Fintech Market Insights

What happened in Fintech in 2025 and what’s behind it? Here is my behind-the-scenes summary based on the FT Partners 2025 Annual FinTech Almanac numbers. 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗮𝗰𝘁𝗶𝘃𝗶𝘁𝘆: • Capital is concentrating into fewer, larger rounds as investors back proven platforms over early-stage fintechs. • Profitability and predictable revenue now matter more than growth alone, as higher cost of capital has reset how risk is priced. • Financial Management and WealthTech attract capital because banks and asset managers are still modernising core workflows around data, reporting, risk, and operations. • Crypto funding has shifted from speculation toward infrastructure. • Payments’ reduced share of financing reflects maturity of the core rails, with innovation moving to embedded and vertical-specific use cases. • Banking and lending funding is spread across specialised tools (onboarding, underwriting, compliance, servicing, etc) as most banks choose to modernise in layers and not by replacing their core in one go. • InsurTech investment is rising as insurers face worsening loss ratios (driven by climate volatility, inflation, and fraud) and use software to regain control over pricing, underwriting, and claims. • Capital is increasingly flowing to markets that combine fast-moving regulation, public-sector capital, and national digital rails (real-time payments, digital ID, open finance). • Mega-rounds are returning but mainly for scaled leaders, meaning this is not a generic market trend but focused on a small group of companies that already behave like infrastructure.   𝗠&𝗔 𝗮𝗰𝘁𝗶𝘃𝗶𝘁𝘆: • M&A activity is accelerating because many fintech categories are now mature, making consolidation the fastest way to expand. • Scaled fintechs are increasingly the buyers, using acquisitions to add capabilities faster than they could build internally. • Acquisitions are focused on filling product gaps (risk, data, compliance, embedded payments, fraud) rather than buying growth. • Payments M&A is driven by margin pressure and intense competition, with players buying scale and efficiency rather than chasing new geographies. • Financial Management and WealthTech M&A is driven by demand for platforms that already sit at the centre of financial operations. • Crypto M&A is selective, targeting regulated, compliant infrastructure rather than consumer-facing speculation. • Cross-border M&A is rising as fintechs use acquisitions to enter regulated markets faster than licensing alone would allow. • Private equity is accelerating as many strong fintechs generate cash but lack public-market scale, making them attractive candidates. What are the trends that you see continuing in 2026? What did I miss? Opinions: my own, Graphic source: FT Partners 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐦𝐲 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫: https://lnkd.in/dkqhnxdg

Two trends have caught my attention and signal a growing trend in the M&A landscape: the rise of equity-funded deals and improving market reaction to M&A.   With valuations at record highs and range-bound interest rates, the cost of equity and debt are converging. Consequently, I’m seeing more boards contemplate equity considerations alongside debt funded cash considerations as a genuine alternative to all cash — enough to push equity-funded deals to 23% of total activity, up from 18% a year ago. It is also notable that this consideration mix is evident in large-scale transactions, with $10bn+ deals making up a larger proportion of M&A volumes this year.   Market and shareholder dynamics are also shifting. In 2022, the median day-one share price move for acquirers in large equity deals was -5.3% relative to the market. This year, it’s closer to -1.5%. For shareholders, ownership is increasingly concentrated among a smaller number of institutional investors, amplifying their influence on deal outcomes. Together, these trends underline: ▪️Day one isn’t destiny. There’s no clear link between the first day’s move and long-term returns – around half of deals see a negative day-one reaction, yet many go on to deliver positive three-year share price performance. ▪️Shareholder makeup is also an important factor. Greater ownership concentration among the largest index investors can amplify share price volatility. Early alignment with key active investors is critical. ▪️Messaging matters. The way a deal is communicated, before and after announcement, can materially shape sentiment, reduce activist risk, and secure shareholder support. This is critical to an effective roll-out strategy. As we head towards Q4, I expect the strongest M&A outcomes will come from a combination of disciplined execution and a compelling strategic narrative.

