Future of Global Fintech Second Edition 2025

Main challenges to cross-border expansion FIGURE 14 Adapting products and services to local markets Establishing local partnershipsNavigating complex regulatory and licensing requirements AEs EMDEsDPI state of the local market Handling cross-border data privacy and security issuesAccess to capital Other69% 66% 60% 54% 48% 47% 32% 40% 25% 22% 15% 12% 2%2%Regarding the challenges hindering cross- border expansion, fintechs worldwide reported they faced obstacles when expanding to new markets, particularly in compliance and customer acquisition. The top three barriers cited were complex regulatory and licensing requirements (68%), adaptation of new products and services to local markets (58%) and establishment of local partnerships (48%) (Figure 14). Regionally, in Europe and APAC, the main challenge to cross-border expansion was complex regulatory and licensing requirements (72% each). In LAC, adapting products and services to local markets was the primary challenge (69%), while SSA struggled with access to capital (56%). Notably, the access to capital challenge was more pronounced in EMDEs (40%) than in AEs (32%). Some verticals struggled more with compliance, while others faced greater difficulties in increasing their appeal to international markets. In particular, while digital capital raising fintechs struggled more with navigating complex regulatory and licensing requirements (84%), digital banking and savings and insurtech firms faced greater difficulties in establishing partnerships (71% and 75%, respectively). Some verticals struggled more with compliance, while others faced greater difficulties in increasing their appeal to international markets. The Future of Global Fintech: From Rapid Expansion to Sustainable Growth 21