Investment activity in the FinTech segment topped $30bnin Q2 of 2018, exceeding Q1’s $25bn, as M&A activity sees a boost from private equity interest. The 2018 edition of KPMG’s ‘Fintech Pulse’ found that 2018 funding to date has already exceeded the total amount of fintech funding seen in 2017 and is well on pace to exceed 2015’s peak. Venture capital investment in the RegTech segment is on a strong trajectory, with 26 deals in H1 (compared to 54 for FY17). In terms of value, capital invested in RegTech during the first half of 2018 has already surpassed all of 2017. Should it keep up this pace for the remainder of 2018, it will set a record for the segment.
According to Fabiano Gobbo, Global Leader of Financial Risk Management KPMG International: “The regulatory landscape has evolved significantly in recent years, with the introduction of GDPR, PSD2 and MiFIDII/MIFIR creating more opportunity for risk, regulatory and compliance gaps to emerge. As a result, we are seeing financial institutions increasingly turning to RegTech to fill compliance gaps, save on the costs of compliance, get ahead of requirements before deadlines and detect enterprise risk before the regulators. This has led to an explosion in investment in RegTech firms over the past couple of quarters.”