KPMG – Pulse of Fintech, 1H 2024

The first half of 2024 proved challenging for the global fintech market due to geopolitical uncertainty and high interest rates. Total global investment declined from $62.3 billion to $51.9 billion, marking the lowest six-month period since H1’20. All regions experienced a drop in fintech investment, with EMEA seeing the sharpest decline. Only five $1 billion+ deals occurred in the first half of 2024, all buyouts. Payments continued to attract the largest share of fintech funding globally, while Regtech saw an increase in investment. AI remained a hot area of interest for investors, particularly in the US. Fintech deal volume increased in the Americas and ASPAC regions, but investment activity remained subdued overall. Interest rate cuts have been slow to materialize, affecting investment predictions for the second half of 2024. Despite challenges, investors are showing interest in AI and Regtech. It is crucial for financial institutions and fintech startups to focus on efficiency and profitability in the current environment. Overall, global fintech investment declined in the first half of the year, with M&A ahead of 2023's pace and PE investment lagging behind.