Results From KPMG’s Q1 2017 “The Pulse of Fintech” Report

Pulse of Fintech

We JUST had a great conversation with KPMG’s former Fintech National Leader Fiona Grandi and the current leader Annie Armstrong earlier this week, and couldn’t have been more impressed.  These women know their stuff – and they know the players – when it comes to fintech, and they’re helping to blaze the trail for other women in financial technology careers, an area we are committed to covering and advancing as part of our mission at FintekNews.

KPMG just dropped their latest quarterly edition of “The Pulse of Fintech”.  Key findings in the report include the following:

  • Global fintech investment got off to a soft start in Q1’17, with the total invested globally at $3.2 billion, down from $4.15 billion in Q4’16, with investments in 260 deals globally.
  • The US led other nations with $1.5B invested across 124 deals
  • Fintech M&A dropped in Q1’17, with $920 million in deal volume – down from $1.8 billion in the previous quarter, and less than half of the $4 billion in funding in Q1’16.
  • Venture capital funding to fintechs held relatively steady at $2.3 billion in Q1’17 – a solid result although well below peak highs.

The top 5 deals were as follows:

  • SoFi: $435M (Series G/USA)
  • DirectCash Payments: $310.7M (M&A/Canada)
  • Paytm E-Commerce: $200M (VC/India)
  • iZettle: $175.2M (Series D/Sweden)
  • UniRush: $147M (M&A/USA)

Other trends from the report included the following:

  • US continues to drive fintechinvestment, but myriad jurisdictions seeing success
  • Global fintechinvestors focusing more on performance
  • Maturing fintechs taking aim at expansion
  • Partnership models gaining traction in fintech
  • Investment in blockchaindown, but interest continues to build
  • Insurtech investment slows following strong growth in 2016
  • Regtech gaining traction

“Trends to watch globally Over the next quarter and throughout the remainder of 2017, fintech investment is well poised for growth. More established fintech companies will likely continue to pursue expansion opportunities, either by bringing niche solutions to new markets or by expanding the products and services they provide to their existing markets. Insurtech and regtech will likely continue to grow on the radar of investors, with regulatory issues like licensing coming to the forefront. It is likely that some larger fintech companies will look at obtaining banking licenses in order to expand their business models and product offerings.

On a technology level, AI is expected to be a key area of focus for many investors, in addition to smart data and predictive analytics. With PSD2 approaching in Europe, open banking and API offerings are also expected to gain significant attention.”

You can view the full report here: