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2024: The Rebirth Of Global Fintech

29 May 2024 - The FinTech sector is undergoing a sea change from growth to profitability. 2023 was the year of rebalancing, characterised by reduced capital flows resembling pre-pandemic levels.

However, industry and sector fundamentals remain strong. 

Financial Services is One Of The Most Profitable Sectors Of The Global Economy

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Annual Fintech Revenues Will Grow Six-fold To Reach $1.5 Trillion By 2030, Heavily Skewed Towards Banking Segment

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 We see promising growth from global FinTech markets.

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By 2030, digital payments and lending will continue to remain the largest Fintech segments, however neo-banking, insureTech and financial infrastructure will be the fastest growing segments.

Japan's stock market experienced a strong performance in 2023, exceeding expectations and outpeforming many othe developed markets. The Topix rose by 24% in local currency terms, while the Nikkei 225 climbed by c. 30%to hit levels not seen since 1989. These increases have put Japan among the bestperforming stock markets globally.

Singapore also remains a top FinTech fundraising node globally

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Singapore is a key gateway for global asset managers and investors with US$ 3.65 trillion (S$4.9 trillion) of assets under management (AUM)1. Private Equity and Venture Capital accounts for S$ 587 billion of AUM. There are about 1,100 Single Family Offices (SFOs) that were awarded tax incentives by The Monetary Authority of Singapore whom together managed about S$ 90 billion as of 2021.

 FinTech has disrupted banking, with consumer demographics shifting towards FinTech and away from banks. Monzo, one of the earliest app-based challenger banks to emerge, is now the 7th largest bank in the UK. Digital-only FinTech apps including Monzo, Nubank, Starling and Cashapp are reaching unit economic profitability.

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