Pulse of Fintech H2 2023 (KPMG Switzerland)

Summary

• Total global fintech investment dropped to $113.7 billion across 4,547 deals in 2023.p.2
• The Americas attracted the largest share of global fintech funding in 2023 with $78.3 billion across 2,136 deals.p.5
• Global VC investment in fintech fell significantly from $88.8 billion in 2022 to $46.3 billion in 2023.p.5
• The payments subsector maintained the largest share of fintech funding globally in 2023 at $20.7 billion.p.2
• AI-focused fintech companies attracted $12.1 billion in total investment in 2023.p.6
• Regtech funding plummeted to a six-year low of $2.6 billion in 2023.p.19

Key insights

1. The US dominated global fintech funding during 2023, attracting two-thirds of the world's total funding at $73.5 billion.p.2
2. Proptech funding reached a record high of over $13.4 billion in 2023, primarily driven by the $11.7 billion acquisition of Black Knight.p.5
3. Total investment in crypto and blockchain plummeted from over $24 billion in 2022 to less than $8 billion in 2023.p.25
4. ESG-focused fintech funding reached $2.3 billion in 2023, marking its second-highest annual total on record.p.28
5. Annual global cybersecurity investment dropped for the second straight year to $1.3 billion in 2023.p.21
6. Global investment in wealthtech fell below $200 million in 2023 due to macroeconomic pressures and high interest rates.p.23
7. Fintech investment in the EMEA region dropped to its lowest annual total in seven years at $24.5 billion in 2023.p.39