Insights

After three years of contraction, the global fintech market is rebounding. According to KPMG International's Pulse of Fintech H2 2025, global fintech investment reached USD 116 billion in 2025 — up 21.5% from the prior year (USD 95.5 billion), rebounding from the seven-year low of 2024. Deal count, however, fell to 4,719 — an eight-year low — making clear that capital is concentrating in a smaller number of large deals.

AI and digital assets are reshaping fintech investment. Investment into AI-driven fintech companies reached USD 16.8 billion in 2025 (14.5% of the total) — up from USD 12.1 billion the prior year and a new all-time high. Even more striking is the digital asset space, which attracted USD 19.1 billion — nearly double the prior year — supported by regulatory clarity such as the passage of the US GENIUS Act. Interest is concentrated in stablecoins and asset tokenization, with European banking consortia such as ING and BNP Paribas preparing euro-denominated stablecoin issuance — signaling the entry of regulated finance into digital assets.

The exit market is reviving. 2025 fintech exit value reached USD 104.4 billion — up 123.1% year-on-year and the third-highest level on record. Symbolic examples include Revolut in the UK (USD 3 billion VC raise), Polymarket in the US (USD 2 billion), and IPOs of Gemini and Figure. There is growing potential for AI- and digital-asset-related fintech IPOs to resume in H1 2026.

By region, the US-UK duopoly has tightened. 57.3% of total investment (USD 66.5 billion) flowed into the Americas, while Korea fintech investment reached USD 400 million — up 64% year-on-year, an unusual growth path within the Asia-Pacific region. China, in contrast, accounted for just 0.8% of the total, dampened by geopolitical tensions.

What this means for M&A. The report points to three directions for fintech M&A. First, bolt-on acquisitions of fintech firms by traditional financial institutions seeking to internalize stablecoin and tokenization capabilities are likely to expand. Startups holding the technology stacks and operating know-how that bank consortia struggle to assemble in-house will become particularly sought-after targets. Second, with explosive demand for AI fintech solutions and limits to in-house capability building, financial institutions will accelerate strategic acquisitions and partnerships with AI-driven compliance, wealthtech, and fraud-detection specialists. Third, as regtech companies increasingly opt for early sales amid tougher fundraising conditions, opportunities will expand for large financial institutions seeking to internalize these capabilities.

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Full report: KPMG International, Pulse of Fintech H2 2025 (February 2026)

Contact: Samjong KPMG M&A Center