1、Global analysis of fintech fundingPulse of Fintech H1 24August 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse2024 got off to a challenging start for the fintech market globally,driven
2、 by ongoing concerns related to geopolitical uncertainty and high interest rates.Total global investment declined from$62.3 billion to$51.9 billion between H223 and H124 the lowest six months of fintech investment since H120.All regions experienced a noticeable drop in fintech investment,with the EM
3、EA region experiencing the sharpest drop from$19.4 billion to$11.4 billion between H224 and H124.Globally,only five$1 billion+deals occurred in the fintech space during the first half of 2024 all buyouts.The Americas accounted for four of these deals,including Worldpay($12.5 billion)and EngageSmart(
4、$4 billion)in the US and Nuvei($6.3 billion)and Plusgrade($1 billion)in Canada.The UK accounted for the fifth deal the$4 billion buyout of IRIS Software group.The UK also saw the largest fintech-focused VC deal of H124 a$999 million raise by Abound.While fintech investment remained suppressed,deal v
5、olume offered a hint of optimism for the fintech market;both the Americas including the US and the ASPAC region saw deal volumes increase between H223 and H124.At a sector level,payments continued to draw the largest share of fintech funding globally,attracting$21.4 billion in H124.Regtech,however,w
6、as the only major fintech subsector to see investment increase in the first half of 2024 with the$5.3 billion in investment already surpassing 2023s total.At a technology level,AI continued to be a very hot area of interest for investors,particularly in the US.Looking back on the first half of 2024,
7、the sentiment of fintech investors can be characterized as restrained.Consider some of the key trends weve seen across the fintech sector over the past six months:Mature,stable markets attracting the largest fintech deals.Investors continuing to shy away from the largest deals,with very few exceptio
8、ns.AI drawing significant interest,both as a means to improve operating efficiencies and to reduce costs.Regtech interest continuing to increase,particularly in the EMEA region.With interest rate cuts taking longer to materialize than initially expected,the pickup in investment activity predicted in
9、 H223 is taking longer than originally thought to come to fruition.Heading into H224,fintech investment is expected to remain subdued except,perhaps,when it comes to AI and generative AI given the continued high cost of capital and geopolitical uncertainly.AIl eyes will likely be on interest rates a
10、nd on the US presidential election heading into H224.Whether youre the CEO of a large financial institution or the founder of an emerging fintech,its critical to consider how your company can become more efficient and profitable given the cost of capital will likely remain high for some time.As you
11、read this edition of Pulse of Fintech,ask yourself:How can we position our organization to be more competitive and sustainable both now and in the future?Welcome messageLooking forward,the confluence between asset management,asset ownership and capital markets is a ripe area for investment globally
12、whether its clearing,trading,settlements,or actually supporting asset allocation and investment monitoring.That will be a really interesting area to watch over the next six months.Anton RuddenklauGlobal Head of Fintech and InnovationFinancial ServicesKPMG InternationalUnless otherwise noted,all figu
13、res quoted in this report are based on data provided by PitchBook as of 30 June 2024.See page 54 for detailed methodology.All currency amounts are in US$unless otherwise specified.Author:Anton Ruddenklau,Global Head of Fintech and Innovation,Financial Services,KPMG International3 2024 Copyright owne
14、d by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseContents Global insights Global fintech market sees$51.9 billion in total investment in H124 Top fintech trends for H224Regional insights Americas ASPAC EME
15、A Payments Insurtech Regtech Cybersecurity Wealthtech Crypto and Blockchain13Fintech segmentsf4 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal insights Fintech segments|Regional
16、 insightsGlobal fintech funding in H1 2024 recorded$51.97B with 2,255 deals5 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseTotal global fintech investment slides in first half of year
17、Global investment in fintech across VC,PE and M&A fell from$62.3 billion across 2,287 deals in H223 to$51.9 billion across 2,255 deals in H124.At a regional level,every key jurisdiction saw total fintech investment slide;in the Americas,total investment dipped from$38.5 billion to$36 billion,while i
18、n Europe,Middle East and Africa(EMEA),it fell from$19.1 billion to$11.4 billion,and in Asia Pacific(ASPAC)it dropped from$4.6 billion to$3.7 billion.Americas and ASPAC both see pickup in deals volumeFintech deal volume globally held nearly steady at 2,255 in H124.Both the Americas and ASPAC saw deal
19、 volume increase between H223 and H124 from 1,066 to 1,123 in the Americas and from 406 to 438 in ASPAC while the EMEA region saw deal volume decline from 804 to 689.Fintech M&A investment ahead of 2023s pace,PE well behindWhile soft compared to the outlier high of$172 billion in 2019,global fintech
20、 M&A investment at the end of H124 was somewhat ahead of the pace seen last year with$32.6 billion in deal value compared to the$58.8 billion seen during all of 2023.PE investment,meanwhile,is well behind the pace seen last year with just$979 million in global PE investment at midyear,compared to$9.
21、6 billion in 2023.Three largest fintech deals of H124 spread across Americas and EuropeWhile the US accounted for the largest fintech deal of H124 the$12.5 billion buyout of a majority stake in payments processing firm Worldpay by GTCR1 Canada and the UK attracted the next two largest deals:Canada-b
22、ased payments processing company Nuveiwas taken private by PE firm Advent International in a$6.3 billion deal,2while UK-based financial software firm IRIS Software Group was bought out by Leonard Green.3By comparison,ASPAC saw much smaller deal sizes:China-based Yi-an Enterprise saw the regions larg
23、est deal a$280 million Series B VC raise.With interest rates slow to drop,big deals remain elusiveDuring H124,the European Central Bank,the Bank of Canada,and the Swiss National Bank began to make cuts to interest rates,which rose dramatically during 2022 and 2023.While a positive move,interest rate
24、 cuts have been conservative to date and key jurisdictions including the US and UK have not followed suit.Given the high cost of capital and concerns about valuations and returns,fintech deals have been slower to materialize,particularly at largest deal sizes.Within the VC market in particular,the f
25、intechs that raised the largest during H124 leaned heavily towards more mature companies looking to raise scaling capital.Global fintech market sees$51.9 billion in total investment in H124Global insightsKarim HajiGlobal Head of Financial Services KPMG InternationalThe high cost of capital and geopo
26、litical uncertainty linked to conflict and elections,have put a significant damper on global fintech investment so far this year.Investors are acting cautiously,not only when it comes to large transactions,particularly on the M&A front given concerns about valuations and the profitability of potenti
27、al targets investors are focused on improving the companies they already own rather than buying new.1.FIS.“FIS completes sale of majority stake of WorldPay to GTCR.”(1 February 2024).2.Reuters.“Advent to buy Ryan Reynolds-backed fintech Nuvei in$6.3 bln deal.”(1 April 2024).3.Bloomberg.“Leonard Gree
28、n to buy Iris Software Stake at 3.2 billion value.”(23 December 2023).Author:Anton Ruddenklau,Global Head of Fintech and Innovation,Financial Services,KPMG InternationalGlobal insights Fintech segments|Regional insights6 2024 Copyright owned by one or more of the KPMG International entities.KPMG Int
29、ernational entities provide no services to clients.All rights reserved.#fintechpulsePayments dominates fintech investment globally,attracting over$21 billion in H124The payments sector remained the dominant sector for fintech investment during H124,attracting$21.4 billion in investment only slightly
30、 less than the$22.7 billion in payments-focused deal value seen during all of 2023.The buyouts of Worldpay and Nuvei,however,accounted for$18.8 billion of this total.Within the payments space,there was growing interest in use-case driven payments companies,including startups focused on finding ways
31、to add value in very specific areas of the financial services market such as payments insurance,unsecured lending,and insurance claims.AI remails a major priority for fintech investorsFollowing broader investment trends,AI continued to be a very hot area of interest to fintech investors,particularly
32、 in the US.During H124,the US saw four large AI-focused fintech deals.Cyber insurance company Corvus was acquired by Travellers for$427 million,4compensation-focused platform Spiff was acquired by Salesforce for$419 million,5and corporate management company Ramp and investment management platform Fu
33、ndGuardraised$150 million and$100 million VC funding rounds,respectively.China-based AI-powered sustainability data company MioTech also raised$150 million during H124.Trends to watch for in H224 Larger focus on Central Bank Digital Currencies(CBDC)and regulated stablecoins.Increasing interest in mi
34、ddle and front office solutions related to investment management.Growing investor focus on AI-powered fintech offerings,including in emerging areas like behavioural intelligence.Increasing investor attention on less traditional fintech markets,including Africa and parts of Southeast Asia such as Ind
35、onesia and the Philippines.ESG fintech continuing to gain attention,particularly in areas like carbon measurement and tracking.Global insightsThe large buyouts weve seen in H124 really highlight the valuation challenges in the market right now and the need for startups and their investors to really
36、take the defensive to protect their valuations from sliding even further.Other large deals have been incredibly slow to materialize,which likely will continue until interest rates really begin to drop.Tim JohnsonGlobal Lead,Deal Advisory Financial ServicesKPMG International4.Business Wire.“Travelers
37、 completes acquisition of Corvus Insurance.”(2 January 2024).5.Spiff.“Salesforce signs definitive agreement to acquire Spiff.”(1 February 2024).Global insights Fintech segments|Regional insights7 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provi
38、de no services to clients.All rights reserved.#fintechpulseDuring the first half of 2024,fintech investors remained very cautious,pulling back from making large deals except in exceptional circumstances.With macroeconomic conditions expected to remain challenging well into H224,and a US presidential
39、 election approaching,fintech investment is expected to remain subdued heading into H224.Here are our top predictions for fintech in H224.Global insights Top fintech trends for H224Increasing convergence between trad-fi and de-fi:Jurisdictions will continue to explore and approve activities that ble
40、nd traditional finance with decentralized finance,including areas like the tokenization of real work assets and the use of traditional financial infrastructure to support crypto investment.5.AI will continue to gather steam among fintech investors:Similar to the investment environment more broadly,i
41、nterest in AI will likely overshadow every other area in terms of investor interest and investment.1.The payments space will continue to attract the lions share of investment:Payments will continue to account for the largest deals in the payments space,with a continued focus on the modernization of
