Investors Cautious On Fintech

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    After quarterly fintech investment to venture capital (VC)-backed companies peaked as high as US$5 billion-plus in 2015, investors continue to take a much more cautious approach to fintech investments this year. Fintech funding fell 17 per cent in the third quarter this year, says the ‘Pulse of Fintech,’ a quarterly report published jointly by KPMG International and CB Insights. It says that overall global investment in fintech companies across both venture-backed and non-venture-backed companies totaled US$2.9 billion in the third quarter which saw VC-backed fintech funding drop 17 per cent to US$2.4 billion, while deal activity fell 12 per cent to 178 deals. In the quarter, Asia outpaced North America in terms of fintech funding – a major shift from historical norms. As well, total investments to key areas like marketplace lending and blockchain technology have both seen declines heading into the tail-end of 2016.