SINGAPORE: Based on the data from Tracxn, analysts of UnaFinancial considered venture investments in fintech startups by various sectors.
The world leader by fintech venture investment volume is North America with US$453 billion in 2023, which is projected to reach US$834 billion by 2028.
Asia ranks second with $369 billion in 2023. The leading sectors of fintech there are e-commerce (59%), digital payments and transfers (17%) and digital lending (11%). According to the analysts, fintech venture investments may grow to US$548 billion by 2028, showing a 49%-increase.
The experts said, “Drivers for positive change could include an evolving regulatory framework in the region as well as the high level of adaptation to newly developed technologies. This is confirmed by the EY FinTech Adoption Index, which shows that Asia retains its global leadership in fintech adoption.”
The third continent with significant fintech investment volumes is Europe, with US$188.8 billion in 2023. The optimistic forecast for 2028 is US$383.8 billion (+103%). South America is fourth with US$30 billion invested in fintech startups in 2023, followed by Australia (US$12.8 billion) and Africa (US$9.6 billion). By 2028 these volumes will grow to US$35, US$22.4 andUS$ 22.2 billion respectively.
The global volume of fintech venture investments amounted to US$1.06 trillion in 2023. According to UnaFinancial’s estimate, the volume of investments in fintech startups could increase by 77% to US$1.88 trillion by 2028.