42、B2B payments,embedded payments,and real-time payments.2.Regtech will attract additional attention and investment:Regtech will attract increasing interest and investment driven by the constant evolution of regulatory regimes and the growing complexity of reporting requirements.3.Global insights Finte
43、ch segments|Regional insightsDORA will keep investors focused on cybersecurity:Cybersecurity will remain a key focus for fintech investors,particularly given the EUs Digital Operations and Resilience Act will come into force early in 2025;AI-related cybersecurity solutions will garner the most inter
44、est and investment.4.8 2024 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 subdued at bestGlobal venture capital funding activity in fintech 2021-2024*Glob
45、al M&A activity in fintech 2021-2024*Global PE growth activity in fintech 2021-2024*Total global funding activity(VC,PE and M&A)in fintech 2021-2024*Source:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Global insights F
46、intech segments|Regional insights$229.6$197.9$118.2$52.08,2157,8035,1262,25502,0004,0006,0008,00010,000$0$50$100$150$200$2502021202220232024*Deal value($B)Deal count$91.0$99.4$58.8$32.71,10488467726402004006008001,0001,200$0$20$40$60$80$100$1202021202220232024*Deal value($B)Deal count$16.4$9.6$9.6$1
47、.014416012352020406080100120140160180$0$2$4$6$8$10$12$14$16$182021202220232024*Deal value($B)Deal count$122.2$88.9$49.7$18.36,9676,7594,3261,93901,0002,0003,0004,0005,0006,0007,0008,000$0$20$40$60$80$100$120$1402021202220232024*Deal value($B)Deal count9 2024 Copyright owned by one or more of the KPM
48、G International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal insightsEven amid subdued dealmaking,financing metrics are robustSource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBoo
49、k),*as of 30 June 2024.The 2024 YTD figure for the median pre-money valuation at the growth stage is based on a non-normative population size.Global median M&A size($M)in fintech20202024*Global cross-border M&A activity in fintech 2021-2024*Global VC activity in fintech with corporate participation
50、2021-2024*Global median pre-money valuations($M)by stage in fintech 2021-2024*Global median M&A size($M)in fintech 2021-2024*$39.6$45.2$20.8$12.535832422891050100150200250300350400$0$10$20$30$40$502021202220232024*Deal value($B)Deal count$39.3$55.7$30.0$50.0$0$10$20$30$40$50$602021202220232024*$64.9
51、$45.6$27.8$8.52,2962,1741,19958905001,0001,5002,0002,500$0$10$20$30$40$50$60$702021202220232024*Deal value($B)Deal count$7.0$9.5$9.5$13.7$26.2$26.0$23.0$40.0$60.0$50.1$40.0$50.0$444.4$250.0$158.8$510.02021202220232024*Pre-seed/SeedEarly VCLater VCVenture growthGlobal insights Fintech segments|Region
52、al insights10 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal insightsDealmaking momentum could be entering a plateauSource:Pulse of Fintech H124,Global Analysis of funding in Fi
53、ntech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Total global funding activity(VC,PE and M&A)in fintech 2021-2024*Global M&A activity in fintech 2021-2024*$61.1$52.1$62.5$53.9$102.3$42.0$23.6$30.0$39.3$16.5$34.7$27.6$29.4$22.605001,0001,5002,0002,5003,000$0$20$40$60$80$100$12
54、0Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal count$31.0$18.3$24.8$17.0$66.0$10.4$6.0$17.0$18.4$6.6$18.1$15.7$21.1$11.6050100150200250300350$0$10$20$30$40$50$60$70Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal countGlobal insights Fintech segments|Regional insights1
55、1 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal insightsVC financing sees first bump in several quarters,in terms of aggregate VC investedGlobal venture capital funding activit
56、y in fintech 2021-2024*Global venture capital activity in fintech with corporate participation 2021-2024*Source:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.$26.0$30.0$34.3$32.0$32.4$28.1$16.8$11.6$19.2$9.6$10.1$10.9$7
57、.6$10.705001,0001,5002,0002,500$0$5$10$15$20$25$30$35$40Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal countPre-seed/SeedEarly VCLater VCVenture growth$14.8$14.5$19.0$16.6$17.7$14.7$7.8$5.4$13.9$4.9$4.0$5.0$3.4$5.10100200300400500600700800$0$2$4$6$8$10$12$14$16$18$20Q1Q2Q3Q4Q1Q2Q3Q4Q
58、1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal countGlobal insights Fintech segments|Regional insights12 2024 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 fint
59、ech deals in H1 2024Source:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.3751041.Worldpay$12.5B,Cincinnati,US Payments Buyout2.Nuvei$6.3B,Montreal,Canada Payments Public-to-private buyout3.IRIS Software Group$4B,Slough,
60、UK Institutional/B2B Secondary buyout4.EngageSmart$4B,Braintree,US Payments Public-to-private buyout5.Plusgrade$1B,Montreal,Canada Institutional/B2B Buyout6.Abound$999.6M,London,UK Consumer finance Series B7.Tegus$930M,Chicago,US Information M&A8.Clear Street$685M,New York,US Institutional/B2B Serie
61、s B9.Banco BPM Gruppo$652.6M,Milan,Italy Payments Corporate divestiture10.Monzo$621M,London,UK Banking SeriesI12968Global insights Fintech segments|Regional insights13 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.Al
62、l rights reserved.#fintechpulsePaymentsInsurtechRegtechCybersecurityWealthtechCrypto and BlockchainGlobal insights Fintech segments Regional insightsFintech segments14 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.Al
63、l rights reserved.#fintechpulseTwo payments deals account for$18.8 billion of the$21.4 billion of investment seen in H124 The payments space attracted$21.4 billion in investment in H124,falling just shy of the$22.7 billion of investment seen in the space during all of 2023.The overarching number doe
64、s not tell the full story,however;two deals in the Americas accounted for$18.8 billion of this total,including GTCRs$12.5 billion buyout of a majority stake in US-based payments processing firm Worldpay and the$6.3 billion take private deal of Canada-based Nuveiby PE firm Advent International.Outsid
65、e of these two significant outlier deals,total global investment in the payments space was incredibly subdued.Deal volume was also very soft,with just 231 payments deals seen globally in H124 well behind even 2023s pace,which saw a six-year low of 570 deals during the year.Key H124 highlights from t
66、he payments sector include:Increasing focus on consolidation and global expansion in payments spaceGiven the significant economic headwinds,investors in the payments space globally showed little interest in making major VC investments during H124.Despite this lull,there continued to be movement on t
67、he M&A front as investors prioritized consolidation in order to scale and drive expansion activities.In addition to the Worldpay and Nuveideals,Spain-based travel technology company Amadeus acquired Spain-based travel-focused invoicing and payments company Voxel for$127 million,6while Canada-based f
68、inancial insurance technologies company Vencoraacquired Switzerland-based banking technology company Crealogixfor$96.6 million.7Americas and Europe see strongest payments activityInvestors in the payments space focused heavily on stable markets in H124,with the top 16 largest payments deals occurrin
69、g in one of the two regions.The largest payments deals in the ASPAC region included a$50 million VC raise by Singapore-based B2B payments platform Nium and a$32.7 million raise by Indonesia-based credit card company Honest.New regulation on instant payments came into force in the EU,with some obliga
70、tions for payment service providers to enter into force in January and October 2025,putting financial institutions under pressure,especially regarding the verification of payee obligation where international interoperability is a key concern.8Source:Pulse of Fintech H124,Global Analysis of funding i
71、n Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Fintech segments Payments Total global funding activity(VC,PE and M&A)in payments 2021-2024*Global insights Fintech segments Regional insights$57.2$54.9$22.8$21.41,07791957023102004006008001,0001,200$0$10$20$30$40$50$60$702
72、021202220232024*Deal value($B)Deal count6.Amadeus.“Amadeus acquires travel payments expert Voxel.”(2024,March 10).7.CREALOGIX.“Vencora acquires CREALOGIX.”(2024,February 22).8.Swift.“Swift research finds European SMEs expect to be more competitive and save money as a result of instant payments regul
73、ation.”(2024,June 18).Author:Courtney Trimble,Global Lead,Payments,KPMG International15 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseAI for fraud prevention becoming a key focus for
74、investorsWithin the payments space,interest in AI has continued to increase,with both investors and fintechs looking to leverage AI in different ways to solve payments-related challenges.During H124,for example,Mastercard announced its use of generative AI to accelerate card fraud detection9and Swif
75、t announced an AI-based pilot with member banks to explore how the technology could assist in combatting cross-border payments fraud.10Fraud detection and prevention solutions were of particular interest to investors given the intensifying focus on instant payments models in different jurisdictions
76、and the surging number of cross-border transactions.Payments activity diverse from digitization of payments to digital currency payments Different regions and jurisdictions continued to see a wide range of trends but represent unique regional differences in adoption and usage behavior in H124.In reg
77、ions like Africa and parts of Southeast Asia,investments in the payments space remained focused on digitization given the very high number of cash-based transactions.In other regions,payments activity was much broader,ranging from instant payments and cross-border payments solutions to embedded paym
78、ents and analytics solutions to support data monetization and commercialization.During H124,the Bank of China also pilot tested a new service to allow merchants to accept digital currency payments on their cell phones.What to watch for in H224A possible uptick in activity,particularly following the
79、US presidential election in November.Consolidation continuing and global expansion to be important for the foreseeable future as payments companies look to scale and grow.Increasing regulations and risk management strategies to prevent fraud and protect customers,particularly given real-time payment
80、s environments.Growing volume of account-to-account payments in Europe supported by open banking and instant payment regulation.Increasing focus on the modernization of B2B payments tandem with a surge in cross-border payment volume.Continued focus on embedded payments and related services.Growing u
81、se of AI within the payments space,particularly to detect and prevent fraud.Fintech segments PaymentsThe B2B payments landscape continues to evolve rapidly with a transformative shift towards digitization,underpinned by the increased adoption of instant payments,surge in mobile payments,and advancem
82、ent of AI technologies and cross-border solutions.These innovations are not only streamlining payment processes but also creating opportunities for increased efficiency,decreased costs,and enhanced security.Looking ahead,this is an area that will likely see significant attention over the next six to
83、 12 months.Global insights Fintech segments Regional insightsCourtney TrimbleGlobal Lead,Payments KPMG InternationalPrincipal,Financial Services KPMG in the US9.Mastercard.“Mastercard accelerates card fraud detection with Generative-AI Technology.”(2024,May 22).10.Swift.“Swift and global banks launc
84、h AI pilots to tackle cross-border payments fraud.”(2024,May 30).16 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseInsurtech funding falls to lowest level in a decadeInvestment in insu