Why Fintech CEOs must speak Regulator-ese As a CEO in regulated fintech for over two decades, I've learned that speaking the language of regulation isn’t optional—it's essential. But let’s face it, speaking regulator-ese isn't exactly everyone's first choice of second language. It’s dry, complicated, & often about as exciting as watching paint dry...in slow motion. Yet mastering it can be your competitive superpower. Here’s why: Speaking the language of regulators doesn’t mean becoming a bureaucrat—it means becoming fluent in success. A 2024 Deloitte report highlights that over 78% of fintech failures are linked to regulatory missteps, not a lack of innovation. The reality is that regulators aren't here to ruin your fun; they're here to keep the playground safe. Navigating regulation well gives you trust, speed, & scalability—three golden tickets in fintech. Why you should become fluent in regulator-ese: 1. You move faster: Deloitte (2023) found fintech companies aligned with regulations launch products up to 45% faster than those playing catch-up. 2. You win customer trust: Edelman Trust Barometer (2024) revealed that fintech customers rank regulatory transparency as their #1 deciding factor when choosing whom to trust with their money. 3. You avoid costly 'Oops' moments: Non-compliance cost global fintechs nearly $6 billion in fines in 2023 alone (Fenergo). Think of it this way—regulators aren’t your enemy; they’re the referees. Sure, you might occasionally dispute a call, but without them, the game descends into chaos (ever played football without a ref?). Learning to speak regulator-ese means you can: • Anticipate & adapt rather than panic & react. • Influence outcomes proactively rather than reactively. • Unlock innovation by clearly seeing what’s possible within the lines instead of guessing & getting benched. The fintechs winning big right now aren’t fighting regulations; they’re leveraging them. So, don’t let regulatory language intimidate you. Dive in, master it, & watch it become your unexpected competitive advantage. After all, who knew fluency in regulator-ese could make you the fintech MVP? Not bad for a second language you never wanted to learn. #Fintech #Leadership #Regulation #Compliance #Crypto #Blockchain #LeadershipMatters #Innovation #FinancialServices #Regulations

State of #fintech at the end of Q3’2024 by CB Insights Global Funding Trends: 🔵 Fintech #funding fell to $7.3B in Q3’24, a 25% quarter-over-quarter (QoQ) drop. However, the decline adjusts to 13% when excluding large deals from the prior quarter (e.g., Stripe, AlphaSense) 🔵 The average deal size in 2024 remains steady at $12.7M, reflecting a focus on fewer, higher-value #investments despite a 16% drop in total deal volume, reaching the lowest level since 2017. Geographic Insights: 🟠 Emerging Markets Lead Early-Stage Deals: 52% of early-stage deals occurred outside traditional hubs (e.g., US, UK), favoring regions like India, France, and Kenya Sector-Specific Trends: 🟢 Wealth Tech: Notable funding increase with a focus on solutions targeting niche demographics, such as medical professionals. #Wealthtech saw a 67% increase in funding QoQ, driven by significant deals such as Human Interest ($242M) and Earned Wealth ($200M) 🟢 Digital Lending: Continued activity in Asia and the US, with standout deals like DMI Finance ($334M) and MNT-Halan ($158M) 🟢 Payments and Insurtech: Both sectors experienced declines but retained pockets of high-value activity, particularly in #insurance #innovation Investor and Exit Activity: 🟣 #VentureCapital Shift: VC investments accounted for 29% of deals, highlighting a cautious but persistent interest in fintech 🟣 Exits: M&A dominated the exit landscape, with fewer IPOs or SPACs, indicating a shift toward #consolidation over public market enthusiasm. So what does all this mean for the near future? ♻️ We are entering a consolidation phase: With deal volumes at a historic low, the industry is undergoing a consolidation phase. Expect M&A to drive market realignments, especially in crowded subsectors like #payments and lending. ♻️ Increased focus on Emerging Markets: The shift toward less-crowded geographies reflects the untapped potential in markets like #Africa and parts of Asia. Companies targeting these regions may enjoy less competition and high growth prospects. ♻️ Selective Investment Persists: Investors are prioritizing fewer, higher-quality deals. #Startups will face increased pressure to demonstrate solid unit economics and scalability before securing funding. ♻️ Some Sectoral Bright Spots: The wealth tech boom signals a growing appetite for personalized financial management solutions. #Insurtech and #lending (especially in the small business) innovation remain attractive as they address core pain points with digital solutions. ♻️ Challenges for #Unicorns: The slowed rate of unicorn births underscores a recalibration of valuations. Companies aspiring to cross this threshold will likely need to showcase strong #profitability or growth metrics. Also, some of the existing unicorns 🦄 will lose their wings 🪽 if they test the market

