations within the Americas and domestically within the US attracting finte
167、ch funding.Continued focus on B2B fintech solutions,particularly those focused on helping financial services companies improve efficiencies.Accelerating payments deal volumes across the Americas as the market turns more positive,with increasing interest from PE firms.Were seeing investors,whether co
168、rporates or VC or PE firms,being much more selective around the businesses in which they invest.If theyre going to pay a high multiple,then the business has to be performing really,really well not only from a growth perspective,but also from an operating perspective.While investors used to pour mone
169、y into companies because of their growth story,now investors want to see a positive cash flow,if not a profitable company,in addition to high growth.Robert RuarkPrincipal,Financial Services Strategy and Fintech LeaderKPMG in the USGlobal insights|Fintech segments Regional insightsInsurtech continues
170、 to attract interestInterest and funding in insurtech remained relatively robust in the Americas,led by the$2.6 billion buyout of Duck Creek Technologies by Vista Equity Partners.The technologies being used by many legacy insurance players in the Americas,particularly in the US,is quite antiquated;i
171、nvestors recognize that there is a real opportunity to upgrade these technologies and the modularity of these technologies.As such,funding in the space will likely remain strong over the long term,even if deal speed slows further.29 2023 Copyright owned by one or more of the KPMG International entit
172、ies.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseDealmaking remains sluggish at the half-year markRegional insights AmericasSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June
173、2023.PE growth activity in fintech in the Americas 20202023*Total funding activity(VC,PE and M&A)in fintech in the Americas 20202023*M&A activity in fintech in the Americas20202023*Venture capital funding activity in fintech in the Americas 20202023*Global insights|Fintech segments Regional insights
174、$95.8$118.5$93.8$36.11,9723,5573,3251,01105001,0001,5002,0002,5003,0003,5004,000$0$20$40$60$80$100$120$1402020202120222023*Deal value($B)Deal count$68.2$40.5$43.5$19.33005183791270100200300400500600$0$20$40$60$802020202120222023*Deal value($B)Deal count$1,602.3$9,569.3$5,674.0$768.051797329020406080
175、100$0$2,000$4,000$6,000$8,000$10,000$12,0002020202120222023*Deal value($M)Deal count$26.0$68.5$44.6$16.01,6212,9602,87385505001,0001,5002,0002,5003,0003,500$0$10$20$30$40$50$60$70$802020202120222023*Deal value($B)Deal count30 2023 Copyright owned by one or more of the KPMG International entities.KPM
176、G International entities provide no services to clients.All rights reserved.#fintechpulseFinancing metrics subside yet do not collapseRegional insights AmericasVC activity in fintech with corporate participation in the Americas 20202023*Median M&A size($M)in fintech in the Americas 20202023*Source:P
177、ulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.The 2023 figure for median M&A sizes is based on a non-normative sample size.Median pre-money valuations($M)by stage in fintech in the Americas20202023*Global insights|Fintec
178、h segments Regional insightsQuartile post-money(VC,PE and M&A)valuations in Americas20202023*$10.0$15.0$15.7$15.0$26.0$46.0$40.7$36.5$94.9$182.5$140.5$108.6$0$50$100$150$200$250$3002020202120222023*25thMedian75th$13.0$35.9$20.5$10.836487681620502004006008001,000$0$5$10$15$20$25$30$35$402020202120222
179、023*Deal value($B)Deal count$7.5$10.0$12.0$11.0$30.0$55.0$55.9$52.0$70.0$125.0$110.0$60.0$665.0$1,000.0$646.0$226.42020202120222023*Angel&seedEarly VCLater VCVenture growth$63.5$53.0$66.4$30.0$0$10$20$30$40$50$60$702020202120222023*31 2023 Copyright owned by one or more of the KPMG International ent
180、ities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseM&A slows down after year-end bumpRegional insights AmericasSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Total fu
181、nding activity(VC,PE,M&A)in fintech in the Americas 20202023*M&A activity in fintech in the Americas 20202023*Global insights|Fintech segments Regional insights$17.2$19.9$83.8$10.0$13.2$19.3$20.4$43.0$29.8$26.5$33.4$28.9$43.4$21.5$10.0$18.9$23.3$12.8020040060080010001200$0$10$20$30$40$50$60$70$80$90
182、Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q220192020202120222023Deal value($B)Deal count$6.1$14.3$13.8$34.0$10.3$8.7$12.2$9.2$23.6$5.7$1.6$12.7$17.4$1.9020406080100120140160$0$5$10$15$20$25$30$35$40Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal count32 2023 Copyright owned b
183、y one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseVC invested with corporate participation holds upRegional insights AmericasSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG Internationa
184、l(data provided by PitchBook),*as of 30 June 2023.Venture capital funding activity in fintech in the Americas 20202023*VC activity in fintech with corporate participation in the Americas20202023*Global insights|Fintech segments Regional insights$6.7$4.5$6.2$8.6$14.9$16.6$19.8$17.2$17.6$13.5$7.9$5.7$
