1、The Pulse of Fintech 2018 Biannual global analysis of investment in fintech 13 February 2019 2#fintechpulse 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are

2、 affiliated. 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Welcome to the 2018 end-of-year edition of KPMGs The Pulse of Fintech a biannual r

3、eport highlighting key trends and activities within the fintech sector globally and in key markets around the world. Fintech investment increased substantially in 2018, with total global investment dollars across M and 2019 may see even more to come. Total investment activity (VC, PE and M Worldpay,

4、 which was bought for $12.9 billion; and last but not least Refinitiv, which was bought by a consortium for $17 billion in October. Total investment activity (VC, PE and M the downturn at the end of the year is likely more temporary than anything else as all drivers of fintechs popularity remain by

5、and large intact. Quarterly volume reveals fintechs volatility as it grew to all-time highs in 2018 $0.6 $0.5 $1.2 $1.0 $1.9 $2.1 $1.6 $2.4 $2.4 $4.0 $8.3 $2.6 $4.4 $8.4 $4.5 $3.1 $3.0 $5.0 $4.2 $6.3 $5.1 $19.9 $5.9 $4.5 0 50 100 150 200 250 300 350 400 450 500 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 1Q 2

6、Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2001620172018 Capital invested ($B)Deals closedAngel/SeedEarly VCLater VC 13#fintechpulse 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity wi

7、th which the independent member firms of the KPMG network are affiliated. All currency amounts are in US$ unless otherwise specified. Data provided by PitchBook unless otherwise specified. Global M rather, traditional technology businesses have also sought to gain some exposure, often for financial

8、reasons beyond necessarily planning for strategic initiatives down the road. Corporates play an integral role in fintech $0.8 $2.5$8.5$11.6$10.3$23.1 102 137 225 281 327 357 2001620172018 Capital invested ($B)Deal count 16#fintechpulse 2019 KPMG International Cooperative (“KPMG Internatio

9、nal”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All currency amounts are in US$ unless otherwise specified. Data provided by PitchBook unless otherwise specified. Global cross-border M after the m

10、ania surrounding initial coin offerings (ICOs) began to die down, it was clearer to more sober, institutional investors which business opportunities truly could be rendered more efficacious with utilization of blockchain technology and potentially cryptocurrency monetization. Accordingly, it is like

11、ly that investment will proceed at substantial if not quite record paces throughout 2019, as investors continue to seek out which companies can truly prove out the promise of the blockchain. The blockchain boom $0.2 $0.7$0.5$0.6$4.8$4.5 69 144 134 159 218 494 2001620172018 Capital investe

12、d ($B)Deal count “A lot of people expected 2018 to see a huge amount of institutional crypto investment and that simply didnt happen. Creating a whole asset class or a new global currency requires a lot of trust and infrastructure and those take time to build. Many of the largest blockchain deals of

13、 2018 were all focused on crypto infrastructure and services. 2019 going into 2020 is really when many of these investments into crypto will start to become real and bear fruit.” Kiran Nagaraj Cryptoassets Lead, KPMG Blockchain Services, KPMG in the US Source: Pulse of Fintech 2018, Global Analysis

14、of Investment in Fintech, KPMG International (data provided by PitchBook) January 4, 2019. All currency amounts are in US$ unless otherwise specified. Data provided by PitchBook unless otherwise specified. 19#fintechpulse 2019 KPMG International Cooperative (“KPMG International”). KPMG International

15、 provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Global private investment (VC, PE and M hence the surge in private investment volume across the past two years, even if deal value has been fairly erratic over the past few

16、years. Given the surge in overall value this last year, plus sustained high volume it is likely that more robust deal values could be seen going forward, as incumbents or larger financial services groups eye market leaders. Regtechsolutions surge in popularity $1.1$3.9$1.2$3.8$1.2$3.7 42 41 57 61 11

17、1 104 2001620172018 Capital invested ($B)Deal count “The dominance of the US and Europe in regtech investment and innovation is gradually shifting. The Asia Pacific region is expected to be the engine of regtech growth due to the presence of emerging countries as well as the financial hub

