The number of fintech funding deals in the first quarter this year recovered from the previous quarter’s dip, but it’s still not near the record highs seen in 2018, according to a CB Insights report.

During the first quarter, there were 445 fintech deals amounting to $6.3 billion of funding, according to the report, which was released last week. Compared to the previous quarter, deals are up 4%, but still below the record high of 470 deals in the first quarter of 2018.

Total funding during the first quarter of 2019 dropped 12.5% from $7.2 billion in the previous quarter.

Last quarter, there was significant merger-and-acquisition activity among large fintech players, with a total of 60 deals in the first quarter. These deals include two mega transactions: Fiserv’s purchase of First Data Corporation for $41 billion and Fidelity National Information Services Inc.’s $34 billion acquisition of payments company Worldpay Inc. 

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When it comes to what types of companies received funding, VC firms opted for wealth management companies and challenger banks as the most popular for investment. A niche industry at one time, challenger banks are now mainstream, even for VCs, based on the report. The first quarter saw a total of $704.6 million across 17 deals in the challenger bank space. Among the most notable of these funding deals were U.S. challenger bank Chime and Germany’s N26, both of which reached unicorn status in Q1 with valuations of $1.5 billion and $2.7 billion, respectively.

The first quarter VC activity also put wealth management fintech in the limelight. With 46 deals, the total funding for wealth management fintechs reached $845.1 million last quarter, compared to 37 deals totaling $469 million in the previous quarter.

“It’s fair to say we will see a lot more innovation in wealth management this year,” said Steve Hoke, vice president of product management at Finastra, a technology vendor.

Read the full report here.