During the first half of 2024, fintech investors remained very cautious, pulling back from making large deals except in exceptional circumstances. With macroeconomic conditions expected to remain challenging well into H2’24, and a US presidential election approaching, fintech investment is expected to remain subdued heading into H2’24.
Here are the top fintech trends for H2’24:
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AI will continue to gather steam among fintech investors: Similar to the investment environment more broadly, interest in AI will likely overshadow every other area in terms of investor interest and investment.
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The payments space will continue to attract the lion’s share of investment: Payments will continue to account for the largest deals in the payments space, with a continued focus on the modernization of B2B payments, embedded payments, and real-time payments.
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Regtech will attract additional attention and investment: Regtech will attract increasing interest and investment—driven by the constant evolution of regulatory regimes and the growing complexity of reporting requirements.
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DORA will keep investors focused on cybersecurity: Cybersecurity will remain a key focus for fintech investors, particularly given the EU’s Digital Operations and Resilience Act will come into force early in 2025; AI-related cybersecurity solutions will garner the most interest and investment.
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Increasing convergence between trad-fi and de-fi: Jurisdictions will continue to explore and approve activities that blend traditional finance with decentralized finance, including areas the tokenization of real work assets and the use of traditional financial infrastructure to support crypto investment.
