KPMG’s Pulse of Fintech report reveals a significant decline in global fintech investment, reaching its lowest level since 2017.
Highlights:
- Global fintech investment dropped to $95.6 billion in 2024, the lowest since 2017.
- The number of fintech deals also fell, with only 4,639 deals completed in 2024.
- Despite the overall decline, there was a slight increase in investment from Q3 to Q4 2024.
Story: According to KPMG’s bi-annual Pulse of Fintech report, global fintech investment fell to a seven-year low in 2024, reaching just $95.6 billion across 4,639 deals. This decline marks the lowest level of investment since 2017, driven by a combination of macroeconomic challenges, geopolitical conflicts, and concerns about valuations and exits. The second half of the year saw a notable slowdown, with investment dropping from $51.7 billion in H1 2024 to $43.9 billion in H2 2024. However, there was a glimmer of optimism as investment rose from $18 billion in Q3 2024 to $25.9 billion in Q4 2024.
Regionally, the Americas attracted the largest share of fintech investment, with $63.8 billion across 2,267 deals, followed by the EMEA region with $20.3 billion and the APAC region with $11.4 billion. The payments sector received the most investment, totaling $31 billion, followed by digital assets and currencies at $9.1 billion, and regtech at $7.4 billion. Despite the challenging year, there are positive signs for 2025, with increased deal activity and interest rate cuts in various jurisdictions potentially boosting investment.
