1、Pulse of September 2022home.kpmg/fintechpulse2 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulseThe optimism that permeated the fintech market at the end of 2021 quickly transformed into

2、 concerns about a potential recession in H122 as uncertainties related to the Russia-Ukraine conflict,ongoing supply chain challenges,and rising inflation and interest rates took their toll on public and private companies alike.Both total global investment in fintech and the total number of fintech

3、deals fell between H221 and H122.Fintech investment dropped in both the Americas and EMEA,while the Asia-Pacific region attracted a new record high,primarily as a result of several large M&A transactions,including the$27.9 billion acquisition of Australia-based Afterpay by Block.The payments space a

4、ccounted for the largest share of fintech investment during H122($43.6 billion),followed by crypto($14.2 billion).Looking back,H122 can be defined by one word:unexpected.Consider some of the key trends weve seen across the fintech sector over the past 6 months:declining investment across most jurisd

5、ictions,particularly between Q122 and Q222 shuttering of IPO window in wake of turmoil in publicmarkets and rapid decline in valuationsongoing strength of payments sector across numerousjurisdictions increasing focus on automation and extreme automationin cybersecurity given the ever-increasing numb

6、er ofissues in need of investigation growing diversity of jurisdictions attracting fintechinvestments,particularly$100 million+VC rounds.Heading into the second half of 2022,market challenges are expected to continue,with investors increasingly focusing on top-line revenue growth,profitability,and c

7、ash flow.M&A activity is well-positioned to grow as mature sectors see consolidation and investors look for attractive deals amidst the downward pressure on valuations and as some startups contemplate alternatives to downrounds.Whether youre the CEO of a large financial institution or the founder of

8、 an emerging fintech,understanding how market dynamics have shifted could be critical to your competitiveness and sustainability while finding ways to become more efficient could help minimize cash burn.As you read this edition of Pulse of Fintech,ask yourself:What can we do now to make sure were po

9、sitioned to face whatever challenges the future might hold?KPMG Fintech professionals include partners and staff in over 50 fintech hubs around the world,working closely with financial institutions,digital banks and fintech companies to help them understand the signals of change,identify the growth

10、opportunities and develop and execute their strategic plans.Anton RuddenklauGlobal Leader of Fintech,Partner and Head of Financial Services Advisory,KPMG in SingaporeAll currency amounts are in US$unless otherwise specified.Data provided by PitchBook unless otherwise specified.Shifting market dynami

11、cs#fintechpulse2Contents Embedded finance fueled by cloud-based core banking technologiesSpotlight articleGlobal insights Global fintech investment analysis(VC,PE,M&A)Top fintech trends for H2 2022Fintech segments Payments Insurtech Regtech Blockchain/cryptocurrency Cybersecurity WealthtechFeatured

12、interview Rob SchemikCEO,boltechRegional insights Americas EMEA ASPAC042 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Global fintech investments in H1 2022 recorded$107.8B with 2,980 deals#

13、fintechpulse4Global insights Fintech segments|Featured interview|Spotlight article|Regional insights2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.5 2022 Copyright owned by one or more of the KPMG

14、International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseFintech deals volume and total global fintech investment drops in H122Global investment in fintech fell from$111.2 billion across 3,372 deals in H222 to$107.8 billion acros

15、s 2,980 deals in H121,mirroring the decline in investment experienced in the broader technology sector.Total fintech investment and deals volume declined in both the Americas and EMEA regions,while the Asia-Pacific region attracted a new annual high of fintech investment amidst a decline in the numb

16、er of deals.The new Asia-Pacific record was driven almost entirely by three large M&A transactions:the$27.9 billion acquisition of Australia-based Afterpay by Block,the$2.1 billion buyout of Japan-based Yayoi by KKR,and the$1 billion merger of Australia-based fintechs Superhero and Swiftx.VC investm

17、ent in fintech remains robust as Europe sets new record While VC investment globally declined from$66.5 billion in H221 to$52.6 billion in H122,compared to all periods outside of 2021,the amount was incredibly robust.While the Americas attracted the largest amount of VC funding($27.2 billion),EMEA s

18、aw a new record high level of funding for a 6-month period($16.6 billion),led by the worlds two largest fintech rounds in H122:a$1.1billion raise by Germany-based Trade Republic and a$1 billion raise by UK-based C.Fintech-focused VC investment in the Asia-Pacific region remained quite soft at$8.7 bi

19、llion.Downward pressure on valuations brings IPO activity almost to a halt,could spark downroundsThe turbulence in the public markets globally had a major impact on the valuations of many public tech companies in H122,including fintechs.This,combined with other challenging market factors,brought IPO

20、 activity almost to a halt a trend expected to continue through H222.With the IPO door closed,H222 could see downrounds as companies that had planned to exit in 2022 look to raise capital under less than optimal circumstances.Investors looking for the next big fintech opportunityIn 2021,investment i

21、n fintech was quite extraordinary as investors flocked to make investments in the sector.While investment has dropped back to levels seen in previous years,the space is expected to remain a strong focus for investors in H222 and into 2023.Fintech investors,however,are expected to become more discern

22、ing with their investments focusing more on profitability and cash flow when evaluating opportunities.Investors are also expected to pay more attention to areas adjacent to traditional financial services offerings,such as open data and decentralized finance.The B2B space is also expected to be a hig

23、h priority for investors.Global investment in fintech falls to$107.8 billion despite robust VC fundingGlobal insightsGlobal insights Fintech segments|Featured interview|Spotlight article|Regional insightsThe fintech market experienced a massive year globally in 2021,which makes it look like investme

24、nt has somewhat fallen off a cliff so far in 2022.That really isnt the case.Weve simply shifted back to levels seen in 2019 and 2020.Taking out 2021s outlier results,global fintech investment and interest was quite positive in H122.While the uncertainty permeating the market is expected to continue

25、into H222,the diversity of fintech subsectors,combined with the diversity of jurisdictions attracting fintech investments,could help keep investment in the space relatively solid over the near-term.“”Anton RuddenklauGlobal Fintech Leader,Partner and Head of Financial Services Advisory,KPMG in Singap

26、ore#fintechpulse56 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulsePayments space stays hot in eyes of investors in H122,but could taper offInvestors in all key jurisdictio

27、ns continued to flock to the payments space in H122,investing$43.6 billion in payments-focused companies.Given the increasing macroeconomic challenges,investment in the payments space could taper off a bit heading into H222,particularly with respect to early-stage deals.M&A activity is expected to r

28、emain strong as a result of increasing consolidation among payments firms and as the number and size of add-in transactions rises.Blockchain and crypto space takes hit,still sees big dealsWhile the crypto space experienced significant challenges during the first half of 2022,crypto-focused companies

29、 attracted$14.2 billion during H122,including a$1.1 billion raise by Germany-based Trade Republic in June.Trends to watch for in H222 Market corrections including declining valuations,increasing M&A and a growing number of distressed businesses in light of the predicted recession and the over-enthus

30、iasm and over-investment in key areas over the last 18 months.Continued focus on embedded solutions,including payments,finance,and insurance.Big tech companies and other corporates prioritizing partnerships,while also looking for opportunities for add-ins at bargain prices compared to recent years.G

31、rowing focus on B2B solutions aimed at improvement of infrastructure or on the optimization of operational activities like AR/AP.Slowdown in crypto interest and investment,particularly retail firms offering coins,tokens and NFTs.Increasing focus on underdeveloped fintech markets,including jurisdicti

32、ons in Africa.6#fintechpulseGlobal insightsGlobal insights Fintech segments|Featured interview|Spotlight article|Regional insightsFintech investors still have a significant amount of dry powder available to them in many parts of the world.But given the current market climate,they are becoming more d

33、iscerning with their investments,focusing more on profitability and on the sectors expected to do well in a new challenging market.The B2B space is expected to remain quite attractive to fintech investors heading into H222,in addition to areas like open data.Judd CaplainGlobal Head of Financial Serv

34、icesKPMG International“”Global insights Fintech segments|Featured interview|Spotlight article|Regional insightsDuring the first half of 2022,numerous factors combined to affect the upward trajectory of fintech investment globally,including geopolitical uncertainty,turbulent public markets,ongoing su

35、pply chain disruptions and challenges,high levels of inflation,and increasing interest rates.With no end in sight to the levels of uncertainty,fintech investment in H222 could be quite subdued,particularly compared to the significant record highs experienced in 2021.Here are our top predictions for

36、fintech in H222:B2B solutions will become more attractive to investors:As the world teeters on the edge of a recession,fintech investors will likely enhance their focus on B2B companies working to help companies become more efficient or enable them to expand their value propositions.Interest in cybe

37、rsecurity automation will keep growing:With cybersecurity concerns only growing on the radar of most companies,there will likely be an increasing focus on cybersecurity automation as a means to improve cybersecurity management while also managing talent shortages and improving operating efficiencies

38、.Fintechs will continue to focus on data-driven solutions:Fintech companies will continue to focus on finding unique ways to collect,assess,and utilize data in order to differentiate their offerings in the eyes of both corporates and consumers.Crypto and blockchain investments will increasingly focu

39、s on infrastructure:While investment in cryptocurrencies is expected to slowdown further,there will likely be a continued focus on the use of blockchain in financial market modernization.Valuations continuing to adjust as cost of capital increases:As interest rates continue to rise,capital will beco

40、me more expensive.This will have an impact on valuations and will drive investors to enhance their focus on cash flow,top line revenue growth and profitability.M&A will increase as corporates and PE firms look for bargains:Given the downward pressure on valuations,M&A activity will likely increase a

41、s investors see the opportunity to make acquisitions at better prices than have been seen in recent years.Startups could also look to sell as an alternative to holding a down round.Top Fintech trends for H222Global insights1.2.3.4.5.6.7#fintechpulse 2022 Copyright owned by one or more of the KPMG In

42、ternational entities.KPMG International entities provide no services to clients.All rights reserved.8 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseEven amid volatility,d