85、rtech dried up significantly in H124,with just$1.6 billion in investment globally less than a quarter of the$8.2 billion seen during 2023.The US continued to attract the vast majority of insurtech deals and funding globally,including the$427 million acquisition of cyber-insurance company Corvus by T
86、ravellers,the$151 million VC raise by direct-to-consumer insurance company Kin,and the$80 million raise by embedded insurance provider Cover Genius.An$80 million VC raise by India-based real-time underwriting company Perfios was the largest insurtech deal in the ASPAC region during H124,while a$73 m
87、illion raise by UK-based pricing decision intelligence firm Hyperexponential claimed the top spot in the EMEA region.Key H124 highlights from the insurtech space include:Cost of capital making it difficult for insurtechs to raise funds The cost of capital continued to put a damper on insurtech inves
88、tment in H124,with total global investment falling to the weakest level seen in ten years.Early-stage deals saw the biggest slowdown,although later stage companies also saw significant challenges,with investors putting a laser focus on companies able to show profitability.Challenging environment for
89、 M&A M&A activity within the insurtech space was incredibly dry during H124,with the exception of the acquisition of Corvus by Travellers.While there were a number of insurtechs looking for buyers during H124,acquirers were very cautious given the high cost of capital and lack of profitability of po
90、tential targets.Total global funding activity(VC,PE and M&A)in insurtech 2021-2024*Source:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Fintech segments InsurtechGlobal insights Fintech segments Regional insights$10.9$5
91、.8$8.3$1.65044202931130100200300400500600$0$2$4$6$8$10$122021202220232024*Deal value($B)Deal countAuthor:Ram Menon,Global Lead,Deal Advisory,Insurance,KPMG International17 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to client
92、s.All rights reserved.#fintechpulseEmbedded insurance,cyber remain attractive to investorsWhile investment was very soft in H124,major carriers continued to show interest in opportunities within the embedded insurance space given the perceived potential of point-of-sale insurance offerings.Interest
93、in cybersecurity also remained high,both from a defence perspective given the rise in cyberattacks targeting the industry and in terms of insurance carriers looking to expand their capabilities into writing cyber insurance.MGA insurtechs still attracting investmentDespite the challenging market,MGA(
94、managing general agent)insurtechs continued to attract money as a result of their successful business models,ability to drive efficiencies,and the fact they do not carry risk on their balance sheets.Compared to other areas of insurtech,MGA fintechs are well positioned to remain attractive to carrier
95、s from an acquisition point of view.Fintech segments InsurtechWhat to watch for in H224 AI continuing to attract the lions share of interest,similar to general investment trends.Corporate investors tightening their wallets in order to focus on AI enablement.Regtech investment remaining quite dry giv
96、en current market conditions.Growing optimism around insurtech opportunities in the ASPAC region,particularly over the longer term.Embedded insurance and cyber,and enabling technologies,continuing to attract attention from investors,particularly larger carriers.Weve been through times where money wa
97、s easy,and investors were happy to chase opportunities and support start-up businesses explore innovative solutions.But when money flow gets tight,investors begin asking the hard questions like what is the path to profitability and how long will it take for the business model to generate sustainable
98、 positive cash flows?For insurtech,getting the scale and size to turn a profit takes time.Thats making it difficult to attract investors given current market conditions.Profitable insurtechs will continue to attract capital,but the rest will likely continue burning up cash.Ram MenonGlobal Lead,Deal
99、Advisory,InsuranceKPMG International PartnerKPMG in the USGlobal insights Fintech segments Regional insights18 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseGlobal investment in regte
100、ch strengthens in H124Regtech attracted$5.3 billion in investment during H124,making it the second most attractive sector of fintech investment after payments.The$4 billion buyout of UK-based IRIS Software Group by Leonard Green accounted for the vast majority of this investment,followed by the$235
101、million buyout of US-based Sayari by TPG,and the$109 million buyout of Ireland-based SoftCo by Keensight Capital.The regtech space also saw two$100 million+funding rounds during H124 a$104 million raise by Germany-based Solaris and a$100 million raise by Netherlands-based DataSnipper.The largest reg
102、tech deal in the ASPAC region was a$32.8 million raise by Australia-based Constantinople.Key H124 highlights from the regtech sector include:VC and PE investors increasingly interested in regtech opportunitiesGlobally,both VC and PE investors have shown increasing interest in the regtech space,seein
103、g it as a sector with sustainable growth opportunities given the growing pressure on financial services companies and other organizations needing to comply with increasingly complex and detailed regulatory requirements.While deal sizes were relatively small in most regions during H124 with the excep
104、tion of the Iris Software buyout the number of deals remained quite robust;both the number of deals and deal sizes are expected to grow as macroeconomic conditions improve.Risk and compliance drivers building the case for regtech Globally,a number of factors continued to come together to put a focus
105、 on regtech in H124,including shifting regulatory requirements,more complex reporting requirements,and the constantly evolving risk environment.This confluence of factors has put a lot of strain on companies,which is driving interest in solutions and regtechs able to automate and streamline specific
106、 activities.Fintech segments RegtechSource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Total global funding activity(VC,PE and M&A)in regtech 2021-2024*Global insights Fintech segments Regional insights$15.6$21.1$3.4$
107、5.3445427284134050100150200250300350400450500$0$5$10$15$20$252021202220232024*Deal value($B)Deal countAuthor:Courtney Trimble,Global Lead,Payments,KPMG International19 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.Al
108、l rights reserved.#fintechpulseFintech segments RegtechCore areas of regtech still attracting significant interest The definition of regtech has expanded considerably in recent years to include activities like ESG,horizon scanning,cybersecurity,and data privacy.Despite this expansion,the major focus
109、 for investors in H124 continued to be core regtech solutions,including anti-fraud,anti-money laundering,and customer identity management with AI increasingly playing a role in such solutions.Ongoing regulatory pressures and the significant losses being incurred by financial services firms will like
110、ly keep investment in these areas strong for the foreseeable future.Growing focus on ESG but a small percentage of the regtech market Following on a trend seen in 2023,interest in ESG-related technology solutions continued to grow during H124,with an increasing number of regtechs offering ESG soluti
111、ons.Investments in ESG-focused fintech have remained relatively small,however,particularly compared to the level of investment going into areas like AML.What to watch for in H224 Continued focus on deployment of regtech as risk and compliance functions seek to deliver greater organizational value.Re
112、gtechs increasingly looking to take advantage of GenAI and AI more broadly.Increasing interest in regtechs able to provide solutions fit to complex multi-jurisdictional requirements.Regulators and central banks adoption of machine learning and other technologies(suptech)will continue to drive a resp
113、onse in the firms they supervise regtech.Regulators in a number of jurisdictions(e.g.Hong Kong(SAR)looking for ways to encourage regtech development and adoption.Continued use of regulatory sandboxes and other tools to promote innovation within financial services.Despite the geopolitical and macroec
114、onomic challenges facing the market today,the regtech space has continued to evolve and grow.There is a real demand for solutions able to help organizations manage complex regulatory requirements,and ultimately deliver greater value from risk,compliance,and controls activities.Given this demand,well
115、 likely continue to see good investment in the regtech space heading into H224.Global insights Fintech segments Regional insightsChris SteelePartner,Banking Risk and RegulationKPMG in the UK20 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide
116、no services to clients.All rights reserved.#fintechpulseGlobal investment in cybersecurity was somewhat softer in H124,with$640 million in investment slightly less than half of the$1.4 billion seen during 2023.The number of cybersecurity deals(40),however,was quite strong on pace to match the second
117、-best year for cybersecurity deal volume ever.The vast majority of cybersecurity deals occurred in the US during H124,led by the$235 million buyout of supply chain risk intelligence platform Sayari by TPG,and$100 million VC raises by AI-investment accounting platform FundGuard and stake validation m
118、arketplace EigenLayer.Key H124 highlights from the cybersecurity sector include:AI a top priority for cybersecurity investors Within the cybersecurity space,AI continued to be an incredibly hot area of interest and investment in H124,with investors focusing on a range of AI applications,from AI-driv
119、en risk intelligence platforms to AI-powered supply chain security solutions.In addition to these operational applications of AI,investors have also shown increasing interest in cybersecurity solutions aimed at protecting and safeguarding AI activities,such as by ensuring the security of AI algorith
120、ms and protecting the integrity of data being used by GenAI models.Fintech segments CybersecuritySource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Total global funding activity(VC,PE and M&A)in cybersecurity 2021-202
121、4*Cybersecurity deals volume remains strong globally in H124,despite slightly soft investmentGlobal insights Fintech segments Regional insights$4.4$1.7$1.5$0.6801057140020406080100120$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.0$4.5$5.02021202220232024*Deal value($B)Deal countAuthor:Charles Jacco,Financial S
122、ervices Cybersecurity Lead,KPMG International21 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseTheres definitely a big focus on platform integration plays.Were not seeing a lot of M&A
123、activity around the smaller boutiques at the moment,but were definitely seeing the larger platform players winning a lot of the work.With the number of big players throwing their hats into the ring,its going to be difficult for some of the smaller players to be able to remain niche.More likely,well
124、see some looking to sell while others simply fade away.Platform models gaining ground over smaller players During H124,the large platform players both large cybersecurity platforms and the big tech players continued to focus on expanding the breadth and reach of their solutions to improve their valu
125、e propositions to clients.With cybersecurity activities increasingly consolidated within larger platforms,it is becoming increasingly challenging for niche cybersecurity players to gain attention and the funding needed to scale and grow.This could drive further consolidation in the space over time a
