Latest edition – H1 2021

Overall global fintech investments (M&A, PE, and VC) soared to a new high in H2’21, with funding increasing from USD 87.1 billion in H2’20 to USD 98 billion in H1’21. Dry powder cash reserves, increasing diversification in hubs and subsectors, and strong activity across the world contributed to the record start.

Fintech valuations remained very high in H1’21 as investors continued to see the space as attractive and well-performing – a likely driver in the explosion of unicorn births with 163 created in the first half of the year.

Under pressure to increase the velocity of their digital transformation and to enhance their digital capabilities, corporates were particularly active, contributing nearly $21 billion in investment over 600 deals globally.

The digital bank space got some attention in H1’21 with the announcement of the upcoming launch of Zand — the UAE’s first independent digital bank. International interest in the UAE continued to grow, with both Ireland-based regtech company DX Compliance39 and US based payments firm Stripe40 launching operations in the UAE during H1’21.

During H2’21, the Financial Services Regulatory Authority of the ADGM introduced a framework to regulate open banking platforms to enhance consumer data protection. Looking forward, investment in payments and contactless technologies is expected to remain strong in the UAE. Investor interest in Islamic finance focused startups, such as Shariah compliant fintechs, is expected to grow over the next few quarters.

  

  

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Download Pulse of Fintech H1’21

VC investments surge and cross-border M&A more than doubles all of 2020

Download this edition for:

  • global and regional analysis with key investment data and insights
  • top fintech trends for 2021 and beyond
  • interview with Jason Pau, Chief of Staff, International to the Chairman and CEO, Ant Group
  • fintech segment insights for a deeper dive into payments, insurtech, regtech, wealthtech, cybersecurity, blockchain and cryptocurrency
  • spotlight article, Putting big data at the heart of decision-making.

To learn more about the analysis and topics raised in this edition, or to discuss your organization's unique fintech agenda and roadmap, please contact your local KPMG advisors or the contributors in this publication. 

  

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