2020下半年金融科技报告（英文）-2021.03正式版

PulseofFintech

H2’20

February2021

home.kpmg/fintechpulse

2020wasagamechanger

AsyouwillseeinthiseditionofPulseofFintech,wordsbecameactionastheglobalpandemicmadedigitalizationacriticalpriorityforbusinessesofeveryshapeandsize.Thesamecanbesaidforincumbentfinancialinstitutions,andmostimportantly,forconsumers.Considerafewofthekeytrendswehaveseenthisyear:

—Acceleratingdigitaladoption,includingthedemandfore-paymentssolutionsandcontactlessbankingservices.

—Radicallyshiftingcustomerbehaviors,includingtheuseofe-commerceplatforms,digitalcustomerservicechannelsande-wallets.

—Growingfintechinvestmentsandpartnershipsfromcorporateslookingtoacceleratetheirtransformationefforts.

—MaturefintechsandbigtechsembracingM&Atogrowgeographicallyoraddnewformsofvaluefortheirconsumers.

—Increasingattentionfromgovernmentsandregulators

astohowfintechisevolvingandwhatneedstobedonetosupportthechanges.

ThechangeswehaveseenthisyearwillnotlikelystopwhenCOVID-19wanes.Aroundtheworld,peopleandbusinessesrecognizetheimportanceofagilityandresponsiveness.Companiesacrossthefinancialservicesspectrumnowunderstandwhatisatstakeiftheydonotembracedigitalinnovation.

WhetheryouarethefounderofafintechortheCEOofanincumbentfinancialinstitution,consider2020asthegamechangerthatitwas.

AsyoureadthiseditionofPulseofFintech,askyourself:

Howcanweusethisonce-in-a-lifetimemomenttocreatethefuturewedesire?

KPMGFintechprofessionalsincludepartnersandstaffinover50fintechhubsaroundtheworld,workingcloselywithfinancialinstitutions,digitalbanksandfintechcompaniestohelpthemunderstandthesignalsofchange,identifythegrowthopportunitiesanddevelopandexecutetheirstrategicplans.

IanPollari

GlobalCo-LeaderofFintech,

PartnerandNationalSectorLeader,

Banking,

KPMGAustralia

AntonRuddenklau

GlobalCo-LeaderofFintech,

PartnerandHeadofFinancial

ServicesAdvisory,

KPMGinSingapore

AllcurrencyamountsareinUS$unlessotherwisespecified.DataprovidedbyPitchBookunlessotherwisespecified.

#fintechpulse

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Contents

Global

insights

—Globalfintech

investment

analysis

04

(VC,PE,M&A)

2021

—Top10deals

—Fintechtrendsin

Featuredinterview

—BillBorden,

26

—Microsoft

Fintech

segments

—Payments

—Insurtech

—Regtech

—Wealthtech

—Blockchain/cryptocurrency

13

—Cybersecurity

Regionalanalysis

29

32

—Americas

—EMEA

—ASPAC

Spotlightarticle

—DataManagement:acornerstoneofeffectivedatastrategies

Globalinsights

|

Fintechsegments

|

Featuredinterview

|

Spotlightarticle

|

Regionalinsights

Globalfintechinvestmentsin2020recorded

$105.3Bwith2,861deals

#fintechpulse

4

Globalinsights

|

Fintechsegments

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Featuredinterview

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Spotlightarticle

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Regionalinsights

Globalinsights

H2’20globalfintechinvestmentmorethandoubleH1’20total

AftertheglobalpandemicbroughtmanydealstoahaltinH1’20,H2’20reversedthetrendasinvestorsandfintechslearnedtodobusinessinanewnormal.

Fintechinvestmentdownsignificantlyin2020,yetH2’20showsstrength

Fintechinvestmentdroppedfrom$168billionin2019to$105billionin2020,inpartduetothelackofmegaM&Adealslike2019’s$42.5billionacquisitionofWorldPaybyFIS.Afterasoftstarttotheyear,H2’20saw$71.9billioninfintechinvestmentacrossglobalM&A,PEandVCdeals—morethandoublethe$33.4billionseeninH1’20.

