Future of Global Fintech Second Edition 2025

Effectiveness of supporting mechanisms for fintech business growth FIGURE 19 Fast retail payment system Standardization on cybersecurity/fraud preventioneKYC or simplified customer due diligence Digital regulatory and supervisory infrastructure Open banking/open finance framework 23%Initiative exists and is effective Initiative exists and is not effective Initiative does not exist but needed N/A (initiative does not exist)Standardization on data sharing Streamlined or fast-tracked product or service approval50% 12% 21% 17% 46% 17% 10% 27% 33% 24% 24% 19% 29% 32% 20% 19% 29% 24% 23% 24% 22% 28% 28% 22% 16% 29% 29% 26% Globally, fintech regulators and supervisors undertake a range of initiatives to ensure effective regulations and cultivate an enabling environment. To understand the effectiveness of mechanisms and initiatives that promote fintech growth, the survey asked fintechs to rate the efficacy of seven regulatory initiatives and mechanisms, as set out in Figure 19. Overall, the measures that respondents rated as most effective were “electronic know your customer” (eKYC)/simplified customer due diligence (50%), fast retail payment systems (46%) and standardization on cybersecurity and fraud prevention measures (33%). This aligned with other findings highlighting fintechs’ belief that integrated eKYC and AML platforms would be the leading DPI intervention that could cultivate business growth. eKYC/simplified customer due diligence: This supporting mechanism was viewed as significantly effective in APAC (72%), followed by MENA and the US and Canada (each with 54%). In contrast, in SSA, fintechs reported that it was strongly needed (62%). By vertical, eKYC mechanisms were deemed broadly available by 72% of digital payment firms and 70% of digital lending firms, with notable nuances. While 63% of digital payments firms found the mechanisms effective, 22% of digital lending firms reported it was ineffective. Fast retail payment systems: Most firms in APAC (54%) and SSA (50%) reported that fast payment systems existed and were effective. In comparison, 19% of firms in LAC considered it necessary but acknowledged that it had not yet been implemented. Additionally, 27% of fintechs in the region reported the absence of a fast payment systems initiative, perhaps reflecting uneven implementation. By vertical, digital lending (67%), wealthtech (51%) and digital payment (47%) fintechs viewed these systems as most favourable, aligning with their positive perception of open banking and open finance frameworks. In contrast, 24% of digital capital raising firms reported that fast retail payment systems did not exist but were needed, with another 29% stating they existed but were ineffective.Supporting mechanisms and initiatives to promote sector growth The Future of Global Fintech: From Rapid Expansion to Sustainable Growth 27