SINGAPORE (Aug 18): Investments in venture capital (VC) backed financial technology (fintech) startups have declined by 49% in 2Q16, on the back of a tougher climate for marketplace lenders as well as a decline in mega-round activity.

According to a new report published by KPMG International and CB Insights, these companies have also seen a 12% drop in deal volume this quarter to US$2.5 billion ($3.4 billion) compared to 1Q16.

Yet, KPMG maintains that VC investment in fintech is still on pace to exceed 2015 results.

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