The first half of 2022 has seen a shift in market dynamics across the fintech landscape despite robust VC funding.

Global geopolitical uncertainty, rising inflation and interest rates, and concerns about a potential global recession — investment in insurtech declined as investors took a pause. We expect heading into the back half of the year, investors will be more strategic, conducting more due diligence and looking to insurtechs run by entrepreneurs with legitimate insurance industry experience.

Likewise, the growing maturity of the wealthtech sector has led to investors taking a more critical view of opportunities. They are now focusing less on making broad investments across the space, concentrating their capital on wealthtechs with truly unique business models and those seen to be more valuable, robust, and financially sustainable compared to their counterparts.

Investment in crypto and blockchain fell from the 2021 highs, yet H1’22 remained stronger than all previous years. The current macro-economic trend will likely be an important test for cryptos, and especially Bitcoin, in terms of correlation with other assets.

While the payments, cyber security and regtech segments continue to remain hot, we expect that investors will become even more discerning with their investments —focusing more on profitability and cash flow when evaluating opportunities.

Download Pulse of Fintech H1’22

Global fintech investments in H1 2022 recorded $107.8B with 2,980 deals

Download this edition for:

  • Global and regional analysis with key investment data and insights
  • Interview with bolttech and spotlight article on embedded finance
  • Fintech segment insights for a deeper dive into payments, insurtech, regtech, wealthtech, cybersecurity, blockchain and cryptocurrency

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.