1©2017KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.#FINTECHGlobalanalysisofinvestmentinfintech27April20172©2017KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.#FINTECHWelcometotheQ1’17editionofKPMGInternational’sPulseofFintechreport,inwhichweexploreglobaltrendsanddealactivitywithinfintech.Globally,fintechinvestmentheldrelativelysteadyasthemarketundertookaresetfollowingayearofuncertaintyacrossNorthAmerica,EuropeandAsia.Mergersandacquisitions(M&A)remainedlowfollowingamajordropoffinQ4’16,whileventurecapital(VC)fundingtofintechtookasmalldipquarteroverquarter.Meanwhile,privateequity(PE)investmentanddealactivityroseslightly.Corporateinvestorscontinuedtodrivefintechinvestment,withbanks,insurancecompaniesandotherfinancialinstitutionsrecognizingtheneedtoinnovateandmakinginvestmentsaccordingly.Thisquarter,corporatesmovedbeyondtraditionaldirectVCfintechinvestmentandlookedtowardsbuildingpartnershipsandallianceswithfintechcompaniesinordertoachievetheirobjectives.Onaregionalbasis,boththeUSandEuropestartedofftheyearwithupticksinfintechinvestmentanddealactivity—withEuropeinparticularexperiencingthehighestlevelofinvestmentinyears.Asia,meanwhile,sawfintechinvestmentdrop,asthelackofmega-dealscontinued,andChinaintroducednewfintechregulationsthatmaytakesometimeforfintechcompaniesandinvestorstodigest.TherapidexpansionofAsia’sfintechecosystemacrossjurisdictionsandstrongongoinginterestinfintechintheregion,suggestthisdeclinemaybeshort-lived.Withinfintech,paymentsandlendingcontinuedtodominatedealsinmostjurisdictions,althoughartificialintelligence(AI),theInternetofThings(IoT),bigdata,regulatorytechnology(regtech)andinsurancetechnology(insurtech)arequicklygrowingontheradarofinvestors.Weexaminetheseresultsandothertrendsinthisquarter’...
