According to KPMG’s year in review Pulse of Fintech 2018 report, Global fintech investment rose dramatically to USD111.8 billion, up more than 120 percent on 2017 levels, fuelled by mega M&A and buyout deals. Australia recorded its second-highest year on record with USD600 million across 28 deals.
Global deals in the second half of 2018 were topped by Blackstone’s USD17 billion investment in Refinitiv, the USD3.5 billion acquisition of Blackhawk Network by Silver Lake and P2 Capital Partners, the USD3.4 billion buyout of VeriFone by Francisco Partners, and the USD2.2 billion acquisition of iZettle by PayPal. These deals followed on the USD12.86 billion acquisition of WorldPay by Vantiv in H1’18. The year saw new fintech players emerge with niche product offerings, while mature fintechs, particularly in payments, continuing to build scale and expand internationally.
In addition to exploring global and regional trends, we discuss the following questions driving interest in the fintech market:
With the upcoming launch of Open Banking in Australia on 1 July 2019, regulations around Open Banking will prove to be a boon for technology giants and startups alike. As an example, Australia-based Data Republic raised USD22 million in Series B funding in Q4’18 led by Singapore-based Innov8 and Singapore Airlines. Additionally, this year ANZ has participated in a Series A funding round for the UK open banking platform, Bud.