The World Economic Forum emphasised the role of thriving fintech hubs hosting clusters of fintech corporate headquarters and providing significant operating markets such as Singapore, the UK, the US, Mexico and India for the global growth of the fintech industry.
India has notably taken a prominent place in the global financial technology landscape, according to the January 2024 report by the World Economic Forum.
Some insights from the report titled ‘The Future of Global Fintech: Towards Resilient and Inclusive Growth’ were publicly released during the World Economic Forum (WEF) Annual Meeting 2024.
The organisation pointed out that global fintechs were increasingly expanding operations across borders, mainly in the same region as their headquarters. The main thriving clusters of fintech corporate headquarters, according to WEF data, are Singapore, the UK, the US and India.
Consumer demand is the main driver of fintech service growth. India, along with the US, the UK, Singapore and Mexico, was also mentioned among the most significant operating countries for fintechs. In these countries, as well as other regions, fintechs are offering tailored financial services and products to traditionally underserved segments of the population.
Overall, when considering the national income level and status of the country’s development, 51% of the fintech companies surveyed for the study operate in advanced economies (AEs), while almost the same number of fintechs (49%) operate in emerging markets and developing economies (EMDEs).
A large share of the fintechs surveyed operate in multiple jurisdictions (57%), and 24% of the given firms operate in multiple regions.
The findings show that despite global economic and geopolitical challenges, fintech performance remains strong, with average customer growth rates above 50% across different industry verticals and global regions.
While 38% of surveyed fintechs cite the regulatory environment as a major supporting factor for their operations and growth, a deteriorating funding environment is largely (40%) quoted among the top hindering factors for growth.
As for the forecasts and future growth, artificial intelligence (AI), the digital economy, embedded finance and open banking are regarded by fintechs as the most relevant for short-term industry development. The vast majority of fintechs surveyed (70%) believe AI is the most relevant topic for the development of the fintech industry in the next five years.