Global fintech investment more than doubled quarter over quarter in Q2'17 to US$8.4 billion. This is up from US$3.6 billion in Q1'17, says the KPMG Pulse of Fintech report.
The report says global mergers and acquisitions investment helped drive the fintech market rebound, with US$5.9 billion in deal value for M&A for the quarter.
The majority of fintech investment in the US and Europe
“In the Americas, a single deal – the buyout of Toronto-based DH – accounted for US$3.6 billion in deal value, contributing to more than half the total fintech funding during Q2'17,” says the report. However, aside from this deal, the vast majority of fintech investment was in the US and Europe, with each accounting for US$2 billion. Asia lagged behind with US$760 million invested. The report attributes this to a lack of significant megadeals in Asia.
Digitizing customer experience
"Fintech investment has made a comeback this quarter – a sign of renewed investor intent – particularly in the US and Europe," said Ian Pollari, Global Co-Leader for Fintech, and a partner for KPMG Australia. "Corporates are increasingly accounting for significant amounts of fintech investment – a trend that isn't likely to let up given the need for financial institutions to digitize the customer experience, become more cost efficient, and find new sources of earnings growth."