Main messages of the study: In the world: 2018, “blockbuster” year! – Fintech investments in the world in 2018 reached a record $ 111.
8 billion – an increase of + 120% vs. 2017. “Since the launch of the study in 2013, 2018 promises to be the best year in terms of investments in Fintech; a fact that can be explained in particular by a globally favorable year fundraising in the world, marked by several mega-deals. “Decrypts Fabrice Odent, Partner KPMG, responsible for the banking sector. – The year 2018 has 2,196 deals, a very slight increase vs.
2017 (+ 1.5%), testifying to a growing maturity acquired by the market. Focus regions: Europe moves ahead of Asia – Investments in the Americas: 54.5 billion dollars (+ 88% vs. 2017); – Investments in Europe: $ 34.
2 billion (+ 180% vs. 2017); – Investments in Asia Pacific: 22.7 billion dollars (+ 82% vs. 2017). Europe has an exceptional year in 2018: still driven by the United Kingdom (despite the Brexit) and by fast-growing sectors: payments, investments & Neobanks.
KPMG’s Top 10 Predictions for Fintech in 2019 Fintech’s growth rate accelerated in 2018. “With major breakthroughs such as the development of Open Banking, a more legible regulatory environment the arrival of mature solutions using Artificial Intelligence or Blockchain technology, 2019 also looks very promising for the Fintech. Says Mikaël Ptachek, head of the Fintech Practice at KPMG. Here are KPMG’s top 10 predictions for the year 2019:
1. Consolidation: In 2019, we will witness an intensification of consolidation processes in the mature areas of FinTech, such as payments and financing – as well as in areas emerging as the Blockchain – Fintech now having to scale and internationalize. The purpose of these groupings is to enable Fintech to increase their size and encourage their international development.
2. Larger deals: Transaction size should continue to grow in 2019, as investors seek to reduce the risk associated with their equity investments and focus on Fintech with a more advanced stage of development.
3. Global growth: The Neobanks will continue to diversify its service offerings and expand internationally.
4. Open Banking: Open Banking regulations in Europe and around the world continue to be an opportunity for technology giants and Fintech while playing their role of control in the provision of services financial.
5. Blockchain: We are seeing a considerable increase in investments in Fintech dedicated to the construction of products and solutions based on Blockchain technology.
6. Accelerating Insurtech: Asia will experience substantial growth in investment in Insurtech, coming in part from traditional insurers based in the US and Europe to develop alternative insurance solutions in Asia.
7. RegTech Growth: Investment in RegTech will accelerate sharply in 2019 due to regulatory developments that lead to higher compliance costs for financial institutions.
8. Financial institutions: The investment of traditional / corporates will remain high due to the development of Open Banking related partnerships and the pursuit of M & A strategies of these institutions.
9. Collaboration in Asia: Collaboration between Fintech and banks in Asia is expected to continue to grow especially in the areas of KYC, Anti-Money Laundering and Digital Identity Management, including facial recognition and voice.
10. Digital Banking: Traditional banking players will continue to digitize their services, supporting the development of autonomous and agile online Neobanks / banks, which can operate autonomously and independently of existing systems.
