Riyadh: Global financial technology (Fintech) funding rose to $111.8 billion in 2018, up 120 percent from $50.8 billion in 2017, fueled by mega M&A and buyout deals, according to the KPMG Pulse of Fintech report.
Deals in the second half of 2018 were topped by Blackstone’s $17 billion investment in Refinitiv, the $3.5 billion acquisition of Blackhawk Network by Silver Lake and P2 Capital Partners, the $3.4 billion buyout of VeriFone by Francisco Partners, and the $2.2 billion acquisition of iZettle by PayPal.
Fintech deal volume declined markedly in the second half of 2018, but still reached 2,196 deals for the year, up from 2,165 in 2017. Increasing geographic diversity of Fintech VC funding continues to help drive deal volume, even as larger Fintech hubs see more concentrated investment in larger deals.
“The growing deal sizes, higher levels of M&A activity and the geographic spread of deals all highlight the increasing maturation of the Fintech sector on a global scale,” said Islam AL Bayaa Head of Advisory at KPMG Al Fozan & Partners in Saudi. Specialized reports are showing an increasing trend in Fintech M&A transaction compared to other industries, in which the number of Fintech related transactions have exceeded the number of transactions in e-commerce and IT.
He added: “Fintech investment expected to remain strong in 2019 despite increasing uncertainty, while geopolitical volatility and trade concerns could put a damper on fintech investment in 2019, the strong diversity of global fintech hubs, and the strengthening of subsectors, should contribute to continued growth. AI and automation are expected to remain very hot for areas technology investors”.
In Saudi Arabia, the Fintech ecosystem is continuing to mature at an accelerated pace in line with the Vision 2030 to promote entrepreneurship and enhance Fintech services, said Islam AL Bayaa.
"Saudi Arabian Monetary Authority's (SAMA) 'FintechSaudi' and the recent decision to set up 'Sandbox' regulatory environment will have a positive impact on Fintech investment, promote a culture of innovation in financial services and enable foreign and regional investors to invest in companies specialized in this Fintech field.”
"The outlook for Fintech investment in 2019 for the MENA region, particularly Saudi Arabia, is positive as nearly two-thirds of the population is under the age of 30 and highly tech-savvy. We expect growing investor interest in the Fintech offerings over time which will transform the Kingdom as the Middle East and North Africa's (MENA) primary market," Islam AL Bayaa concluded.
-Ends-
© Press Release 2019Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