185、5.4$10.701002003004005006007008009001000$0$5$10$15$20$25Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal countAngel&seedEarly VCLater VCVenture growth$3.1$2.4$3.6$3.9$8.7$8.1$10.5$8.7$9.3$6.4$2.9$1.9$2.5$8.3050100150200250300350$0$2$4$6$8$10$12Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220202021202220
186、23Deal value($B)Deal count33 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by Pitch
187、Book),*as of 30 June 2023.1.Coupa$8B,San Mateo,US Institutional/B2B Public-to-private buyout2.Stripe$6.9B,San Francisco,US Regtech Series I3.EVO Payments$4B,Atlanta,US Payments M&A4.Duck Creek Technologies$2.6B,Boston,US Insurtech Public-to-private buyout5.Moneygram$1.8B,Dallas,US Payments Public-to
188、-private buyout6.Paya$1.3B,Atlanta,US Payments M&A7.Generate$880.6M,San Francisco,US Institutional/B2B Late-stage VC8.Benefitfocus$570M,Charleston,US Institutional/B2B M&A9.Xpansiv$525M,San Francisco,US ESG Late-stage VC10.GammaRey$320M,New York,US Blockchain M&AAmericasTop 10 fintech deals in the A
189、mericas in H123Global insights|Fintech segments Regional insights1293456810734 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseIn H123,funding in fintech companies in Europe,Middle East
190、 and Africa(EMEA)recorded$11.2B with 702 dealsGlobal insights|Fintech segments Regional insights35 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseEMEA sees fintech funding slide in H12
191、3;long-term outlook remains positiveLandmark regulatory initiatives around open banking and embedded finance:At the end of H123,the European Commission released its long-awaited draft of the revised Payment Services Directive(PSD3),and its proposals for a Payments Services Regulation(PSR)and a frame
192、work for financial data access.These ensure clear rights and obligations to manage customer data sharing beyond payment accounts,thus likely helping boost interest and funding in the open banking and embedded finance space and drive more collaboration between ecosystem participants.During H123,the U
193、Ks Joint Regulatory Oversight Committee also announced a framework for moving to the next phase of open banking.8 UK moving to cement its place as a fintech leaderDuring H123,the UK passed the Financial Services and Markets Act 2023.The Act includes a range of measures aimed at enhancing the UKs lea
194、dership and competitiveness in the financial services and fintech spaces.In particular,the Act enables changes meant to make the UK an attractive place to IPO,sets the foundation for the regulation of crypto assets to promote adoption,and establishes sandboxes to facilitate the testing of new techno
195、logies in the sector.9Regional insights EMEATotal fintech funding in the EMEA region dropped considerably from$27 billion in H222 to just$11 billion in H123 as investors in the region enhanced their focus on profitability in the wake of global macroeconomic uncertainty,rising interest rates,the inte
196、nse pressure on valuations,and a reduction in multiples.Despite the slowdown,the region is expected to remain strong over the longer term once the market uncertainty lessens.The UK attracted the majority of fintech funding in the EMEA region in H123,accounting for half of the regions 10 largest deal
197、s,including the$3.1 billion buyout of data insights firm Wood Mackenzie by Veritas,a$602 million raise by AI-powered lending company Abound,and a$250 million raise by e-trading platform eToro.Other countries that attracted large deals included France(Ledger$493 million),Switzerland(Teylor$299 millio
198、n;Metaco$250 million),Sweden(SignUp Software$229 million),and Germany(Moonfare$152 million).Key H123 highlights from the EMEA region include:8https:/www.fca.org.uk/firms/future-open-banking-joint-regulatory-oversight-committee/9ttps:/www.gov.uk/government/news/rocket-boost-for-uk-economy-as-financia
199、l-services-and-markets-bill-receives-royal-assentGlobal insights|Fintech segments Regional insightsThe factors that make the UK a strong financial services center also hold true for crypto and digital assets the legal and regulatory environment,the availability of skills,the quality of the universit
200、ies,the language and time zone positioning.While the UK may not be first out of the blocks with its crypto and digital assets regulations theyll likely come into force in early 2024 it is working to create the right regulatory environment to support a sustainable crypto and digital assets ecosystem
201、and make it an attractive location to crypto sector participants,while also protecting consumers.John HallsworthPartner,Financial Services,Open Finance&FintechKPMG in the UK36 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to cl
202、ients.All rights reserved.#fintechpulseIncreasing interest in ESG-related fintechIn Europe,climate change has continued to be a top priority,with EU-based regulations,such as the Corporate Sustainability Reporting Directive,increasingly putting banks at the forefront of making certain their customer