This Housing Ramp Photo Just Went Viral – And Every Product Manager Needs to See It A wheelchair ramp abroad that's "technically compliant" but completely unusable. Steep slope, impossible navigation, pure checkbox thinking. Product Managers: 📌 SAVE this for your next compliance discussion. This ramp screams the same problem I see in fintech products daily: ✅ KYC implemented = compliant ❌ 47-step verification flow = user nightmare The brutal truth: Regulatory compliance can either kill your product or become your competitive edge. I've launched many fintech products. EVERY single one hit regulatory roadblocks. But here's what I learned: >>Compliance-first design isn't slower – it's faster. My 3-Step Framework: 1/ Design Integration - Embed compliance into UX from day one - Make verification feel seamless, not punishing - Test with real users, not just legal checklists 2/ Cross-Functional Collaboration - Get legal/compliance teams brainstorming solutions - Use data to show user impact, not just regulatory risk - Build bridges, not barriers between teams 3/ Validate Early & Often - Test compliance flows with actual users - Get regulator feedback before launch - Document everything, demonstrate impact Golden rule: Build WITH regulations, not around them. Because users can spot fake compliance instantly. But thoughtful regulatory design? That creates product differentiation and user trust. The companies winning in fintech aren't avoiding compliance – they're making it invisible. What's your biggest fintech compliance challenge? Share below in comments Like 👍 if this resonates, Share 🔄 to your network Follow me (Monica Jasuja) for more product insights that actually ship.

Crypto data update! Our friends at Token Terminal (available via the Bloomberg Terminal) just made all their data free for a limited time. Here's a sampling of what you can access via the Terminal: - Financial statements for L1s, L2s, DeFi protocols, NFT projects, apps, games, etc. - "Trending Contracts" — see which projects are "trending" within various ecosystems by viewing gas consumption, transactions, active users, net flows, etc. - "Trending Wallets" — analyze whale activity within various ecosystems and projects across a number of metrics - Fundraises — observe VC activity and funding levels within various ecosystems to get ahead of what comes next - "Insider Transactions" — view the onchain activity of large token holders within various projects and ecosystems - Stablecoins — analyze stablecoin activity across 10 different chains (outstanding supply, transaction volume, transaction count, tokenholders, average transfer value, etc) - Cohort Analysis — view retention rates for monthly active user cohorts (identify projects with product/market fit vs mercenary users farming airdrops) - Blockchain Comparison — perform relative analysis across the top 16 blockchains covering KPIs such as active users, transactions, devs, ecosystem fees, ecosystem revenues, total projects, etc. - Market Sectors — view activity across a number of metrics within sectors such as L1s, L2s, Gaming, DeFi Lend/Borrow, DeFi DEXs, DeFi Derivatives, DeFi Asset Mgmt, Infrastructure, Bridges, etc. ----- What a great opportunity to learn about the future of financial analysis and seek the truth onchain. Head over to Token Terminal dot com to access the data and feel free to tag me on any insights shared here on LinkedIn!

