Welcome to the Q4’16 edition of KPMG’s Pulse of Fintech report. In this report, we highlight key trends and insights related to fintech investment globally and in specific jurisdictions around the world. In addition to examining Q4’16 specific fintech activity, we also look back on 2016 as a whole and discuss the key opportunities and trends for fintech investment in 2017.
Overall, 2016 was a challenging year for fintech investment. The Brexit vote in the UK and ramifications associated with its outcome, the US presidential election, a perceived slowdown in China and significant fluctuations in the exchange rate globally prompted investors to be more cautious.
This caution likely played a part in the significant decline in total investment in fintech globally. The decline reflects major decreases in mergers and acquisitions (M&A) and private equity (PE) funding related to fintech. However, global venture capital investment showed an opposite trend, reaching a new high of US$13.6 billion. The resilience of the VC market for fintech opportunities suggests that fintech will continue to be an attractive sector in the future.
Source : KPMG