Fintech Also Embraces AI as the 'Trend'... All Top 10 Global Companies in the First Half Use AI

Fintech Market Slows While AI Technology Sector Strengthens
Top 10 Fintech Companies All Utilize AI Technology
"Need to Leverage AI and Fintech Technology Solutions"

Despite high interest rates and geopolitical uncertainties causing a slowdown in the global fintech market in the first half of 2024, the payment and regtech sectors showed strong performance, with artificial intelligence (AI) emerging as a core area of fintech investment.

According to a report published on the 26th by global accounting and consulting firm KPMG, global fintech investment in the first half of 2024 amounted to $51.9 billion (2,255 deals), down from $62.3 billion (2,287 deals) in the second half of 2023. Large transactions decreased due to geopolitical uncertainties and a high interest rate environment, with only five fintech deals exceeding $1 billion in the first half.

The Americas region accounted for the largest share of fintech investment with $36.7 billion, with the payment sector attracting the most investment at $21.4 billion. In contrast, the Asia-Pacific and Europe, Middle East, and Africa (EMEA) regions recorded $3.8 billion and $11.4 billion respectively, marking their lowest levels since 2017.

Investments in fintech technology solutions such as AI, machine learning (ML), cybersecurity, and regtech have emerged as key areas, with AI being the focal point of fintech investment in the first half of 2024. All of the top 10 global fintech investment companies leveraged AI technology to provide their services.

The payment and regtech sectors remain major investment destinations. The payment sector attracted $21.4 billion in investment in the first half of 2024 alone, while regtech investment reached $5.3 billion, already surpassing last year’s total. Regtech is utilized in areas such as ESG, cybersecurity, and data privacy, gaining increased attention amid strengthening global financial regulations.

Seho Kim, Partner at Samjong KPMG, emphasized, "Due to high interest rates and geopolitical risks, investors will selectively invest in fintech companies with more specialized, differentiated technologies and profitability in the second half of the year." He added, "Investment in regtech and cybersecurity is expected to expand, and there is a need for interest in utilizing fintech technology solutions such as AI to further advance these areas."