Investors splash out more than $116bn on fintech - KPMG

(Sharecast News) - The global fintech market attracted more than $110bn in investments last year, a report showed on Wednesday.

According to the latest biannual Pulse of Fintech survey from KPMG International, deal volumes fell to an eight-year low of 4,719 deals in 2025,

But those that were struck were larger capacity, meaning total investments rose to $116bn from 2024's seven-year low of $95.5bn. It also marked an end to three consecutive years of declining investment.

Within that, merger and acquisition deal values rose to $55.4bn, driven primarily by strong demand in the US and EMEA.

Venture capital investment was also higher, at $56.7bn, which KPMG said reflected "renewed appetite for scaled growth platforms".

Investors were also keen to gain exposure to the booming artificial intelligence market, with AI-focused fintechs attracting $16.8bn globally.

Anton Ruddenklau, global lead of innovation and fintech for financial services, KPMG International, said: "While deal volumes remain muted, the increase in capital deployed - and the resurgence of exits - signal growth investor confidence, particularly around scalable platforms in digital assets and AI."

However, looking to the current year, and Karim Haji, KPMG's global head of financial services, said the fintech sector was entering "a more balanced phase, one defined by selective growth, clearer paths to profitability and improving liquidity."

He continued: "While macroeconomic and geopolitical risks remain, the combination of stronger exit markets, greater regulatory clarity and accelerating innovation provides a constructive foundation for sustained investment and long-term value creation."

The data and analysis for Pulse of Fintech was provided by PitchBook on 31 December. The dataset considered three funding transaction types: VC, private equity and M&A. Family and friend funding, along with incubator and accelerator rounds, are excluded.

PitchBook defines fintech as firms that use new technologies to provide financial services more usually offered by traditional banks, as well as software providers that automate financial processes.