Amid the ravaging global Covid-19 pandemic that led to a significant drop in the number of venture capital deals and brought uncertainty for many companies operating in this market, investment into Fintech companies hit $105.3billion in 2020, almost a 40 percent plunge amid pandemic.

According to available data, this is almost a $63billin  drop from $168billion in 2019, which was said to be the record year for fintech investments.

Investments into Fintech from 2010 according to KPMG’s 2020 Pulse of Fintech report show that in 2010, fintechs raised $9billion in funding.  In 2015, this figure grew more than seven times to $67.1billion. In 2018, the total investment value jumped to $145.9bn and continued rising to $168bn in 2019, as the record year for fintech investments.

After the COVID-19 pandemic brought many deals to a halt in the first half of 2020, H2’20 reversed the trend as investors and fintechs learned to do business in a new normal. Nevertheless, statistics show that last year witnessed 2,861 deals worth $105.3billion, almost $63billin less than before the pandemic.

Meanwhile, the Americas appear to be the region attracting the most investments in the sector, accounting for 75% of the total, or $79.2billion. Fintechs from the EMEA region raised $14.4billion last year. Asian fintechs followed with $11.2billion worth of investments.

Fintech companies apply modern tech solutions in the financial services industry to offer digitally enhanced products and allow widespread access to financial products at a lower cost than traditional players. Over the years, these innovative startups transformed how people and businesses spend, invest, save, or borrow money.

Even before the pandemic, many fintechs found it difficult to access funding, as investors focused on established companies instead of early-stage businesses. Nevertheless, the total value of investments into fintech companies increased dramatically in the last decade.


ITPulse is a wholly information technology communication (ICT) news website, with a special focus on the African continent. The website provides up-to-date biz-tech news, analysis and comprehensive and thorough insight into the continent's ICT terrain

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