Amid a tougher climate for marketplace lenders and a drop in mega-round activity, investment in VC-backed fintech companies fell 24 percent in the U.S and nearly 50 percent globally during Q2 ‘16, according to the Pulse of Fintech, the quarterly global report on fintech VC trends published jointly by KPMG International and CB Insights.

U.S. fintech companies saw funding of $1.3 billion in Q2’16, down from $1.7 billion in Q1’16 and from $2.4 billion in Q2’15. Deal activity to VC-backed fintech companies in the U.S. also experienced a five quarter low with just 90 deals.

“While investment in VC- backed fintech companies decreased over the past quarter, we are encouraged by the momentum that is building in underinvested areas such as InsurTech, healthcare, banking and blockchain,” said Anthony Rjeily, KPMG’s Financial Services Digital and Fintech practice leader. “In addition, over the past year we’ve seen large financial institutions shift their thinking from skepticism to active engagement.”