43、eal flow continuesTotal global investment activity(VC,PE and M&A)in fintech20192022*Global M&A activity in fintech20192022*Global venture activity in fintech20192022*Global PE growth activity in fintech 20192022*Source:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International

44、(data provided by PitchBook),*as of 30 June 2022.Global insights Fintech segments|Featured interview|Spotlight article|Regional insightsGlobal insights$166.2$77.6$93.1$49.4902004006008001,0001,200$0$50$100$150$20020022*Deal value($B)Deal count$3.4$3.6$12.0$6.30501001

45、50200$0$2$4$6$8$10$12$0212022*Deal value($B)Deal count$45.6$46.5$121.5$52.63,3843,3995,5542,54801,0002,0003,0004,0005,0006,000$0$20$40$60$80$100$120$20212022*Deal value($B)Deal count$215.1$127.7$226.5$107.84,1024,0776,6732,98002,0004,0006,0008,000$0$50$100$150$200$2502019202020

46、212022*Deal value($B)Deal count9 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseVenture valuations remain elevatedSource:Pulse of Fintech H122,Global Analysis of Investmen

47、t in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.Global median M&A size($M)in fintech20192022*Global cross-border M&A activity in fintech20192022*Global VC activity in fintech with corporate participation20192022*Global median pre-money valuations($M)by stage in fintec

48、h20192022*Global insights Fintech segments|Featured interview|Spotlight article|Regional insightsGlobal median M&A size($M)in fintech20192022*Global insights$5.3$5.9$8.1$10.5$15.1$20.4$35.0$51.0$60.6$70.1$152.0$150.020022*Angel&seedEarly-stage VCLate-stage VC$65.8$11.2$42.0$31.81902023221

49、260500300350$0$10$20$30$40$50$60$7020022*Deal value($B)Deal count$24.4$25.9$57.3$25.98208671,62577505001,0001,5002,000$0$10$20$30$40$50$60$7020022*Deal value($B)Deal count$55.0$38.8$41.4$60.2$0$10$20$30$40$50$60$7020022*10 2022 Copyright owned by one or mo

50、re of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseAs of yet,it remains to be seen if the dip in Q2 2022 is a portent of trends to comeSource:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPM

51、G International(data provided by PitchBook),*as of 30 June 2022.Total global investment activity(VC,PE and M&A)in fintech 20192022*Global M&A activity in fintech20192022*Global insights Fintech segments|Featured interview|Spotlight article|Regional insightsGlobal insights$26.2$18.4$144.9$25.6$21.7$1

52、4.3$27.6$64.1$62.0$53.3$60.9$50.3$73.8$34.002004006008001,0001,2001,4001,6001,800$0$20$40$60$80$100$120$140$160Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal count$17.4$8.0$130.5$10.2$7.5$3.8$15.1$51.2$34.2$19.7$23.2$16.0$41.1$8.00500300$0$20$40$60$80$100$120$140Q1Q2Q3Q4Q1

53、Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal count11 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseQuarterly deal value tallies remain robust,especially relative

54、to historical averagesSource:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.Global venture activity in fintech20192022*Global VC activity in fintech with corporate participation20192022*Global insights Fintech segment

55、s|Featured interview|Spotlight article|Regional insightsGlobal insights$8.1$9.9$13.0$14.7$13.3$9.1$12.0$12.2$26.3$28.7$35.1$31.4$28.8$23.702004006008001,0001,2001,4001,600$0$5$10$15$20$25$30$35$40Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal countAngel&seedEarly-stage VCLate-stage V

56、C$4.1$4.5$6.1$9.8$8.0$5.0$6.7$6.2$9.3$12.9$19.6$15.5$15.4$10.50500300350400450500$0$5$10$15$20$25Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal countTop 10 global fintech deals in 2020Top 10 global fintech deals in H1 2022Source:Pulse of Fintech H122,Global Analysis of Inv

57、estment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.Global insights Fintech segments|Featured interview|Spotlight article|Regional insights2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clien

58、ts.All rights reserved.8641039152Global insights1.Afterpay$27.9B,Melbourne,Australia Payments M&A2.Sia(Milan)$3.9B,Milan,Italy Payments M&A3.Bottomline Technologies$2.6B,Portsmouth,US Institutional/B2B Public-to-private buyout4.Yayoi$2.1B,Tokyo,Japan Institutional/B2B Corporate divestiture5.Interact

59、ive Investor$1.8B,Leeds,UK Wealth/investment management M&A6.FNZ$1.4B,London,UK Wealth/investment management PE growth7.SimpleNexus$1.2B,Lehi,US Lending M&A8.Trade Republic$1.15B,Berlin,Germany Capital markets Series C9.Technisys$1.1B,Miami,US Institutional/B2B M&A10.Superhero$1.06B,Sydney,Australia

60、 Wealth/investment management M&A712#fintechpulse#fintechpulse13Global insights Fintech segments Featured interview|Spotlight article|Regional insights2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved

61、.Payments InsurtechRegtechCybersecurityWealthtechBlockchain/cryptocurrencyFintech segments14 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseFintech PaymentsPayments space

62、continues to attract big investment in H122Investment in the payments space remained very strong in H122,accounting for$43.6 billion in investment compared to the$60.3 billion seen during all of 2021.The acquisition of Australia-based Afterpay by Block(formerly Square)for$27.9 billion accounted for

63、the largest payments deal of the quarter and the largest fintech deal globally during H122 followed by the$2.6 billion buyout of Bottomline Technologies by PE firm Thomas Bravo,and a$1 billion VC raise by UK-based C.Key H122 highlights from the payments sector include:US continues to drive payments-

64、focused investmentThe US accounted for a strong portion of payments-focused fintech activity in H122,both internally and in terms of driving cross-border investments in the sector.The ASPAC region continued to be a major target for investment and deal making,with Singapore-based Coda Payments attrac

65、ting$690 million in PE funding during in H122,Indonesia-based Xendit raising$300 million in VC investment,and India-based Slice raising a$220 million Series B round.No end in sight for payments-focused M&A activityThe payments space continued to account for high value M&A transactions in H122,led by

66、 Blocks acquisition of Afterpay.The volume of payments-focused M&A is expected to remain high as companies look to gain market share,grow globally and limit competition although deal value could decline given the deflation in valuations experienced by many fintechs,and by tech companies in general,g

67、iven the current market environment.Source:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.Total global investment activity(VC,PE and M&A)in payments20192022*Global insights Fintech segments Featured interview|Spotligh

68、t article|Regional insights$107.8$29.2$60.3$43.6542605895369005006007008009001,000$0$20$40$60$80$100$20212022*Deal value($B)Deal count15 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights

69、reserved.#fintechpulse#fintechpulseB2B payments solutions still very attractive for investorsThe B2B payments space attracted significant attention in H122,a trend expected to continue into H222 as businesses look for fintechs with technology solutions able to help them digitize and improve the effi

70、ciency of their AP/AR activities.Caution growing around buy-now-pay-later(BNPL)companiesBNPL companies are coming under more scrutiny from regulators as consumers struggle with rising inflation and rising costs.With interest rates also rising,BNPL companies will likely feel significant pressure on t

71、heir margins due to the increasing cost of borrowing.With the world on the cusp of a recession and an economic slowdown predicted,fintech investors are starting to take a very cautious approach to making investments in the BNPL space as it is becoming a higher risk value proposition.#fintechpulse15M

72、ost challenger banks will continue to expand into new markets and roll out new products and services in 2022,despite increased funding difficulties and some regulatory challenges in different jurisdictions.If they want to be successful,however,challenger banks should focus on ensuring theyve conside

73、red their compliance requirements fully even amidst the rush to be relevant in the market and the industry.“”Courtney TrimbleGlobal Leader of Payments,Principal,Financial Services,KPMG in the USChallenger banks continue to evolve but also facing challengesChallenger banks continued to attract a sign

74、ificant amount of attention during H122 in many regions of the world as many continued to evolve and grow their value propositions to include stronger hyper-personalization,data driven predictive analytics and predictive banking services,and adaptive customer banking experiences.Under pressure to gr

75、ow,however,some challenger banks have come under regulatory scrutiny as a result of compliance issues.In March,the Bank of Italy banned N26 from onboarding new customers due to AML issues.1What to watch for in H222potential down rounds as some payments companies seek to raise capital at lower valuat

76、ionsfurther consolidation as payments companies look to survive and better distinguish themselves from the competition,andcontinued focus on open banking and embedded finance and on fintechs able to enable a more integrated and frictionless customer experience.Global insights Fintech segments Featur

77、ed interview|Spotlight article|Regional insights1 https:/ Fintech Payments16 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseSlowdown in investment in insurtech sector amid

78、 global uncertaintyInvestment in the insurtech sector dropped considerably,with$3.8 billion of investment globally during H122 well off pace to match the$14.8 billion in investment seen during 2021.The largest insurtech deal of H122 was the acquisition of US-based Zenefits by TriNet for$220 million.