203、s report on ESG compliance.This focus is already spurring both banks and corporates to consider their role in the process,the integration of multiple sources of data,and changes that will be needed to ensure alignment.In time,this will likely drive interest in ESG-focused fintechs that can help comp
204、anies and banks with identified gaps.Regtech focus remains strongThere continued to be strong interest and funding in regtech,particularly in companies able to help financial institutions with KYC and AML obligations to assist with digital onboarding,the detection of suspicious activity,and the ongo
205、ing management and updating of customer information.Historically,these activities have required a significant amount of manual effort;given current macroeconomic pressures,financial institutions are becoming increasingly interested in how AI and automation can help them become more efficient.Regiona
206、l insights EMEAWhat to watch for in H223Increasing focus on embedded payments andembedded finance,catalyzed by PSD3.Growing attention to wealthtechs focused ondemocratizing access to funding in asset classes oncelimited to PE firms and other large-scale investors.Strengthening focus on the use of AI
207、 and intelligentautomation across financial services,including in theinsurance and wealth management sectors.The role of banks evolving to include more partnershipswith fintechs,retailers,and other companies,such asthrough the offering of B2B embedded bankingsolutions.Emergence of UK crypo regulatio
208、ns in an effort toposition itself as a global crypto center.Growing M&A activity,particularly from corporates asinflation and interest rates stabilize.A thinning out of the number of fintech companies ascash-strapped companies desperate for funding seeksales to other companies.Professional investors
209、 keeping their spending low.Retaining their power to help their existing portfoliofundings overcome the current drought,avoiding downrounds as much as possible,as multiples in privatemarkets drop following the trend in public markets.Global insights|Fintech segments Regional insightsThere are a lot
210、of expectations around embedded finance and embedded payments here in Europe.The recent publication of the PSD3 proposal and the framework for access to financial data will likely further catalyse open banking solutions,enhancing the ability of both banks and fintechs to integrate finance into the c
211、ustomer journey in other sectors.This industry evolution is to drive more open banking-focused partnerships in the B2C and even more in B2B spaces.Dave RemueDirector,Head of Fintech,AdvisoryKPMG in Belgium37 2023 Copyright owned by one or more of the KPMG International entities.KPMG International en
212、tities provide no services to clients.All rights reserved.#fintechpulseRegional insights EMEASource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Venture capital funding activity in fintech in EMEA20202023*PE growth act
213、ivity in fintech in EMEA20202023*Total funding activity(VC,PE and M&A)in fintech in EMEA20202023*M&A activity in fintech in EMEA20202023*Global insights|Fintech segments Regional insights$27.5$77.6$63.0$11.21,6362,5182,34370205001,0001,5002,0002,5003,000$0$20$40$60$80$1002020202120222023*Deal value(
214、$B)Deal count$14.9$46.1$30.6$4.32264093441150100200300400500$0$10$20$30$40$502020202120222023*Deal value($B)Deal count$1,178.7$1,920.6$4,477.2$279.552506414010203040506070$0$1,000$2,000$3,000$4,000$5,0002020202120222023*Deal value($M)Deal count$11.4$29.6$28.0$6.61,3582,0591,93557305001,0001,5002,000
215、2,500$0$5$10$15$20$25$30$352020202120222023*Deal value($B)Deal countDealmakers retreat to a substantial degree38 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseFinancing metrics paint
216、complex picture of significant capital to disburse investors concernRegional insights EMEASource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.The venture growth figures for 2020 and 2023 YTD are based on non-normative
217、sample sizes.The median M&A figure for 2023 YTD is based on a non-normative sample size.VC activity in fintech with corporate participation in EMEA 20202023*Median pre-money valuations($M)by stage in fintech in EMEA20202023*Median M&A size($M)in fintech in EMEA 20202023*Global insights|Fintech segme
218、nts Regional insightsQuartile post-money(VC,PE and M&A)valuations in EMEA20202023*$3.9$6.0$6.7$6.2$9.6$16.6$19.3$17.8$29.3$63.5$75.5$60.1$0$20$40$60$80$100$1202020202120222023*25thMedian75th$5.8$12.2$13.8$2.72975875381510100200300400500600700$0$2$4$6$8$10$12$14$162020202120222023*Deal value($B)Deal
219、count$3.8$5.7$6.0$8.3$8.8$13.9$13.2$9.1$18.7$31.2$36.1$28.1$118.8$127.1$67.7$84.12020202120222023*Angel&seedEarly VCLater VCVenture growth$22.7$42.8$75.4$40.0$0$10$20$30$40$50$60$70$802020202120222023*39 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entiti
220、es provide no services to clients.All rights reserved.#fintechpulseDealmaking continues to lose momentumRegional insights EMEASource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Total funding activity(VC,PE and M&A)in
