The Pulse of Fintech Q4 2016 | KPMG | US

The Pulse of Fintech Q4 2016

The Pulse of Fintech Q4 2016

Total funding for US fintech companies and deal activity dropped significantly in 2016, down to $12.8 billion.

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Pulse of Fintech

The Pulse of Fintech Q4 2016 Highlights

After 2015’s record-setting $46.7 billion in global funding to fintech companies, 2016 brought reality back to the market with an almost 50 percent slide in fintech investment at $24.7 billion in annual fintech funding. In the US, total funding for fintech companies and deal activity also dropped significantly in 2016, down to $12.8 billion from $27 billion in 2015, a result of political and regulatory uncertainty, a decline in megadeals and investor caution. 

In this edition of The Pulse of Fintech – a quarterly report on global fintech trends produced by KPMG – we look back at 2016 as a whole and explore a number of questions that are top of mind for fintech investors today, including:

  • Will lending and payments continue to attract the most investment?
  • Will insurtech and regtech become the next big fintech hot spots?
  • What are regulators doing to open the door for fintech innovation?
  • How is fintech expected to evolve in 2017?

During 2016, investors in a number of regions saw some saturation within the more mature fintech areas, particularly in payments and lending. Enthusiasm for burgeoning fintech areas, however, helped keep interest in fintech high overall. Insurance tech (insuretech), regulatory tech (regtech), artificial intelligence (AI) and data and analytics each drew significant investor attention, with a positive outlook for further growth over the next 12 months.

KPMG's Venture Capital Practice

For further analysis of global and regional venture capital activity and trends, contact our professionals in the Venture Capital practice. Visit www.kpmg.com/us/venturecapital

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