79、This was followed by several$100 million+VC deals,including$211 million and$200 million raises by H and Newfront insurance both in the US,and a$196 million raise by France-based Alan.The Americas and Europe accounted for the vast majority of insurtech investment,with India-based Turtlemints$121 mill

80、ion raise the largest in the Asia-Pacific region.Key H122 highlights from the insurtech space include:Elevated risk causing investors in insurtech to pause Increasing market risk including global geopolitical uncertainty,rising inflation and interest rates,and uncertainty around valuations with conc

81、erns about a potential global recession caused investment in insurtech to decline in H122 as investors took a pause.Heading into H222,investors in insurtech will likely become more strategic about where they are placing their capital,conducting more due diligence and focusing more on the insurtechs

82、path to profitability.Investor appetite for new business models remains,but experience mattersDuring H122,fewer insurtechs started by founders coming from other sectors raised significant funding.While there continues to be an appetite from investors and corporates to back innovative insurance busin

83、ess models,both interest and funding is expected to focus primarily on startups run by highly experienced entrepreneurs with legitimate insurance industry experience.Total global investment activity(VC,PE and M&A)in insurtech20192022*Source:Pulse of Fintech H122,Global Analysis of Investment in Fint

84、ech,KPMG International(data provided by PitchBook),*as of 30 June 2022.Global insights Fintech segments Featured interview|Spotlight article|Regional insightsFintech Insurtech$13.1$16.6$14.8$3.840500300350400450500$0$2$4$6$8$10$12$14$16$0212022*Deal value($B)Deal cou

85、nt17 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseDepressed valuations could spark M&A activityIn H122,public insurtechs saw significant downward pressure on their valua

86、tions,similar to many other publicly traded tech companies.Given the decline in valuations,there could potentially be an uptick in strategic acquisitions as insurtechs struggle and corporates particularly carriers look to acquire insurtechcapabilities at better prices.Infrastructure and data solutio

87、ns gaining tractionInsurtech investors are showing significantly less interest in value chain specific point solutions,focusing their attention more on data-driven companies focused on enabling activities and on infrastructure companies working to help sector participants improve efficiencies or ext

88、end their value across the value chain.#fintechpulse17“”Ram MenonGlobal Head,Insurance Deal AdvisoryKPMG International#fintechpulse17Embedded insurance still attracting attentionEmbedded insurance saw significant hype in 2021;while interest fell back down to earth in H122,it has continued to attract

89、 attention particularly from newer carriers looking for growth opportunities.Once concern related to embedded insurance is that offerings require startups be very closely integrated with their distribution partners to ensure underwriting risks are well understood.What to watch for in H222 ongoing ev

90、olution and growth of MGAs focused on underwriting specific risks for specific types of customers that large and traditional carriers find difficult to address increasing focus on customization of insurance products growing focus on insurtechs looking to help companies rethink the protection of thei

91、r assets and access to those assets.Global insights Fintech segments Featured interview|Spotlight article|Regional insightsI do see more appetite for early-stage businesses being founded because they are a smaller dollar opportunity and theres more upside for a lot of those investors.Historically,we

92、ve seen some incredible businesses being built during economic downturns,funded by early stage seed and Series A investors.The current market environment may make it a bit more difficult to get later stage funding and relatively easier to get early stagefunding but probably not at the founder-friend

93、ly economic terms weve seen over the past few years.Fintech Insurtech18 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseWith$5.6 billion of investment,global investment in

94、regtech holds strong in H122Compared to a number of other areas of fintech,global investment in regtech showed strong resilience in H122.Globally,regtech companies attracted$5.6 billion in investment across 157 deals following a similar trajectory to the level of investment seen in 2021.The US accou

95、nted for the largest share of regtech investment during H122,including the$2.6 billion buyout of Bottomline Technologies by Thomas Bravo,the$450 million Series D raise by ConsenSys,and the$240 million acquisition of FourQ by cloud-based financial operations company Blackline.Key H122 highlights from

96、 the regtech sector include:Americas accounts for lions share of H122 regtech investmentDuring H122,the Americas accounted for the largest percentage of regtechinvestment,with the US responsible for most of the regions regtech activity.While regtech investment declined across the Asia-Pacific region

97、 during H122,very active regulatory regimes in jurisdictions like China,Hong Kong(SAR),China and Singapore are expected to keep regtech on the radar of investors over the longer-term.The EMEA region saw a decrease in the speed of maturation of the market during H122,although this could be attributed

98、 to the turbulence in Easter Europe.Rapidly evolving regulatory regimes driving interest in regtechRegulations related to areas like financial services,cryptocurrencies,data and privacy,risk and compliance,and ESG continued to evolve in H122,with more changes forecast over the next 12-24 months.The

99、immense complexity and level of work required by domestic and global companies to be in compliance with constantly changing regulatory requirements both within and across jurisdictions has continued to be a key driver of interest in regtech solutions.Source:Pulse of Fintech H122,Global Analysis of I

100、nvestment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.Total global investment activity(VC,PE and M&A)in regtech20192022*Global insights Fintech segments Featured interview|Spotlight article|Regional insightsFintech Regtech$3.7$10.7$12.0$5.62250

101、0300350400$0$2$4$6$8$10$12$0212022*Deal value($B)Deal count19 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseChanging nature of work fostering resilience in reg

102、techinvestmentCOVID-19 significantly changed the way people live and work around the world.Many companies are still grappling with the impact of innovative technologies and models of work on their HR management and risk and compliance processes.This,combined with growing cost pressures and the desir

103、e to quickly rein in spend,has likely contributed to the resilience of regtechinvestment.Payments system compliance attracts big deals During H122,some of the largest regtech deals centered around payments system processes and compliance,such as the$2.6 billion buyout of Bottomline Technologies a co

104、mpany looking to streamline payments processes across global businesses with monitoring and behavioural analysis to detect fraud and reduce risk.“”As can be seen from the top deals of 2022 so far,anti-money laundering,fraud prevention,and KYC continue to drive a lot of the investment in the regtechs

105、pace.The geopolitical situation is only helping the growth of these companies,which will likely keep regtechinvestment strong heading into H222.While were not seeing it in the market yet,we also expect a new wave of regtech companies focused on supporting ESG reporting and compliance to emerge in th

106、e near future.Fabiano GobboGlobal Head of Regtech,KPMG International#fintechpulse19What to watch for in H222 Continued development,evolution,and implementation of regulatory regimes and guidelines,such as MiCA,Basel IV,and ESG standards.Financial system regulators widening their expectations beyond

107、traditional banks and financial institutions to include other contributors to the capital markets such as asset managers and challenger banks.Increasing focus on AI-powered identity verification,KYC&AML compliance and identity proofing on order to increasingly automate the prevention and combat of f

108、raud.Global insights Fintech segments Featured interview|Spotlight article|Regional insightsFintech Regtech20 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseFintech Cybers

109、ecurityInvestor interest in cybersecurity remains hot in H122At the end of H122,global investment in cybersecurity was running well short of 2021s record,primarily due to the lack of a completed blockbuster M&A deal similar to the$2.7 billion acquisition of Verafin in H121.Despite the lack of comple

110、ted M&A deals,VC investor interest and investment in the cybersecurity space remained strong led by four big raises in the US,including a$550 million raise by Fireblocks,a$170 million raise by Chainalysis,and$100 million raises by TokenExand Cowbell Cyber.Estonia-based Veriff also raised$100 million

111、 during H122.The volume of cybersecurity deals globally was also very robust at mid-year,if just shy of record pace.Key H122 highlights from the cybersecurity sector include:Big platform providers focusing on cybersecurity automation In March,Google announced plans to acquire incidence response comp

112、any Mandiant for$5.2 billion,highlighting the immense focus that hyper-scale providers are placing on cybersecurity automation and platform solutions.If completed,the deal would singlehandedly break 2021s record$5.1 billion in global cybersecurity investment.Googles counterparts have also shown inte

113、rest in integrating cybersecurity automation into their own cloud platforms.This focus on automation and integration by big providers will likely drive a similar focus among smaller niche and boutique vendor platforms.Source:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG Interna

114、tional(data provided by PitchBook),*as of 30 June 2022.Total global investment activity(VC,PE and M&A)in fintech:cybersecurity20192022*Global insights Fintech segments Featured interview|Spotlight article|Regional insights$1.0$2.2$5.2$1.2603040506070$0$1$2$3$4$5$620022*Deal val

115、ue($B)Deal count21 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseCybersecurity firms buck downward valuation trend While valuations of companies in many other fintech sub

116、sectors have fallen,following the trend seen more broadly among tech companies,valuations of some cybersecurity firms showed strong resilience in H122.In particular,companies focused on extreme automation continued to see very high valuations;during H122,cyber asset attack surface management platfor

117、m JupiterOneearned a$1 billion unicorn valuation following the announcement of a$70 million Series C raise.2Rapidly increasing focus on data analyticsCompanies today have access to massive amounts of data,including data essential for preventing,managing and responding to cybersecurity issues.During

118、H122,investors focused significantly more attention on the integration of data analytics and AI within cybersecurity platforms and solutions,including XDR/EDR focused solutions and security orchestration tools(SOAR platforms).#fintechpulse21“”Theres a lot of concern out there regarding the sheer num

119、ber of cybersecurity incidents the massive amount of data coming into security operations centers through alerts if you will.Theres just so much coming in and not enough security workers out there to simply throw more bodies at the problem.This is why were starting to see a lot more focus on automat

120、ion and machine learning.In 2021,we started to see a lot of machine-learning type algorithms make their way into cybersecurity,but now its really taking off.Charles JaccoAmericas Cyber Security Services,Financial services Leader,Principal,KPMG in the USWhat to watch for in H222 Increasing consolidat

121、ion as companies that traditionally focused on one segment of cybersecurity(e.g.,endpoint alerting)look to build out their cybersecurity offerings.Shift in focus from MDR as a means for conducting level one ticket triage to MDR providing full stack response.Continued focus on startups focused on ext

122、reme automation.Global insights Fintech segments Featured interview|Spotlight article|Regional insightsFintech Cybersecurity2https:/ 22 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#

123、fintechpulseFintech WealthtechGlobal investment in wealthtech soft in H122After a very strong 2021,wealthtech investment softened considerably in H122,mirroring the decline in investment more broadly around the world.Globally,wealthtech attracted$443 million during H122,led by US-based Titans$100 mi

124、llion VC funding round,and UK-based MoneyFarms$59.8 million PE deal.Key H122 highlights from the wealthtech space include:Fragmented market driving corporate investment opportunitiesGlobally,the wealthtech sector continued to be quite fragmented in H122,with a significant number of small players pro

125、viding very specialist technology in pockets.This is driving activity among corporates looking to buy access to wealthtechtechnologies,whether through direct investments or by acquiring full organizations such as the H122 acquisition of B2B advisor platform Hubwise by SS&C Technologies.3Investors pr

126、edominantly focusing on established players While there continued to be dry powder in the VC and PE market in many regions of the world during H122,the growing maturity of the wealthtech sector has led to investors taking a more critical view of opportunities.They are now focusing less on making bro

127、ad investments across the space,concentrating their capital on wealthtechs with truly unique business models and those seen to be more valuable,robust,and financially sustainable compared to their counterparts.Source:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International(d

