The exponential growth of fintech companies has faced setbacks, with global funding dropping to $63 billion in 2022, a slump attributed to macroeconomic challenges. Venture capitalists are eyeing opportunities in less developed markets, where fintech models like payment orchestration and cross-border payments show promise. Despite challenges, partnerships between banks and fintechs are on the rise, driven by the need to reduce operational costs and meet evolving customer expectations. However, risks such as cybersecurity threats and regulatory challenges persist, particularly in regions like China. Nevertheless, the potential for growth remains strong, fueled by the rise of real-time payments and fintechs’ progress towards profitability.
