(Logo via KPMG)

U.S. Fintech Investment Still Strong in First Half of 2019 at $18.3 Billion Invested Across 470 Deals: KPMG Report

Originally Posted on kpmg.com

Following a record year in deal volume and value, overall fintech investment in the U.S. remained strong but dipped during H1’19, reaching $18.3 billion across 470 deals, powered, in large part, by a strong first quarter of the year, according to KPMG’s H1’ 2019 Pulse of Fintech report.

The full report can be found at home.kpmg/fintechpulse.

Follow the conversation on @KPMGUS_News using the hashtag: #fintech

The $6.9 billion buyout of business analytics firm Dun & Bradstreet by a consortium of investors was the top fintech deal in the U.S. and globally during the first half of the year.

M&A activity was particularly strong in the first half of 2019, accounting for five of the top deals in the U.S. (i.e. Investment Technology Group: $1 billion; CSI Enterprises: $600 million; PIEtech: $500 million; IQMS: $425 million; and Viteos Fund Services: $330 million).

“U.S. fintech investment is strong this year, and with several large M&A deals announced, it’s only going to grow,” said Robert Ruark, Financial Services Strategy and Fintech leader, KPMG LLP. “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-focused Venture Capital (VC) investment reached a record level in the U.S. during Q2’19, bolstered by $300 million funding rounds to Carta and Affirm.

The report suggests that despite the dip in H1’19, fintech investment in the US is poised to see record-breaking highs in the second half of the year. Three massive M&A deals were announced in H1’19, including Fiserv’s acquisition of First Data ($22 billion), Fidelity’s acquisition of Worldpay ($43 billion), and the merger of Global Payments with Total System Services ($21.5 billion). These deals, if they close in H2’19 as expected, could propel both the U.S. and global fintech investment into new highs.

Insurtech slows while wealthtech grows during the first half of 2019
Investment in insurtech saw a slowdown during the first half of the year, which could reflect the increased focus on consolidation in other parts of the insurance industry. The report suggests there should be renewed interest in the space once consolidation settles down. Wealthtech gained traction during H1’19 as companies worked to develop scale and product diversity.

Trends to watch in H2’ 2019
The report says the payments space is expected to be a key area of focus for investors, along with B2B services. Security will also likely be a hot area, and online gaming could also see growth.

Latest News

5 Biggest News Stories of the Week: October 6

As the saying goes, the news never stops — but there’s a lot of it out there, and all of it doesn’t always pertain to our readers. In this weekly news roundup, we’ll cover the top news stories that matter most to our diversity focused audience. 1. The Dollar Divide…

WOCA 2022 Research: How to Improve Representation of Women of Color in the Workplace 

Capital One and DiversityInc shared the results of their collaborative research report on women of color in the workplace at the 2022 annual Women of Color and Their Allies event held in Louisville on Sept. 21 in conjunction with Humana. Dr. Chris Parker, Head of Research & Data, DiversityInc, confirmed…

WOCA 2022: Executive Leaders Share Stories of Allyship for Women of Color

One of the best indicators of an organization’s success around diversity, equity and inclusion (DEI) is leadership accountability for DEI. At our 2022 Women of Color and Their Allies event, DiversityInc’s Head of Strategic Partnerships, Anita Ricketts, was joined on stage by leaders who are holding themselves and their contemporaries…

The Dollar Divide

Too Poor to Die: The Rising Cost of Funerals 

Death is expensive.  For more than two decades, I have extensively written and reported about money-related content and even I was surprised at the cost of my mother’s funeral.  The median cost of a funeral with a viewing and burial is approximately $7,848. That doesn’t include the cost of the…