128、ata provided by PitchBook),*as of 30 June 2022.Total global investment activity(VC,PE and M&A)in wealthtech20192022*3https:/ insights Fintech segments Featured interview|Spotlight article|Regional insights$0.3$0.2$1.4$0.42924375303540$0.0$0.2$0.4$0.6$0.8$1.0$1.2$1.4$1.620022*De

129、al value($B)Deal count23 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseFintech WealthtechIncreasing rationalization of wealthtechsA significant amount of VC and PE money

130、flowed to early-stage wealthtech companies 3 to 5 years ago.Over the last 12 months,it was predicted that there would be a shakeout among wealthtechs,in part because of industry maturation and alsobecause theres only so much time PE firms will follow their money for before pressing for an exit.The p

131、redicted shakeout among wealthtechs is now starting to occur;during H122,for example,B announced its acquisition of Singapore-based trading-focused Altonomy,while digital asset platform Amber Group announced its acquisition of Hong Kong(SAR),China based asset management firm Celera Markets.Continued

132、 emergence of hybrid wealth advisory model During H122,hybrid models of wealth advisory continued to emerge,focused on providing technology platforms that enable industry participants particularly in areas like financial enablement,financial wellbeing,and financial education.This includes the emerge

133、nce of hybrid solutions focused on helping wealthy individuals make more informed investment decisions.#fintechpulse“”Shelley Doorey-Williams,Partner,Wealth and Asset Management ConsultingKPMG in the UK#fintechpulse23What to watch for in H222 Increasing focus on solutions aimed at the B2B2C market.C

134、onsolidation across the wealth management and wealthtechecosystem,including among advisors.The large transfer of wealth across generations beginning to drive innovation and the development of unique wealth management solutions.Increasing focus on companies focused on helping traditional wealth manag

135、ement firms understand and use their data more effectively.Growing focus on ESG,from an investment decision making perspective.Burgeoning focus on leveraging open finance and embedded finance to expand wealth management opportunities.Global insights Fintech segments Featured interview|Spotlight arti

136、cle|Regional insightsGiven the range of well-established,robust,and globally recognized platforms like Avaloq,InvestCloud,SS&C,and FNZ,investors are not as interested in small scale middle or back officesystems at the moment but the front office still offers plenty of opportunities for new wave weal

137、thtechproviders to gain traction.Looking ahead to H222 and beyond,investments in innovative front office wealthtech solutions will be a key area to watch.24 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights re

138、served.#fintechpulse#fintechpulseFintech Blockchain/cryptocurrencyInvestment in crypto and blockchain falls from 2021 high,remains ahead of all other yearsAfter a record-shattering 2021,global investment in crypto and blockchain fell to$14.2 billion during H122.Despite the crypto space collapsing si

139、gnificantly since mid-way through Q122 due to the unexpected Russia-Ukraine conflict,rising inflation,and the challenges experienced by the Terra crypto ecosystem,investment at mid-year remained well above all years prior to 2021.This highlights the growing maturity of the space and the breadth of t

140、echnologies and solutions attracting investment.During H122,the largest deals in the space came from VC raises,including a$1.1 billion raise by Germany-based Trade Republic,a$550 million raise by US-based Fireblocks,a$500 million raise by Bahamas-based FTX,and a$450 million raise by ConsenSys.Key H1

141、22 highlights from the crypto and blockchain space include:Changing nature of investors shifting crypto investment risk profilePrior to 2018,most crypto investment came from retail consumers.Since then,the investor profile has changed,with institutional and corporate investors now accounting for a m

142、uch larger share of investment.This has driven significant changes to the perception of risk related to crypto assets.While crypto assets historically were considered quite uncorrelated to traditional assets from an investment risk perspective,they are now acting very similarly.The current macro-eco

143、nomic trend will likely be an important test for cryptos,and especially Bitcoin,in terms of correlation with other assets.Growing focus on currency sovereigntyIn the wake of El Salvador adopting Bitcoin as legal tender in 2021,there has been increasing interest in the use of cryptocurrencies in orde

144、r to support crypto sovereignty and move away from the use of existing currencies like the US Dollar.During H122,the Central African Republic became the second country to make Bitcoin legal tender.Other developing nations could follow their lead in H222 and beyond.Source:Pulse of Fintech H122,Global

145、 Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.Total global investment activity(VC,PE and M&A)in blockchain&cryptocurrency20192022*$5.3$5.7$32.1$14.26636601,58372502004006008001,0001,2001,4001,6001,800$0$5$10$15$20$25$30$3520022*Deal

146、value($B)Deal countGlobal insights Fintech segments Featured interview|Spotlight article|Regional insights25 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseFintech Blockch

147、ain/cryptocurrencyRegulators continuing to focus on crypto regulation While China has banned crypto trading outright,and India is considering following suit,the regulators in a number of other jurisdictions have continued to focus on finding ways to protect consumers while also fostering the evoluti

148、on and growth of competitive and attractive crypto markets.At the end of H122,the European Union agreed to new regulations for the cryptocurrency industry Markets in Crypto-Assets(MiCA).4#fintechpulse“”Alexandre StachtchenkoDirector blockchain&crypto assetsKPMG France25Looking ahead,we are going to

149、see some cryptos cutting their valuations and working to raise money because its their only option.Theyd rather raise money and be capitalized at a lower valuation rather than not doing so and taking the risk of dying out.Of course,some cryptos will die out particularly those that dont have clear an

150、d strong value propositions.That could actually be quite healthy from an ecosystem point of view because itll clear away some of the mess that was created in the euphoria of a bull market.The best companies will be the ones that survive.What to watch for in H222 Resilience of crypto-focused companie

151、s being tested very hard as some look to recapitalize at lower valuations.Well-managed crypto companies with healthy risk management policies,long-term vision,and strong cost and risk management approaches surviving,while others bust.Growing focus on solutions related to compliance and crypto transa

152、ction traceability.Increasing interest in stablecoins,particularly from corporates looking to gain the operational advantages of crypto,including costs,delays,visibility,liquidity,and ease-of-use.Innovative partnerships between crypto firms and companies in other industries in order to address ESG c

153、oncerns.Global insights Fintech segments Featured interview|Spotlight article|Regional insights4https:/ 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulse26with Rob Schimek,C

154、EO bolttechEnabling the future:How fast-growing unicorn bolttech is forging a global tech-enabled insurance ecosystem Global insights|Fintech segments Featured interview Spotlight article|Regional insights 2022 Copyright owned by one or more of the KPMG International entities.KPMG International enti

155、ties provide no services to clients.All rights reserved.Featured interview27 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseFeatured interview:bolttechLeveraging partner e

156、cosystems to drive growth Bolttech officially launched in 2020.The company was initially conceived within an existing insurance ecosystem and scaled very quickly,the companys rapid global expansion since its inception is a testament to its broader partnership approach.“Many of our partners have ecos

157、ystems,and we continue to tap into those to make a confluencea mega ecosystem for insurance.”Schimek says.Bolttechs approach has been incredibly effective.In less than 2 years,the company has grown into the most international insurtech in the world,with a presence in over 30 countries spread across

158、the Asia-Pacific region,Europe,and the Americas.In 2021,it raised the largest Series A round ever($247 million)by an insurtechcompany,earning coveted unicorn status with a$1 billion+valuation.In 2021,bolttech quoted approximately$44 billion in premiums through its platform.Combining technology,acces

159、s,and bespoke solutionsBolttechs value proposition goes beyond providing the innovative technical infrastructure that enables any business to sell insurance.The company also makes the process of providing insurance more accessible and seamless to partners outside of the insurance industry by maintai

160、ning insurance licenses in numerous jurisdictions.Bolttech currently holds 35 insurance licenses globally,in addition to licenses in all 50 U.S.states.“These licenses are part of the moat that makes it very difficult for others to come in and compete so easily,”Schimek notes.“Theyre a critical linch

161、pin to our ability to offer partners expertise and access to multiple markets with ease because insurance is,in fact,a very highly regulated business.”Bolttechs insurance licenses make it easy for its partners to integrate insurance offerings into their own products and services at speed,and then sc

162、ale them as needed across different geographies.Bolttechs partners also benefit from the companys ongoing innovation focus.“We have three tech hubs located across Europe and Asia,”Schimek says.“Our partners are able to leverage this global network and tap into our industry-leading new and emerging t

163、echnologies which include,among other things,blockchain biometrics and edge computing.”While forging a robust end-to-end digital process is a dream goal for many companies today,bolttech recognizes that many companies are simply not ready to go completely digital.Thats why the insurtech is also valu

164、ed for its ability to provide bespoke products that meet unique customer needs,including online and offline sales support and robust after-sales service that allows partners to increase their customer lifetime value and customer loyalty.Enabling the future:How fast-growing unicorn bolttech is forgin

165、g a global tech-enabled insurance ecosystemAmong the industries that make up global financial services,insurance is still considered ripe for disruption in many jurisdictions around the world.Over the last 2 to 3 years,VC investors in the Americas,the Asia-Pacific region,and Europe have shown keen i

166、nterest in the space,investing in a broad range of startups looking to disrupt or improve various aspects of the insurance value chain.Standing out from the crowd of insurtechs working to redefine the future of insurance is Singapore-based bolttech a fast-growing unicorn company that has developed a

167、 highly successful tech-enabled insurance exchange offering focused primarily on the B2B2C market.“The mission of bolttech is to become the worlds leading technology-enabled insurance ecosystem,”says Group CEO Rob Schimek.“We connect insurers,distribution partners,and customers making it easier and

168、more efficient to buy and sell insurance.”Global insights|Fintech segments Featured interviewSpotlight article|Regional insights28 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#finte

169、chpulseFeatured interview:bolttechSchimek sees bolttechs partnership-based approach as a win-win value proposition because by developing robust relationships with its partners,bolttech often has the opportunity to enter new markets through them.“In 2021,we entered six countries in Europe with our va