221、fintech in EMEA20202023*M&A activity in fintech in EMEA20202023*Global insights|Fintech segments Regional insights$3.4$3.2$6.7$14.1$28.2$18.3$19.4$11.6$21.7$14.0$10.6$16.7$7.8$3.40100200300400500600700800900$0$5$10$15$20$25$30Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal count$1.1$0
222、.1$2.6$11.2$21.0$9.1$11.8$4.2$9.9$3.4$4.2$13.1$3.7$0.6020406080100120$0$5$10$15$20$25Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal count40 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights res
223、erved.#fintechpulseAfter a strong run,venture capital funding activity is declining at all stagesRegional insights EMEASource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Venture capital funding activity in fintech in
224、EMEA20202023*VC activity in fintech with corporate participation in EMEA20202023*Global insights|Fintech segments Regional insights$2.2$2.4$4.0$2.8$6.8$8.9$6.9$7.0$8.9$9.7$6.1$3.2$3.9$2.70100200300400500600700$0$2$4$6$8$10$12Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal countAngel&s
225、eedEarly VCLater VCVenture growth$1.3$1.3$1.8$1.3$3.2$3.2$3.5$2.4$5.6$3.9$2.7$1.6$1.9$0.8020406080100120140160180200$0$1$2$3$4$5$6Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal count41 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities
226、provide no services to clients.All rights reserved.#fintechpulseSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.EMEATop 10 fintech deals in EMEA in H1231.Wood Mackenzie$3.1B,Edinburgh,UK Institutional/B2B Corporate
227、 divestiture2.Abound(Consumer Finance)$602M,London,UK Consumer finance Early-stage VC3.Ledger$493M,Paris,France Blockchain Series C4.Teylor$299.05M,Zurich,Switzerland Lending Late-stage VC5.eToro$250M,London,UK Capital markets Late-stage VC5.Metaco$250M,Lausanne,Switzerland Blockchain M&A5.Bold Prim
228、e$250M,Port Louis,Mauritius Capital markets M&A8.SignUp Software$229.35M,Solna,Sweden Institutional/B2B Buyout9.The Bank of London$160M,London,UK Institutional/B2B PE growth10.Cushon$152.8M,London,UK Consumer finance M&AGlobal insights|Fintech segments Regional insights1103249555842 2023 Copyright o
229、wned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseIn H123,fintech companies in Asia Pacific received$5.1B with 432 dealsGlobal insights|Fintech segments Regional insights43 2023 Copyright owned by one or
230、 more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseFintech funding in ASPAC very soft;H123 sees lowest level in almost 10 yearsFintech funding in the ASPAC region dropped from$6.7 billion in H222 to$5.1 billion in H123
231、 a far cry from the record-breaking six months experienced in H122 when fintech funding reached over$45 billion.The largest fintech deal in the ASPAC region during H123 was$1.5 billion raise by China-based consumer finance services company Chongqing Ant Consumer Finance.Other deals in the region dur
232、ing the quarter were significantly smaller,including the$304 million buyout of India-based SME lending company Vistaar Finance by PE firm Warburg Pincus,the$270 million raise by Singapore-based credit services firm Kredivo Holdings,and a$200 million raise by India-based digital lending platform Cred
233、itbee.Key H223 highlights from the ASPAC region include:Fintech firms looking at ways to leverage AI-generated content(AIGC)Following on trends seen globally,interest in AI took off in the ASPAC region,with both investors and corporates looking for ways to leverage AIGC within fintech use cases.In p
234、articular,there is strong interest in AIGC use cases focused on marketing and customer engagement in order to upgrade customer experiences.While China has restricted access to ChatGPT,the countrys tech giants,including Baidu,Tencent,and Alibaba,all have their own large language models(LLMs).It is ex
235、pected that these LLMs could be used as a basis to support AIGC use cases in the fintech sector heading into H223 and into 2024.Outside of Chongqing Ant Consumer Finance raise,fintech funding in China is very dryAside from the$1.5 billion raise by Chongqing Ant Consumer Finance,fintech funding in Ch
236、ina was remarkably dry during H123,with the second largest deal a$45 million raise by installment financing company OH Credit.The decline in funding in China likely reflects businesses prioritizing their post-pandemic recovery,including strengthening their business models and looking for growth oppo
237、rtunities.Fintech investors in China area have also been taking a wait and see approach expecting start-ups that they have previously funded to prove their value and outcomes prior to making further fundings.Regional insights ASPACGlobal insights|Fintech segments Regional insightsA number of startup
238、s are focused on developing AI and AIGC use cases for the fintech industry,but there have not been any mature applications to date in the fintech space.That said,there is enormous interest in AI,so more material AIGC-related applications will likely begin to appear over the next six months to a year
