Robust fintech investment forecast in U.S.

By Pete Settles

Fintech Investment in the U.S. remained strong but slowed in the first half of 2019, reaching $18.3 billion across 470 deals, powered, in large part, by a strong first quarter, according to KPMG’s newly released Pulse of Fintech report.

One of the report’s authors, Robert Ruark, KPMG’s fintech leader in the U.S., believes that fintech investment is set up for a strong second half of the year and could see record levels of investment, with several large M&A deals set to close.

 

Ruark expects that the payments space will continue to be hot, demonstrating there’s plenty of long-term growth potential in the sector, including verticals like healthcare payments.

U.S. fintech investment is strong this year, and with several large M&A deals announced, it’s only going to grow,” said Ruark.  

A few of the report’s highlights include:

  • 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.
  • Fintech-focused Venture Capital (VC) investment reached a record level in the U.S. during the second quarter, bolstered by $300 million funding rounds to Carta and Affirm.
  • 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.
  • Wealthtech gained traction as companies worked to develop scale and product diversity.
  • The payments space is expected to be a key area of focus for investors, along with B2B services during the second half of the year. 
  • Security will also likely be a hot area, and online gaming could also see growth.

If you would like to speak with Ruark to get more of his insights on fintech investment in the U.S., please contact Pete Settles @pgsettles or psettles@kpmg.com.

Other articles that might interest you






Pete Settles

Pete Settles

Director, Corp. Comm., Financial Services, KPMG (US)

+1 201-505-6065


Related content

Biography

Robert Ruark

Robert Ruark

Principal, Corporate Strategy, KPMG (US)

+1 704-371-5271