Fintech Report 1H2019
Whilst fintech has rippled across the financial services industry and revolutionising the processes and business models, there have been significant regional disparities. The UK leads the way in Europe, breeding a new generation of innovators with record level of investments in 2018. However, despite the UK’s fintech start-ups capturing a growing share of the market, even their biggest fintech and new banks are dwarfed by US’s Stripe, Robinhood or SoFi. These, in turn, are outclassed by China’s Ant Financial, recently valued at $150 billion.
The report focuses on Fintech subsectors such as Enterprise Financial Software, Fintech IT Services and Online Financial Services. It includes:
- Trends and analysis of deal activity
- Deal geography
- Top acquirers
- Valuation metrics
Fintech M&A Transactions
M&A activity in the Fintech sector experienced a cooldown in the second half of 2018 from its high of 189 transactions in 1H2018 and all-time high disclosed transaction value of almost $50 billion. Even though transaction volume in 2H2018 was 160, total disclosed transaction value was just shy of $13 billion largely due to the fact that there were no box-office deals such as Blackrock’s $17 billion acquisition of Thomson Reuters in the first half of 2018.
This provides a helpful insight into the mainstream deal activity in the fintech world since we don’t have the distraction of mega deals veiling underlying trends.