The merger of financial & technology services into fintechs seems to be a particularly promising investment object for investors – this is what KPMG’s “Pulse of Fintech 2021” report suggests.
Whereas investments in fintechs amounted to $125 billion in 2020, they already totaled $210 billion in 2021 – a growth rate of roughly 70 percent. The highly innovative American continent accounted for half of this, while another $77 billion was invested in the EMEA region (Europe, Middle East, Africa).
Fintechs in the payments, blockchain and crypto space are particularly popular with funders. Driving factors are strong demand for instant payments, embedded finance, and thriving cryptocurrencies.
Berlin-based direct bank N26 stands out as the most prominent German fintech investment. In 2021 it raised $900 million over the course of a funding round, $100 million more than its UK competitor Revolut.
The trend of investment increases is expected to continue in 2022, according to Bernd Oppold, KPMG partner. Investments will shift from the B2C to the B2B market in the future, as many financial services for private consumers have now matured and fintechs’ product portfolios will have to diversify.
You can view the “Pulse of Fintech” report here