239、.Andrew HuangPartner,Financial Services,AuditKPMG China44 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGrowing interest in logistics and supply chain financeOne fintech area that gai
240、ned increasing attention in the ASPAC region during H123 was logistics and supply chain finance;this area is expected to remain top of mind heading into H223 as traditional manufacturing companies and others look to become more efficient across their end-to-end operations.Jurisdictions in ASPAC look
241、ing to become global crypto hubsIn the wake of the US increasing scrutiny of crypto-focused firms,a number of jurisdictions in the ASPAC region have increased their efforts to position themselves as global hubs for the evolution of the crypto sector.Within the region,Singapore has had a jump start i
242、n this area;over the past few years,it has established strong regulations related to crypto firm operations,including its Payment Services Act and its Digital Token Payment Act.Outside of Singapore,both Japan and Hong Kong SAR,China have also undertaken a range of activities to establish strong cryp
243、to ecosystems.Regional insights ASPACTrends to watch for in H223Regulators within the region continuing to prioritize data governance,data security,and privacy protection.Increasing focus on ESG-focused fintechs and green finance.Fintechs continuing to focus on fintech enablement rather than on dire
244、ct competition.Accelerating focus on the use of AI and AIGC,with a particular focus on improving the customer experience.Global insights|Fintech segments Regional insights45 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clie
245、nts.All rights reserved.#fintechpulseDealmaking declines across all typesRegional insights ASPACSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Total funding activity(VC,PE and M&A)in fintech in ASPAC20202023*Ventu
246、re capital funding activity in fintech in Asia Pacific20202023*M&A activity in fintech in Asia Pacific20202023*PE growth activity in fintech in Asia Pacific20202023*Global insights|Fintech segments Regional insights$15.5$50.0$52.2$5.11,1161,7301,45343205001,0001,5002,000$0$10$20$30$40$50$60202020212
247、0222023*Deal value($B)Deal count$2.2$23.3$35.1$0.59413912644020406080100120140160$0$5$10$15$20$25$30$35$402020202120222023*Deal value($B)Deal count$843.4$2,736.3$1,630.1$60.52023255051015202530$0$500$1,000$1,500$2,000$2,500$3,0002020202120222023*Deal value($M)Deal count$12.5$24.0$15.5$4.61,0021,5681
248、,30238305001,0001,5002,000$0$5$10$15$20$25$302020202120222023*Deal value($B)Deal count46 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseValuations remain nuanced yet overall downRegion
249、al insights ASPACSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.The figures for venture growth for 2020,2022 and 2023 YTD are based on non-normative sample sizes.The median M&A size for 2023 YTD is based on a non-
250、normative sample size.VC activity in fintech with corporate participation in Asia Pacific20202023*Median M&A size($M)in fintech in Asia Pacific20202023*Median venture pre-money valuations($M)by stage in fintech in Asia Pacific20202023*Global insights|Fintech segments Regional insightsQuartile post-m
251、oney(VC,PE and M&A)valuations in Asia Pacific20202023*$4.4$5.8$8.6$9.2$14.1$16.1$27.6$26.8$57.3$98.9$90.8$83.8$0$20$40$60$80$100$120$1402020202120222023*25thMedian75th$8.3$14.5$9.3$3.13426425281290100200300400500600700$0$2$4$6$8$10$12$14$162020202120222023*Deal value($B)Deal count$3.2$4.7$7.5$13.6$1
252、5.6$14.1$24.9$22.9$31.9$43.5$50.0$54.7$201.4$434.4$376.9$47.62020202120222023*Angel&seedEarly VCLater VCVenture growth$15.0$11.5$27.9$7.1$0$5$10$15$20$25$302020202120222023*47 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to cl
253、ients.All rights reserved.#fintechpulseDealmaking grinds to a haltRegional insights ASPACSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Total funding activity(VC,PE and M&A)in fintech in Asia Pacific20202023*M&A i
254、n fintech in Asia Pacific20202023*M&A activity in fintech in Asia Pacific20202023*Global insights|Fintech segments Regional insights$6.2$3.2$2.5$3.6$3.9$25.6$8.2$12.4$38.1$7.4$3.2$3.5$3.4$1.70100200300400500600$0$5$10$15$20$25$30$35$40$45Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal
255、 count$0.5$0.2$0.2$1.2$0.1$18.6$0.6$4.0$31.8$2.3$0.6$0.5$0.1$0.3051015202530354045$0$5$10$15$20$25$30$35Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal count48 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to cli
256、ents.All rights reserved.#fintechpulseVC financing activity continues to slideRegional insights ASPACSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.Venture capital funding activity in fintech in Asia Pacific202020
257、23*VC activity in fintech with corporate participation in Asia Pacific 20202023*M&A activity in fintech in Asia Pacific20202023*Global insights|Fintech segments Regional insights$5.6$2.5$2.3$2.1$3.7$4.7$7.2$8.4$6.0$4.2$2.4$2.9$3.2$1.4050100150200250300350400450500$0$1$2$3$4$5$6$7$8$9Q1Q2Q3Q4Q1Q2Q3Q4
