H1’20 was unlike any time period ever seen before. The emergence of COVID-19 was a major black swan event, sending ripples throughout public markets and driving changes in customer and business behaviours on an unprecedented scale.
Australia maintained its position as a strong fintech hub with continued investments in H1’20 despite rising pandemic concerns. At mid-year, fintech investment across M&A, PE and VC in Australia was US$548 million. Notable transactions from Australian based Airwallex and Judo Bank contributed a combined $276 million from VC and PE investors.
Looking ahead, uncertainty is expected to linger through the remainder of the year. Payments will likely continue to be a hot and competitive sector for fintech investment, while regtech could grow on investors' radar as corporates look to better manage risk. The increasing use of digital financial services models will likely spur investments in ancillary areas, such as fraud prevention, digital identity management and cybersecurity.
VC investment in fintech remains robust as M&A activity stalls.
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To learn more about the analysis and topics raised in this edition, or to discuss your organisation's unique fintech agenda and roadmap, please contact your local KPMG advisors or the contributors in this publication.
Find out about the power of impact networks and the importance of collaboration with fintechs in our interview with Stone & Chalk CEO, Alex Scandurra.