170、lued partner Samsung who we were already working with in Asia,”he offers as an example.Looking to the future:Reaching bolttechs full potentialWhen asked about bolttechs future plans given the challenges facing the world today,Schimek stresses the importance of being resilient.“If the last few years

171、have taught us anything,its that you have to build resilience against the uncertainty and disruption thats caused by these impossible to predict external circumstances,”he explains.“But,these things also present challenges and opportunities for us and we have to make sure that we can separate the ch

172、allenges from the opportunities.”One of bolttechs biggest challenges is that most of its growth has occurred in a time where travel has been severely curtailed.Schimek notes that theyve launched greenfield businesses in markets he still hasnt been able to visit.But bolttechs success despite travel r

173、estrictions and other challenges has him feeling quite optimistic about the future.“While weve achieved tremendous results and endeavoured to deliver a consistent and unified employee experience,weve done it under really non-ideal circumstances,”he says.“So,Im really excited about what we can do to

174、reach our full potential as the world starts to open up and we can begin to bring our teams together.”#fintechpulse28Global insights|Fintech segments Featured interviewSpotlight article|Regional insightsListen to the full interview with KPMGs Global Fintech Leader,Anton Ruddenklau and Rob Schimek CE

175、O of bolttech.home.kpmg/fintechpulseLaunched in 2020,bolttech is a high-growth international insurtech with a mission to build the worlds leading,technology-enabled ecosystem for protection and insurance.Bolttech serves customers in 30 markets across North America,Asia and Europe.With a full suite o

176、f digital and data-driven capabilities,bolttech powers connections between insurers,distributors,and customers to make buying and selling insurance and protection products easier and more efficient.Bolttechs leading insurance exchange quotes more than US$44 billion in premiums annually,andcounts mor

177、e than 700 distribution partners and 180 insurers globally.This extensive distribution network is enabled by pioneering technology,and supported by deep insurance expertise and licenses across 35 international jurisdictions.29 2022 Copyright owned by one or more of the KPMG International entities.KP

178、MG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseGlobal insights|Fintech segments|Featured interview Spotlight articleRegional insights29SpotlightEmbedded finance fueled by cloud-based core banking technologies2022 Copyright owned by one or more

179、of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.30 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseSpotlig

180、ht Embedded financeEmbedded finance is spawning new opportunities for traditional banks and non-financial services organizations alike.As digital technologies advance to meet increasingly sophisticated customer expectations,embedded finance makes banking capabilities from payments to offers for cred

181、it available through more access points.Retailers,platforms and B2B Corporates can embed financial services in a much wider range of consumer and commercial settings.Think of this as the digitalization of established models.Just as finance has long been available during the physical sales experience

182、 of buying a car,services such as buy now,pay later are now on offer at the eCommerce point of sale.Upgrading the coreCrucially,however,embedded finance like so many other digital banking innovations relies ultimately on contemporary core banking technologies.It provides yet another reason for banks

183、 to reach their tipping point:the moment when they decide it is no longer possible to rely on legacy systems,and that now is the moment to pivot to a new core banking platform.This is how banks aim to meet the increased demand for new and unique digital experiences to retain and attract customers.Mu

184、ltiple use cases now demand such change:new core technology will sustain innovation such as predictive balance recognition,delayed payments authorization,contextual behavior modeling used to deliver compelling point of sale offers and real time banking services that are either event driven or predic

185、tive in their nature.And there are also other drivers for a shift to cloud-native,consumption-based platforms:to leverage the elasticity of the cloud to allow banks to meet demand,test new value propositions,and to iterate faster with reduced upfront capital investment to drive faster speed to marke

186、t for products and partners by leveraging an API-first coreto drive faster speed to market for products and partners by leveraging an API-first coreto enable better and faster access to data for insights on customers and other analyticsto improve transaction processing speeds that are required for m

187、odern digital commerce use cases in e-commerce,platforms and account to account services.These market dynamics and realities gave rise to Finxact,an alliance partner for KPMG in the US,which saw an opportunity to re-shape the future of the core banking technology stack.It designed a modern platform

188、built on a microservices-based architecture,real-time,event driven and cloud-native solution Finxact Core as a Service.The Finxact team spent five years re-imagining and delivering a new and innovative platform designed from the ground up without burdens from legacy banking.Finxact is now proven in

189、the U.S.market with more than 30 banks and fintechs having adopted the Finxact platform.Built leveraging decades of knowledge in this technology area,the Finxact solution is an approach by a non-traditional FinTech.Rather than focusing on more front-end digital user models,it chose to target the ban

190、king core with the aim of enabling the open accessibility,flexibility,scalability and speed required for banks to help meet evolving customer expectations.Global insights|Fintech segments|Featured interview Spotlight articleRegional insightsEmbedded finance fueled by cloud-based core banking technol

191、ogiesContributors:Scott Huie,Advisory Managing Director,KPMG in the US and Craig Thomason,Contributing Executive,KPMG in the US31 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintec

192、hpulseSpotlight Embedded finance“Finxact is uniquely positioned to lead on the evolving needs of the market,everything from helping banks launch new innovative products to powering embedded banking to decentralized finance and other Fintech and BaaS offerings”says David Ortiz,Head of Partnerships an

193、d Business Development at Finxact.Building on stronger foundationsBanks that invest in this way can discover advances in embedded finance,now set to grow and evolve due to rapidly changing customer needs and expectations.We expect additional enhancements that allow banking to be vertically embedded

194、into experiences and processes,many of which are hard to predict.They will likely include mash up experiences of banking within non-banking experiences models to be built upon and improved.For those with a strong core,the future of innovation and customer benefit is wide-open for embedded finance.Ne

195、vertheless,companies investing in embedded finance services should manage risks carefully.To meet customer needs and demands with the right solutions,they must address key questions:What do customers want and need?It remains as important as ever to“create a customer”through your product or services.

196、How do you identify new innovations that customers need but do not know they want yet?This goes beyond just asking customers via surveys.What does the current economic environment allow and/or need?This is a particularly relevant question now as spending trends are changing;this could create opportu

197、nities for legacy providers,or for newer companies to step up in the wake of these changing economic patterns.Global insights|Fintech segments|Featured interview Spotlight articleRegional insightsIs there a long-term path to profit?Profitability matters.Identification of the right segment,solution,e

198、ntry point and plan for growth is a critical strategic step.What regulatory and compliance requirements need to be met?Are there new regulations around the corner?Compliance with regulations and requirements for customer protection and maintaining safety and soundness is paramount.It will be importa

199、nt to monitor future regulatory trends and build in flexibility to meet them.Are there new technology capabilities that could render investment obsolete?A thorough analysis of the market is critical to understanding and selecting the best technology strategy.Served by a dynamic ecosystemThe digital

200、marketplace is fueled by core economic principles of supply and demandand this applies to embedded finance.Demand is driven by better and seamless experiences by customers who have amazing technologies at their fingertips and want and expect more of the same.Typically this is the“customers customer”

201、of a legacy financial services organization.Supply is driven by modern technology capabilities and skills to deliver on this demand;this means both technology and human capital skills are critical to meeting customer expectations.The supply side ecosystem includes Fintechs,other third-party services

202、 companies(including KPMG),non-financial companies such as retailers,and traditional banks.And more and more banks are investing in new customer-centric technology enablement and talent,whether directly or partnering with third-party providers to help accelerate embedded banking.32 2022 Copyright ow

203、ned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseSpotlight Embedded financeCustomers can benefit from having more options open to them in a straightforward and secure experience.Banks can be

204、nefit from additional sources of income and by staying in front of customer expectations through extension of banking services into non-banking distribution channels.Fintechs can benefit from delivering their services directly and/or with banks and non-banking clients to generate fee-based income an

205、d foster trust with their customers.And non-financial organizations such as retailers can benefit from increased sales,lower acquisition costs and improved customer loyalty through new digital access points.Safety,soundness and customer expectationsNot long ago,shadow banking was on the rise with ne

206、w money lenders and fast-finance players emerging to offer finance at often exorbitant rates.One positive aspect of embedded finance,enabled by a renewed core,is that it brings more finance,credit,and payments services back into the regulated banking space.That aligns customer behaviors and experien

207、ces to established safety and soundness practices.Banks must meet high standards,with multiple agencies holding them accountable for regulation and compliance;this oversight can help ensure consumer trust in embedded finance capabilities.Well-managed and carefully scoped embedded finance proposition

208、s can enhance customer experience,drive innovation,and provide value in a safe and sound manner.Those are big wins for the customers,businesses,and corporate clients using them.For this reason,we believe embedded finance will continue to grow and that it can be a positive force for the industry as a

209、 whole and,most importantly,for the customers that use it.Global insights|Fintech segments|Featured interview Spotlight articleRegional insights33 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fi

210、ntechpulse#fintechpulseGlobal insights|Fintech segments|Featured interview|Spotlight article Regional insights33In H1 2022,fintech investment in the Americas reached$39.4B with 1,430 deals2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no se

211、rvices to clients.All rights reserved.34 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseGlobal insights|Fintech segments|Featured interview|Spotlight article Regional insi

212、ghtsRegional insights AmericasUS attracts vast majority of fintech investment in Americas The US accounted for$34.9 billion of fintech investment in the Americas during H122,a drop from$49.7 billion in H222.Fintech investment outside of the US dropped even more prodigiously in the wake of the rapid

213、rise in global geopolitical and macroeconomic uncertainty with Brazil and Canada seeing declines in investment greater than 50 percent between H221 and H122.Brazil saw fintech investment drop from$3.7 billion to$1.4 billion,while Canada saw investment fall from$1.9 billion to$810 million.Investors t

214、urning focus to profitability and cash flowGiven rising interest rates,increasing levels of inflation,and growing concerns about an economic recession,fintech investors across the Americas enhanced their focus on profitability,top-line revenue growth and cash flow when evaluating targets and compani

215、es within their portfolios.Investors have also started to consider the potential of companies to deliver returns given the changing market conditions.Declining valuations in many fintech subsectors Given macroeconomic conditions,many public companies have seen significant downward pressure on their

