How KYT protects against FinCrime & CyberTech deals to plummet 45% in 2024

How impactful has open banking been to WealthTech? - It has nearly been a decade since the EU launched its open banking rules, but has open banking lived up to the hype?

Read the full story here.

Research highlight

Global CyberTech market set for 45% drop in deal activity for 2024 as investors focus on larger deals

Key CyberTech investment stats in Q3 2024:

• Global CyberTech deal activity dropped by 26% YoY
• Global CyberTech deal activity projected to drop by 45% for 2024 as investors focus on larger deals
• Torq, a leader in AI-driven cybersecurity hyper-automation solutions, secured one of the largest CyberTech deals for the quarter with a Series C funding round of $70m

In the third quarter of 2024, the global CyberTech sector experienced a noteworthy YoY decline in both deal activity and funding levels.

Q3 2024 closed with 71 deals, representing a 42% decrease from the 124 deals recorded in Q3 2023 and a 26% drop from the 96 deals seen in Q2 2024.

Total funding in Q3 2024 amounted to $2.07bn, largely unchanged from the $2.08bn raised in Q3 2023 but reflecting a sharp 45% decrease from the $3.74bn raised in Q2 2024.

Trend analysis showed that projected deal count for 2024 would reach 284 deals, marking a 45% decline from the 517 transactions completed in 2023.

The analysis indicated that total funding for the year would close at $8.3bn, representing a modest 4% decrease from the $8.79bn raised in 2023.

Funding from deals under $100m reached $966m in Q3 2024, marking a 32% decline from the $1.42bn recorded in Q3 2023 and a 30% drop from the $1.37bn seen in Q2 2024.

Larger deals valued at $100m or more totalled $1.1bn in Q3 2024, up 66% from the $663m raised by such deals in Q3 2023 but down 54% from the $2.37bn recorded in Q2 2024.

This shift towards fewer high-value deals highlights, with a reduced appetite for smaller investments and a focus on selective opportunities amid ongoing challenges in the global CyberTech industry.

Torq, a leader in AI-driven cybersecurity hyper-automation solutions, has secured one of the largest global CyberTech deals for the quarter with a $70m Series C funding round led by Evolution Equity Partners.

The funding will enable Torq to enhance its generative AI capabilities, expand its talent pool, and accelerate its presence across the EMEA and APAC regions.

Torq’s HyperSOC platform leverages AI to automate and optimise security operations centre (SOC) activities, enabling rapid investigation, triage, and remediation of security events.

By eliminating manual inefficiencies in legacy security systems, the platform delivers comprehensive protection while allowing security analysts to focus on strategic priorities. This investment positions Torq to further strengthen its innovative solutions as enterprises increasingly adopt AI-driven hyper-automation to combat evolving cybersecurity threats.

Weekly FinTech deal roundup

Almost $750m raised this week as 2024 begins to draw to a close – FinTech Global reported that $748m was raised across 21 funding rounds this week, representing a maintained and steady interest in the sector. Read the full story here.

InsurTech news

• 9 key customer retention strategies for life and health insurers - Customer retention is more than just a metric in the insurance sector—it underpins profitability and sustainable growth. As the industry evolves and consumer expectations rise, insurers must innovate to retain customers and maintain a competitive edge. Digital health technology platform dacadoo explores nine key actionable strategies for life and health insurers to foster loyalty and drive long-term customer engagement. Read the full story here.
• 10 digital health tools organisations can’t afford to ignore in 2025 - The digital health landscape is reshaping how organisations across various industries engage with their users. From healthcare providers to retail companies, businesses are leveraging innovative technologies to enhance user interactions, prioritise preventive care, and promote overall wellness. This evolution signifies a shift from traditional, reactive models to proactive strategies that deliver meaningful value to users. Digital health technology platform dacadoo delves into the top 10 digital health tools organisations can’t afford to ignore in 2025. Read the full story here.
• Simplifai partners with 112Schade to automate claims intake process and boost efficiency - Simplifai, a leader in AI-driven automation solutions, and 112Schade, a Dutch claims management provider, have entered into a partnership aimed at improving efficiency in the claims intake process. Read the full story here.

WealthTech news

• Maximising client satisfaction through continuous engagement and personalised updates - As more companies in the financial services sector adopt cutting-edge technology, customers have an increased expectation of what their financial providers should be able to do. If a company cannot complete tasks promptly or lacks essential capabilities, customers are likely to seek a new provider. Read the full story here.
• Reem Finance partners with Temenos to launch digital community bank in the UAE - The initial stages of financial planning often receive significant focus in both digital and traditional advisory services. However, once a prospect becomes a client, ongoing engagement tends to diminish. This lack of interaction can leave clients feeling disconnected, resulting in missed opportunities for both the client and the wealth manager. Read the full story here.
• How AI and enhanced financial education are reshaping wealth management - As the financial industry rapidly adapts to evolving technologies and client expectations, a few critical trends are shaping its future. AI, especially generative AI, promises to transform client interactions with unprecedented personalisation levels. Read the full story here.

RegTech news

• Inside FullCircl’s rise through the RegTech ranks - In a whirlwind twelve months, London-based RegTech firm FullCircl has gone from strength to strength. Starting the period by acquiring W2 Global Data, the company has rounded off a successful year by being bought out itself by global banking solutions giant nCino. Read the full story here.
• What is the future for communications governance? - FinTech Global recently sat down for an interview with RegTech firm Theta Lake to discuss what the future looks like for communications governance.  Read the full story here.
• How can AI help governments and firms save money on economic crime? - The discussion around artificial intelligence isn’t likely to conclude anytime soon, with many industries looking to the expanding technology to understand how they can benefit from it. In the area of economic crime, what role could AI play in bringing down burdensome costs? Read the full story here.

CyberTech news

• Tuskira bags $28.5m to transform cyber with AI-driven unified threat defense - Tuskira, a new player in the cybersecurity arena, has made an impressive entrance, securing $28.5m in its initial funding round. Read the full story here.
• Cyber innovator System Two raises $7m to tackle advanced GenAI attacks - System Two Security, a pioneering cybersecurity startup, has successfully secured a $7m funding round. Read the full story here.
• EU bolsters cyber defenses with new laws and AI-driven alert systems - The Council of the European Union has formally enacted two crucial pieces of legislation designed to fortify Europe’s cybersecurity framework. Read the full story here.

ESG FinTech news

• The critical role of ESG data in modern insurance underwriting - Environmental, Social, and Governance (ESG) data is quickly becoming a pivotal element in boosting underwriting profitability. Read the full story here.
• 10 essential questions to ask before investing in ESG software - Selecting the ideal ESG data management software is crucial for any organization looking to enhance its sustainability practices. Read the full story here.
• Five critical supply chain management challenges impacting sustainability audits - Supply chain management is crucial to any sustainability strategy, yet it stands as one of the most convoluted aspects. Read the full story here.

Other FinTech news

• Dojo partners with American Express to simplify payments for UK small businesses - Dojo, a leading payments technology provider, has entered a strategic partnership with American Express, a global financial services company, to make it easier for UK small businesses to accept American Express payments. Read the full story here.
• Danske Bank secures management of Dansk Vækstkapital funds - Danske Bank, a prominent financial institution in Denmark, has been entrusted with the management of the Dansk Vækstkapital funds. Read the full story here.
• Mastercard and Premier Bank unveil new suite of Shari’ah-compliant cards for Kenya - Premier Bank, a leading Islamic financial institution in Kenya, has partnered with Mastercard,BC a global payments and technology company, to launch a range of Shari’ah-compliant debit, credit, and prepaid cards. Read the full story here.