Accompanying a record year in deal value and volume, the United State’s overall fintech investment remained unshaken but sunk during H1’19, hitting $18.3 billion covering 470 deals, fueled in large part by an impressive first quarter of the year. This is according to Fintech report released by KPMG’s H1′ 2019.
The purchase of analytics company Dun & Bradstreet by an association of investors at a tune of $6.9 billion was the highest fintech agreement in the United States and worldwide during the first half of 2019.
M&A operation was especially unbeaten in the first half of 2019, accumulating for five of the top American deals. For instance, Viteos Fund Services: $330 million, IQMS: $425 million; PIEtech: $500 million; Investment Technology Group: $1 billion).
As a result of those deals, Robert Ruark, Fintech leader and Financial Service Strategy at KPMG LLP said:
“U.S. fintech investment is strong this year, and with several large M&A deals announced, it’s only going to grow. The payments space continues to be hot, demonstrating there’s plenty of long-term growth potential in the sector, including verticals like healthcare payments.”
Fintech based Venture Capital (V.C.) investment hit a target level in the U.S. during the second quarter of this year leapfrogged by $300 million financial rounds to Affirm and Carta.
The report proposed that besides the dip H1’19, fintech investment in the United States is expected to experience historical highs in the second half of 2019. The trio giant M&A deals were revealed in H1’19, involving the acquisition of Worldpay by Fidelity ($43 billion), acquisition of First Data by Fiserv ($22 billion), and the merger of Total System Services with Global Payments ($21.5 billion). These deals, if sealed in H2’19 as projected, could leapfrog both the United States and international fintech investment into new peaks.
Investment in insurtech encountered reduced growth during the first half of 2019, which could expose the intensified focus on consolidation in other parts of the insurance sector. The report proposed that there should be refreshed interest in the space once consolidation cools down. Wealthtech acquired passion during the first half of 2019 as firms strive to design scale and product diversity.
The report suggests that the payments space is projected to be a crucial sector of interest for investors together with B2B services. Security will also probably be an essential area, and internet gaming could further experience growth.
KPMG LLP is the independent United States Company of KPMG International Cooperative (KPMG International). KPMG International’s independent member companies operate in about 153 countries and territories, and approximately 207,000 professionals run their daily activities.
The Pulse of Fintech from KPMG is a biannual report explaining the primary trends as well as activities within the fintech industry worldwide, in the United States, and fundamental markets around the globe.