Value of investment in fintech globally 2019-2024, by region

The global investment in fintech companies saw a significant decline in 2023, with early indicators from the first half of 2024 pointing to another subdued year for fintech funding. In 2023, the Americas led in fintech investment, attracting 78.5 billion U.S. dollars, representing the smallest regional decline compared to 2022. In contrast, investment in the EMEA region was cut in half, totaling 27 billion U.S. dollars. The sharpest drop occurred in the Asia-Pacific region, where investment plummeted from 50.3 billion U.S. dollars in 2022 to just 12.5 billion U.S. dollars in 2023.

Quarterly trends reveal ongoing challenges

The downward trajectory in fintech investments became apparent in early 2022 and continued throughout 2023. By the fourth quarter of 2023, global fintech funding had dwindled to 24.9 billion U.S. dollars, a far cry from the peak of nearly 145 billion U.S. dollars seen in the third quarter of 2019. This decline affected most segments of the fintech industry, with payments experiencing a particularly sharp decrease. However, insurtech and ESG/greentech bucked the trend, attracting more investment in 2023 than in the previous year. 

Venture capital feels the pinch

The fintech investment landscape in 2023 was dominated by M&A deals, which accounted for 56.4 billion U.S. dollars of funding. Venture capital investments, while still substantial at 46.3 billion U.S. dollars, saw a marked decrease from 88.8 billion U.S. dollars in 2022. This decline was not only in value but also in the number of investment deals, which fell from 6,492 to 3,819. Despite the challenges, the fintech sector continues to evolve, with companies like Stripe leading the U.S. market with a valuation of 65 billion U.S. dollars, underscoring the enduring potential of innovative financial technologies.