Cautious investors may behind another consecutive quarterly drop in fintech deals, according to a report from KPMG and CB Insights.

While a quarterly report into VC-backed companies showed that deals peaked last year, 2016 has been marked by cautious investment mentalities and short funding falls. Fintech funding fell 17 per cent in Q3 this year, with global investment in both VC-backed and non-VC-backed companies totalling USD$2.9 billion.

Insight from KPMG and CB Insights showed that global fintech mega-rounds fell to a new-low in Q3, due to the European sector’s failure to secure any US$50M+ rounds to VC-backed companies this year. Across Asia, rounds have stayed low level for the fourth straight quarter, with the lack of growth to be considered troubling.

Asia quarterly funding has topped North America but is a five-quarter low for the continent, despite funding having increased 50 per cent on a quarter-by-quarter basis to reach US$1.2B.

KPMG Enterprise Co-Leader, Innovative Startups Network and Partner, Brian Hughes, said that investors are cautious, but not put off yet despite the slow growth.

“Fintech funding is down in this quarter, but it in no way reflects a lack of interest among investors, particularly corporates who see fintech as a way to leapfrog ahead of the competition,” he said.

“This interest will continue to grow as corporates are looking to take advantage of the opportunities fintech provides.”