Global fintech investment drops 31% in 2022 from record 2021 high
Global fintech investment fell in 2022 to $164.1 billion from a record high of $238.9 billion in 2021, a drop of 31%, according to consultancy KPMG’s Pulse of Fintech H2 2022 report.
Global fintech investment fell in 2022 according to KPMG
Despite the drop, it was still the third-best year for fintech investment ever and the second-best year for deal volume.
Global fintech investment dropped by more than 50% in H2 2022 compared to H1 2022, from $119.2 billion to $44.9 billion, reflecting a “sharp drop-off” in large deals.
KPMG says 2022 was a “challenging year” for fintech investment globally, with the Americas in particular hit hard. The region saw a $40 billion drop in investment compared to 2021.
However, deal volume was “incredibly robust” in 2022, the report notes, while seed deals saw record investment, “which bodes well for the long-term fintech pipeline”.
Judd Caplain, global head of financial services at KPMG International, says: “While fintech investment is likely to remain soft in the first half of the year, there’s little doubt that investors remain optimistic about many of the subsectors of fintech.”
Other favourable signs, such as record regtech investment and the Asia Pacific region seeing a peak in investment, as well as the breadth of countries attracting “significant” fintech deals, reflect a wider positive picture for fintech globally.
Regtech investment benefited from companies looking to manage increasingly complex compliance obligations, while conversely crypto and its associated exchanges saw “rapidly cooling investment” over the course of 2022.
Overall, despite a looming recession and volatile valuations, there continues to be plenty of money sloshing around in the fintech market globally, buoyed by cybersecurity and regtech, and the long-term picture remains strong.
