Fintech Pulse.pdf

Global fintech investment fell to $107.8 billion in H1'22, with 2,980 deals, down from $111.2 billion and 3,372 deals in H2'21. The decline was driven by a drop in investment in the Americas and EMEA, while the Asia-Pacific region saw a new record high of $43.6 billion, driven by large M&A transactions.

Key trends in H1'22 include:
- Declining investment across most jurisdictions
- Shuttering of IPO window due to turmoil in public markets
- Ongoing strength of payments sector
- Increasing focus on automation and cybersecurity
- Growing diversity of jurisdictions attracting fintech investments

VC investment in fintech remains robust, with EMEA setting a new record high of $16.6 billion. However, downward pressure on valuations has brought IPO activity almost to a halt, and investors are becoming more discerning, focusing on profitability and cash flow.

The fintech market is expected to remain a strong focus for investors in H2'22 and into 2023, with a focus on areas adjacent to traditional financial services, such as open data and decentralized finance. The B2B space is also expected to be a high priority for investors.

Regional insights:
- Americas: saw a decline in fintech investment
- EMEA: set a new record high of $16.6 billion in VC funding
- Asia-Pacific: saw a new record high of $43.6 billion, driven by large M&A transactions

Fintech segments:
- Payments: accounted for the largest share of fintech investment in H1'22
- Insurtech: saw significant investment, with a focus on digital distribution and claims management
- Regtech: saw increased investment, driven by the need for compliance and risk management
- Blockchain/cryptocurrency: saw significant investment, despite market volatility
- Cybersecurity: saw increased investment, driven by the need for security and protection
- Wealthtech: saw significant investment, with a focus on digital wealth management and robo-advisory services.