Fintech 2024 in Review: Key Takeaways and Predictions for 2025

As 2024 winds down, The Fintech Times takes a moment to reflect on a year marked by both challenges and growth in the fintech sector. With insights from industry leaders, the publication examines the defining trends of the past year and looks ahead to what 2025 may bring.

Global fintech investment fell significantly in 2024, signaling a cautious approach from investors amid heightened interest rates and geopolitical uncertainty. KPMG’s Pulse of Fintech report revealed that investment dropped to $51.9 billion in the first half of the year, marking the lowest six-month period since 2020.

Despite this decline, payments dominated funding, attracting $21.4 billion globally. Regtech proved to be a growth standout, surpassing its 2023 investment total with $5.3 billion secured in just six months. Additionally, artificial intelligence (AI) remained a major focus for investors, with its potential to drive cost-efficiency and enhance competitiveness in a high-cost market environment.

While funding tightened, fintech companies continued to demonstrate resilience by adapting to shifting market dynamics. Collaboration between fintechs and traditional financial institutions gained traction, driven by the need to navigate regulatory complexities and respond to evolving consumer expectations.

Fintechs played a crucial role in expanding access to financial services, particularly for underserved communities, fostering financial inclusion and resilience.

However, challenges persisted. Sustainability-driven innovation remained a critical area of focus, while risks such as data privacy and financial crime demanded proactive solutions.

As 2025 approaches, fintech leaders are strategizing to overcome the hurdles of the past year and seize new opportunities. The emphasis on innovation, collaboration, and sustainable growth is expected to continue shaping the industry.

Throughout December, The Fintech Times will feature exclusive perspectives from fintech CEOs and experts, highlighting the innovations and strategies that promise to define the coming year in their «Views from the Top» series.