USdrivesH2’20reboundinglobalM&A

M&Aactivitygrewfrom$10.9billioninH1’20toover$50billioninH2’20—ledbythe$22billionacquisitionofTDAmeritradebyCharlesSchwab.IncreasingM&AactivityintheUSdrovetherebound,withtheUSaccountingfornineofthetoptenM&Adeals,includingTDAmeritrade,CreditKarma($7.1billion),Vertafore($5.3billion),IberiaBank($2.5billion)andAvaloq($2.2billion).

“We’regoingtoseelargerandmorewide-spreadM&Ainfintechin2021–whetheritisfintechsseekingtoachieveapositionofdominantscaleinasegmentorgeographyor

GlobalVCinvestmentreachessecond-highestlevelever

Amidstthepandemic,fintechsattracted$42.3billioninVCinvestment,inayearthatendedsecondonlyto2018—whenAntFinancialraised$14billionintheworld’slargestprivatefinancingroundever.US-basedwealthtechRobinhoodattractedthelargestVCinvestmentinH2’20,raising$1.3billionacrosstwodealsinH2’20:a$600millionraiseinJulyanda$668millionraiseinOctober.

DigitalbanksseebigdealsinH2’20

DigitalbanksattractedanumberofVCmegaroundsinH2’20,withSweden-baseddigitalbankKlarnaraising$650million,Revolutraising$580million,andUS-basedChimeraising$533.8million.

Unicornbirthsspantheglobe

InH2’20,fintechunicornswerebornintheUS(NextInsurance,Chainalysis,B,Forter,andothers),China(Waterdrop),Canada(Wealthsimple),India(Razorpay),theNetherlands(Mollie),andBrazil(Creditas).Twocountriesalsosawtheirfirstfintechunicorns:SaudiArabia(STCPay)andUruguay(dLocal).Thediversityoftheseunicornsisatestamenttotherapidlyevolvingglobalfintechecosystem.

incumbentsneedingtoacceleratetheirdigitaltransformationagenda.

IanPollari”GlobalFintechCo-Leader,

Partner,NationalBankingLeader,KPMGAustralia

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#fintechpulse

5

Globalinsights

Globalinsights

|

Fintechsegments

|

Featuredinterview

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Spotlightarticle

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Regionalinsights

Governmentsprioritizingfintechadvances

Fintechwasapriorityforgovernmentsandregulatorsaroundtheworldin2020.DuringH2’20:

—ThePeople’sBankofChinabeganareal-worldtrialinonedistrictofShenzheninOctoberforitscentralbankdigitalcurrency—thedigitalrenminbi.

—TheMonetaryAuthorityofSingaporeissueditsfirsttwodigitalbankinglicensestotheGrab-SingtelconsortiumandtotechgiantSEA,inadditiontotwodigitalwholesalebanklicensestoAntGroupandaconsortiumincludingGreenlandFinancialHoldingsGroupCo.Ltd,LinklogisHongKongLtd,andBeijingCo-operativeEquityInvestmentFundManagementCo.Ltd.

—Agroupofcentralbanks,includingtheFederalReserve,EuropeanCentralBankandBankofEnglandsetoutaframeworkandrequirementsforofferingcentralbankdigitalcurrencies.1

Corporatesembracingfintechimperative

Corporateparticipationinventureinvestmentinfintechwasincrediblystrongin2020,helpingdrive$21billionglobally,includingover$9billioninH2’20.Overthenextcoupleofyears,corporateinvestmentisexpectedtogrowsignificantlyasmorelegacyfirmscontinuetotakeactiononthewake-upcallprovidedbyCOVID-19byundertakingacquisitions,makingCVCinvestmentsandforgingcollaborativepartnerships.

“Thisyear,theUSmarkethasreallyacceleratedawayfromtherestofthefintechmarket.Whilstthere’sbeeninterestingactionfromGojekinAsiaandonthedigitalbankingfrontinEurope,therealityisthat2020hasbeenayearwheretheUSanddigitalpaymentscompanieshavereallyexcelled.”AntonRuddenklau

GlobalFintechCo-Leader,PartnerandHeadofFinancialServicesAdvisory,KPMGinSingapore

/2020/10/09/central-banks-lay-out-a-framework-for-digital-currencies.html

#fintechpulse#fintechpulse

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66

Globalinsights

|

Fintechsegments

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Featuredinterview

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Spotlightarticle

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Regionalinsights

Globalinsights

Topfintechtrendsfor2021

From2020,welearnedthatwithgreatchallengecomesgreatopportunity;andnowin2021,weexpectareboundinfintechactivity.

