Future of Global Fintech Second Edition 2025

Fintech perceptions of the regulatory environment Fintechs do not operate in isolation – they are both influenced by and actively shape the regulatory environment of their jurisdictions. Regulatory frameworks for fintechs encompass the laws, regulations, policies and compliance requirements that govern fintech firms, ensuring consumer protection, data security, financial stability and adherence to anti-money laundering (AML) and risk management standards.13,14 As technologies and their applications continue to evolve, regulatory frameworks must also adjust. Given the rapid pace of technological developments, monitoring fintechs’ perspectives on the regulatory environment is particularly important. Such information can be highly valuable for regulators and policy-makers as they seek data points to inform their decisions. Against this backdrop, the research survey asked fintechs several questions about the regulatory environment in their countries of operation. Overall, 62% of responding fintechs perceived the regulatory environment as adequate and appropriate for their activities, consistent with the 2024 study15 (Figure 15). This trend was consistent across regions (Figure 16) and verticals (Figure 17). However, there were notable disparities. Fintech respondents in MENA, APAC and Europe perceived their regulatory environment more positively than those in other regions (75%, 68% and 62%, respectively). MENA marked a significant shift from the findings in the 2024 study, with fintechs in this region having previously expressed greater concerns about excessive regulation in their sectors.16 In contrast, 20% of respondents in LAC perceived the regulatory environment as overly restrictive (an increase of 6% compared to the 2024 study17), while another 12% found it inadequate. Similarly, in SSA, 22% of responding fintechs considered regulations overly restrictive, and 18% viewed them as insufficient for their activities (slightly more than their peers in other regions). Fragmented policies and limited regulatory capacity could perhaps explain this.18 Overall, fintechs in EMDEs were more likely than firms in AEs to rate the regulatory environment as inadequate (14% versus 7%). Wealthtech (70%) and digital lending (65%) viewed the regulatory environment in their jurisdictions as favourable for their business activities. Digital capital raising fintechs considered the environment more challenging (20% of respondents viewed it as overly restrictive, and another 18% perceived it as adequate). Meanwhile, 24% of insurtech respondents regarded it as overly restrictive. The increase in fintechs’ perception of regulatory frameworks’ adequacy was correlated with an increase in customer growth, which led to a 22% increase in this indicator overall. Moreover, statistical evidence showed the positive impact of regulatory adequacy was more pronounced for firms in EMDEs, with an increase of up to 39% in customer growth and a 37% increase in revenue.19 Additionally, and unsurprisingly, further statistical evidence indicated a positive correlation between willingness to expand across borders and a strong or adequate rating of clarity in the regulatory approach.20 As technologies and their applications continue to evolve, regulatory frameworks must also adjust. Perception of the regulatory environment overall FIGURE 15 Adequate and appropriate for my firm activities Excessive and overly restrictive for my firm activities Inadequate for my firm activities No specific regulation/needed No specific regulation/not needed62%18%11%7%2% The Future of Global Fintech: From Rapid Expansion to Sustainable Growth 23