258、Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal countAngel&seedEarly VCLater VCVenture growth$4.3$1.4$1.4$1.3$1.6$2.8$4.6$5.6$3.6$2.6$1.0$2.0$2.5$0.6050100150200250$0$1$2$3$4$5$6Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22020202120222023Deal value($B)Deal count49 2023 Copyright owned by one or more of the KPMG Inte
259、rnational entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseSource:Pulse of Fintech H123,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2023.1.Chongqing Ant Consumer Finance$1.5B,Chongqing,China C
260、onsumer finance Late-stage VC2.Vistaar Finance$304M,Bengaluru,India Lending Buyout3.Kredivo Holdings$270M,Singapore Lending Series D4.KreditBee$200M,Bengaluru,India Lending Series D5.True Balance$168.1M,Gurgaon,India Lending Late-stage VC6.Trusting Social$105M,Singapore Consumer finance Series D7.As
261、pire$100M,Singapore Institutional/B2B Series C8.IPX$90.1M,Seoul,South Korea Blockchain Seed9.Lentra$87M,Pune,India Lending Series B10.Gojo&Company$80M,Tokyo,Japan Lending Series E1286310ASPACTop 10 fintech deals in ASPAC in H123Global insights|Fintech segments Regional insights495750 2023 Copyright
262、owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseThe financial services industry is transforming with the emergence of innovative new products,channels and business models.This wave of change is driven
263、 primarily by evolving customer expectations,digitalization as well as continued regulatory and cost pressures.KPMG firms are passionate about supporting clients to successfully navigate this transformation,mitigating the threats and capitalizing on the opportunities.KPMG Fintech professionals inclu
264、de partners and staff in over 50 fintech hubs around the world,working closely with financial institutions and fintech companies to help them understand the signals of change,identify the growth opportunities and to develop and execute their strategic plans.Visit the KPMG global fintech practiceGlob
265、al insights|Fintech segments|Regional insights51 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGet in touch Anton RuddenklauGlobal Leader of Fintech,KPMG International,Partner and Hea
266、d of Financial Services Advisory KPMG in SingaporeE:.sgJudd CaplainGlobal Head of Financial ServicesKPMG InternationalE:Courtney TrimbleGlobal Leader of Payments,KPMG International,Principal,Financial Services,KPMG in the USE:Fabiano GobboGlobal Head of Regtech,KPMG International,Partner,Risk Consul
267、ting,KPMG in ItalyE:fgobbokpmg.it Ram MenonGlobal Head,Insurance Deal AdvisoryKPMG InternationalE:Leon OngPartner,Financial Services Advisory KPMG in SingaporeE:.sgDave RemueDirector,Head of Fintech,KPMG AdvisoryKPMG in BelgiumE:Charlie JaccoAmericas Cyber Security Services,Financial services Leader
268、,PrincipalKPMG in the USE:John HallsworthPartner,Financial Services,Open Finance&FintechKPMG in the UKE:john.hallsworthKPMG.co.ukAndrew HuangPartner,Financial Services AuditKPMG ChinaE:Anna ScallyPartner,Head of Technology&Media,Fintech Lead KPMG in IrelandE:anna.scallykpmg.ieDebarshi BandyopadhyayD
269、irector,Financial ServicesKPMG in SingaporeE:.sgRobert RuarkPrincipal,Financial Services Strategy and Fintech LeaderKPMG in the USE:Kenji HokiDirector,Financial Services KPMG in JapanE:ContactsGlobal insights|Fintech segments|Regional insights52 2023 Copyright owned by one or more of the KPMG Intern
270、ational entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse Anton Ruddenklau,Global Leader of Fintech,KPMG International,Partner and Head of Financial Services Advisory,KPMG in Singapore Fabiano Gobbo,Global Head of Regtech,Risk Consulting Partner,KP
271、MG in Italy John Hallsworth,Partner,Financial Services,Open Finance&Fintech,KPMG in the UK Andrew Huang,Partner Financial Services Audit,KPMG China Charles Jacco,Americas Cyber Security Services,Financial Services Leader and Principal,KPMG in the US Ram Menon,Global Head,Insurance Deal Advisory,KPMG
272、 International Dave Remue,Director,Head of Fintech,KPMG Advisory,KPMG in Belgium Robert Ruark,Principal,Financial Services Strategy and Fintech Leader,KPMG in the US Courtney Trimble,Global Leader of Payments,Principal,Financial Services,KPMG in the US Leon Ong,Partner,Financial Services Advisory,KP
273、MG in Singapore Debarshi Bandyopadhyay,Director,Financial Services,KPMG in Singapore Kenji Hoki,Director,Financial Services,KPMG in Japan Leah Fegan,Director,Global Marketing,Financial Services,KPMG International Olivia Mount,Digital Marketing Manager,Global Marketing,Financial Services,KPMG Interna
274、tional We acknowledge the contribution of the following individuals across KPMG member firms who assisted in the development of thispublication:ContributorsAbout the reportGlobal insights|Fintech segments|Regional insights53 2023 Copyright owned by one or more of the KPMG International entities.KPMG
275、 International entities provide no services to clients.All rights reserved.#fintechpulseThe underlying data and analysis for this report(the Dataset)was provided by PitchBook Data,Inc(PitchBook)on 23 June 2023 and utilizes their research and classification methodology for transactions as outlined on