126、s struggling smaller players look to sell.Regulations shining a spotlight on cybersecurityEvolving regulations continued to shine a spotlight on cybersecurity during H124,although direct VC,PE,and M&A investment remained somewhat soft globally.In the EU,the Digital Operations and Resilience Act(DORA
127、)which is aimed specifically at enhancing the operational and IT security of banks and financial institutions will come into force in January 2025.11A recent gap analysis performed by KPMG,showed that across the EU financial sector,only one-third (32 percent)of regulated entities,comply with all its
128、 requirements.12This is driving affected companies to look for solutions able to help them comply and cybersecurity firms and platforms to focus their efforts on providing solutions that align with shifting regulations.Fintech segments CybersecurityWhat to watch for in H224 Intensifying focus on all
129、 aspects of AI,including automating of activities in order to identify and respond to risks faster.Continued focus on building out platform-based cybersecurity models.Increasing consolidation as big players look to gain new capabilities and niche platforms struggle and look to sell.Growing focus on
130、code security and ensuring the security of APIs.Ongoing evolution of cybersecurity regulations and general regulations with cybersecurity impacts driving interest and investment in related solutions.Managed services providers increasingly looking to embrace automation,either by acquiring automation
131、platforms or partnering with large technology companies.Charles JaccoFinancial Services Cybersecurity Lead KPMG InternationalPrincipal,Information Protection and Cybersecurity Financial Services LeadKPMG in the USGlobal insights Fintech segments Regional insights11.European Securities and Markets Au
132、thority(ESMA).Digital Operational Resilience Act(DORA).(16 January 2023).12.KPMG International.Decoding DORA for European banks.(6 May 2024).22 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#finte
133、chpulseTotal investment in wealthtech was very subdued in H124,with only marginal levels of investment seen globally.The VC market in the US saw a$63.8 million raise by investment management company Edward Jones,but otherwise investors in the wealthtech space held back from making major deals in H12
134、4 or focused on internal innovation activities.Key H124 highlights from the wealthtech sector include:AI opportunities taking center stage AI was top of mind for many in the wealthtech space during H124 as both investors and corporates looked to understand how AI can play a role in enhancing wealth
135、management,particularly in terms of extending the capabilities of wealth managers and the products that they can offer.While many AI applications in the wealthtechspace have focused on enhancing back-office activities to date,there is growing interest in the use of AI to support data analytics,to en
136、hance robo advisory services,and to automate investment processes.Self-directed wealth management becoming a key focus Globally,investors have increasingly focused on the provision of self-directed wealth management platforms and tools to enable individual investors ranging from the digitally savvy
137、to those with smaller amounts of wealth to become more active in the wealth management space.This trend has been particularly noticeable in Asia,where self-directed investment platforms are viewed as a means of democratizing wealth management activities.Fintech segments WealthtechSource:Pulse of Fin
138、tech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Total global funding activity(VC,PE and M&A)in wealthtech2021-2024*Wealthtech investment off to a quiet start in H124;interest in AI-enablement risesGlobal insights Fintech segments Reg
139、ional insights$0.9$0.8$0.2$0.162593718010203040506070$0.0$0.1$0.2$0.3$0.4$0.5$0.6$0.7$0.8$0.9$1.02021202220232024*Deal value($B)Deal countAuthor:Leon Ong,Partner,Financial Services Advisory,KPMG in Singapore23 2024 Copyright owned by one or more of the KPMG International entities.KPMG International
140、entities provide no services to clients.All rights reserved.#fintechpulseWhile H124 has been relatively quiet from an investment point of view,digital wealth management platforms continue to grow.There havent been any significant high-profile failures in the space,which bodes well for investment in
141、the space long term.Given the explosion of AI interest more broadly,its not surprising that there are a lot of investors interested in how AI can play a role in the evolution of wealth management and looking out for wealthtechs offering AI-powered solutions.Increasing convergence of wealthtech with
142、other sectors Recently,there has been an interesting convergence between wealthtech and healthtech,driven in part by insurance companies looking to gamify insurance products.For example,a number of health tracking apps have integrated mechanisms to provide savings,discounts,and other rewards to thei
143、r users.ESG remains a focus for wealthtech investorsGlobally,there continued to be interest in ESG-related wealth management products and solutions from individual investors,particularly high net worth individuals looking to make ESG investments.The EMEA region continued to lead the way on the ESG f
144、ront,with a number of large incumbents focused on enabling people to make philanthropic investments and investments in environmentally sustainable technologies or in socially responsible companies.Fintech segments WealthtechWhat to watch for in H224 Successful wealth management companies continuing
145、to grow significantly and to look more like banks.AI use cases increasingly targeting direct interactions with customers,including the provision of investment advice.Wealthtechs taking a leading role in changing the face of socially responsible investing.Global insights Fintech segments Regional ins
146、ightsLeon OngPartner,Financial Services AdvisoryKPMG in Singapore24 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseInvestment in crypto and blockchain stabilizing;deal volume upFintech
147、 segments Blockchain/cryptocurrencySource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Total global funding activity(VC,PE and M&A)in blockchain and cryptocurrency2021-2024*Global insights Fintech segments Regional ins
148、ights$30.8$22.3$8.5$3.22,1242,2031,26867705001,0001,5002,0002,500$0$5$10$15$20$25$30$352021202220232024*Deal value($B)Deal countAfter faltering significantly in 2023,global investment in crypto and blockchain stabilized quite a bit in H124,accounting for$3.2 billion in investment globally.Large mega
149、deals remained elusive compared to historical trends,with only five deals over$100 million all in the VC space:UK-based Revolut raised$139 million,while Hong Kong-based Hashkey Group,US-based Berachain,UK-based MAR mining,and US-based EigenLayer each raised$100 million.While deal sizes in the crypto
150、 and blockchain space were relatively small,deal volume remained good,with 677 deals completed during H124 well on pace to exceed the number of deals seen last year by a solid margin.Key H124 highlights from the crypto and blockchain space include:Increasingly interconnected ecosystem between trad-f
151、i and de-fi During H124,the lines between trad-fi and de-fi began to blur.In the US,traditional financial instruments such as bonds and treasury bills were tokenized13and brought into the de-fi world,while crypto assets were wrapped in traditional financial infrastructure to improve investor confide
152、nce and enhance investment opportunities.Investors such as MiddleGameVentures,that already invested earlier in Keyrock and Ripple,raised a new fund with targeted EUR150 million to invest in startups at the intersection of blockchain and capital markets.1413.Coindesk.“Over$1B in U.S.Treasury notes ha
153、s been tokenized on public blockchains.”(28 March 2024).14.Sifted.“Fintech firm MiddleGame Ventures raises 55m of targeted 150m fund.”(25 June 2024).Authors:Debarshi Bandyopadhyay,Director,Financial Services,KPMG in Singapore and Kenji Hoki,Director,Financial Services,KPMG in Japan25 2024 Copyright
154、owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseThe SECs approval of the Bitcoin ETFs is quite a significant move on the crypto front.The ETF structure provides investors with exposure to bitcoin with
155、out having to directly buy or store cryptocurrencies.Investors can use their traditional risk methods and their traditional tax and advisory structures around that,while still getting exposure to bitcoin.Its been a big move and one that has brought a lot of traditional investors and a lot of money i
156、nto the crypto space.EMEA and ASPAC leading on digital currencies and digital asset tokenizationWhile the US focused primarily on cryptocurrency regulation in H124,the EMEA and ASPAC regions focused more heavily on the development and launch of digital currencies and real-world digital asset tokeniz
157、ation.During H124,the Hong Kong Monetary Authority launched the next phase of its e-HKD pilot project,15while the European Central Bank(ECB)published a report on its progress towards a digital euro as part of its preparation phase which lasts until October 2025.The ECB outlined work conducted in des
158、igning privacy standards to make online and offline digital payments as close as possible to cash transactions,and in addressing other contentious topics such as holding limits and compensation for payment service providers.16Blockchain infrastructure continues to evolve:Blockchain technology has be
159、en overshadowed somewhat by AI this year,although there continued to be a focus on embracing blockchain technologies for fraud detection,cybersecurity,and similar solutions.While it is a much smaller amount than in 2021 and 2022,investors are still putting money into these types of enterprise soluti
160、ons.Fintech segments Blockchain/cryptocurrencyDebarshi BandyopadhyayDirector,Financial Services Blockchain&CryptoKPMG in SingaporeGlobal insights Fintech segments Regional insights15.Hong Kong Monetary Authority.“Central Bank Digital Currency(CBDC).”(26 June 2024).16.European Central Bank.“Progress
161、on the preparation phase of a digital euro-First progress report.European Central Bank.”(2024).26 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseA number of jurisdictions in the ASPAC
162、region have been working on regulating crypto for some time.Major hubs like Japan,Singapore,and Hong Kong(SAR)in particular have been working to balance innovation and regulation in a way that protects investors rights especially retail investors.Fintech segments Blockchain/cryptocurrencyKenji HokiD
163、irector,Financial ServicesKPMG in JapanGlobal insights Fintech segments Regional insightsWhat to watch for in H224 Growth of real-world asset tokenization,especially with respect to traditional financial instruments.More digital currencies,including CBDCs,tokenized deposits,and regulated stablecoin
164、becoming mainstream over the next six to twelve months.Increasing interest in Web3,with the ASPAC region leading on crypto.Rising cryptocurrency valuations as more traditional structures are put into place around them.Growing investment in blockchain-based solutions,particularly enterprise blockchai
165、n solutions related to digital identity management which have now been tried and tested.SECs approval of Bitcoin ETFs drives interest into crypto space Early in H124,the Securities Exchange Commission approved a number of spot Bitcoin ETFs,17which has led to quite a significant flow of institutional
166、 money into the space through mainstream financial instruments.Spot Ethereum ETFs are also well positioned to be approved during H224.17.U.S Securities and Exchange Commission.“Statement on the approval of spot Bitcoin Exchange-Traded Products.”(10 January 2024).27 2024 Copyright owned by one or mor
