GLOBAL investment in fintech has already surpassed 2017 figures and the UK is still attracting funds despite Brexit concerns, KPMG claims.
The consultancy’s Pulse of Fintech report found $57.9bn (£44bn) has been invested across 875 fintech deals in the first half of 2018, up from the $38.1bn invested in total last year.
UK fintech accounted for more than half of Europe’s contribution, at $16bn of the $26bn from the continent.
This was helped Vantiv’s acquisition of WorldPay for $12.9bn.
The US raised $14bn, while Africa contributed $16.8bn, according to the report.
KPMG also predicted that Open Banking will encourage more deals.
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“Open Banking in particular is expected to spawn a wide range of activity — both from traditional institutions looking to partner with fintechs able to process and leverage their data and from fintechs able to use Open Banking to extend their value propositions,” KPMG said.
“Over time, we may also see increasing participation from non-financial services companies, such as communications companies, energy providers and retailers interested in leveraging open banking as a means to extend their reach into financial services.”
Anton Ruddenklau, global co-lead for KPMG Fintech, said 2018 has got off to an exceptionally strong start for the fintech sector.
“In addition to the bullish levels of investment the UK has attracted, our fintech sector has also benefitted from the government’s continued support with the launch of the fintech sector strategy,” he said.
“Fintech investment is always fairly volatile but the UK tends to enjoy higher highs and lower lows than most, the blockbuster acquisition of WorldPay by Vantiv certainly means the first half of 2018 was a real high for UK fintech investment.
“Whilst the rest of the year will struggle to replicate the first half, I’m optimistic that we will remain in robust shape.”