HereareourtoppredictionsforfintechinH1’21.

1.

Paymentswillstay

Investmentsinthepaymentsspacewillbehotaroundtheworld,

particularlyinlessmaturemarkets.Wewilllikelyseelargepayments

playersconsolidatingtodriveglobalscale,whichwilldrivenewmega

M&Adeals.

ThepipelineoffintechIPOsgrowglobally

4.GiventhesuccessfulIPOsofanumberoftechunicornsin2020,IPOswilllikelybeontheagendaforanumberofmaturefintechunicornsin2021.ManylocalexchangesarealsomakingthemselvesmuchattractivefortechnologylistingstocompetewithNASDAQ.

2.

EmbeddedfinancewillemergeasthenewNorthStar

5.

M&Awillmakeabigrebound

Therewilllikelybestronggrowthinembeddedfinance(e.g.,buynow

M&Aactivitymayseearesurgence,drivenbyincumbentslookingto

andpaylaterprograms,embeddedinsuranceoptions)andbanking-as-

acceleratetheiracquisitionofdigitalcapabilitiesandbyfintechs

a-serviceofferingsandinrelatedpartnerships.

lookingtoscaleastheylooktogrowgloballyorextendintonearby

adjacencies.

3.

Newmarketsforfintechwillemerge

6.

Crypto-assetswillbecomemainstream

WhiletheUSshouldcontinuetodominatefintechinvestmentglobally,

Theevolutionofdigitalledgertechnologiescombinedwith

fintechhubswilllikelycontinuetoevolveandgrowespeciallyinCentral

stablecoinsandincreasinginterestincentralbankdigitalcurrencies

andNorthAsiaandSouthAmerica.

maybegintoopenuptremendousopportunitiesinthecross-border

paymentsspace.

#fintechpulse

7

Globalinsights

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Fintechsegments

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Featuredinterview

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Regionalinsights

Globalinsights

Afterslowstart,2020reboundstohealthyfinish,poweredbysurgeinventurecapital

Totalglobalinvestmentactivity(VC,PEandM&A)infintech

2017–2020*

3,712 3,472

2,986

2,861

$59.2

$145.9

$168.0

$105.3

2017

2018

2019

2020*

Dealvalue($B)

Dealcount

Globalventureactivityinfintech

2017–2020*

2,944

2,834

2,375

2,348

$23.4

$53.8

$40.1

$42.3

2017

2018

2019

2020*

Dealvalue($B)

Dealcount

GlobalM&Aactivityinfintech

2017–2020*

672

562

541

418

$34.7

$89.9

$129.7

$61.3

2017

2018

2019

2020*

Dealvalue($B)

Dealcount

GlobalPEgrowthactivityinfintech

2017–2020*

98 98

76

70

$1.1

$4.7

$3.0

$2.7

2017

2018

2019

2020*

Dealvalue($B)

Dealcount

Source:PulseofFintechH2’20,GlobalAnalysisofInvestmentinFintech,KPMGInternational(dataprovidedbyPitchBook),*asof31December2020.

#fintechpulse

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8

Globalinsights

|

Fintechsegments

|

Featuredinterview

|

Spotlightarticle

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Regionalinsights

Globalinsights

Cross-borderbuyerspulledbackonspending,CVCsboostedoverallventureinvestment

Globalcross-borderM&Aactivityinfintech

2017–2020*

204

163

163

147

$21.4

$56.4

$59.5

$8.6

2017

2018

2019

2020*

Dealvalue($B)

Dealcount

GlobalmedianM&Asize($M)infintech

2017–2020*

$60.0

$55.0

$43.5

$36.8

2017 2018 2019 2020*

GlobalVCactivityinfintechwithcorporateparticipation

2017–2020*

678 687

630

511

$7.5

$33.7

$20.2

$21.5

2017

2018

2019

2020*

Dealvalue($B)

Dealcount

Globalmedianpre-moneyvaluations($M)bystageinfintech

2017–2020*

$135.0

$90.0

$76.5

$70.3

$14.0

$20.0

$17.4

$24.8

$5.4

$7.0

$7.0

$5.5

2017

2018

2019

2020*

Angel&seed

Early-stageVC

Late-stageVC

Source:PulseofFintechH2’20,GlobalAnalysisofInvestmentinFintech,KPMGInternational(dataprovidedbyPitchBook),*asof31December2020.

