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January 25, 2024

Consumer demand fuels fintech’s global surge.

The global fintech industry is continuing to experience strong growth driven by consumer demand, according to a report from the Cambridge Centre for Alternative Finance (CCAF) at Cambridge Judge Business School and the World Economic Forum. The report highlighted several key findings:

• Customer growth rates in the fintech industry remain above 50% across all regions and industry verticals.

• 51% of fintechs surveyed cited consumer demand as the main driver of growth.

• Factors hindering growth include macroeconomic conditions and the funding environment.

• Fintechs are expanding financial services to underserved segments, including female, low-income, and rural customers.

• The development of digital regulatory and supervisory infrastructure has been effective in supporting growth.

The report also emphasized the growing importance of artificial intelligence (AI) in the fintech industry, with 70% of fintechs identifying AI as the most relevant topic for industry development in the next five years.

Overall, the report suggests that while the fintech industry is growing and making progress in extending financial services to underserved areas, it still faces challenges such as a difficult macroeconomic climate and decreased funding. It emphasizes the need for a regulatory environment that can support the scalable and sustainable development of fintech.