18、s in Hong Kong (SAR), Singapore and India. Such growth is to be expected because of accelerated adoption of new technologies, high investments in digital transformation, swift expansion of domestic enterprises, extensive development of infrastructure and crucially the rapid growth of the middle clas

19、s and GDPs in the region.” Fabiano Gobbo Global Leader, Financial Risk Management KPMG International All currency amounts are in US$ unless otherwise specified. Data provided by PitchBook unless otherwise specified. 20#fintechpulse 2019 KPMG International Cooperative (“KPMG International”). KPMG Int

20、ernational provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Global private investment (VC, PE and M that interest is persisting, but check sizes have taken a breather, though its worth noting $6 billion is still easily the

21、third-highest annual total ever. Insurtechsees active interest as value falls “AI and Machine Learning are incredibly important and are going to redefine insurance in the coming years. But its still very early days. It will be almost impossible to really drive AI value on anything more than the most

22、 basic of insurance products until youve dealt with some of your fundamentals your data, your legacy systems and the way your products are constructed and serviced.” Will Pritchett Global Lead of Insurtech KPMG International Source: Pulse of Fintech 2018, Global Analysis of Investment in Fintech, KP

23、MG International (data provided by PitchBook) January 4, 2019. $1.6$2.4$4.0$12.3$10.3$5.7 89 114 164165 258 242 2001620172018 Capital invested ($B)Deal count 21#fintechpulse 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a

24、 Swiss entity with which the independent member firms of the KPMG network are affiliated. All currency amounts are in US$ unless otherwise specified. Data provided by PitchBook unless otherwise specified. Top 10 global fintech VC, PE and M to date, the Canadian banks have been held back from making

25、many such investments. Brazil fintech market continues to strengthen and mature Brazils fintech market was particularly strong in the second half of 2018, led by Nubanks $180 million raise in October. The investment in Nubank was led by China-based Tencent Holdings highlighting the increasing potent

26、ial foreign investors see in the Latin America market. With a valuation of $4 billion, Nubank is one of Brazils largest privately held companies and, by far, its highest valued fintech to date. The general fintech market in Brazil showed strong maturation over the course of 2018, particularly in the

27、 payments and lending spaces. This maturation was visible in the successful IPO exits of payments companies PagSegaro and Stone Pagamentos. PagSegaro raised $2.3 billion in January on the NYSE, while Stone Pagamentos raised $1.15 billion on the Nasdaq in October. While Brazil is expected to continue

28、 to see very high interest rates, the prospects for the country are positive heading into 2019. As the countrys fintech companies continue to grow and mature, deal sizes are expected to grow. More foreign investment is also expected as global investors look to take advantage of the relatively unders

29、erved Latin American market. US dominates fintechinvestment in Americas, although Latin America sees growth 24#fintechpulse 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the

30、KPMG network are affiliated. All currency amounts are in US$ unless otherwise specified. Data provided by PitchBook unless otherwise specified. Latin America growing on the radar of fintech investors, including corporates In Latin America, financial inclusion has been a key driver of investment in t

31、he fintech space, with as much as 42 percent of new fintech startups focusing on unbanked and underbanked individuals and small businesses2. At the same time, the region has begun to see a number of global corporates investing in the region in order to broaden their reach and gain market share. In O

32、ctober 2018, for example, Visa invested in Brazil-based payments processing company Conductor, with the two companies expected to work closely together to develop issuer-focused solutions for tokenizing payments via mobile wallets and improve access to Visa APIs3. On the funding side, global investo

33、rs have also focused more heavily on Latin America over the past year. For example, in December, Canada-based Scotiabank and US-based QED Investors launched a second fund focused on Latin America. The focus of the QED LatAm Fund II will be to promote the growth of fintechs in the region. Startup inc

34、ubators remain critical to development of fintechs in Latin America A number of strong incubators in Latin America continued to drive fintech innovation in Latin America during 2018. In July, Startupbootcamp Fintech enlisted a new cohort of startups, including companies from countries across the reg