216、valuations,including many previously frothy tech companies.While the private markets have not seen adjustments to the same degree as of yet,there could be a number of downrounds heading into H222 as fintechs look to raise capital given the downward pressure on valuations.Americas attracts$39.4 billi

217、on in fintech investment in H122,down from$59.7 billion in H221Despite a dip in quarterly investment to$22.7 billion,the Americas saw a record 806 deals in Q122,highlighting the strength of the fintech market in the region at the start of 2022.As geopolitical uncertainty and macroeconomic challenges

218、 increased towards the middle to end of the quarter,fintech investors pulled back somewhat.Total investment dropped to$16.8 billion across 624 deals in Q222,bringing the investment total to$39.4 billion across 1,430 deals for the first half of the year.The US accounted for the largest deals in the A

219、mericas during H122,including the$2.6 billion buyout of Bottomline Technologies by PE firm Thomas Bravo,the$1.2 billion buyout of SimpleNexus by nCino,the$1.1 billion acquisition of Technisys by SoFi,and the$748 million VC raise by Ramp.Key H122 highlights from the Americas include:35 2022 Copyright

220、 owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseRegional insights AmericasInterest in challenger bank market remains quite strongWithin the Americas,challenger banks continued to attract

221、 attention particularly in Latin America,where challenger banks are focusing on middle market consumers and small businesses large populations seen as underserved historically.Interest in challenger banks is also growing in Canada,where the banking market has long been dominated by a small number of

222、 big banks.Slowdown in funding,particularly in blockchain and cryptoAfter a record-breaking year of crypto ad blockchain investment in the Americas during 2021,investment in the space slowed during H122.While investment remained very strong compared to pre-2021 results,led by January raises by US-ba

223、sed Fireblocks($550 million)and Bahamas-based FTX,H222 could present more challenges for companies in the sector.Trends to watch for in H222 VC firms becoming more aggressive as fintechs look to raise additional capital.Increasing interest from investors in M&A opportunities in the Americas as valua

224、tions come down.Regulators focusing more heavily on the cryptocurrency space in order to protect consumers.Continued absence of IPO activity and the dissolution of some SPACs.Investment in payments and cybersecurity showing some resilience.Global insights|Fintech segments|Featured interview|Spotligh

225、t article Regional insightsVC and PE firms have raised a lot of money,especially in the later half of 2021,so funds are still very liquid.As valuations come down and stabilize and investors become more comfortable with what the outlook looks like,we may see deal activity pick up,but investors are go

226、ing to want to provide funding at much different valuations than they did before.Many will also want to extract more ownership out of their investments than maybe theyve been able to over the last year or 2.Robert RuarkPrincipal,Financial Services Strategy and Fintech Leader,KPMG in the US”“#fintech

227、pulse3536 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseRegional insights AmericasSource:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International

228、(data provided by PitchBook),*as of 30 June 2022.After a record year,dealmaking is still proceeding at a robust,if not accelerated,clipVenture activity in fintech in the Americas 20192022*PE growth activity in fintech in the Americas 20192022*Total investment activity(VC,PE and M&A)in fintech in the

229、 Americas 20192022*M&A activity in fintech in the Americas20192022*Global insights|Fintech segments|Featured interview|Spotlight article Regional insights$119.4$84.4$112.6$39.41,7721,7263,0771,43001,0002,0003,0004,000$0$50$100$20212022*Deal value($B)Deal count$97.5$58.5$37.9$10.1318280469

230、00400500$0$20$40$60$80$100$20212022*Deal value($B)Deal count$1.5$1.3$5.7$2.0406080$0$1$2$3$4$5$620022*Deal value($B)Deal count$20.4$24.5$69.1$27.31,3961,4002,5371,23305001,0001,5002,0002,5003,000$0$20$40$60$8020022*Deal value($B)Deal count37 202

231、2 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseGiven all the volatility across financial markets and economies,thanks to a powerful combination of geopolitical tension,outrig

232、ht conflict,ongoing supply chain issues and more,it could be likely that eventually deal flow will subside further.However,currently,financing metrics remain elevated if not at record levels,with valuations and M&A sizes holding steady.On the venture side,that is partially due to the sheer amount of

233、 dry powder underpinning investment levels and the number of fund managers still looking to follow their mandates even in a challenging environment.On the M&A side,it is likely that dealmakers are capitalizing upon any opportunistic consolidation as well as closing deals sooner rather than later bef

234、ore financing conditions could turn.Financing metrics have yet to slideVC activity in fintech with corporate participation in the Americas 20192022*Median pre-money valuations($M)by stage in fintech in the Americas20192022*Source:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG In

235、ternational(data provided by PitchBook),*as of 30 June 2022.Regional insights AmericasMedian M&A size($M)in fintech in the Americas 20192022*Global insights|Fintech segments|Featured interview|Spotlight article Regional insights$8.7$12.9$32.9$13.450200400600800$0$10$20$30$40200

236、22*Deal value($B)Deal count$64.8$75.0$50.0$145.0$0$20$40$60$80$100$120$140$20212022*$7.0$7.5$10.0$15.0$28.0$35.0$60.0$75.0$107.1$160.0$260.0$257.520022*Angel&seedEarly-stage VCLate-stage VC38 2022 Copyright owned by one or more of the KPMG International entities.KPMG Internatio

237、nal entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseRegional insights AmericasSource:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.M&A volume continues to slideTotal investment a

238、ctivity(VC,PE,M&A)in fintech in the Americas 20192022*M&A activity in fintech in the Americas 20192022*Global insights|Fintech segments|Featured interview|Spotlight article Regional insights$17.0$9.2$83.8$9.4$12.3$8.3$18.7$45.0$25.4$27.5$32.8$26.8$22.7$16.800500600700800900$0$10$20$30$40$

239、50$60$70$80$90Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal count$13.1$3.2$76.9$4.4$6.0$3.6$12.2$36.7$9.6$10.6$10.1$7.5$5.7$4.4020406080100120140$0$10$20$30$40$50$60$70$80$90Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal count39 2022 Copyright owned by one or more of

240、 the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseRegional insights AmericasVC invested stays relatively healthySource:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International(data provid

241、ed by PitchBook),*as of 30 June 2022.Venture activity in fintech in the Americas 20192022*VC activity in fintech with corporate participation in the Americas20192022*Global insights|Fintech segments|Featured interview|Spotlight article Regional insights$3.7$5.8$6.3$4.5$6.1$4.4$6.1$7.9$15.0$15.3$21.8

242、$17.0$15.6$11.700500600700800$0$5$10$15$20$25Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal countAngel&seedEarly-stage VCLate-stage VC$2.3$2.4$2.8$1.3$2.9$2.4$3.9$3.7$4.7$7.9$12.1$8.2$7.5$5.60500$0$2$4$6$8$10$12$14Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal

243、 value($B)Deal countSource:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.Top 10 fintech deals in the Americas in H1 2022Americas428#fintechpulse65713Global insights|Fintech segments|Featured interview|Spotlight artic

244、le Regional insights40 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.9101.Bottomline Technologies$2.6B,Portsmouth,US Institutional/B2B Public-to-private buyout2.SimpleNexus$1.2B,Lehi,US Lending M&

245、A3.Technisys$1.1B,Miami,US Institutional/B2B M&A4.Ramp$748.3M,New York,US Institutional/B2B Series C5.Finxact$650M,Jacksonville,US Institutional/B2B M&A6.Fireblocks$550M,New York,US Blockchain/cryptocurrency Series E7.Forge Global$532.5M,San Francisco,US Capital markets Reverse merger8.Crusoe Energy

246、 Systems$505M,Denver,US Institutional/B2B Series C9.FTX$500M,Nassau,Bahamas Blockchain/cryptocurrency Series C10.Liquidity Group$475M,New York,US Institutional/B2B Late-stage VC41 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services t

247、o clients.All rights reserved.#fintechpulse#fintechpulseGlobal insights|Fintech segments|Featured interview|Spotlight article Regional insights41 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.In H

248、1 2022,investment in fintech companies in Europe,Middle East and Africa(EMEA)recorded$26.6B with 939 deals42 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseRegional insigh

249、ts EMEAEMEA attracts$26.6 billion in fintech investment,including record$16.6 billion in VC funding,in H122Total fintech investment in the EMEA region dropped from$31.6 billion to$26.6 billion between H221 and H122,driven by a decline in M&A deal value which sank from$15.7 billion in H221 to$7.2 bil

250、lion in H122.The region saw only two$1 billion+M&A deals during H122:the$3.9 billion merger of Italy-based Nexi and SIA and the$1.8 billion acquisition of UK-based Interactive Investor by Abrdn.Despite the decline in M&A and rapidly evolving geopolitical and macroeconomic challenges,fintech-focused

251、VC and PE funding wasincredibly robust in H122.VC investment rose from$14.3 billion to$16.6 billion between H221 and H122 slightly eclipsing the previous record high of$16.4 billion set in H121.PE funding also saw a record high of$2.8 billion in H122,including a quarterly record of$2.1 billion in Q1

252、.Key H122 highlights from the EMEA region include:Banks transforming into tech companiesIn the EMEA region,some banks that have developed AML and AI-focused solutions and tools in-house are now looking at how they can commercialize these to other financial institutions.During H122,Belgian bank KBC l

253、aunched a new subsidiary focused on bringing its AI applications and tools to other banks,with the first product targeted at combating financial crime.5Investors focusing on business fundamentalsFaced with numerous uncertainties,including the Russia-Ukraine conflict,rising inflation,and rising inter

254、est rates,investors in the EMEA region have shifted their primary focus from growth to value.Valuation multiples have decreased significantly for some players(e.g.,buy-now-pay-later giant Klarna which heavily focused on growth,saw its valuation drop 85 percent compared to last year6).There is now a

255、lot more emphasis on business fundamentals when making investment decisions,evaluating the sustainability of business models,how profits are generated,and whether cash is being generated or consumed for growth.Embedding finance and banking as a service high on the agendaProfitable players such as St

