Samjong KPMG: Global Fintech Investment Rebounds After Three Years, Driven by AI and Digital Assets

“Market Structure Shifts Toward Selective Large-Scale Investments”

Last year, the global fintech (finance + technology) investment market showed signs of recovery, ending a three-year decline. As investments in artificial intelligence (AI) and digital assets increased, analysts noted that the pace of structural change across the financial and technology industries is accelerating.

According to Samjong KPMG's report, "Global Fintech Investment Trends and 2026 First Half Outlook," released on March 16, 2026, the total global fintech investment in 2025 amounted to $116 billion (approximately KRW 17.3884 trillion) across 4,719 deals. Compared to the previous year's $95.5 billion (5,533 deals), the investment amount increased, but the number of transactions fell to its lowest in eight years. This indicates that while the overall investment volume grew, the market is being reorganized around large-scale investments, with a more selective approach to investment targets.

The most significant change occurred in the digital asset sector. Last year, investments in digital assets surged to $19.1 billion, up significantly from $11.2 billion the previous year. This was attributed to the improvement of relevant regulations and increased market stability in major countries, which helped restore investor confidence.

Investments in AI-based fintech companies also expanded, totaling $16.8 billion. The report explained that as financial companies increasingly adopt AI solutions to improve operational efficiency and reduce costs, there is growing interest in companies equipped with AI, data, and automation technologies.

In the payments sector, investment volume was $19.2 billion, a slight decrease from $20.4 billion the previous year. Nevertheless, the sector maintained relatively steady momentum, supported by stable demand in the global payments market. The number of deals dropped to its lowest level in nine years. There was a clear trend of investment focusing on proven business models, such as B2B payment infrastructure and real-time payments.

Large-scale investments and strategic mergers and acquisitions continued as well. In the first half, strategic M&A activity was active, centered on B2B fintech and digital asset companies, while in the second half, there was heightened interest in capital market infrastructure firms. UK fintech company Revolut secured $3 billion in venture investment, while Israeli insurance software firm Sapiens International's acquisition was completed at $2.5 billion.

In 2025, the global fintech exit volume reached $104.4 billion (486 deals), marking the third largest level on record. Notably, venture capital-based exits increased to $79.7 billion, signaling renewed vitality in the exit market, which had been subdued in recent years.

By region, the Americas led market growth, accounting for more than half the total investment at $66.5 billion. The Europe, Middle East, and Africa (EMEA) region saw a modest increase to $29.2 billion. In contrast, the Asia-Pacific region experienced a contraction, with investment dropping to $9.3 billion from $11.7 billion the previous year. While India played a leading role in the region with $3.5 billion in investments, China, Australia, and Japan remained focused on small- and mid-sized deals. In particular, private equity investment in Asia recorded its lowest annual level ever.

By country, the United States and the United Kingdom ranked first and second in global fintech investment with $56.6 billion and $10.9 billion, respectively. China's investment volume plummeted to $8.8 billion, resulting in a significant decrease in its market share. In Korea, fintech investment reached $400 million in 2025, an increase of 64% from the previous year.

Kim Seho, Executive Director in charge of the fintech industry at Samjong KPMG, stated, "Although uncertainties such as geopolitical conflicts, the possibility of economic slowdown, and concerns over an AI bubble still exist, the prospects for fintech investment recovery in 2026 are high, centered on AI and digital assets. To maximize the value of AI, a thorough understanding of data and processes is essential, and the ultimate goal of AI adoption is scaling up without increasing costs."

He added, "Major countries such as the UAE are intensifying competition to attract talent, startups, and investment in building digital asset and fintech hubs. For Korea's fintech ecosystem to secure global competitiveness, strategic efforts from both the private sector and the government are necessary."

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