The first half of 2023 presented considerable challenges for the global fintech market. Some of these challenges were anticipated, such as high inflation rates, increasing interest rates, the ongoing Russia-Ukraine conflict, diminished valuations, and a dearth of exit opportunities. Others were less so, including the collapse of multiple banks in the United States. But while both total fintech funding and the number of fintech deals globally dropped from $63.2 billion across 2,885 deals in H2’22 to $52.4 billion across 2,153 deals in H1’23, the news wasn’t all negative. The Americas saw fintech funding climb from $28.9 billion in H2’22 to $36 billion in H1’23.

Global venture capital funding for fintech startups has experienced a significant 49% year-over-year decline, totaling $23 billion in the first half of 2023, owing to prevailing economic challenges. It's important to note that the decline in total funding began in the latter half of 2022. Compared with H2 2022, fintech funding values have been ascending, having registered $9 billion and $14 billion in Q1 and Q2, respectively, in 2023, compared with $9 billion in Q3 and $8 billion in Q4 2022. Nonetheless, the rebound may not yet represent a turnaround for the industry as a handful of billion-dollar rounds have propped up the funding value.

Over the last two decades, fintech, the convergence of finance and technology, has sparked a revolution in the financial services sector with a series of groundbreaking innovations. Despite experiencing a market value decline of over 50% in 2022, which was perceived as a short-term correction, the sector remains firmly on a robust long-term growth trajectory. The global financial services industry, grappling with innovation and customer experience challenges, caters to more than half of the world's unbanked or underbanked population. Fintech, currently contributing only 2% of global financial services revenue, is positioned to achieve an annual revenue of $1.5 trillion by 2030, constituting nearly a quarter of the entire global banking sector's valuations. The Asia-Pacific region, spearheaded by emerging Asia (including China, India, and Southeast Asia), is anticipated to serve as the epicenter of this expansion, with North America, Europe, Latin America, and Africa each exhibiting unique growth dynamics in this transformative journey.

PwC's Digital Banking Survey 2023 seeks to gather insights and opinions regarding the foremost concerns and inquiries related to digitalization within the banking sector across Southeast Asia. The survey provides insights into the current landscape, shedding light on prevalent digital banking trends and primary areas of concentration for digital transformation. It is based on a recent survey encompassing over 30 leading banks throughout Southeast Asia, aimed at gaining a deeper understanding of their strategies and approaches to digital banking.

Global fintech funding fell 38% quarter-over-quarter (QoQ) to hit $12.9B — matching Q4’20’s level. Deals fell slightly, dropping 9% QoQ to reach 1,160. Mega-rounds also accounted for a smaller percentage of total funding (34%) compared to the average of 66% in 2021. Below, check out a handful of highlights from our 150-page, data-driven State of Fintech Q3’22 Report. For deeper insights, all the record figures, and a ton of private market data, download the full report.

Fintech sees its slowdown accelerate in Q2'22 as quarterly funding plummets toward 2020 levels. Global fintech funding fell 33% quarter-over-quarter (QoQ) to hit $20.4B — its lowest level since Q4’20. Deals also hit a 6-quarter low, dropping 17% QoQ to reach 1,225. In line with this trend, $100M+ mega-rounds also accounted for a smaller percentage of total deals (4%) and funding (47%) than they did at any quarterly point last year. Below, check out a handful of highlights from our 197-page, data-driven State of Fintech Q2’22 Report. For deeper insights, all the record figures, and a ton of private market data, download the full report.

Incumbents, startups, and investors adapt to fintech evolution From disruptive threat to enabling partner, fintech has entered a new phase of its evolution. Our insights track the development of the fintech market and examine how banks, insurers, and investment management companies are tackling fintech transformation initiatives.

Emerging technologies, similar risks From customer service chatbots to software robot bankers, disruptive digital technologies like artificial intelligence (AI), robotics, and blockchain are changing the financial services industry. To get a clearer picture of the adoption and acceptance trends of these technologies, see the results of a Deloitte-sponsored survey.