State of Fintech H1 2034- by Boston Consulting Group (BCG)

The FinTech landscape has changed, but signs of stability have emerged.

The first half of 2024 has shown some promising signs of recovery for the global FinTech ecosystem. The FinTech sector saw a 38% increase in equity financing from Q1'24 to Q2'24, signaling renewed investor confidence,potentially leading the FinTech ecosystem out of the investment downturn that began in Q1'22.

This has been heavily influenced by the stabilizing macroeconomic environment as inflation eases and interest rates plateau across the globe. We are moving into a more predictable, albeit higher interest-rate, macroeconomic environment.

Additionally, the uncertainty around underwhelming FinTech public market performance, concerns around valuations and a challenging exit environment have considerably eased. Public markets are stabilizing, revenue multiples are leveling at 4x to 5x compared to the 20x peak and M&A activity has remained strong. However, the long-term outlook is far from certain. Interest rates and inflation in many leading FinTech markets remain high and geopolitical tensions remain. Alongside this, 2024 sees elections and changes in governments across many major FinTech regions.

Author

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