6 weeks into the build of another fintech start-up, this time in the remittances, cards, and payments space, I realise that key learnings from previous start-ups have been reinforced. 1. Clarity on Strategic Priorities Product/Market Fit is Everything: Early success depends on clear validation of a real customer pain point, robust feedback loops with initial pilot users, and continual adaptation to the regulatory environment. Hyper-localisation and Differentiation: The UK remittance and payments space is crowded. Standing out requires hyper-localisation of service, strict compliance, and unique value-adds to compete against big names like Revolut. 2. Operations & Governance Establishing Governance Frameworks: Even as a start-up, regulators and partners expect robust governance - from a “3 lines of defence” risk model to strong oversight and decision logs. KPIs and Programme Discipline: Typical KPIs for Programme Directors and build teams revolve around delivery speed, stakeholder management, cost control, compliance achievements, and measurable progress against milestones. 3. Understanding and Navigating Risks Risk Management is Broad and Deep: Fintech start-ups face regulatory risks such as AML/CTF, safeguarding customer funds, product misfire, tech stack immaturity, fraud, and operational risks including vendor management and talent gaps. Guardrails for Growth: Defining the business’s risk appetite, especially regarding compliance versus speed, sets expectations for the team and stakeholders. 4. Organisation and People Building the Right Team: Success depends on quickly assembling a team of builders - people comfortable with ambiguity, speed, and regulatory demands. Managing Change Fatigue: Ambitious targets and startup pivots can be draining. Recognising this early helps us to  support and energise the team. 5. The Value of Feedback and Iteration Listening to Customers and Partners: Collect actionable feedback early, particularly from initial pilot customers and key banking and payment partners, to avoid investing in features that don’t add value. Iterate Fast and Document Decisions: Maintain transparent programme decisions logs to track why choices were made and support accountability. 6. The Importance of External Perspective Competitor Awareness: Watching how players like Currency Cloud, Wise, or WorldRemit operate  in respect of fees, features and regulatory approaches, informs the product roadmap and helps us differentiate from the competition. Liked this post? Want to see more? Ring the 🔔 on my Profile 🔝 Connect with me

Africa quietly processed 64 billion instant payment transactions worth nearly 2 trillion dollars in 2024. That is not a fintech headline. That is economic infrastructure hiding in plain sight. This week on the Unlocking Africa Podcast, I sat down with Sabine F. Mensah, Deputy CEO of AfricaNenda Foundation and co-author of the State of Inclusive Instant Payment Systems in Africa 2025 report, one of the most comprehensive studies ever produced on Africa’s real time payments ecosystem. What stood out most in this conversation was how clearly it reframed payments, not as a niche fintech topic, but as core economic infrastructure driving trade, productivity, and inclusion. As Sabine explained… “Digital payments mean more people are accessing and using digital payments and leveraging them to contribute to productive activities that can drive the economy.” Drawing on insights from 31 countries, we explored why Nigeria has emerged as Africa’s first fully mature instant payment system, and why this success was not accidental. In Sabine’s words… “It is not just about speed. It is about who is included and how systems are designed from day one.” We discussed: • Why scale alone does not guarantee inclusion • How interoperability transforms SME cash flow and liquidity • Why instant payments are foundational to AfCFTA success • How real time settlement changes growth outcomes for African businesses • Why trust, consumer protection, and recourse mechanisms matter as much as infrastructure One line that stayed with me throughout the episode… “There is no trade without payment. Digital payments are as important as ports and customs.” And a reminder that inclusion is deeply human... “It is not just one consumer with a bad experience. It is my family, my village, my community.” This episode is essential listening for policymakers, investors, founders, and anyone serious about doing business in Africa. Payment systems are no longer background infrastructure. They are central to growth. ⬇️ Listen now, link in the comments below ⬇️ #AfCFTA #DigitalPublicInfrastructure #PaymentsInfrastructure #AfricaTrade #InclusiveGrowth #Podcast