256、arling Bank7and ClearBank8 that facilitate non-financial companies to move into financial services have been able to raise extra funding to grow their expansion further.5https:/ insights|Fintech segments|Featured interview|Spotlight article Regional insights42Open banking has for some time offered s

257、o much opportunity.However,it has been somewhat perceived by incumbents as a regulatory compliance program with many banks needing to manage a significant uplift in technology capability to meet the standards.More recently though,we are seeing this capability being a key focus in how banks,powered b

258、y fintech partners,are offering new services that streamline account opening,lending and financial insights.Anna ScallyPartnerKPMG in Ireland“”#fintechpulse43 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights

259、reserved.#fintechpulse#fintechpulseRegional insights EMEARegtech automation gaining attention Juggling the ongoing avalanche of regulation in the EMEA region and the constant need for more resources to manage compliance has been a major struggle for businesses.With inflation driving operating costs

260、up,there is further increasing interest in affordable compliance solutions and regtechautomation that can help make compliance affordable,efficient,and manageable.Regulatory environment for blockchain continuing to evolve During H122,the blockchain space reached a significant milestone in Europe wit

261、h the publication of the Regulation on the EU pilot regime for market infrastructures that use distributed ledger technologies9.The regime is effectively a regulatory sandbox.This new program aims to breathe extra institutional interest into blockchain technology in financial services along with the

262、 much anticipated Markets in Crypto Assets Framework(MiCA),and the growing interest in central bank digital currencies,with the digital euro potentially to come as soon as 2026.10Trends to watch for in H222 Investors spending more time with their current investment portfolio companies to help them t

263、hrough the uncertainty that exists rather than focusing on diversification and new investments.Rising interest rates giving banks more cash to spend and more ammunition to invest in strategic players.Increasing consolidation across the fintech space as investors become more discerning,weaker fintech

264、s struggle to survive,and well-capitalized companies look to take out some of their competition.Fintechs focused on broader ESG and sustainable finance starting to secure more funding than has been seen to-date as regulators have made clear their expectations on firms monitoring and managing their f

265、inancial risks.11The investment of capital markets actor Euroclear in Greenomy is a case-in-point.12 The fallout of the collapse of the crypto space and any side effects it has on the traditional investment world and on future regulatory action.9https:/eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri

266、=CELEX:32022R0858&from=EN10https:/www.ecb.europa.eu/press/key/date/2022/html/ecb.sp220516454821f0e3.en.html11https:/home.kpmg/xx/en/home/insights/2022/02/esg-regulatory-essentials.html12https:/ insights|Fintech segments|Featured interview|Spotlight article Regional insightsRegtech has been hot in th

267、e EMEA region in the last few months.In particular,there has been strong interest in AML applications as banks struggle with the list of sanctions,embargos,and other measures they need to implement.Right now,AML is at the very top of the agenda for many of the banks and financial institutions in the

268、 region.Dave RemueDirectorKPMG in Belgium”“#fintechpulse4344 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseRegional insights EMEASource:Pulse of Fintech H122,Global Analy

269、sis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.After a record year,2022 dealmaking slows,yet does not collapseVenture activity in fintech in EMEA20192022*PE growth activity in fintech in EMEA20192022*Total investment activity(VC,PE and M&A)in fintech

270、in EMEA20192022*M&A activity in fintech in EMEA20192022*Global insights|Fintech segments|Featured interview|Spotlight article Regional insights$68.3$27.9$82.6$26.61,3681,4142,,0001,5002,0002,500$0$20$40$60$80$20212022*Deal value($B)Deal count$59.1$16.6$48.7$7.220420637813601002

271、00300400$0$10$20$30$40$50$60$7020022*Deal value($B)Deal count$0.7$1.1$3.2$2.84437502900$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.520022*Deal value($B)Deal count$8.5$10.2$30.7$16.61,1201,1711,72877405001,0001,5002,000$0$5$10$15$20$25$30$3520022*Deal value($B)Deal coun

272、t45 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseSource:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as

273、 of 30 June 2022.Note:The median M&A size in 2022*is based on a population where n=22.Corporate players remain integral in European venture funding conditions for fintechs,joining in a robust tally of deal value in associated rounds across a healthy volume as well.Likely thanks in part to that drive

274、r,as well as sustained demand for exposure to fintech innovation,pre-money valuations have yet to slide at all.Elevated levels of dry powder also support pricing conditions to some degree.It remains to be seen if growing economic pressures or the actualization of recession could finally deal a blow

275、to the relatively resilient flow of VC,so the rest of the year could see trends shift more substantially.However,M&A dealmakers still seem willing to pay up considerable sums for targets.Medians for financing metrics remain resilientVC activity in fintech with corporate participation in EMEA 2019202

276、2*Median pre-money valuations($M)by stage in fintech in EMEA20192022*Global insights|Fintech segments|Featured interview|Spotlight article Regional insightsMedian M&A size($M)in fintech in EMEA 20192022*$3.8$4.9$13.2$8.0240500$0$5$10$0212022*Deal value($B)Deal count$

277、27.9$15.8$39.3$44.0$0$10$20$30$40$5020022*$4.1$3.7$5.9$5.6$9.8$11.0$15.0$15.3$20.7$21.8$57.0$59.320022*Angel&seedEarly-stage VCLate-stage VCRegional insights EMEA46 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no ser

278、vices to clients.All rights reserved.#fintechpulse#fintechpulseSource:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.M&A volume slides again,but it remains to be seen whether it could reboundTotal investment activity(

279、VC,PE and M&A)in fintech in EMEA20192022*M&A activity in fintech in EMEA20192022*Global insights|Fintech segments|Featured interview|Spotlight article Regional insights$4.9$4.5$52.4$6.6$2.8$2.9$6.6$15.5$32.1$18.9$20.4$11.2$15.4$11.400500600700$0$10$20$30$40$50$60Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1

280、Q220022Deal value($B)Deal count$1.8$2.1$50.4$4.8$1.0$0.0$2.6$13.0$24.4$8.5$11.7$4.0$5.0$2.2020406080100120$0$10$20$30$40$50$60Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal countRegional insights EMEA47 2022 Copyright owned by one or more of the KPMG International entities

281、.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseSource:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.VC activity stays strong even in volatile environmentVent

282、ure activity in fintech in EMEA20192022*VC activity in fintech with corporate participation in EMEA20192022*Global insights|Fintech segments|Featured interview|Spotlight article Regional insights$2.9$2.2$1.7$1.7$1.7$2.2$3.9$2.5$7.3$9.1$7.4$6.9$8.3$8.30500300350400450500$0$1$2$3$4$5$6$7$8$

283、9$10Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal countAngel&seedEarly-stage VCLate-stage VC$1.1$0.9$0.9$0.9$0.7$1.2$1.7$1.3$3.1$2.9$4.7$2.5$5.2$2.8020406080100120140$0$1$2$3$4$5$6Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal countRegional insights EMEATop 10 gl oba

284、l fintech deals in 2020Top 10 fintech deals in EMEA in H1 2022EMEA#fintechpulseSource:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.Global insights|Fintech segments|Featured interview|Spotlight article Regional insig

285、hts7511094848 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.231.Sia(Milan)$3.9B,Milan,Italy Payments M&A2.Interactive Investor$1.8B,Leeds,UK Wealth/investment management M&A3.FNZ$1.4B,London,UK We

286、alth/investment management PE growth4.Trade Republic$1.15B,Berlin,Germany Capital markets Series C5.C$1B,London,UK Payments/transactions Series D6.SumUp$626.6M,London,UK Payments/transactions Late-stage VC7.Qonto$549.8M,Paris,France Banking Series D8.Scalapay$524M,Milan,Italy Payments/transactions S

287、eries B9.Market Financial Solutions$398.05M,London,UK Lending Late-stage VC10.Lunar$314.05M,Aarhus,Denmark Payments/transactions Series D6#fintechpulseGlobal insights|Fintech segments|Featured interview|Spotlight article Regional insights49 2022 Copyright owned by one or more of the KPMG Internation

288、al entities.KPMG International entities provide no services to clients.All rights reserved.In H1 2022,fintech companies in Asia Pacific received$41.8B with 607 deals50 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.Al

289、l rights reserved.#fintechpulse#fintechpulseRegional insights ASPACHyped fintech subsectors starting to cool off In the Asia-Pacific region,a number of fintech subsectors that attracted substantial interest and hype over the past 12 to 24 months cooled off considerably during H122,including retail p

290、ayments,insurtech,and B2C solutions.Crypto,NFTs and blockchain also came off the investment burner as well.New challenges,new priorities for investment While investment in areas that saw significant interest during the height of the COVID-19 pandemic have lost some attractiveness,areas that align wi

291、th rapidly evolving global issues including rising inflation,increasing interest rates,geopolitical uncertainty,and supply chain woes have continued to see investment.Key areas that garnered attention from investors in the Asia-Pacific region during H122 included supply chain management,cybersecurit

292、y and privacy,identity management,and governance and compliance.Open data also saw solid investment during H122,in addition to infrastructure companies focused on the crypto space.Modernization of financial systems continues to drive activity In many parts of the Asia-Pacific region,particularly jur

293、isdictions outside of China,the infrastructure underpinning existing financial markets is viewed as quite aged from the technologies used directly by exchanges to different payments rails.This is driving a significant amount of investment towards the innovation of financial market infrastructure and

294、 to the digital last mile of transactions.$27.9 billion Afterpay acquisition propels fintech investment in Asia-Pacific to record high at mid-yearFintech investment in the Asia-Pacific region hit an annual record high of$41.8 billion with 6 months left in 2022,largely driven by Blocks$27.9 billion a

295、cquisition of Australia-based Afterpay.The region saw a diversity of jurisdictions attract good-sized deals during H122.In addition to the Afterpay acquisition,Australia saw the$1 billion merger of Superhero and Swiftx,Japan saw the$2.1 billion buyout of Yayoi by KKR,Singapore-based Coda Payments ra

296、ised$690 million,Indonesia-based Xendit raised$300 million,and India-based fintechs Stashfin and Oxyzo raised$270 million and$237 million respectively.Fintech investment in China remained limited during H122;the largest fintech deal in the country was a$140 million raise by corporate expense managem

