Future of Global Fintech Second Edition 2025

In both EMDEs and AEs, fintechs reported similar levels of improvement in the funding environment, with slightly more firms in EMDEs reporting that it significantly improved compared to AEs (8% against 5%, respectively). Overall, 47% of fintechs reported that the funding environment somewhat or significantly improved. However, a significant portion mentioned that the funding environment had worsened, with 38% in EMDEs and 34% in AEs reporting this setback. This finding aligns with the broader market correction observed since 2022 (for instance, fintech investment fell to a seven-year low in 2024).12 Perceptions varied across regions and verticals. Fintechs in SSA had the most negative perceptions of the recent funding environment – 35% said it had somewhat worsened, and 18% said it had significantly worsened. On this less positive end, 23% of wealthtechs said it had significantly worsened. In contrast, 66% of insurtechs and 47% of wealthtechs said the funding environment had somewhat improved. In terms of significant improvement, digital payments led, with 12% having this opinion. These results suggest that, while there are some positive trends in funding perceptions globally, challenges may persist, particularly in EMDEs, where the proportion of respondents indicating worsening conditions was slightly higher. AEs demonstrated relatively more stability, with a higher proportion of respondents indicating no change than in EMDEs. To understand the determinants of funding availability in the fintech industry, the survey asked respondents to evaluate the importance of various factors, as portrayed in Figure 12. In both EMDEs and AEs, the quality and strength of the business model and revenue generation plan emerged as the most critical factor, with 66% of respondents in both EMDEs and AEs identifying it as pivotal. The availability of venture capital, private equity or angel investor funding ranked second in importance, cited by 72% of respondents in EMDEs and 64% in AEs, indicating greater reliance on alternative financing sources in EMDEs. This was especially significant in SSA, where 85% of fintechs reported that the availability of venture capital was a key factor. The competitive landscape and market position stood out as another significant consideration, with 42% of EMDE and 39% of AE respondents recognizing its impact. This was particularly significant in APAC (47%) and MENA (44%), as well as in the digital banking and savings, insurtech and digital lending sectors (57%, 46% and 44%, respectively). Similarly, access to networks and investor relationships was viewed as influential by both EMDEs (36%) and AEs (37%), indicating the critical role of connections in securing funding, especially for wealthtech firms (64%). Meanwhile, 30% of EMDE respondents and 26% of AE respondents viewed access to traditional financing from banks or financial institutions as a key factor , showing a similar level of reliance on these sources. Lastly, fintechs considered the favourable regulatory environment and compliance requirements less influential. This suggests that, while regulation creates an enabling environment, other factors, such as business strength and investor networks, are more decisive in determining funding availability.Quality and strength of the business model and revenue generation plan Competitive landscape and market positionAvailability of venture capital/private equity AEs EMDEsAccess to traditional debt financing Favourable regulatory environment and compliance requirementsAccess to networks and investor relationships Other64% 72% 66% 66% 39% 42% 37% 36% 26% 30% 19% 6%21% 2%Key factors determining funding availability FIGURE 1247% of fintechs reported that the funding environment somewhat or significantly improved. The Future of Global Fintech: From Rapid Expansion to Sustainable Growth 19