Pulse of Fintech H1 2020

Welcome to the H1’20 edition of Pulse of Fintech, a biannual report showcasing major activities and trends within the fintech market globally and in key regions around the world.

H1’20 was unlike any time period ever seen before. The rapid emergence of COVID-19 was a major black swan event, sending ripples throughout public markets and driving changes in customer and business behaviors on an unprecedented scale. Given the pandemic, it’s no surprise that deals activity ground almost to a halt, with many of the completed deals in H1’20 hangover from 2019.

Fintech investments during H1’20 put a spotlight on long-term trends, including the growing importance of APIs and open data and the blurring of lines between fintech, big tech and platform providers. They also highlighted the acceleration of digital trends, such as the use of digital payments and importance of digital business models.

Looking forward, uncertainty is expected to linger through the remainder of the year. Payments will likely continue to be a very hot and competitive sector for fintech investment, while regtech could grow on the radar of investors as corporates look to better manage risk.

The increasing use of digital financial services models will likely also spur investments in ancillary areas, such as fraud prevention, digital identity management and cybersecurity.

We discuss these trends and other issues in this edition of the Pulse of Fintech. We also address a number of key questions relating to the fintech market today, including:

• How could regulation enhance cryptocurrency investment?
• Why is payments such a hot ticket for VC investors globally?
• How is the wealthtech sector evolving to become more digital?
• Why could regtech see increasing investment?

We hope you find this edition of the Pulse of Fintech insightful. If you would like to discuss any of the information contained in this report further, contact us or a KPMG local advisor.