297、ent company Fenbeitong.Key H122 highlights from the Asia-Pacific region include:Global insights|Fintech segments|Featured interview|Spotlight article Regional insightsThere were a couple of very big corporate M&A deals in the Asia-Pacific region during the first half of 2022,including Blocks mega-ac

298、quisition of Afterpay and the merger of Superhero and Swiftx.Given the increasing pressure on valuations,we could see more M&A activity in H222 as corporates look for good opportunities to buy out their competitors in less mature markets and startups look to consolidate in order to gain market share

299、 and improve their profitability.“”Andrew HuangPartnerKPMG China50#fintechpulse51 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseRegional insights ASPACDigital transformat

300、ion a government priority in ChinaIn China,digital transformation continues to be a significant government priority.During H122,The Peoples Bank of China released its Fintech Development Plan(2022-2025),which stressed its commitment to appropriate regulation,privacy and data protection,low carbon an

301、d green fintech,and fair and inclusive financial services.While fintech investment in China was quite soft in H122,companies focused on infrastructure plays and partnerships with traditional financial institutions still gained attention from investors,while insurtechs focused on similar plays also b

302、egan to attract interest.Trends to watch for in H222 Regulators continuing to focus on making industry changes to support open banking and decentralized finance in an orderly and safe way.Investors taking a more focused approach to their investments,prioritizing investments in companies with very st

303、rong business models and distinctive value propositions.Growing focus on B2B solutions and tech enablement of traditional players,rather than standalone fintech plays particularly in China.Challenger banks continuing to grow,although at a relatively slow pace.Global insights|Fintech segments|Feature

304、d interview|Spotlight article Regional insightsIn the Asia-Pacific region,theres been a big focus on modernization,so its not surprising that were still seeing a good number of investments focused on digital modernization and infrastructure.Areas like green finance,cybersecurity,and B2B solutions ar

305、e also expected to remain attractive to investors in the region.But while these areas might show some resilience as we likely head into a global recession,other fintech subsectors could take a big hit including retail focused crypto and B2C focused fintech.Anton RuddenklauGlobal Fintech Leader,Partn

306、er and Head of Financial Services Advisory KPMG in Singapore”“#fintechpulse5152 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseRegional insights ASPACSource:Pulse of Finte

307、ch H122,Global Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.A blockbuster transaction and healthy volume combine for a massive tally by midyearTotal investment activity(VC,PE and M&A)in fintech in Asia Pacific20192022*Venture activity in fintec

308、h in Asia Pacific20192022*M&A activity in fintech in Asia Pacific20192022*PE growth activity in fintech in Asia Pacific20192022*Global insights|Fintech segments|Featured interview|Spotlight article Regional insights$27.4$15.5$30.5$41.89549301,42060705001,0001,500$0$10$20$30$40$5020022*Dea

309、l value($B)Deal count$9.6$2.4$5.8$31.87386080100120140$0$5$10$15$20$25$30$3520022*Deal value($B)Deal count$1.2$1.2$3.1$1.3203040$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.520022*Deal value($B)Deal count$16.7$11.8$21.6$8.78608211,27053705001,0001,500$0$5$10$15$20$25201

310、9202020212022*Deal value($B)Deal count53 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseRegional insights ASPACSource:Pulse of Fintech H122,Global Analysis of Investment i

311、n Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.Source:The H1 2022 angel&seed median pre-money valuation figure is based on a non-normative sample size.Even relative to the headier conditions seen in 2019 through 2021,the late-stage venture valuation in the Asia-Pacific

312、region has surged to a remarkable tally.Outliers definitely skewed this metric,as can be seen in the top fintech financings for the region later in this report edition.However,it also speaks to the demand for exposure for the major fintech players that have successfully navigated growing political t

313、ensions and challenging economic conditions.As the region recovered from the pandemic,some national economies have relatively more bullish prospects than others,which has likely also encouraged investors to invest more.Corporates still play a key role in supporting these financing metrics,as well.Va

314、luations remain undauntedVC activity in fintech with corporate participation in Asia Pacific20192022*Median venture deal sizes($M)by stage in fintech in Asia Pacific20192022*Global insights|Fintech segments|Featured interview|Spotlight article Regional insightsMedian venture pre-money valuations($M)

315、by stage in fintech in Asia Pacific20192022*$11.8$8.1$11.2$4.728227200300400500$0$2$4$6$8$10$12$0212022*Deal value($B)Deal count$1.0$1.0$1.6$2.3$4.8$5.0$4.4$5.2$19.2$12.2$17.0$21.620022*Angel&seedEarly-stage VCLate-stage VC$3.3$3.1$6.0$14.7$10.4$16.1$8.5$51.0$99.5$65

316、.5$187.4$541.620022*Angel&seedEarly-stage VCLate-stage VC54 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseRegional insights ASPACSource:Pulse of Fintech H122,G

317、lobal Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.A blockbuster outlier deal pushes M&A value to a single-quarter highTotal investment activity(VC,PE and M&A)in fintech in Asia Pacific20192022*M&A in fintech in Asia Pacific20192022*M&A activit

318、y in fintech in Asia Pacific20192022*Global insights|Fintech segments|Featured interview|Spotlight article Regional insights$4.3$4.8$8.7$9.7$6.5$3.1$2.2$3.6$4.4$6.8$7.0$12.3$35.7$6.00250300350400450$0$5$10$15$20$25$30$35$40Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal cou

319、nt$2.6$2.8$3.2$1.0$0.5$0.2$0.2$1.5$0.2$0.5$0.6$4.5$30.4$1.405540$0$5$10$15$20$25$30$35Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal count55 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.Al

320、l rights reserved.#fintechpulse#fintechpulseRegional insights ASPACSource:Pulse of Fintech H122,Global Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.VC financing activity declines somewhatVenture activity in fintech in Asia Pacific20192022*VC ac

321、tivity in fintech with corporate participation in Asia Pacific 20192022*M&A activity in fintech in Asia Pacific20192022*Global insights|Fintech segments|Featured interview|Spotlight article Regional insights$1.4$1.9$4.9$8.5$5.5$2.5$2.0$1.8$3.9$4.2$5.9$7.6$4.9$3.80500300350400$0$1$2$3$4$5$

322、6$7$8$9Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($B)Deal countAngel&seedEarly-stage VCLate-stage VC$0.7$1.2$2.4$7.6$4.4$1.4$1.1$1.2$1.5$2.1$2.9$4.7$2.6$2.00120140$0$1$2$3$4$5$6$7$8Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q220022Deal value($M)Deal count21658Source:Pulse of Fintech

323、 H122,Global Analysis of Investment in Fintech,KPMG International(data provided by PitchBook),*as of 30 June 2022.#fintechpulse9107Global insights|Fintech segments|Featured interview|Spotlight article Regional insights56 2022 Copyright owned by one or more of the KPMG International entities.KPMG Int

324、ernational entities provide no services to clients.All rights reserved.31.Afterpay$27.9B,Melbourne,Australia Payments M&A2.Yayoi$2.1B,Tokyo,Japan Institutional/B2B Corporate divestiture3.Superhero$1.06B,Sydney,Australia Wealth/investment management M&A4.Coda Payments$690M,Singapore Payments/transact

325、ions Recapitalization/growth5.Xendit$300M,Jakarta,Indonesia Payments/transactions Series D6.Funding Societies$294M,Singapore Lending Series C7.Stashfin$270M,Delhi,India Lending Series C8.Oxyzo$237.1M,Gurgaon,India Lending Series A9.Slice$220M,Bengaluru,India Payments/transactions Series B10.Voyager

326、Innovations$210M,Mandaluyong City,Philippines Payments/transactions PE growth457 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseAbout usThe financial services industry is

327、transforming with the emergence of innovative new products,channels and business models.This wave of change is driven primarily by evolving customer expectations,digitalization as well as continued regulatory and cost pressures.KPMG firms are passionate about supporting clients to successfully navig

328、ate this transformation,mitigating the threats and capitalizing on the opportunities.KPMG Fintech professionals include partners and staff in over 50 fintech hubs around the world,working closely with financial institutions and fintechcompanies to help them understand the signals of change,identify

329、the growth opportunities and to develop and execute their strategic plans.KPMGs Global Fintech practiceVisit home.kpmg/fintechGlobal insights|Fintech segments|Featured interview|Spotlight article|Regional insights58 2022 Copyright owned by one or more of the KPMG International entities.KPMG Internat

330、ional entities provide no services to clients.All rights reserved.#fintechpulse#fintechpulseContactsGet in touch with us John HallsworthPartner,Open Banking Lead,KPMG in the UKE:john.hallsworthkpmg.co.ukShelley Doorey-Williams,Partner,Wealth and Asset Management Consulting,KPMG in the UKE:shelley.do

331、oreywilliamskpmg.co.ukAndrew HuangPartner and Fintech Leader,KPMG ChinaE:Anna ScallyPartner and Fintech Leader,KPMG in IrelandE:anna.scallykpmg.ieIlanit AdesmanPartner,Financial Risk Management,KPMG in IsraelE:Gary ChiaPartner and ASEAN Financial Services Regulatory and Compliance Practice Leader,KP

332、MG in SingaporeE:.sgBob RuarkPrincipal,Financial Services Strategy and Fintech Leader,KPMG in the USE:Anton RuddenklauGlobal Leader of Fintech,Partner and Head of Financial Services Advisory,KPMG in SingaporeE:.sgJudd CaplainGlobal Head of Financial ServicesKPMG InternationalE:Courtney TrimbleGlobal

333、 Leader of Payments,Principal,Financial Services,KPMG in the USE:Fabiano GobboGlobal Head of Regtech,Partner,Risk Consulting,KPMG in ItalyE:fgobbokpmg.it Ram MenonGlobal Head,Insurance Deal AdvisoryKPMG InternationalE:Geoff RushPartner,Advisory and National Industry Leader,Financial Services,KPMG in CanadaE:geoffrushkpmg.caGlobal insights|Fintech segments|Featured interview|Spotlight article|Regio