#fintechpulse

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9

Globalinsights

Volumedeclinesoverallamidglobalpressures

Totalglobalinvestmentactivity(VC,PEandM&A)infintech

2017–2020*

$120

1200

$100

1000

$80

800

$60

600

$40

400

$20

200

$9.9

$15.4

$12.1

$21.8

$33.5

$40.3

$30.5

$41.6

$24.8

$15.0

$108.3

$19.9

$19.7

$13.7

$21.3

$50.6

$0

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2017

2018

2019

2020

Dealvalue($B)

Dealcount

Source:PulseofFintechH2’20,GlobalAnalysisofInvestmentinFintech,KPMGInternational(dataprovidedbyPitchBook),*asof31December2020.

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Globalinsights

|

Fintechsegments

|

Featuredinterview

|

Spotlightarticle

|

Regionalinsights

GlobalM&Aactivityinfintech

2017–2020*

$120.0 250

$100.0

200

$80.0

150

$60.0

100

$40.0

$20.0

50

$5.8

$9.4

$6.3

$13.2

$23.5

$16.0

$20.5

$29.9

$16.3

$5.7

$97.3

$10.4

$8.1

$2.8

$10.7

$39.7

$0.0

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2017

2018

2019

2020

Dealvalue($B)

Dealcount

#fintechpulse

10

Globalinsights

Corporatesstillboostoverallventurefunding

Globalventureactivityinfintech

2017–2020*

$25.0

900

800

$20.0

700

600

$15.0

500

400

$10.0

300

$5.0

200

100

$3.9

$5.5

$5.5

$8.5

$11.9

$22.6

$9.6

$9.7

$7.9

$8.8

$9.7

$13.7

$11.7

$10.1

$10.3

$10.2

$0.0

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2017

2018

2019

2020

Dealvalue($B)

Dealcount

Angel&seed

Early-stageVC

Late-stageVC

Source:PulseofFintechH2’20,GlobalAnalysisofInvestmentinFintech,KPMGInternational(dataprovidedbyPitchBook),*asof31December2020.

Globalinsights

|

Fintechsegments

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Spotlightarticle

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Regionalinsights

GlobalVCactivityinfintechwithcorporateparticipation

2017–2020*

$20.0

250

$18.0

$16.0

200

$14.0

$12.0

150

$10.0

$8.0

100

$6.0

$4.0

50

$2.0

$2.0

$2.0

$2.1

$7.5

$19.0

$3.2

$4.1

$3.2

$3.4

$3.9

$9.6

$7.3

$5.2

$5.2

$3.9

$1.5

$0.0

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2017

2018

2019

2020

Dealvalue($B)

Dealcount

#fintechpulse

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11

Globalinsights

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Fintechsegments

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Featuredinterview

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Regionalinsights

Globalinsights

Top10globalfintechdealsinthe2020

1.

TDAmeritrade—$22B,Omaha,US—Wealth/investmentmanagement—M&A

2.

CreditKarma—$7.1B,SanFrancisco,US—Lending—M&A

3.

Vertafore—$5.35B,Denver,US—Institutional/B2B—M&A

103

16

4.

HoneyScience—$4B,LosAngeles,US—Payments/transactions—M&A

7

2

88

5.

Gojek—$3B,Jakarta,Indonesia—Payments/transactions—SeriesF

4

IberiaBank—$2.54B,Lafayette,US—Banking—M&A

5

Avaloq—$2.3B,Zurich,Switzerland—Institutional/B2B—M&A

Paya—$1.3B,Dunwoody,US—Payments/transactions—Reversemerger

OpenLending—$1.3B,Austin,US—Lending—Reversemerger

Galileo—$1.2B,SaltLakeCity,US—Payments/transactions—M&A

Source:PulseofFintechH1’20,GlobalAnalysisofInvestmentinFintech,KPMGInternational(dataprovidedbyPitchBook),*asof31December2020.

