KPMG - Global Pulse of Fintech, H1 2023

The July 2023 edition of the KPMG Fintech Pulse provides a comprehensive analysis of the global fintech market in the first half of 2023. Despite some challenges, the fintech market is still going strong with funding increasing in certain regions and subsectors. However, global fintech funding fell to $52 billion in H1’23 due to macroeconomic forces and fintech-specific challenges, but funding is expected to rebound as market conditions stabilize. The cybersecurity sector is seeing growing interest from investors, particularly from insurance companies looking to better understand and manage the underwriting process related to cybersecurity risks. The EMEA region saw landmark regulatory initiatives around open banking and embedded finance, which are likely to boost interest and funding in these spaces and drive more collaboration between ecosystem participants. The UK is moving to cement its place as a fintech leader with the passage of the Financial Services and Markets Act 2023, which includes measures aimed at enhancing the UK’s leadership and competitiveness in the financial services and fintech spaces. Subsectors that saw significant funding in H1’23 include payments, lending, and insurtech, while regions that saw significant funding include North America, Asia, and Europe. Looking ahead to H2’23, investors are expected to focus on platforms that allow customers to consolidate their antiquated security activities and disparate security tools, as well as on evolving privacy and data regulations. Overall, the fintech market is expected to continue to grow and evolve in the coming months and years, with new technologies and business models emerging to meet changing customer needs and preferences.