Australia’s “healthy and active” fintech sector attracted a record $US656 million ($855.38 million) in investment last year, more than three times that of 2015, according to KPMG.

There were 25 fintech deals in the country last year, up from 23 the previous year, when total investments were $US185 million ($241.23 million).

Worldwide, fintech investments fell 47.2% to $US24.7 billion ($32.21 billion) due to a reduction in mergers and acquisitions (M&As) and private equity deals.

“Similar to what we have seen globally [last year], Australia’s performance was driven by some large deals, and specifically M&A and private equity transactions,” KPMG Global Co-Leader of Fintech and Head of Banking Ian Pollari said.

“In just five years, Australia has seen the creation of a healthy and active fintech sector, from an extremely low base of just $US51 million ($66.34 million) of fintech investment in 2012 to exceed $US600 million ($780.48 million).”

KPMG says investments in insurtechs globally exceeded $US1 billion ($1.3 billion) for the first time last year, up from $US590 million ($768.87 million) in 2015, but it gives no regional or country breakdown.

In Asia, including Australia, fintech investment reached an all-time high of $US8.6 billion ($11.21 billion) from $US8.4 billion ($10.94 billion) in 2015, the Pulse of Fintech report says.

“[This year] is shaping up to be a pivotal year for fintech globally, with the momentum seen in areas such as insurtech and blockchain translating into larger investments and funding rounds as they prove their commercial viability,” Mr Pollari said.

“And while the frothiness seen in the market over the past two years dissipates, this will be positive for the sustainability of the market, with [this year] likely to see more transaction activity from corporate [venture capital] and strategic investors seeking to capitalise on opportunities at more realistic valuations.”