1 #FINTECH 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The Pulse of Fintech, Q1 2016 May 25, 2016 Global Analysis of Fintech Venture Funding 2 #FINTECH 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Welcome message After a significant drop-off in Q415, investment in VC-backed fintech companies roared back to life in Q116, lifted by a number of $100M+ mega-rounds, including L and JD Finance in Asia and Betterment and Oscar Health Insurance in North America. With interest in fintech continuing to branch outward beyond the traditional payments and lending space to robo advisory, InsuranceTech, and RegTech among other areas, its not surprising that fintech investments are bucking trends in all regions of the globe. While economic uncertainty has caused some investors to hesitate with respect to making more traditional VC investments, they continue to see fintech as an area of opportunity and long-term growth. This resilience and ongoing interest likely bodes well for the remainder of 2016. Over the quarter, we saw continued collaboration between the fintech sector and corporate players, with an increasing number of banks, financial institutions and insurance companies forging partnerships with fintech companies, accelerators and incubators in order to drive innovation within their own organizations. We explore these and a number of other key trends in this Q116 edition of our Pulse of Fintech Report a collaboration between KPMG International and CB Insights. As a part of our analysis, we explore answers to a number of questions, including: Whats driving the ongoing strength of VC investment in fintech? Why is Europe lagging behind the US and Asia when it comes to investment in fintech? How is InsuranceTech evolving and how is it expected to evolve over the next few quarters? How is the definition of fintech changing and expanding in different regions? KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 155 countries and have more than 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. CB Insights is a National Science Foundation backed software- as-a-service company that uses data science, machine learning and predictive analytics to help our customers predict whats nexttheir next investment, the next market they should attack, the next move of their competitor, their next customer, or the next company they should acquire. 3 #FINTECH 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Welcome message (cont.) We also put the spotlight on robo advisory in this edition of the report a key area of fintech that has been gaining momentum in recent months. We hope you find this edition of our Pulse of Fintech Report informative. If you would like to discuss any of the results in more detail, contact a KPMG adviser in your area. Kind regards, KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 155 countries and have more than 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. CB Insights is a National Science Foundation backed software- as-a-service company that uses data science, machine learning and predictive analytics to help our customers predict whats nexttheir next investment, the next market they should attack, the next move of their competitor,