WEF – The Future of Global Fintech, 2024

This report, conducted by the Cambridge Centre for Alternative Finance (CCAF) and the World Economic Forum, aims to provide insights on the future of the global fintech industry. The study surveyed 227 fintech companies across five industry verticals and six regions to assess their performance and challenges. The findings show that the fintech industry is demonstrating strength and resilience, with customer growth rates averaging above 50% across industry verticals and regions. Consumer demand is identified as the main driver of growth for fintechs. However, macroeconomic factors and the funding environment are seen as the primary challenges hindering fintech growth, particularly in a high inflation and interest rate global environment. Despite challenges, the majority of fintechs have a favorable view of their regulatory environment, rating it as adequate. However, some find regulatory compliance and licensing processes to be challenging. The fundraising environment has seen a significant drop in recent years, but fintechs have different views on its impact on their growth. While some see it as a hindrance, others believe it supports growth. Fintechs are expanding their provision of financial services to underserved segments, particularly in emerging markets. These segments make up a significant proportion of their consumer base and transaction values. Looking ahead, fintechs consider artificial intelligence (AI), the digital economy, embedded finance, and open banking as the most relevant topics for industry development in the next five years. AI is cited by 70% of fintechs as the most relevant topic for the future of the fintech industry.