The global fintech market faced major hurdles in 2024. Total global investment reached a seven-year low of USD 95.6 billion. In the second half of 2024, investments fell from USD 51.7 billion in H1/24 to USD 43.9 billion. The German market was particularly affected, falling to the 2018 level of USD 815 million.
German fintech landscape
Investments in German fintechs fell again in 2024. In H2/24, only 43 deals with a total volume of USD 337.64 million were concluded - a decrease of 29 per cent compared to H1/24. While the global fintech market recovered, Germany lagged behind other European markets such as France.
Key findings:
- Investment decline in Germany: fintech investment fell for the third consecutive year and was 29 per cent below H1/24.
- AI as a growth driver: Eight AI-related transactions in Germany show the potential of new technologies for the financial sector.
- Stagnation in CVC investments: Corporate venture capital investments remained at the previous year's level overall in 2024 at USD 495.95 million, but recorded a decline of 55 per cent in H2/24 compared to H2/23.
Bernd Oppold
Partner, Financial Services
KPMG AG Wirtschaftsprüfungsgesellschaft
Get the Fintech Report now
Investments in Germany in 2024 back at the level of 2018 - what will happen in 2025? Secure all developments and future prospects now.
New impulses for 2025
The decline in investment is continuing, but initial signs point to stabilisation. Regulatory adjustments and a more favourable interest rate environment could provide new impetus in 2025. Technologies such as artificial intelligence in particular will remain a key growth driver in the financial sector.
After several years of declining investment volumes, more stability is gradually returning to the markets. Falling interest rates are helping to increase the willingness to invest again.
Targeted regulatory measures at national and European level, such as mandatory real-time transfers and AI funding programmes, could also improve the investment climate and revive the fintech market in Germany.
Read our latest report to find out how the market is developing and what opportunities this presents.