35、ion, including Chile, Equador, Peru, Cost Rica and Mexico. The projects pitched by these companies reflected a growing diversity of fintech in the region, ranging from traditional payments activities to automated accounting, smart payments, neobanking and savings marketplaces4. Trends to watch for i

36、n 2019 Looking ahead to 2019, fintech investment in the Americas is expected to continue to grow, although there may be some holdback early in the year as a result of the volatility in the public markets that closed out 2018, particularly in the US. In Latin America, Brazil is expected to continue t

37、o see strong growth in its fintech market, with companies capturing larger and larger deals. Other regions within Latin America are also poised to see increasing investment, particularly from global investors. In Canada, regulatory and legislative changes are expected to improve the environment for

38、fintech investment and help drive spur new fintech activities related to open banking and real-time transactions. 2 3 4 https:/www.startupbootcamp.org/blog/2018/07/new-era-startupbootcamp-fintech-latin-america-added-new-investment-partner-picked- second-cohort/ US dominates fintechinvestment in Amer

39、icas, although Latin America sees growth (contd) “Weve arrived at a point in the evolution of blockchain where the conventional models that are more product oriented are now beginning to get expressed. The earlier approaches to blockchain experimentation among clients or consortia looked at blockcha

40、in in order to promote innovation. They are now being complemented by the emergence of product-specific startups.” Eamonn Maguire Global Financial Services Lead, KPMG Blockchain Services, KPMG International 25#fintechpulse 2019 KPMG International Cooperative (“KPMG International”). KPMG Internationa

41、l provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All currency amounts are in US$ unless otherwise specified. Data provided by PitchBook unless otherwise specified. Total investment activity (VC, PE and M and then the Refi

42、nitiv buyout occurred, the largest private investment transaction to happen in fintech in the Americas. A record Q4 propels 2018 even higher $1.4 $2.6 $5.8 $4.4 $3.8 $5.6 $6.8 $9.6 $11.0 $4.2 $8.1 $18.1 $14.6 $11.8 $4.2 $12.5 $6.8 $6.3 $6.9 $9.1 $6.7 $10.3 $11.5 $25.9 0 50 100 150 200 250 300 350 40

43、0 $0 $5 $10 $15 $20 $25 $30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2001620172018 Capital invested ($B)Deal count 26#fintechpulse 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entit

44、y with which the independent member firms of the KPMG network are affiliated. All currency amounts are in US$ unless otherwise specified. Data provided by PitchBook unless otherwise specified. Venture investment in fintech companies in the Americas 20132018 Source: Pulse of Fintech 2018, Global Anal

45、ysis of Investment in Fintech, KPMG International (data provided by PitchBook), January 4, 2019. Fintech venture investment within the Americas is variable, yet has clearly reached new highs throughout 2018, even if volume declined. Interestingly, angel, seed and early-stage deal flow rebounded a ta

46、d or at the least stayed historically high throughout past year, indicating newer niches of fintech are being explored by both entrepreneurs and investors. Early-stage volume ticks up as new niches rise $0.4 $0.4 $1.0 $0.6 $1.1 $1.5 $1.1 $1.4 $1.6 $2.4 $3.2 $1.3 $1.9 $2.0 $2.2 $1.7 $1.4 $1.8 $2.3 $2

47、.0 $2.8 $3.5 $2.9 $3.3 0 50 100 150 200 250 300 350 400 450 500 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2001620172018 Capital invested ($B)Deals closedAngel/SeedEarly VCLater VC 27#fintechpulse 2019 KPMG Internat

48、ional Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All currency amounts are in US$ unless otherwise specified. Data provided by PitchBook unless otherwise specified

49、. M since then, some confidential information has been disclosed which revealed that the transactions official closing date was officially pushed forward into Q3. 8 In 2018, investment in fintech companies in Europe hit $34.2B with 536 deals 44#fintechpulse 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All currency amounts are in US$ unless otherwise specified. Data provided by PitchBook u