FINANCIAL SERVICES
Currencies ( CBDCs ), improved security measures like biometrics , and financial inclusion solutions .
Nicolai explains that these emerging segments are attractive because “ they address significant changes that continue to impact the financial landscape , especially as they continue to meet pressing global needs .”
For instance , the focus on improved security measures is “ in response to the growing demand for improved protection in an era of increasing cyber threats ”.
He elaborates on the importance of security in today ’ s digital world : “ As the way we pay becomes more digitised , the need for robust and secure authentication methods is important .
“ VCs are backing these innovations because they not only meet current security demands but also lay the groundwork for future-proofing digital finance .”
Ivan described CBDCs as “ a significant evolution in how governments manage money , offering the potential for greater efficiency , transparency and inclusivity in financial systems ”. He sees this as an opportunity for VCs to “ back innovations that could revolutionise payment infrastructures and the broader economy ”.
Financial inclusion solutions are also gaining traction , particularly in regions where large populations remain underserved by traditional banking systems . By supporting fintechs that bridge this gap , VCs are not only tapping into a growing market but also driving social impact .
Ivan says : “ Financial inclusion has become a major priority , particularly in underserved markets . Solutions aimed at
FINTECH INVESTMENT – KEY STATS
GLOBAL FINTECH INVESTMENT plummeted by 48 % in 2023 compared to the previous year , dropping from US $ 33.4bn in 2022 to US $ 12.5bn in 2023 .
THE UNITED KINGDOM has solidified its position as the third-largest venture capital market globally , accounting for 6 % of global investment .
THE UNITED STATES continues to dominate the global fintech investment landscape .
ISRAEL remains a robust market for fintech investment , while the Baltics and Northern Europe are gaining momentum .
GULF REGIONS , particularly Dubai and Saudi Arabia , are actively working to establish their own venture ecosystems in the fintech sector .
166 November 2024