Macro Risks Impacting Global Fintech Growth
Recent research from the World Economic Forum (WEF) identifies macroeconomic risks as the foremost obstacle to the expansion of global fintech companies.
The latest edition of the Future of Global Fintech reveals that while the sector remains resilient and is navigating a "transition to a more sustainable growth phase," growth rates have moderated compared to the explosive increases witnessed during the peak of the Covid-19 pandemic.
Between 2022 and 2023, average customer growth was recorded at 37%, a decline from 55% during the 2020-21 period. This shift is attributed to a “natural market normalization” as the industry continues to mature.
Encouragingly, revenue and profit growth figures are strong, with increases of 40% and 39% respectively. However, nearly one in five respondents (18%) cited macroeconomic conditions as a significant barrier to growth—substantially lower than the 56% reporting similar concerns in the previous report.
A similar trend is observed regarding funding challenges, with only 12% indicating that macroeconomic factors negatively impacted their funding prospects, down from 40% in the earlier findings.
Furthermore, the report highlights a general contentment with the current regulatory environment, as 62% of respondents deem it "adequate." Additionally, there is a wide embrace of artificial intelligence, with 91% of fintech firms either utilizing or planning to implement AI technologies shortly.
The report concludes by identifying key areas of focus for the next five years, which include AI, regional interoperability, open banking, and open finance—essential topics for continued development within the sector.