167、e of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseIn H1 2024,fintech companies in Asia Pacific(ASPAC)received$3.8B with 438 dealsGlobal insights|Fintech segments Regional insights28 2024 Copyright owned by one or more of
168、the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseFintech investment in ASPAC drops to$3.8 billion;Q224 slowest quarter since Q317Fintech investment in the ASPAC region dropped from$4.6 billion in H223 to$3.8 billion in H124,d
169、espite a small uptick in deal volume from 406 to 438 deals over the same time frame.Much smaller deal sizes accounted for this decline;the largest deals in the region during H124 included a$280 million raise by China-based capital markets solutions firm YianEnterprise,a$209 million raise by India-ba
170、sed personal loan platform KreditBee,a$195 million raise by Thailand-based digital financial solutions company Ascend,and$150 million raises by China-based ESG financial solutions platform MioTech and Australia-based performance management firm Camms.Key H124 highlights from the Asia-Pacific region
171、include:Regional insights ASPACA number of financial institutions in China have introduced AI-driven applications,such as digital customer service providers and AI robots to help answer questions.Some have also started to use generative AI internally to help with the compilation of computer code for
172、 software design and other limited use cases.During H224,well likely continue to see these kinds of activities grow,many with the help of fintechs,but it will likely take time before any applications really mature.Andrew HuangHead of FintechKPMG ChinaFintech investment in ASPAC slows across the boar
173、d as uncertainty remains high Following broader investment trends in the region,fintech investment in ASPAC remained weak in H124,with total investment declining in China,India,Singapore,Australia,and Japan.M&A and PE investments were particularly soft in the region during H124,with M&A accounting f
174、or just$300 million in deal value and PE accounting for just$7.8 million.Fintech investors remained quite cautious particularly corporates,which leaned heavily towards cost and risk management during the quarter rather than on fintech investment.Despite investment lull,innovation in financial servic
175、es still a priority in China Investment in China remained quite subdued compared to historical trends,with only$624 million in total investment during H124,compared to$754.6 million in H223.Despite the lull in fintech-focused VC,PE,and M&A investment,financial services continued to be a key priority
176、 for Chinas central government,with five subsectors identified as priorities:technology finance,green finance,inclusive finance,pension finance,and digital finance.25As part of this Five Finance strategy,Chinas central government is working to encourage financial institutions to support startups in
177、these spaces which could lead to additional investments over time.ESG finance came under the spotlight somewhat in H124 given the$150 million raise by ESF finance company MioTech.2625.National Financial Regulation Administration(NFRA).“Promoting high-quality financial development and boosting Asian
178、financial cooperation.”(n.d.).26.Times of Startup“MioTech completes funding round to solidify APAC Climate Tech leadership”(26 January 2024).Authors:Andrew Huang,Head of Fintech,KPMG China and Daniel Teper,Head of Fintech,KPMG AustraliaGlobal insights|Fintech segments Regional insights29 2024 Copyri
179、ght owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseRegional insights ASPACTrends to watch for in H224Regulators within the region intensifying their focus on data security and privacy.Fintechs in the
180、 region looking for new geographies in which to grow,including areas like the Middle East,Latin America,and parts of Southeast Asia.Increasingly mature generative AI and AI applications tailored to the financial services sector.A number of mature fintechs considering IPO exits as IPO markets begin t
181、o open up in H224 or H125.A continued shift from empire building to empire consolidating within the most mature fintech subsectors,including payments.Daniel TeperPartner,M&A and Head of FintechKPMG AustraliaFintechs focusing on AI value propositions;solutions still nascent AI continued to grow on th
182、e radar of both fintech investors and fintechs,following a trend seen broadly both across ASPAC and globally.During H124,the AI focus came predominantly from traditional financial institutions looking to leverage AI to drive operational improvements and efficiencies.Fintechs in the region have also
183、enhanced the emphasis of any AI components of their solutions and offerings,although many of these solutions remain quite nascent,with more sophisticated applications yet to come.Business model sustainability becoming a critical focus for fintech investors Prior to 2023,the fintech market in ASPAC w
184、as fairly frothy,even in smaller markets;in Australia,for example,a number of neobanks and other fintechs were able to raise money quite easily.Over the last year,however,with the cost of capital rising and investors growing more conservative with their investments,the sustainability of these compan
185、ies has come intense scrutiny.This has driven an increasing interest in consolidation,some fintechs choosing to pivot away from their initial value propositions,and investors narrowing their funding to companies they believe can be profitable and sustainable long term.A number of jurisdictions withi
186、n the ASPAC region are four or five years behind markets like the US and UK in terms of fintech market maturity.We simply dont have as many larger,more mature fintech players which has likely put a bit more stress on the ecosystem.Once the market does reopen,the companies that have survived will be
187、well positioned to grow quickly,however,as theyll have proven the sustainability of their business models under quite challenging circumstances.At the back end,well have a much stronger market and fintechs as a result.Global insights|Fintech segments Regional insights30 2024 Copyright owned by one o
188、r more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseDealmaking slides again after a slow 2023Regional insights ASPACSource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by
189、 PitchBook),*as of 30 June 2024.Total funding activity(VC,PE and M&A)in fintech in ASPAC 2021-2024*Venture capital funding activity in fintech in ASPAC 2021-2024*M&A activity in fintech in ASPAC 2021-2024*PE growth activity in fintech in Asia Pacific 2021-2024*$30.1$50.3$12.5$3.81,8341,5879854380500
190、1,0001,5002,000$0$10$20$30$40$50$602021202220232024*Deal value($B)Deal count$5.3$33.9$1.3$0.314512910331020406080100120140160$0$5$10$15$20$25$30$35$402021202220232024*Deal value($B)Deal count$2,483.5$1,646.1$321.2$7.82526185051015202530$0$500$1,000$1,500$2,000$2,500$3,0002021202220232024*Deal value(
191、$M)Deal count$22.3$14.8$10.9$3.51,6641,43286440202004006008001,0001,2001,4001,6001,800$0$5$10$15$20$252021202220232024*Deal value($B)Deal countGlobal insights|Fintech segments Regional insights31 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provi
192、de no services to clients.All rights reserved.#fintechpulseSample sizes are small,yet some deals can still close at robust levelsRegional insights ASPACSource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.The median M&A
193、 size for 2024 YTD is based on a non-normative population size.The median pre-money valuations for venture growth for 2022 and 2023 are based on a non-normative population size;likewise are all 2024 YTD figures.VC activity in fintech with corporate participation in ASPAC 2021-2024*Median M&A size($M
194、)in fintech in ASPAC 2021-2024*Median venture pre-money valuations($M)by stage in fintech in ASPAC 2021-2024*Quartile post-money(VC,PE and M&A)valuations in ASPAC 2021-2024*$10.0$27.9$9.9$16.5$0$5$10$15$20$25$302021202220232024*$13.0$8.4$7.3$1.87156053151710100200300400500600700800$0$2$4$6$8$10$12$1
195、42021202220232024*Deal value($B)Deal count$4.8$6.9$6.6$11.0$11.6$16.7$15.3$28.8$43.5$40.6$49.2$75.0$432.0$341.7$289.9$574.02021202220232024*Pre-seed/SeedEarly VCLater VCVenture growth$5.7$7.5$8.2$13.6$15.7$23.1$22.1$45.6$83.5$84.4$72.5$111.1$0$20$40$60$80$100$1202021202220232024*25thMedian75thGlobal
196、 insights|Fintech segments Regional insights32 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseEven after a muted 2023,deals slide even furtherRegional insights ASPACSource:Pulse of Fin
197、tech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Total funding activity(VC,PE and M&A)in fintech in ASPAC 2021-2024*M&A in fintech in ASPAC 2021-2024*M&A activity in fintech in Asia Pacific20202024*$3.5$6.9$7.8$11.9$36.8$7.4$3.3$2.8$4
198、.7$3.2$2.5$2.1$2.0$1.80100200300400500600$0$5$10$15$20$25$30$35$40Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal count$0.1$0.5$0.7$4.0$30.6$2.2$0.7$0.5$0.2$0.4$0.2$0.4$0.1$0.20102030405060$0$5$10$15$20$25$30$35Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal countGlobal
199、 insights|Fintech segments Regional insights33 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseVC financing activity shows only consistency across the fintech ecosystemRegional insights
200、 ASPACSource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Venture capital funding activity in fintech in ASPAC 2021-2024*VC activity in fintech with corporate participation in ASPAC 2021-2024*M&A activity in fintech in
201、 Asia Pacific20202024*$3.3$4.1$7.0$7.8$5.7$4.3$2.6$2.2$4.4$2.8$2.2$1.5$1.9$1.60100200300400500600$0$1$2$3$4$5$6$7$8$9Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal countPre-seed/SeedEarly VCLater VCVenture growth$1.5$2.0$4.8$4.8$3.2$2.6$1.4$1.3$3.3$2.1$1.0$1.0$0.8$1.0050100150200250$
202、0$1$2$3$4$5$6Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal countGlobal insights|Fintech segments Regional insights34 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseSou
203、rce:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.1.Yian Enterprise$280.9M,Shanghai,China B2B/information Series B2.KreditBee$209.4M,Bengaluru,India Lending Series D3.Ascend(Holding Company)$195M,Bangkok,Thailand Instit
204、utional/B2B Late-stage VC4.MioTech$150M,Shanghai,China AI Series C5.Camms$150M,Melbourne,Australia Institutional/B2B Add-on6.Bridgit$139.6M,Sydney,Australia Proptech Series A7.Hashkey Group$100M,Hong Kong(SAR)Blockchain/crypto Series A8.LongBridge Security$100M,Hong Kong(SAR)Institutional Late-stage
205、 VC9.SwiffyLabs$100M,Bengaluru,India Lending/payments Add-on10.Guosheng Inclusive Finance$90.45M,Qingdao,China Lending Early-stage VCASPACTop 10 fintech deals in ASPAC in H1 202489356127104Global insights|Fintech segments Regional insights35 2024 Copyright owned by one or more of the KPMG Internatio
206、nal entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseCountry insights:ChinaWhile deal volumes remain relatively low,we feel there is a positive change in sentiment around fintech.In the Chinese Mainland,efforts are being made to better connect inte
207、rnational payments providers into the Chinese payment ecosystems,with some companies receiving payment licence approvals.Meanwhile significant positive regulatory developments around crypto mean Hong Kong is re-emerging as Asias crypto innovation hub.Barnaby RobsonHead of Value CreationKPMG ChinaGlo
208、bal insights|Fintech segments Regional insightsDespite the regulatory hiccups,fintech is poised to remain a durable investment choice with bright spots in crypto,consumer payment systems and lending platformsSource:Pulse of Fintech H124,Global Analysis of Investment in Fintech,KPMG International(dat
209、a provided by PitchBook),*as of June 30,2024.Total fintech investment activity(VC,PE and M&A)in China20212024*Fintech investments in China made a very modest recovery towards the end of 2023 and trickled over into 2024.Consumer finance and lending companies contributed over half of deal value in Q1.
