Global fintech deals completed in 2019 witnessed a decline of around 4 percent in 2019, mainly due to the fall in deals completed in China.
The decline in the number of global fintech deals is mainly due to the decline in deals in China, which is a result of the US-China trade war. The number of fintech deals in China declined by 38 percent last year to 216 compared to 348 deals in 2018.
In 2019, a total of 3472 fintech deals were recorded which amounted to $53.3 billion, according to a report released by Accenture, the Dubin-headquartered multinational professional services company.
Global fintech deals in 2018 amounted to $55.3 billion.
Despite the slump in global fintech investment, 2019 marked the second-highest value of investments since 2013, according to Accenture.
Julian Skan, senior managing director at Accenture’s Financial Services said in a statement, “Despite strong demand for fintech globally, it’s likely that as startups become more mature, investments will flow to fast-growing economies, where there’s still a huge, unaddressed consumer and corporate market thirsty for innovations.”
Southeast Asian markets such as Hong Kong and Singapore saw fintech deal value grow nearly 100 percent and 40 percent respectively. Singapore recorded fintech deals worth $861 million in 2019 and reportedly, a major chunk of it went to payment companies. In 2018, Singapore recorded deals worth $365 million.
Fintech investment in the greater Asian region is expected to grow in 2020.
The US continued to lead the way in terms of fintech investments. According to the Accenture report, the US recorded a 54 percent surge in total deal value to $26.1 billion in 2019.