276、 their website at https:/ Dataset used for this report considers the following funding transactions types:Venture Capital(including corporate venture capital)(VC),private equity(PE)funding and Mergers and Acquisitions(M&A)for the fintech vertical within the underlying PitchBook data.Family and frien
277、ds,incubator and accelerator type funding rounds are excluded from the Dataset.Due to the private nature of many of the transactions,the Dataset cannot be definitive,but is an estimate based on industry leading practice research methodology and information available to PitchBook at 23 June 2023.Simi
278、larly,due to ongoing updates to PitchBooks data as additional information comes to light,data extracted before or after that date may differ from the data within the Dataset.Only completed transactions regardless of type are included in the Dataset,with deal values for general M&A transactions as we
279、ll as venture rounds remaining un-estimated if this information is not available or reliably estimated.Venture capital dealsPitchBook includes equity fundings into start-up companies from an outside source.Funding does not necessarily have to be taken from an institutional investor.This can includef
280、unding from individual angel investors,angel groups,seed funds,venture capital firms,corporate venture firms and corporate investors.Fundings received as part of an accelerator program are not included;however,if the accelerator continues to invest in follow-on rounds,those further financings are in
281、cluded.Angel/seed:PitchBook defines financings as angel rounds if there are no PE or VC firms involved in the company to date and it cannot determine if any PE or VC firms are participating.In addition,if there is a press release that states the round is an angel round,it is classified as such.Final
282、ly,if a news story or press release only mentions individuals making fundings in a financing,it is also classified as angel.As for seed,when the investors and/or press release state that a round is a seed financing,or it is for less than$500,000 and is the first round as reported by a government fil
283、ing,it is classified as such.If angels are the only investors,then a round is only marked as seed if it is explicitly stated.Early-stage VC:Rounds are generally classified as Series A or B(which PitchBook typically aggregates together as early stage)either by the series of stock issued in the financ
284、ing or,if that information is unavailable,by a series of factors including:the age of the company,prior financing history,company status,participating investors and more.Late-stage VC:Rounds are generally classified as Series C or D or later(which PitchBook typically aggregates together as late stag
285、e)either by the series of stock issued in the financing or,if that information is unavailable,by a series of factors including:the age of the company,prior financing history,company status,participating investors,and more.Corporate venture capital:Financings classified as corporate venture capital i
286、nclude rounds that saw both firms investing via established CVC arms or corporations making equity fundings off balance sheets or whatever other non-CVC method actually employed.Corporate/Growth:Corporate rounds of funding for currently venture-backed start-ups that meet the criteria for other Pitch
287、Book venture financings are included in the Pulse of Fintech as of March 2018.Growth:Financings tagged as Series E or later or deals involving companies that are at least seven years old and have raised at least six VC rounds will be included in this category.Private equity fundingsPitchBook include
288、s both buyout investors,being those that specialize in purchasing mainly a controlling interest of an established company(in a leveraged buyout)and growth/expansion investors,being those that focus on investing in minority stakes in already established businesses to fund growth.Transaction types inc
289、lude:leveraged buyout(LBO);management buyout;management buy-In;add-on acquisitions aligned to existing fundings;secondary buyout;public to private;privatization;corporate divestitures;and growth/expansion.Acquisition financing transactions will be included as of June 2023 if they do not fall under t
290、he PE growth transactional umbrella.MethodologyAbout the reportGlobal insights|Fintech segments|Regional insights54 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseM&A transactionsPitch
291、Book defines M&A as a transaction in which one company purchases a controlling stake in another company.Eligible transaction types include control acquisitions,leveraged buyouts(LBOs),corporate divestitures,reverse mergers,mergers of equals,spin-offs,asset divestitures and asset acquisitions.Debt re
292、structurings or any other liquidity,self-tender or internal reorganizations are not included.More than 50 percent of the company must be acquired in the transaction.Minority stake transactions(less than a 50-percent stake)are not included.Small business transactions are not included in this report.A
