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Kiwi Fintechs are no strangers to the fight for capital and investment, and have often gazed longingly at the availability of finance in Silicon Valley and beyond. But KPMG’s Pulse of Fintech 2019 report shows that investment in Fintech has slowed right across the globe in the first half of the year. Each region has its own specific issues, but it is clear that investors are becoming far more discriminating in looking for sustainable value in this sector.

Many banks have focused on enhancing the digital user experience over the past few years and it’s not yet clear whether these investments have always created sustainable value. The hype behind Open Banking has not really resulted in any major market impact, but we see banks continuing to invest in making their data more accessible in readiness and to enhance their own services. As banks focus more on demands from regulators, on addressing conduct and culture issues, and on enhancing security, we should expect Regtechs to gain traction over the next 12 to 24 months and for there to be continued growth in cyber-focused Fintechs. 

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.

View the full report for more details including key topics that are driving interest in the fintech market today, such as:

  • What is driving the strength of Europe’s fintech market?
  • What are wealthtech and proptech – and how are they evolving into key areas of investment?
  • How is cross-border investment propelling the fintech industry forward?
  • How are regulatory changes in China impacting fintech investment?