The fintech market faced significant challenges in the first half of 2024, driven by ongoing geopolitical uncertainties and high interest rates. This resulted in a decline in global investment, with total funding dropping from $62.3 billion in H2 2023 to $51.9 billion in H1 2024, marking the lowest investment period since the first half of 2020.
- Fintech investment saw a significant reduction across all regions, with the EMEA region experiencing the steepest drop, from $19.4 billion to $11.4 billion.
- Despite the overall decline, deal volume increased in the Americas and ASPAC regions, with the payments sector attracting the largest share of funding at $21.4 billion. Regtech was the only major fintech subsector to see an investment increase, surpassing its 2023 total with $5.3 billion.
- Artificial Intelligence remained a key area of interest for investors, particularly in the US, as a means to improve operating efficiencies and reduce costs.