293、s of June 2023,acquisition financing transactions not covered under the PE growth umbrella will be included.The fintech verticalA portmanteau of finance and technology,the term refers to businesses who are using technology to operate outside of traditional financial services business models to chang
294、e how financial services are offered.Fintech also includes firms that use technology to improve the competitive advantage of traditional financial services firms and the financial functions and behaviors of consumers and enterprises alike.PitchBook defines the fintech vertical as Companies using new
295、 technologies including the internet,blockchain,software and algorithms to offer or facilitate financial services usually offered by traditional banks including loans,payments,wealth or funding management,as well as software providers automating financial processes or addressing core business needs
296、of financial firms.Includes makers of ATM machines,electronic trading portals and point-of-sale software.Within this report,we have defined a number of fintech sub-verticals,some of which are defined in existing PitchBook verticals yet others that are not and required a bespoke methodological approa
297、ch:1.Payments/transactions companies whose business model revolves around using technology to provide the transfer of value as a service including both B2B and B2C transfers.2.Blockchain/cryptocurrency companies whose core business is predicated on distributed ledger(blockchain)technology with the f
298、inancial services industry AND/OR relating to any use case of cryptocurrency(e.g.Bitcoin).This vertical includes companies providing services or developing technology related to the exchange of cryptocurrency,the storage of cryptocurrency,the facilitation of payments using cryptocurrency and securin
299、g cryptocurrency ledgers via mining activities.3.Lending any non-bank that uses a technology platform to lend money often implementing alternative data and analytics OR any company whose primary business involves providing data and analytics to online lenders or investors in online loans.4.Proptech
300、companies that are classified as both fintech AND also who are developing and leveraging technology intended to help facilitate the purchase,management,maintenance and funding into both residential and commercial real estate.This includes sub-sectors such as property management software,IoT home dev
301、ices,property listing and rental services,mortgage and lending applications,data analysis tools,virtual reality modeling software,augmented reality design applications,marketplaces,mortgage technology and crowdfunding websites.5.Insurtech companies utilizing technology to increase the speed,efficien
302、cy,accuracy and convenience of processes across the insurance value chain.This includes quote comparison websites,insurance telematics,insurance domotics(home automation),peer-to-peer insurance,corporate platforms,online brokers,cyber insurance,underwriting software,claims software and digital sales
303、 enabling.6.Wealthtech companies or platforms whose primary business involves the offering of wealth management services using technology to increase efficiency,lower fees or provide differentiated offerings compared to the traditional business model.Also includes technology platforms for retail inv
304、estors to share ideas and insights both via quantitative and qualitative research.7.Regtech companies that provide a technology-driven service to facilitate and streamline compliance with regulations and reporting as well as protect from employee and customer fraud.8.AI&ML,ESG these companies are ei
305、ther tagged with fintech AND the existing PitchBook vertical of AI&ML,meaning they operate within both fintech and also employ AI&ML tools,models,etc.For ESG,this segment was defined utilizing existing PitchBook ESG-related verticals(e.g.,cleantech)and the fintech vertical.Methodology(contd)About th
306、e reportGlobal insights|Fintech segments|Regional insightsSome or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.The information contained herein is of a general nature and is not intended to address the circumstances of an
307、y particular individual or entity.Although we endeavor to provide accurate and timely information,there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.No one should act on such information without appropriate
308、professional advice after a thorough examination of the particular situation.2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.KPMG refers to the global organization or to one or more of the member fi
309、rms of KPMG International Limited(“KPMG International”),each of which is a separate legal entity.KPMG International Limited is a private English company limited by guarantee and does not provide services to clients.For more detail about our structure please visit KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global
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