Overall global investment in fintech companies across both venture-backed and non-venture-backed companies totalled US$9.4 billion in the three months to end June 2016, buoyed by Ant Financial's US$4.5 billion financing, according to a new report from KPMG. Investment directed to venture capital-backed fintech startups fell 49 per cent. Despite this decline, VC investment in fintech is on pace to exceed 2015 results, KPMG predicts.In 2015, there were increasing numbers of new business models, revenue streams, products and services coming onto the investment radar. "This activity led to a major increase in VC funding, partly driven by alternative lending companies entering the fray of late-stage investing and driving private company valuations up," according to the report."In 2016, concerns about those high valuations, the lack of significant IPO exits and macro-economic factors seem to have led investors to be more cautious. Over the first 2 quarters of the year, VC investors focused on more experienced companies with proven technologies or business models."One trend seen in 2Q16 involves traditional corporates shifting their attention to co-creation opportunities. "A number of larger corporates have invested in internal innovation labs or innovation garages in order to bring together fintech companies to help them respond to challenges and test technologies," KPMG writes."There has also been an increase in traditional financial institutions working with fintech companies on all manner of proof-of-concept initiatives."KPMG has also been tracking changes in the definition of fintech: "While payments and lending platforms continue to gain attention, particularly in Asia where there are many challenges and opportunities associated with providing services to the underbanked, other areas of fintech are moving into the spotlight," the report notes."Over the last quarter, a number of fintech subsectors gained traction, including blockchain, InsurTech and robo advisory," KPMG says.The second quarter also saw countries in different regions working together to expand fintech opportunities - for example, the UK and Singapore announced a "fintech bridge" to assist fintechs expand more readily between the two countries.Looking more locally, Asian fintech funding in 2016 has dropped from a first quarter spike. On KPMG's estimates, funding to VC-backed fintech companies in Asia fell from over US$2.6 billion in 1Q16 to US$772 million in 2Q16. Despite funding slowing down in the second quarter this year, at its current run rate Asia fintech deal and funding activity is on pace to surpass 2015's high mark.Early stage VC-backed fintech companies in Asia accounted for 61 per cent of deal share in 2Q16. Mid-stage deal share at the Series B and Series C stage took 30 per cent of 2Q16 fintech deal share in Asia.Corporate participation in Asian VC-backed fintech deals rebounded to 39 per cent in 2Q16 from 31 per cent in 1Q16. Corporates saw slightly less deal share in 2Q16 than the same quarter last year when corporates participated in 41 per cent of Asian fintech deals.