**Grab’sroundisclassifiedaslate-stageVCuntilfurtherdocumentationconfirmingitisSeriesIisavailable.

***Navi’sroundisclassifiedasangelgiventhefactaconsortiumofindividualinvestorswasresponsibleforthefunding.

#fintechpulse

12

Globalinsights

|

Fintechsegments

|

Featuredinterview

|

Spotlightarticle

|

Regionalinsights

Fintechsegments

—Payments

—Insurtech

—Regtech

—Wealthtech

—Blockchain/cyrptocurrency

—Cybersecurity

#fintechpulse

13

Fintech—Payments

Paymentssectorleadsfintechinvestmentin2020

Totalglobalinvestmentactivity(VC,PEandM&A)inpayments

2017–2020*

417 422

411

404

$17.7

$52.4

$105.9

$19.7

2017

2018

2019

2020*

Dealvalue($B)

Dealcount

Source:PulseofFintechH2’20,GlobalAnalysisofInvestmentinFintech,KPMGInternational(dataprovidedbyPitchBook),*asof31December2020.

Globalinsights

|

Fintechsegments

|

Featuredinterview

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Spotlightarticle

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Regionalinsights

Theglobalpandemichasonlyenhancedinterestinthepaymentsspacegiventherapidaccelerationofdigitaltrendsanddemandforalternativepaymentsmodels—drivingactivityinthechallengerbankingspaceandintheB2Bsector.

DespitethesteepdeclineintotalinvestmentcausedbyalackofmultibilliondollarM&Adealssuchasthe2019acquisitionofWorldpaybyFIS,thehighnumberofdealsseenin2020highlightstheattractivenessofthesectortoinvestors.

COVID-19ignitingthepaymentssector

Theglobalpandemichasonlyenhancedinterestinthepaymentsspacegiventherapidaccelerationofdigitaltrendsanddemandforalternativepaymentsmodels,drivingactivityinthechallengerbankingspaceandintheB2Bsector.

Increasinggeographicdiversity

Paymentswasahotareaofinvestment,withanincreasingnumberofcountriesattractinglargedeals,includingtheUS($1.3billion—Paya,$530million—Chime),Sweden($650million—Klarna),theUK($580million—Revolut)andPoland($587million—PolskieePlatnosc)inH2’20.$200millionraisesbySTCPayanddLocalledthemtobecomethefirstfintechunicornsinSaudiArabiaandUruguay.

#fintechpulse

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14

Globalinsights

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Regionalinsights

Fintech—Payments

Growingfocusonembeddedpaymentssolutions

Bigtechplatformcompaniesandothernon-financialservicescompaniesareincreasinglyofferingarangeofembeddedfinancialservicesofferings.DuringH2’20,StripeannouncedpartnershipswithGoldmanSachs,BarclaysandCitigrouptoprovideembeddedfinancialandpaymentscapabilitiestousersviatheirplatform.2

B2Bpaymentsgainingtractiondespitecomplexity

B2Bservicesisseenasatargetrichandunderservicedareatoinvestors,giventheneedsofsmallbusinessesrelatedtoliquidity,funding,moneymovement,andotherbankingservices.WhilemanyB2Bfocusedpaymentscompaniesinitiallyofferedsimplisticproductslikeinvoicingorremittanceexchange,theyarenowworkingtoexpandtheircapabilitiesandvaluetosupportend-to-endtransactions.

Whattowatchforin2021

—HealthymarketforIPOexitsofpaymentsfirmsandreboundingM&A

—Growthofbanking-as-a-serviceplatformsandembeddedpaymentssolutions

—Increasingfocuson“buynow,paylater”services

—Enhancedfocusonopenbankingrelatedopportunities

/article/stripe-banking-idUSL4N2IJ3PL

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“Thepaymentsspacewilllikelycontinuetobeabigfocusforinvestorsaroundtheworld.Openbanking,inparticular,willdriveincreasinglyintegratedpaymentssolutions.It’scurrentlymandatedorregulatedinanumberofjurisdictions,primarilyinEMEA,butwe’regoingtostarttoseeitmakeitswayacrossthepondandintoNorthAmerica,whichwillfurthersupportandfacilitatebanking-as-a-serviceplatforms.”

