After a record-setting 2018, the first half of 2019 got off to a quiet start for fintech investment globally – mirroring a trend seen in the broader venture capital market. Both the number of global fintech deals and the total global investment in fintech dropped in H1’19, raising $37.9 billion across 962 deals, driven by the lack of mega deals seen in 2018. That said, the fintech market in most areas of the world remained relatively strong and well poised for growth.
While overall fintech investment in Europe dropped in H1’19 to $13.2 billion aross 307 deals, VC investment in fintech remained strong – on pace to set a new record annual high should investment levels continue.
Although the UK saw the highest volume of fintech deals in Europe, Germany and France saw the two biggest deals of H1’19: the $6 billion acquisition of Concardis and the $1.3 billion acquisition of eFront. Norway also saw a big transaction in the $383 million acquisition of Oslo Børs VPS Holding by EuroNext.
Ireland sees companies working to mitigate Brexit issues International companies continued to apply for Payment and E-Money licenses in Ireland in order to ensure continuity of their regulated activities in a post-Brexit world. Stripe joined other high profile companies in H1’19 in securing an e-money license in Ireland, Facebook having secured one in H2’18. Google secured a Payment Intermediary License in H2’18. Several other applications are currently in-progress and expected to be issued in Ireland in H2’19.
Trends to watch for in Europe
Looking ahead to H2’19, fintech activity and investment is expected to continue to grow, with some focus on Securities and Commodities Authority (SCA) given the new rules coming into effect. There is also expected to be increased interest in comparison platforms for banking services. Digital banking is expected to remain a hot topic as challenger banks focus on international expansion. In the UK, Brexit will continue to be a key area to watch as the new October deadline draws near.
View the full report for more details including key topics that are driving interest in the fintech market today, such as: