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The Pulse of Fintech – Q4 2017

The Pulse of Fintech – Q4 2017

We provide a global and regional overview of key findings uncovered from The Pulse of Fintech Q4 2017, created by KPMG Enterprise and KPMG Fintech.

Given the strong interest in fintech globally, each quarter, KPMG brings you the Pulse of Fintech report which highlights closed deals, issues and challenges from around the world, in addition to key trends and insights related to key regions: North America, Europe and Asia, as well as coverage of the Australian market. Recognising the growth of the fintech sector, the report covers research of all investment classes – M&A, including Private Equity (PE), as well as Venture Capital (VC) investments. All figures reported are in US$.

Despite a third straight quarter of decline in total global fintech deal volume, total investment rose slightly in Q4’17. A number of large deals helped to buoy investment levels, including the buyout of Bankrate and the acquisitions of BluePay and Trayport. The fintech market as a whole continued to mature during 2017, with global investors no longer just getting their feet wet within the fintech market, but making more targeted investments focused on value and long-term sustainability. Despite the narrowing focus on the part of investors, total global investment in fintech remained steady at over $31 billion, year-over-year.

Highlights from the Q4’17 report

  • Global fintech investment hit US$8.7 billion in Q4’17 across 307 deals, up from US$8.2 billion in Q3’17.
  • Insurtech and blockchain VC investments achieved record highs of US$2.1 billion and US$512 million respectively in 2017.
  • CVC entities participated in over 19 percent of all fintech venture financings in 2017, with VC deal value eclipsing US$5 billion.

Trends to watch globally

Besides examining global and regional trends, we discuss the following questions driving interest in the fintech market:

  • Why is the fintech market so resilient?
  • How are corporates leveraging fintech to expand into adjacencies?
  • Why are fintechs shifting their focus to B2B?
  • How are regulators responding to fintech in different regions?
  • What trends should you watch for in 2018?

Global and regional snapshot – Infographic

The following infographics provide a global and regional overview of the key findings uncovered in the report.