ChrisHadorn

GlobalLeaderofPayments,

Principal,FinancialServices,

KPMGintheUS

#fintechpulse

15

Globalinsights

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Fintechsegments

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Regionalinsights

Fintech—Insurtech

Despitedropindealsvolume,largedealskeepinsurtechinvestmenthigh

Totalglobalinvestmentactivity(VC,PEandM&A)ininsurtech

2017–2020*

454

425

379

287

$11.2

$28.2

$14.3

$14.5

2017

2018

2019

2020*

Dealvalue($B)

Dealcount

Source:PulseofFintechH1’20,GlobalAnalysisofInvestmentinFintech,KPMGInternational(dataprovidedbyPitchBook),*asof31December2020.

Insurtechinvestmentgrewslightlyfrom$14.3billionin2019to$14.5billionin2020,despiteamajordropinthenumberofdealsfromdealsto287.Maturingfintechcompaniesattractinglargerroundscombinedwithincumbentcarriersrecognizingtheneedtoacceleratetheirdigitaltransformationeffortshelpedbuoyinsurtechinvestment.

BigVCfundingroundsinH2’20helpmitigateH1’20dip

InsurtechwasahotsectorforVCinvestorsinH2’20,helpingtokeepinvestmentlevelshighfor2020.DuringH2’20,$100million+roundswereraisedbyBrightHealth($500million),HippoInsurance($500millionacrosstworounds),NextInsurance($250million)andOscar($140million)intheUSandbyShuidi($480millionacrosstworounds)inChina.

Increasingnumberofdealsdrivenbyinsurancebrands

During2020,manyofthelargestinsurtechfundingroundsfocusedonchallengerinsurancebrands,ratherthanonsoftwareplayers.Investmentsinalternativefull-stackprovidersreallytookoffcomparedtopreviousyears,withmanyprovidersnowworkingtoachievescale.

Corporateinvestmentgrowingstronger

Corporateinvestmentininsurtechcontinuedtogrowin2020asincumbentinsurancecompaniesheededthewake-upcallprovidedbyCOVID-19andlookedtoquicklyprogresstheirdigitalcapabilities.Bigtechsarealsotargetinginsurance;inH2’20,Alphabet-ownedVerilyannouncedCoefficientInsurance—anewsubsidiaryfocusedonprovidingstop-lossinsurance.3

/2020/8/25/21401124/alphabet-verily-insurance-coefficient-stop-loss

#fintechpulse

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16

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Fintech—Insurtech

Collaborativepartnershipsontherise

Partnershipsgainedtractionasinsurancecarrierslookedtogetclosertotheircustomers,suchasbyworkingcollaborativelywithautomotiveOriginalEquipmentManufacturers(OEMs)toprovideinsuranceatthepointofsaleofavehicle.Collaborationsalsooccurredattheplatformlevel;inH2’20,ChubbintroducedChubbStudiotoprovideintegratedinsuranceofferingsthroughtheirpartners’digitalchannels.4

Matureinsurtechsbeginexitmarch,ledbyLemonade

Lemonaderaised$319millioninitssuccessfulJulyIPO,withsharespopping132percentonthefirstdayoftrading.Itsstrongperformancehelpeddriveinterestinexits,withRootInsurancequicklyfollowingsuit.InNovember,Metromilealsoannounceditsspecialpurposeacquisitioncompany(SPAC)acquisition,withsharesexpectedtostarttradingin2021.

Whattowatchforin2021

—IncreasingnumberofIPOexitsandSPACexits

—Insurtechsmakingacquisitionstoacquireadditionalcapabilitiesandinsurancelicenses

—Growingpartnershipsrelatedtoembeddedinsurance

—Newalternativefull-stackproviders,particularlyinmarketswithlowinsurtechpenetration

https//www.insurance-canada.ca/2020/09/14/chubb-studio-launch-simplifying-digital-partner-integration/

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