210、Notwithstanding regulatory uncertainties in the cryptocurrency space in the Chinese Mainland,the sector remains resilient with several crypto start-ups receiving funding and one acquisition completed.If anything,crypto remain a cornerstone investment choice as blockchain is positioned as a strategic
211、 technological innovation in the 14thFive-Year Plan(2021-2025).Meanwhile,Hong Kong is actively cultivating a regulatory framework to support cryptocurrency exchanges and other crypto-related activities.The city is aiming to position itself as a global hub for digital assets,with initiatives to attra
212、ct crypto firms and enhance its financial ecosystem An area of opportunity is the internationalisation of the RMB.The Peoples Bank of China(PBOC),has launched its e-CNY wallet app,an unprecedented scheme allowing foreigners in China to use offshore funds to pay.$570.5$1,087.9$1,144.0$350.3$466.4$347
213、.9$91.1$49.5$1,566.6$245.8$93.8$660.8$572.8$51.801020304050607080$0$200$400$600$800$1,000$1,200$1,400$1,600$1,800Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22021202220232024Deal value($M)Deal count36 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities prov
214、ide no services to clients.All rights reserved.#fintechpulseGlobal insights|Fintech segments Regional insightsIn H1 2024,fintech funding in the Americasreached$36.75B with 1,123 deals37 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no serv
215、ices to clients.All rights reserved.#fintechpulseRegional insights AmericasTotal fintech investment in the Americas fell slightly from$38.5 billion in H223 to$36.7 in H124 although the number of fintech deals rose from 1,066 to 1,123 over the same period.Given the high-interest-rate environment,geop
216、olitical uncertainty,and lingering valuations challenges,fintech investors showed a subdued appetite for making the largest deals.Growth stage VC investment was particularly weak in H124,with just$1.6 billion,compared to over$10.5 billion during all of 2023.Key H124 highlights from the Americas incl
217、ude:Regional insights AmericasFintech investment in the Americas weakens slightly despite increase in deal volume18.Business Wire.“Vista Equity Partners completes acquisition of EngageSmart.(26 January 2024).19.PR Newswire.“AlphaSense Completes Acquisition Of Tegus.”(8 July 2024).20.Business Wire.“G
218、eneral Atlantic announces investment in PlusGrade,joining existing investor CDPQ.”(4 March 2024).Global insights|Fintech segments Regional insightsUS attracts majority of fintech investment in AmericasThe US accounted for$27.4 billion of the$36.7 billion in fintech investment seen in the Americas du
219、ring H124,including the$12.5 billion acquisition of Worldpay by GTCR,the$4 billion buyout of B2B customer engagement platform EngageSmart by Vista Equity Partners,18the$930 million acquisition of financial research firm Tegas by AlphaSense,19and the$685 million VC raise by capital markets platform c
220、ompany Clear Street.Canada sets new record for fintech investment in H124 as investment Outside of the US,fintech investment in Canada was particularly notable in H124,reaching a record high of$7.8 billion for a six-month period.Two deals accounted for the bulk of this funding the$6.3 billion acquis
221、ition of payments firm Nuvei by Advent International and the$1 billion buyout of revenue solutions firm Plusgrade by General Atlantic.20While fintech remains a big ticket for investors in Brazil,investment in H124 was quite weak,with just$616 billion in investment compared to$1.8 billion in H223.Val
222、uations gap persists in VC and PE space Within the Americas,the high-interest-rate environment combined with a continued gap in valuations and the search for quality assets kept VC and PE investment in fintech somewhat soft during H124.On the M&A front,the focus of deals has shifted somewhat in H124
223、;whereas in 2023 a number of larger organizations looked to divest underperforming parts of their business in order to concentrate on their core,the first half of 2024 saw companies looking at opportunities to make smaller acquisitions aimed at enhancing their capabilities in specific areas.Author:R
224、obert Ruark,Principal,Financial Services Strategy and Fintech Lead,KPMG in the US38 2024 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 H124
225、Additional consolidation in the payments space,particularly niche fintechs being acquired by more mature fintechs looking to grow and scale.Regulators increasing their attention on issues like data protection and privacy,particularly in the US.Wealthtech investments focusing more on B2B support fint
226、echs rather than on D2C businesses.Growing focus on AI enablement,not only in the regtech space,but in the insurtech sector as a means for assessing risks.Growing interest in taking fintechs privateDuring 2021 and 2022,there was a significant amount of IPO activity in the fintech space,including a n
227、umber of fintechs going public via SPAC mergers.Since that time,a number of these companies have struggled given the challenging market environment.This has led to growing interest in taking companies that went public early private again.During H124,the largest of these take-private deals was Nuvei
228、which was taken private by Advent International for$6.3 billion.Were still seeing decent M&A activity in the fintech space,but its lower than prior years.Compared to 2023,when larger companies were looking to divest some of their non-core assets,now were seeing them looking to make smaller,more targ
229、eted acquisitions in order to enhance their capabilities,such as their product set or market reach.The focus has definitely shifted from we need to get back to doing what we do really well to maybe theres room in some small areas to continue to grow and expand non-organically through M&A.Robert Ruar
230、kPrincipal,Financial Services Strategy and Fintech LeadKPMG in the USGlobal insights|Fintech segments Regional insights39 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseOverall,dealmak
231、ing could be evening out to levels similar to 2023Regional insights AmericasSource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.PE growth activity in fintech in the Americas 2021-2024*Total funding activity(VC,PE and M
232、&A)in fintech in the Americas 2021-2024*M&A activity in fintech in the Americas 2021-2024*Venture capital funding activity in fintech in the Americas 2021-2024*$121.9$96.8$78.5$36.83,7073,5932,3741,12305001,0001,5002,0002,5003,0003,5004,000$0$20$40$60$80$100$120$1402021202220232024*Deal value($B)Dea
233、l count$40.5$46.8$50.9$26.85463932931300100200300400500600$0$10$20$30$40$50$602021202220232024*Deal value($B)Deal count$11.4$5.0$1.9$0.663716429020406080$0$2$4$6$8$10$12$142021202220232024*Deal value($B)Deal count$70.0$45.0$25.8$9.43,0983,1292,01796405001,0001,5002,0002,5003,0003,500$0$10$20$30$40$5
234、0$60$70$802021202220232024*Deal value($B)Deal countGlobal insights|Fintech segments Regional insights40 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseAmid quieter dealmaking front,fin
235、ancing metrics suggest dealmakers are still bidding up when neededRegional insights AmericasVC activity in fintech with corporate participation in the Americas 2021-2024*Median M&A size($M)in fintech in the Americas 2021-2024*Source:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG In
236、ternational(data provided by PitchBook),*as of 30 June 2024.The 2024 YTD figure for median M&A sizes is based on a non-normative population size.The 2024 YTD figure for the median pre-money valuation at the growth stage is based on a non-normative population size.Median pre-money valuations($M)by st
237、age in fintech in the Americas 2021-2024*Quartile post-money(VC,PE and M&A)valuations in the Americas 2021-2024*$50.5$67.7$46.8$139.6$0$20$40$60$80$100$120$140$1602021202220232024*$39.6$21.6$14.5$4.594494351424902004006008001,000$0$5$10$15$20$25$30$35$40$452021202220232024*Deal value($B)Deal count$9
238、.4$12.0$11.9$16.0$48.0$50.0$45.0$50.0$120.0$100.0$60.0$69.3$1,100.0$623.0$276.4$755.02021202220232024*Pre-seed/SeedEarly VCLater VCVenture growth$13.7$15.0$14.1$19.8$44.3$35.9$30.6$49.0$168.0$120.9$94.5$130.0$0$20$40$60$80$100$120$140$160$1802021202220232024*25thMedian75thGlobal insights|Fintech seg
239、ments Regional insights41 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseDealmaking shows signs of flattening out at a level aligned with historical averagesRegional insights AmericasS
240、ource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Total funding activity(VC,PE,M&A)in fintech in the Americas 2021-2024*M&A activity in fintech in the Americas 2021-2024*$29.1$29.0$34.2$29.7$45.7$20.5$10.3$20.4$30.2$9
241、.8$18.5$20.0$24.0$12.702004006008001,0001,2001,400$0$5$10$15$20$25$30$35$40$45$50Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal count$9.9$10.6$11.7$8.3$26.2$5.6$1.6$13.5$17.3$5.5$13.8$14.3$19.5$7.3020406080100120140160$0$5$10$15$20$25$30Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Dea
242、l value($B)Deal countGlobal insights|Fintech segments Regional insights42 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseVC dealmaking seems to be keeping a steady plateau goingRegiona
243、l insights AmericasSource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Venture capital funding activity in fintech in the Americas 2021-2024*VC activity in fintech with corporate participation in the Americas 2021-2024
244、*$15.6$17.1$20.2$17.1$17.4$13.3$8.3$6.1$11.4$4.2$4.7$5.5$4.2$5.202004006008001,0001,200$0$5$10$15$20$25Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal countPre-seed/SeedEarly VCLater VCVenture growth$10.1$9.4$10.7$9.5$8.7$7.1$3.5$2.2$8.9$1.8$2.5$1.4$1.9$2.5050100150200250300350$0$2$4$
245、6$8$10$12Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal countGlobal insights|Fintech segments Regional insights43 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseSource:
246、Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.1.Worldpay$12.5B,Cincinnati,US Payments Buyout2.Nuvei$6.3B,Montreal,Canada Payments Public-to-private buyout3.EngageSmart$4B,Braintree,US Payments Public-to-private buyout4.