🏦𝗡𝟮𝟲 𝘃𝘀. 𝗕𝗮𝗙𝗶𝗻: 𝗪𝗵𝗲𝗻 𝗚𝗿𝗼𝘄𝘁𝗵 𝗢𝘂𝘁𝗿𝘂𝗻𝘀 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 Today, 𝗕𝗮𝗙𝗶𝗻 𝗮𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝗱 𝘀𝘂𝗽𝗲𝗿𝘃𝗶𝘀𝗼𝗿𝘆 𝗺𝗲𝗮𝘀𝘂𝗿𝗲𝘀 𝗮𝗴𝗮𝗶𝗻𝘀𝘁 𝗡𝟮𝟲 𝗕𝗮𝗻𝗸 𝗦𝗘 following a special audit that identified serious deficiencies in the bank’s risk management, complaints handling and lending organisation, especially in the way mortgage business was managed. As a result, BaFin: ➡️Restricted #N26 from originating new mortgage loans in the Netherlands. ➡️Appointed a special monitor to oversee remediation and strengthen compliance. In a separate matter, BaFin had already imposed a fine of €15,000 on N26 Bank SE by order dated March 18, 2025. ❗️This is the second time BaFin has appointed a special representative under similar circumstances since 2021. We often talk about technical compliance , i.e., checklists, controls, dashboards. But what BaFin underlines here is governance in action: how decisions are made, how risks are escalated, how customer concerns are resolved. Regulatory compliance without robust operational embedding is fragile. 💡If you are offering #fintech products, legacy compliance thinking won’t cut it. Supervisors are watching deeper layers of governance, and they will act when they see systemic weakness, not just isolated errors. 💡What to expect? This will not be the last intervention we see in 2025 and 2026. Supervisors are no longer asking whether governance frameworks exist; they are asking whether they actually work under pressure. As someone who works closely with founders and executive teams, I see this again and again: governance is often treated as something to “fix later.” But later is exactly when it becomes expensive: financially, reputationally, and strategically. For anyone building or scaling regulated financial products in Europe: now is the time to rethink risk, governance, and accountability - not when the regulators is already at the door. #Compliance cannot be a checkbox exercise. It must be woven into governance, culture, and operations from day one. We work with teams to turn robust compliance into a visible trust and positioning advantage - ping me to learn more. (Getty Images / Andreas Rentz, Collage: Dominik Schmitt / Gründerszene) #banking #regtech #finserv #governance

This is something I tell every founder. Never skip the hard conversations at the start of a partnership. Because tension doesn’t disappear. It sinks into the foundation. And as the business grows, those tiny cracks get wider. Eventually, something gives. That’s why talking about equity, roles, decision-making, and exits early matters. Not because you expect things to go wrong. But because clarity holds when stress shows up. Fintechs partnering with Indian banks or NBFCs? Same thing. But bigger. Faster. The RBI is watching. And vague “we’ll figure it out later” thinking doesn’t fly anymore. Before lawyers draft a single clause, there are five questions you need to answer with your partner: 1) Who actually bears regulatory risk? “The NBFC handles compliance. We just do tech.” Sounds neat. Works... until the RBI looks at onboarding flows, underwriting, or data handling. So ask: if there’s an audit, who responds? Who coordinates? Who pays the fines? NBFC = lending compliance. Fintech = tech and data security. Anything in between is a grey zone. Grey zones get notices. 2) Who owns the data? And is consent clear? “Sharing data” is not enough. Consent has to be granular, traceable, and purpose-driven. Who collects consent? For what? KYC? Underwriting? Collections?  Marketing? Where does the data live? Is it in India? Skip this now, and fixing it later is slow, expensive, and regulator-unfriendly. 3) Who handles grievances? Customers complain. They get bounced around. RBI sees that as weak oversight. Ask: who runs the portal? Whose name is on acknowledgments? What’s the SLA? What’s the escalation path? Clear timelines. Clear responsibility. No blame games. 4) What happens if the partnership ends? Exits matter as much as entries. What triggers a breakup? SLA breach? Regulatory violation? Who can pull the trigger? How is data returned? Loan books, KYC, consent artifacts - all of it. Clean exits protect customers and reduce risk. 5) Audit rights and frequency? “How do you oversee your fintech partner?” That’s the question the regulator asks. “We trust them” is not an answer. Mutual audits. Quarterly. Data, KYC, transactions. Documented findings. Fixes tracked. That’s oversight. The point is simple: these aren’t legal technicalities. They’re alignment questions. Vague answers today = chaos tomorrow. Founders who last? They have the tough conversations early. About risk, data, complaints, exits, and oversight. Because difficult conversations now prevent foundation cracks later. --- ✍ Do you also do tough conversations early on? Share below!