Samjong KPMG: "Global Fintech Investment Hits Five-Year Low in First Half"

"Global Fintech Investment Analysis and Outlook" Report
"Global Fintech Investment Restructuring Around Digital Assets and AI"

Due to geopolitical uncertainties and changes in trade policies, global fintech investment in the first half of this year (on a half-year basis) has hit its lowest level in the past five years.

According to Samjong KPMG's report, "Global Fintech Investment Results and Outlook for the First Half of 2025," published on September 10, the total global fintech investment in the first half of 2025 was recorded at $44.7 billion across 2,216 deals.

There were clear distinctions by sector. The digital asset sector attracted $8.3 billion in the first half alone, nearly reaching the total investment for all of 2024 ($10.7 billion). Investor interest was concentrated in areas where regulations are being established, such as stablecoins and asset tokenization.

AI-based fintech companies also continued their growth, securing $7.2 billion. In particular, efficiency improvement solutions utilizing generative AI (GenAI) and agentic AI (Agentic AI) gained significant attention, with companies actively expanding AI adoption to reduce costs and optimize operations.

In contrast, the payment sector, which has traditionally driven the fintech industry, saw a marked decline in investment. Investment in the first half was $4.6 billion, the lowest in a decade. The report explained that the appeal of B2C-based payment models has diminished due to growth limitations, while interest has shifted toward B2B-centric efficiency solutions such as API-based infrastructure, cross-border payments, and real-time settlements.

By region, the United States remained the hub of the global market, accounting for more than half of the total investment ($26.7 billion). However, this figure decreased compared to the second half of 2024 ($35.7 billion), and the U.S. share of global investment also declined. This is attributed to a combination of macroeconomic uncertainties and geopolitical risks.

The Europe, Middle East, and Africa (EMEA) region recorded $13.7 billion, an increase from the second half of 2024 ($11.1 billion). Investment expansion was supported by innovation-friendly policies such as financial regulation easing, sandbox activation, and the "Tech EU" initiative, mainly in the UK and France. In particular, the expansion of sandboxes for blockchain, virtual assets, and AI sectors drew global investor attention and contributed to increased investment activity.

The first half of 2025 also saw a number of mergers and acquisitions (M&A) in the fintech sector with a more strategic focus. The total value of M&A deals was $19.9 billion, a decrease from the previous period, but companies prioritized deals aimed at divesting non-core assets and focusing on their core businesses.

Notable examples include BlackRock's acquisition of the UK’s Preqin for $3.2 billion to strengthen its private market competitiveness, and Munich Re’s acquisition of Next Insurance in the United States for $2.6 billion to expand its presence in the U.S. insurance market.

The report assessed that the successful IPO of stablecoin issuer Circle is raising expectations for the fintech exit market. Circle's listing is expected to spur further IPOs among other virtual asset companies and have a positive impact on the overall fintech ecosystem.

Kim Seho, Executive Director in charge of the fintech industry at Samjong KPMG, stated, "Startups that enhance cost savings and efficiency through generative AI and agentic AI will continue to receive premium valuations and attract investment. At the same time, as stablecoin regulations are established in the United States, Hong Kong, and Singapore, and with Circle's IPO, the global competition for currency hegemony surrounding stablecoins is accelerating. Investor interest in stablecoins and security token offerings (STOs) is also expected to increase domestically."

This content was produced with the assistance of AI translation services.