247、Plusgrade$1B,Montreal,Canada Institutional/B2B Buyout5.Tegus$930M,Chicago,US Information M&A6.Clear Street$685M,New York,US Institutional/B2B Series B7.Cadre$500M,New York,US Proptech M&A8.Corvus$427M,Boston,US Insurtech M&A9.Spiff$419M,Sandy,US Institutional/B2B M&A10.PayJoy$360M,San Francisco,US P
248、ayments Series CAmericasTop 10 fintech deals in the Americas in H1 2024Global insights|Fintech segments Regional insights8342591610744 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseIn
249、 H1 2024,funding in fintech companies in Europe,Middle East and Africa(EMEA)recorded$11.4B with 689 dealsGlobal insights|Fintech segments Regional insights45 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights r
250、eserved.#fintechpulseFintech investment in EMEA drops to$11.4 billion in H124The EMEA region saw total fintech investment drop considerably in the first half of 2024,falling from$19.1 billion in H223to just$11.4 billion in H124 amid continued geopolitical uncertainty and a high-interest-rate environ
251、ment that kept interest in large deals quite muted.The UK saw the largest share of fintech funding in the region during H124,attracting$7.3 billion in investment,including the$4 billion buyout of financial software company IRIS Software Group by Leonard Green,a$999 million VC round by small-business
252、-focused marketplace platform Abound,and a$621 million raise by neobank Monzo.The largest deals outside of the UK included the buyout of payments firm Banco BPM Gruppo for$652 million and the acquisition of Switzerland based e-invoicing company Pagero by Thomson Reuters.21Key H124 highlights from th
253、e EMEA region include:Regional insights EMEAWith the new Labour government in situ with its focus on economic growth,and the expectation of an interest rate drop in the final quarter of 2024,there are hopes that UK fintech funding and the deals market will start to show signs of recovery.The UK fint
254、ech market continues to be dominated by the payments sector and the growing adoption and use of the services of challenger banks.Previously struggling to gain the trust of customers,these challenger banks now lead the way in banking innovation and agility,and we expect their growth to continue.Hanna
255、h DobsonPartner and Fintech LeadKPMG in the UK21.Thomson Reuters Corporation.“Thomson Reuters Successful acquisition of Pagero paves the way for significant growth opportunities.”(26 February 2024).22.European Parliament.“Artificial Intelligence Act:MEPs adopt landmark law.”(13 March 2024).23.Eurofi
256、.“Crypto regulation:MiCA implementation and global convergence.”(n.d.).VC funding shows some resilience Compared to other regions,fintech-focused VC investment in the EMEA region showed resilience in H124,with$5.4 billion in investment.This resilience was likely helped by small increases in VC inves
257、tment in the UK,Germany,Nordics region,and Ireland.The region saw increasing interest in early-stage deals as investors showed more optimism than they have in recent months.This optimism extended to the possibility of the IPO market reopening in H224,although any sustained opening would likely occur
258、 after the US presidential election.Regulations remain key focus in EMEA,particularly in the EU The EMEA region continued to see the regulatory environment evolve in H124,particularly in the EU.The EU Parliament approved landmark legislation with the AI Act in March 2024;the new regulation will appl
259、y later in 2026,with some exceptions for specific provisions.22 Crypto was a particular focus,given the EUs Markets in Crypto Assets(MiCA)regulation is set to come into effect in June 2024.23MiCA will require that crypto companies such as exchanges,wallet providers,and coin issuers obtain a license
260、to operate in order to conduct operations in the EU.The regulatory environment could drive renewed interest into the blockchain and crypto space as a result of growing regulatory confidence.Authors:Hannah Dobson,Co-lead Fintech,KPMG in the UK,Franois Assada,Head of Fintech,KPMG in France and Dave Re
261、mue,Fintech Lead,KPMG in BelgiumGlobal insights|Fintech segments Regional insights46 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseRegional insights EMEAWhen it comes to AI,on one sid
262、e of the spectrum,the larger banks and financial institutions are well positioned to be winners given their access to data and a much more structured organization.On the other side of the spectrum,start-up/scale-up fintechshave progressively embedded AI in their delivery model to demonstrate their a
263、bility to improve their economics.In the middle,smaller banks and financial institutions could very quickly find themselves lagging behind and this could be an additional factor to consider for further consolidation in the sector,especially in the context of regulatory harmonization across Europe an
264、d more national barriers being erased.Franois AssadaPartner,Head of FintechKPMG in FranceB2B-focused fintechs attracting attention in EMEA During H124,B2B-focused fintech companies were of particular interest to fintech investors across EMEA,likely in part driven by their ability to produce recurrin
265、g revenues.Deals in the space ranged quite broadly,with a number attracting international investors.During H124,for example,France-based accounting software firm Pennylane raised$43 million in VC funding from investors,including Sequoia Capital and DST Global;24the raise earned the company unicorn s
266、tatus.UK-based fintechs taking different approaches to international growth A number of mature fintechs in the UK have targeted international expansion as a means to drive growth;however,these activities have been relatively hit or miss given the unique differences in banking practices in various ta
267、rget countries.This has led some mature fintechs,including Starling Bank and Oak North,to pursue other avenues for international expansion,including selling their technology internationally as banking SaaS platform plays.Trends to watch for in H224 Wealthtech gaining more attention,particularly from
268、 big banks and investors looking to fill gaps.Large financial institutions and fintechs looking to leverage AI to drive operational efficiencies and cost reductions.Growing focus on AI-driven regtech and cybersecurity solutions,including in areas like KYC and AML and fraud prevention.An increasing f
269、ocus on open banking and open finance in the UK following the general election.Potential increase in IPO activity,although any major rebound will likely hold off until 2025.Growing interest in blockchain and crypto as startups mature and evolving regulatory environment provides more confidence to in
270、vestors.24.Tech.eu.“Parisian fintech Pennylane raises 40M at 1B valuation.”(8 February 2024).Global insights|Fintech segments Regional insights47 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fin
271、techpulseRegional insights EMEASource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Venture capital funding activity in fintech in EMEA 2021-2024*PE growth activity in fintech in EMEA 2021-2024*Total funding activity(VC
272、,PE and M&A)in fintech in EMEA 2021-2024*M&A activity in fintech in EMEA 2021-2024*Global insights|Fintech segments Regional insightsDealmakers continue to close deals,but at a still-cautious pace$76.5$50.6$27.0$11.42,6372,5881,74768905001,0001,5002,0002,5003,000$0$10$20$30$40$50$60$70$80$9020212022
273、20232024*Deal value($B)Deal count$44.4$18.7$6.7$5.64123592791020100200300400500$0$10$20$30$40$502021202220232024*Deal value($B)Deal count$2.5$3.0$7.5$0.456624118010203040506070$0$1$2$3$4$5$6$7$82021202220232024*Deal value($B)Deal count$29.6$29.0$12.9$5.42,1692,1671,42756905001,0001,5002,0002,500$0$5
274、$10$15$20$25$30$352021202220232024*Deal value($B)Deal count48 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseValuations hold steady or inch back up,suggesting some adaptationRegional i
275、nsights EMEASource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.The median M&A size for 2024 YTD is based on a non-normative population size.The 2023 venture growth figure for median pre-money valuations is based on a
276、non-normative population size;all 2024 YTD medians are likewise.VC activity in fintech with corporate participation in EMEA 2021-2024*Median pre-money valuations($M)by stage in fintech in EMEA 2021-2024*Median M&A size($M)in fintech in EMEA 2021-2024*Quartile post-money(VC,PE and M&A)valuations in E
277、MEA 2021-2024*$34.5$60.3$38.7$43.0$0$10$20$30$40$50$60$702021202220232024*$12.2$15.5$5.9$2.26246163631680100200300400500600700$0$5$10$15$202021202220232024*Deal value($B)Deal count$5.6$6.3$7.1$5.4$11.1$11.7$11.0$12.2$29.1$28.8$19.5$19.0$108.1$82.2$46.0$78.92021202220232024*Pre-seed/SeedEarly VCLater
278、 VCVenture growth$5.2$5.9$6.0$6.2$14.3$16.6$15.4$16.1$57.6$60.0$40.0$62.7$0$10$20$30$40$50$60$702021202220232024*25thMedian75thGlobal insights|Fintech segments Regional insights49 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services t
279、o clients.All rights reserved.#fintechpulseDealmaking continues to lose momentum,yet outlier deals can occurRegional insights EMEASource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Total funding activity(VC,PE and M&A
280、)in fintech in EMEA 2021-2024*M&A activity in fintech in EMEA 2021-2024*$28.5$16.2$19.6$12.2$19.8$14.1$9.9$6.8$4.4$3.5$13.8$5.4$3.4$8.10100200300400500600700800900$0$5$10$15$20$25$30Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal count$21.0$7.2$11.7$4.6$9.3$2.6$3.8$3.0$0.9$0.7$4.1$1.0
281、$1.5$4.1020406080100120$0$5$10$15$20$25Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal countGlobal insights|Fintech segments Regional insights50 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights
282、 reserved.#fintechpulseOutlier deals help skew Q2 VC invested talliesRegional insights EMEASource:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.Venture capital funding activity in fintech in EMEA 2021-2024*VC activity i
283、n fintech with corporate participation in EMEA 2021-2024*$7.1$8.7$7.0$6.9$9.3$10.4$5.9$3.4$3.3$2.6$3.2$3.8$1.6$3.90100200300400500600700800$0$2$4$6$8$10$12Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal countPre-seed/SeedEarly VCLater VCVenture growth$3.3$3.1$3.5$2.3$5.8$5.0$2.9$1.9$1
284、.8$1.0$0.5$2.6$0.6$1.6050100150200250$0$1$2$3$4$5$6$7Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22021202220232024Deal value($B)Deal countGlobal insights|Fintech segments Regional insights51 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clie
