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Europe, Middle East and Africa

In 2023, funding in fintech companies in Europe, Middle East and Africa (EMEA) recorded $24.5B with 1,514 deals.

Pulse of fintech EMEA

Fintech investment in EMEA rises in H2’23 but falls to lowest annual total in seven years


Fintech investment in the EMEA region grew considerably in H2’23, accounting for $16.3 billion in investment compared to $8.2 billion in H1’23. The annual total was far less optimistic, the $24.5 billion of investment accounted for the lowest level of fintech funding in seven years. The frigid exit environment, high interest rates, and geopolitical uncertainties and conflicts had many investors in the region holding on to their capital.

The seven largest deals of H2’23 occurred in five different jurisdictions, which highlights the strength of the fintech sector in EMEA, despite the current market softness. The largest deals came from the UK (Finastra — $6.9 billion), Sweden (Macrobond Financial — $763 million), the Netherlands (PayU — $610 million), Italy (Banco BPM — $548 million), the United Arab Emirates (Tabby — $950 million, Haqqex — $400 million), Finland (Nomentia — $385 million), and Spain (Gestión Tributaria Territorial — $353 million) all saw substantial fintech deals this quarter.

Key H2’23 highlights from the EMEA region include:

Investors increasingly interested in SME short-term financing solutions

Within Europe, particularly the UK, there’s been a strong growth in the uptake of buy now, pay later solutions, with growing acceptance of the multiple payments business model. While many of these solutions have been focused on the B2C space, investors have increasingly shown interest in solutions aimed at providing SMEs with more flexible short-term financing solutions and their own BNPL products and services.

Continuing efforts to support open banking and finance

During 2023, the EU proposed a number of new rules focused on improving the digital financial services landscape and safeguards for consumers, including a new Payment Services Directive (PSD3) and a new framework for financial data (FIDA).1



emea graph
There’s been an enormous rise in buy now, pay later and short-term lending over the last six months, particularly in the UK. Now, we are seeing players in the space starting to take that B2C business model and target it at the SME sector – so, providing short-term financing and B2B payments options to companies and small enterprises. It will be interesting to watch the progress of this sector over the coming months to see the impact of any regulation and/or consolidation.

Hannah Dobson

Partner & Co-lead Fintech

KPMG in the UK


The European parliament also approved plans to make instant payments a requirement across the EU.2 The legislators also agreed to amend the Settlement Finality Directive (SFD) to grant access for payment institutions to payment systems. These activities will likely enhance opportunities related to open finance over time and open doors to new innovations and new players in the space.


Alternative assets gaining traction within wealthtech space

Within the wealth management space, 2023 saw increasing interest in the EMEA region for solutions focused on alternative assets. The largest deal in this space was a $149 million raise by Germany-based Moonfare in H1’23 — a startup focused on opening up private market investing to individual investors not considered to be ultra-rich. Partnerships focused on providing the customers of financial institutions with access to alternative investment platforms were also on the rise in EMEA.

Regtech seen as a growing priority

Regulators in the EMEA region emphasized the importance of fraud and financial crime prevention in 2023, taking a much stricter approach with fintechs and other institutions in terms of their AML and KYC processes — with the FCA in the UK in particular handing out a number of penalties, including restricting activities, such as the onboarding of customers.3 Despite a slowdown in funding in 2023, the constantly evolving regulatory environment is expected to keep regtech interest quite high, particularly with respect to AML/KYC solutions.



This has been the year of regulation to a large extent. And regulation can be very positive. It makes markets more stable. People are generally less wary of using businesses that are regulated. Done well, it can be a very good thing for encouraging the growth of new and innovative sectors. That said, heavy handed regulation can be difficult to manage, and even cut off opportunities overnight. That’s why regulators need to be careful what they do and how they do it — particularly right now with respect to AI.

Dave Remue

Director, Head of Fintech, Advisory

KPMG in Belgium


Trends to watch for in H1’24

  • AI solutions working to transform aspects of the fintech market, particularly around fraud prevention and customer services.
  • Growing focus on embedded finance and banking offerings.
  • Traditional banks adopting the BNPL model.
  • Increasing focus on asset tokenization, including digital assets and stable coins.
  • Consolidation within the BNPL space as big players get larger and smaller startups fall away.

Our People

Anton Ruddenklau

Global Head of Financial Services Innovation and Fintech

KPMG International

Karim Haji

Global Head of Financial Services, KPMG International, Head of Financial Services, KPMG in the UK

KPMG International

Read more


1 https://finance.ec.europa.eu/publications/financial-data-access-and-payments-package_en
2 https://finance.ec.europa.eu/news/commission-welcomes-political-agreement-euro-instant-payments-2023-11-07_en
3 https://worldfinancecouncil.org/news/fintech-pioneer-modulr-grapples-with-fcas-customer-onboarding-restrictions/


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