On the 16th of September, Pendulum, a smart blockchain connecting DeFi and Fiat, reported that the KPMG Pulse of Fintech report was out. The KPMG Pulse of Fintech report is released every six months, and the most recent one was released hours ago.
The report shows that recent analysis reveals previous bull runs have been fuelled by retail. Currently, institutional and corporate investors constitute most of the blockchain. Cryptocurrency prices are likely more closely correlated with traditional markets as a result.
Fintech investment in 2021 was spectacular due to the influx of capital into the industry. Although investment has returned to last year’s levels, it is anticipated that investors will continue to pay close attention to the sector in the second half of 2022 and into 2023.
However, it is expected that fintech investors would become more selective with their investments and place a greater emphasis on profitability and working capital when assessing prospects.
Additionally, investors will migrate to areas outside of traditional financial services offerings, like open data and decentralized finance. A high priority is also expected for the B2B sector.
Other aspects of the analysis show that there is no end in sight to the decrease in investments in liquid cryptos and blockchain technology. Analysts are certain that DeFi will withstand the present bear market even though the overall forecast for cryptocurrencies is bleak.
Generally, KPMG focuses on helping financial sector companies choose a smart use case plan to get the most out of blockchain technology. From proof of concept to defining pertinent use cases, incorporating systems and operations, and providing continuous management assistance, the portfolio of KPMG services offers complete backing at every level of development.
For investors to get the most out of blockchain platforms, KPMG suggests the following; properly regulated crypto companies, low-risk management schemes, a long-term agenda, solutions related to compliance and traceability, catering to increased profit in stables, and catering to business operations.
Macroeconomic worries are restricting investments in cryptocurrencies, but the future for powerful businesses with high product-market fit is favourable.
