S&P 2023 Report: Funding for Fintechs Set to “Go Back to the Drawing Board”

With nearly a year since the 2022 fintech upset rocked international markets, industry experts have finally gained enough context to better understand the extent of the shake-up. Most investors and business leaders are well aware that the halcyon days of free innovation and endless capital in the fintech world are a thing of the past. Now, following the release of the “S&P Global Market Intelligence’s Global Fintech Funding Trends 2023” report, hard data is available to direct the future of the industry.

The report encompassed a broad swath of industries and regions, uncovering data that points to likely winners and losers in the coming months and years. Most significant is the full fiscal toll of 2022, which the report’s authors calculated at $63 billion worldwide.

Become a Subscriber

Please purchase a subscription to continue reading this article.

Subscribe Now

However, as the authors of the report noted, not all areas of fintech have been equally affected by last year’s crisis. “Among fintech verticals, payments saw the brunt of the decline, with aggregate funding value falling to $19 billion from $30 billion in 2021,” the authors wrote. “Robust digital payment trends could encourage VCs to continue to support category leaders, but capital will likely come with strings attached.”