2021上半年金融科技报告（英）-72页_3mb

Summary of Pulse of Fintech H121

Core Content

The Pulse of Fintech H121 report provides a comprehensive overview of global fintech investment trends during the first half of 2021. It highlights the significant rebound in investment activity, driven by digital transformation, increased VC and PE funding, and a surge in M&A. The report also identifies key fintech segments, notable deals, and emerging trends that are expected to shape the sector in the second half of 2021.

Global Investment Overview

• Total Investment: Global fintech investment reached $98 billion in H1'21, with 2,456 deals, showing a V-shaped recovery from 2020 levels.
• VC Investment: Global VC investment in fintech reached $52 billion, close to the 2018 annual record. Major deals included Robinhood ($3.4B), Nubank ($1.5B), Klarna ($1.9B), and Toss ($410M).
• Corporate VC: Corporate-affiliated VC investment totaled $21 billion, with notable activity in Q1 and Q2.
• PE Investment: PE firms invested $5 billion in fintech in H1'21, surpassing the 2018 annual high. Examples include InvestCloud ($800M) and Fenergo ($600M).
• M&A Activity: Cross-border M&A deal value increased to $27.7 billion in H1'21, more than doubling the 2020 total. Major deals included London Stock Exchange Group acquiring Refinitiv ($14.8B) and Nasdaq acquiring Verafin ($2.7B).

Key Fintech Segments

1. Payments:

   • Maintained the top spot for investment, with $2.4B in SPAC mergers and $1.9B in VC funding.
   • Open banking and embedded finance are driving innovation and diversification.
   • Non-financial companies like IKEA, Walmart, and Walgreens are expanding into payments and financial services.

2. Insurtech:

   • Investment reached a record high, with $828M in SPAC mergers and $650M in raises.
   • Insurtech carriers and technology enablers both attracted significant investment.
   • Partnerships between big tech and insurance providers are increasing, such as Google with Munich Re.

3. Regtech:

   • Investment surged to $32.1B, with a strong focus on AML, KYC, and fraud protection.
   • Cryptocurrency-focused regtechs are gaining traction, including Bullish Capital.
   • Regulatory support in Asia-Pacific (e.g., Singapore and Hong Kong) is growing.

4. Wealthtech:

   • Investment exceeded 2020 levels, reaching $6.4B in H1'21.
   • Corporates like JP Morgan are acquiring wealthtech firms.
   • Robo-advisory is still in early stages, but infrastructure is maturing.

5. Blockchain & Cryptocurrency:

   • Investment more than doubled compared to 2020, reaching $23.6B in H1'21.
   • Institutional investors are showing increased interest, and the ecosystem is expanding.
   • Notable projects include eCNY in China, Facebook's Diem, and NFTs.

6. Cybersecurity:

   • Investment reached $14.5B, with a major deal being Nasdaq's $2.7B acquisition of Verafin.
   • Focus on AI, automation, and cloud-based security is growing.
   • Increased demand for passwordless security and fraud detection is expected.

Key Trends and Predictions for H2'21

• Growing Consolidation: Fintechs are consolidating to become dominant market players, both regionally and globally.
• M&A Surge: Expect more cross-border M&A and larger transactions as firms seek to expand capabilities and market share.
• SPAC Activity: SPACs may become a key exit strategy, with Grab's $40B SPAC merger as a notable example.
• B2B Services: Interest in B2B fintech solutions like digitized AR/AP is increasing.
• Partnerships: Big techs and fintechs are forming strategic partnerships to enhance offerings.
• Regulatory Focus: Continued scrutiny on cryptocurrencies and virtual assets is expected.
• Cybersecurity Innovation: More investment in AI-driven threat detection and passwordless security.
• ESG and Data-Driven Decisions: The use of data in ESG decision-making is becoming a central theme.

Featured Insights

• Jason Pau (Ant Group): Emphasizes the growing importance of cryptocurrencies and blockchain in the global fintech landscape.
• Ian Pollari (KPMG): Notes the record rebound in fintech investment and the role of digital transformation in driving this growth.
• Anton Ruddenklau (KPMG): Highlights the rise of crypto and the potential for SPACs to shape the sector.
• Chris Hadorn (KPMG): Points to embedded finance and open banking as key drivers in the payments sector.
• Pat Kneeland (KPMG): Discusses the maturity of wealthtech investment and the importance of personalization.
• Charles Jacco (KPMG): Notes the increased use of cloud-based security and the growing threat of ransomware.

Conclusion

The first half of 2021 marked a remarkable rebound in global fintech investment, with record deal volumes, increased funding, and expansive M&A activity. The blockchain and crypto space saw the most significant growth, while payments, insurtech, regtech, and cybersecurity remain key areas of focus. As the sector continues to evolve, consolidation, partnerships, and regulatory compliance will play a critical role in shaping its future.