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The Pulse of Fintech H2 2018

The Pulse of Fintech H2 2018

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. 

Highlights from the H2’18 report

  • Global fintech investment more than doubled from USD50.8 billion in 2017 to USD111.8 billion in 2018. All told, 2018 was a year of multiple record highs across fintech investment, including VC, corporate VC, M&A and PE.
  • Cross-border M&A rose significantly in 2018 with close to USD53.5 billion invested across borders in 155 deals.
  • Investments in regtech surged from USD1.2 billion in 2017 to USD3.7 billion in 2018.
  • Among the top ten 2018 deals in Asia include the USD245 million acquisition of Avoka in Australia, a transaction management platform.
  • The total Asia Pacific fintech investment for 2018 of USD22.7 billion, up from USD12.5 billion in 2017. This was dominated by Ant Financial’s record-setting US$14 billion deal in Q2’18, as fintech investment in the region slowed significantly in the second half of the year.

Key fintech trends in 2018

In addition to exploring global and regional trends, we discuss the following questions driving interest in the fintech market:

  • Why is global growth pivotal for fintech success?
  • Will regtech be the next big fintech play?
  • How are corporates reshaping the fintech industry?
  • How is blockchain investment evolving into a product play?
  • How is Open Banking impacting fintech activity?

Open data driving significant fintech developments

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.

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