285、nts.All rights reserved.#fintechpulseEMEATop 10 fintech deals in EMEA in H1 2024Source:Pulse of Fintech H124,Global Analysis of funding in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2024.1.IRIS Software Group$4B,Slough,UK Institutional/B2B Secondary buyout2.Abound$999.6M,L
286、ondon,UK Consumer finance Series B3.Banco BPM Gruppo$652.6M,Milan,Italy Payments Corporate divestiture4.Monzo$621M,London,UK Banking Series I5.Pagero$429M,Gothenburg,Sweden Institutional/back-office M&A6.Flagstone$174.85M,London,UK Back-office PE growth7.Pliant$163M,Berlin,Germany Payments Series A8
287、.Revolut$139.4M,London,England Payments Late-stage VC9.Voxel$127.8M,Barcelona,Spain Institutional/back-office M&A10.Cloover$114M,Stockholm,Sweden Institutional/B2B Seed542611093877Global insights|Fintech segments Regional insights52 2024 Copyright owned by one or more of the KPMG International entit
288、ies.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseThe financial services industry is transforming with the emergence of progressive new products,channels and business models.This wave of change is driven primarily by evolving customer expectations,digita
289、lization 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 include partners and staff in over 50 fintech hubs aroun
290、d the world,working closely with financial institutions and fintech companies to help them understand the signals of change,identify the growth opportunities,and develop and execute their strategic plans.Visit the KPMG global fintech practiceGlobal insights|Fintech segments|Regional insights53 2024
291、Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseKPMG firms recognized as one of the“2023 Worlds Best Management Consulting Firms”in Banks,Insurances and Financial Institutions by ForbesKPMG
292、firms have been recognized by Forbes as one of the“2023 Worlds Best Management Consulting Firms,”receiving stars in all 27 industries and categories,including Banks,Insurances and Financial Institutions.Forbes awarded KPMG Financial Services professionals with a top five-star rating,for being“very f
293、requently recommended”by thousands of customers and consultants in numerous countries around the globe.The annual ranking recognizes KPMG firms for its capabilities in delivering insights-driven consulting services to commercial and public sector clients across the globe.About the KPMG global fintec
294、h practiceKPMG firms recognized as an M&A Innovator by ALM Pacesetter ResearchKPMG was recognized for M&A services in the ALM Pacesetter Research:M&A Services 2022-2023 report.ALM Intelligence reviewed over 70 global professional services firms and named KPMG firms as an M&A Innovator,a distinction
295、given to only one-third of firms.ALM also named KPMG firms top five in the business model and brand eminence categories,indicating strengths adapting core capabilities to evolving client needs and generating quality insights,research and marketing.KPMG ranks#1 across multiples categories in risk con
296、sulting in the Source Perceptions of Risk Firms 2023 reportKPMG firms have received top rankings across multiple categories in the Source client perceptions study:Perceptions of Risk Firms 2023.According to the client perception survey,KPMG leads as the top firm for being first choice in“financial r
297、isk”and“third party assurance,”and is ranked first for client advocacy in risk.Additionally,the report indicates that KPMG is the top firm for“competitive resilience in risk consulting”and is among the top scorers for quality in“cyber security”by clients.Global insights|Fintech segments|Regional ins
298、ights54 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseContacts and contributorsWed like to acknowledge the contribution of the following individuals across KPMG member firms who assis
299、ted in the development of this publication.Andrew HuangHead of FintechKPMG ChinaE:Anna McFarlanePartner,Financial ServicesKPMG in New ZealandE:annamacfarlanekpmg.co.nzAnton RuddenklauGlobal Head of Fintech and Innovation Financial ServicesKPMG InternationalE:.sgCharlie JaccoFinancial Services Cybers
300、ecurity Lead KPMG InternationalPrincipal,Information Protection and Cyber Security Financial Services LeadKPMG in the USE:Chris SteelePartner,Banking Risk and RegulationKPMG in the UKE:christ.steelekpmg.co.ukCourtney TrimbleGlobal Lead,Payments KPMG International Principal,Financial ServicesKPMG in
301、the USE:Daniel TeperPartner,M&A and Head of FintechKPMG AustraliaE:.auDave RemueDirector,Head of Fintech,AdvisoryKPMG in BelgiumE:Debarshi BandyopadhyayDirector,Financial Services Blockchain and CryptoKPMG in SingaporeE:.sgEric WestDirector,Deal Advisory and StrategyKPMG in the USE:Franois AssadaPar
302、tner,Head of FintechKPMG in FranceE:fassadakpmg.frHannah DobsonPartner and Fintech LeadKPMG in the UKE:hannah.dobsonkpmg.co.ukIlanit Adesman NavonPartner,Head of Insurance and FintechKPMG in IsraelE:James BrennanManaging Director,Financial Due Diligence KPMG in the USE:Karim HajiGlobal Head of Finan
303、cial Services KPMG InternationalE:karim.hajikpmg.co.ukKenji HokiDirector,Financial ServicesKPMG in JapanE:Leah FeganDirector,Global Marketing,Financial ServicesKPMG InternationalE:lfegankpmg.caLeon OngPartner,Financial Services,AdvisoryKPMG in SingaporeE:.sgMatteo MussoAssociate Director,Risk Servic
304、es,Banking&Capital MarketsKPMG AustraliaE:.auPriti MishraDirector,Financial ServicesKPMG in New ZealandE:pritimishrakpmg.co.nzRam MeonGlobal Lead,Deal Advisory,InsurancePartnerKPMG in the USE:Robert RuarkPrincipal,Financial Services Strategy and Fintech LeadKPMG in the USE:Samantha DannManager,Globa
305、l Program DeliveryKPMG InternationalE:sdannkpmg.caTimothy JohnsonGlobal Head of Deal Advisory,Financial ServicesKPMG International Partner,Advisory,Transaction Services LeaderKPMG in the USE:Barnaby RobsonHead of Value CreationKPMG ChinaE:Global insights|Fintech segments|Regional insights55 2024 Cop
306、yright owned by one or more of the KPMG International entities.KPMG 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 30 June 2024 and utilizes their rese
307、arch and classification methodology for transactions as outlined on 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 fin
308、tech vertical within the underlying PitchBook data.Family and friends,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 meth
309、odology and information available to PitchBook at 30 June 2024.Similarly,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
310、 in the Dataset,with deal values for general M&A transactions as well as venture rounds remaining un-estimated if this information is not available or reliably estimated.Venture capital dealsPitchBook includes equity fundings into startup companies from an outside source.Funding does not necessarily
311、 have to be taken from an institutional investor.This can include funding 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 cont
312、inues to invest in follow-on rounds,those further financings are included.Angel,seed/pre-seed,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 pre
313、ss release that states the round is an angel round,it is classified as such.Finally,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 i
314、t is for less than$500,000 and is the first round as reported by a government filing,it is classified as such.If angels are the only investors,then a round is only marked as seed if it is explicitly stated.Pre-seed and seed were added as a new type of methodology in the January 2024 edition;details
315、are at the report methodologies page on PitchBooks website.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 financing or,if that information is unavailable,by a series of factors,i
316、ncluding 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 stage)either by the series of stock issued in the financing or,if that
317、 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 include rounds that saw both firms investing via established CVC ar
318、ms 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 startups that meet the criteria for other PitchBook venture financings are included in the Pulse of Fintech as of
319、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 includes both buyout investors,being those that specialize in purchasing m
320、ainly 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 include leveraged buyout(LBO);management buyout;management buy-in;add-
321、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 the PE growth transactional umbrella.MethodologyAbout the reportGlob
322、al insights|Fintech segments|Regional insights56 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseM&A transactionsPitchBook defines M&A as a transaction in which one company purchases a
323、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 restructurings or any other liquidity,self-tender or internal reorgan
324、izations 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.As of June 2023,acquisition financing transactions not covered under
325、 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 change how financial services are offered.Fintech also includes firms th
326、at 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 technologies including the internet,blockchain,software and algori
327、thms 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 of financial firms.Includes makers of ATM machines,electronic tradi
328、ng 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 approach:1.Payments/transactions Companies whose business model revolves
329、 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 financial services industry and/or relating to any use case of cryp
330、tocurrency(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 securing cryptocurrency ledgers via mining activities.3.Lending Any non-b
331、ank 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 Companies that are classified as both fintech and who are developi
332、ng 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 devices,property listing and rental services,mortgage and lending applicat
333、ions,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,efficiency,accuracy and convenience of processes across the insurance value chain.This includes quote comparison websites,insurance telematics,insurance domotics(home automation),
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