• Global fintech market resilient in H1'22 at US$107.8 billion in investment
• Asia-Pacific sees record US$41.8 billion of fintech investment in H1'22 - ahead of the US$39.4 billion seen in the Americas
• Global VC investment drops to US$52.6 billion despite record US$16.6 billion in VC funding in EMEA
• Singapore saw a modest increase in number of fintech deals funded across payments, cryptocurrencies, insurtech, wealthtech, and cybersecurity in H1'22 compared to H2'21. Most funded were Payments and Cryptocurrency deals.

SINGAPORE - Media OutReach - 6 September 2022 - Singapore's fintech funding has hit a three year high for first-half-year (H1) performance snagging a combined deal value of US$2.14 billion across venture capital (VC), private equity (PE) and mergers & acquisitions (M&A), according to KPMG's Pulse of Fintech H1'22 report. Compared to the same period last year, funding shot up 64 percent from the combined deal value US$1.31 billion achieved in H1'21, signalling continued confidence in the potential of fintech developments in driving growth and innovation for financial services. On a half-yearly basis, Singapore's fintech funding saw a 15 percent drop in H1'22 compared to the US$2.51 billion achieved in H2'21 due to greater caution by investors in reaction to market developments. Cryptocurrency funding in Singapore dipped by more than half its value from US$1.3 billion in H2'21 to US$539.1 million in H1'22 – this comes after record crypto investment inflows in 2021. Crypto attracted smaller deal sizes but a larger number of deals with a significant amount of startup funding (two thirds from seed and early-stage VC funding). The crypto space also saw a small amount of consolidation with seven exit or merger deals. Regtech also saw a drop in funding from US$66.63 million in H2'21 to US$23.34 million in H1'22. Investors chose to channel funds into payments – an area that has been demonstrating stable growth and developments, alongside more cross-border initiatives being forged. Hence, cumulative deal value for payments in Singapore close to tripled from US$263 million in H2'21 to US$946.61 million in H1'22. H2'21 was the high watermark for funding and while H1'22 saw a lower cumulative deal value, funding in Singapore still remains healthy. Furthermore, H1'22 saw a modest increase in the number of fintech deals funded across payments, cryptocurrencies, insurtech, wealthtech and cybersecurity as compared to H2'21 (see Figure 1). Figure 1: Singapore's fintech deals in H1'22 and H2'21

H1'22		H2'21
Fintech Area	No. of deals	Cumulative Deal Value (millions)	No. of deals	Cumulative Deal Value (millions)
Reg Tech	4	US$23.34	10	US$66.63
InsurTech	4	US$34	3	US$1.20
WealthTech	2	US$200	1	US$29.60
PropTech	3	US$4	3	US$8.20
Cybersecurity	2	US$13.20	0	US$0.00
Payments	13	US$946.61	10	US$263
Cryptocurrency	59	US$539.10	50	US$1,300.40

Source: KPMG's Pulse of Fintech H1'22 report The half-yearly drop in Singapore was mirrored globally with investments in fintech lowered from US$111.2 billion across 3,372 deals in H2'21 to $107.8 billion across 2,980 deals in H1'22. However, the Asia-Pacific region saw total fintech investment more than double in H1'22 - from US$19.2 billion in H2'21 to a record US$41.8 billion in H1'22 - with the US$27.9 billion acquisition of Australia-based Afterpay by Block accounting for more than half of this total. Meanwhile, both the Americas and EMEA regions saw fintech investment dip - from US$59.7 billion to US$39.4 billion and from US$31.6 billion to US$26.6 billion respectively. In all, the Asia-Pacific region attracted US$41.8 billion, while the Americas attracted US$39.4 billion – of which the US accounted for US$34.9 billion, and the EMEA region attracted US$26.6 billion. "2021 was a banner year for the fintech market globally, which makes the first half of 2022 seem slow by comparison," said Anton Ruddenklau, Global Head of Financial Services Innovation and Fintech, KPMG International. "But in reality, many sectors within the fintech market have shown strength and resilience. While the fintech market will likely be quite challenged in H2'22 due to global uncertainty and broader economic concerns, fintechs will likely continue to attract significant attention and investment - if at lower levels than last year." Venture capital funding falls as investors pull back Venture capital...