Global FinTech deal activity halved in 2024 & How Ushur drives secure AI adoption

How Ushur is driving secure and compliant AI adoption in Regulated Industries - AI and GenAI have become staples in regulated industries. While they bring a lot of exciting opportunities, they also carry a lot of cybersecurity, regulatory and data privacy concerns. 

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Research highlight

Global FinTech deal activity halved in 2024 YTD as investors prioritise larger deals

Key Global FinTech investment stats YTD 2024:

• Global FinTech deal activity halved in 2024 YoY
• Average deal value increased to $20.1m as investors prioritise larger deals
• Abound, a leading credit technology company, secured the largest FinTech deal for the year with a funding round of $1bn

Global FinTech deal activity halved in 2024 YoY

In 2024 year-to-date (YTD), the global FinTech sector experienced significant declines in both deal activity and funding compared to previous years.

A total of 4,289 deals were recorded in 2024 YTD, representing a 56% decrease from the 9,665 deals completed in 2023 and a 64% drop from the 11,953 transactions in 2020.

Funding also fell sharply, with FinTech companies raising $86.2bn in 2024 YTD—a 48% decline from the $164.5bn raised in 2023 and a 53% drop from the $182.1bn raised in 2020.

Average deal value increased to $20.1m as investors prioritise larger deals

The average deal value in 2024 YTD was approximately $20.1m, a significant increase compared to $17m in 2023 and $15.2m in 2020.

This rise in average deal size suggests a shift in investor focus towards larger, more mature companies, with fewer transactions occurring in the early-stage and high-risk categories.

Despite the overall decline in funding and deal activity, this strategic adjustment indicates that investors may be prioritizing companies with proven track records and resilience in uncertain market conditions.

Abound, a leading credit technology company, secured the largest FinTech deal for the year with a funding round of $1bn

Abound, a leading London-based credit technology company using Open Banking and artificial intelligence to offer more affordable loans, has secured the biggest FinTech deal globally for the year.

This significant funding follows Abound's rapid growth and achievement of profitability just three years after its launch.

The new capital includes a multi-year asset-backed debt financing arrangement from Citi, based on loan originations, and a Series B equity round led by Silicon Valley's GSR Ventures.

Abound has issued over $400m in loans to date and plans to double its workforce to 130 employees this year.

The company’s AI-powered technology, Render, analyses customers’ bank transaction data to tailor loan repayment plans based on individual financial situations, contrasting with traditional credit checks that rely on broad statistical averages.

With over 15m people in the UK struggling to borrow for unexpected costs, Abound aims to revolutionize credit decision-making, promoting financial inclusion by making loans accessible at more affordable rates. As a pioneer in leveraging Open Banking and AI in consumer credit decisioning, Abound is already partnering with banks and lenders across Europe to support the AI transition in the lending industry.

Weekly FinTech deal roundup

Just 13 FinTech deals close this week as the end of 2024 edges closer – Just 13 FinTech funding rounds were closed this week, as the industry settles down for the end of the year.  Read the full story here.

InsurTech news

• How Novidea is redefining insurance distribution through technology and market expertise - FinTech Global recently sat down for an interview with Novidea to learn more about the company and how it is redefining insurance distribution. Read the full story here.
• IntellectAI and InsureMO partner to power Incarnation Specialty’s insurance transformation - Incarnation Specialty has chosen IntellectAI’s end-to-end underwriting ecosystem to streamline the management and underwriting of submissions, alongside InsureMO’s middleware capabilities. Read the full story here.
• How Symfa transformed a Fortune 500 insurer’s data platform with cloud migration - A Fortune 500 insurance carrier recently embarked on an ambitious journey to transition its on-prem big data ETL platform to the cloud. This initiative was spearheaded by the client’s largest Azure service partner. The promise? Enhanced speed and scalability for data transfer, mapping, and verification. Ivan Sokolov, BI and ETL developer at Symfa, explained its role in the transition. Read the full story here.

WealthTech news

• How impactful has open banking been to WealthTech? - It has nearly been a decade since the EU launched its open banking rules, but has open banking lived up to its potential? Read the full story here.
• Velexa and Google Cloud forge alliance to transform retail investment accessibility - Velexa has partnered with Google Cloud to expand access to investing services for retail investors worldwide, enabling Velexa to scale its WealthTech solutions and meet the increasing demand. Read the full story here.
• Tietoevry Banking joins BIAN to set new global banking standards - Tietoevry Banking, a provider of modular software solutions for FIs, has recently joined the Banking Industry Architecture Network (BIAN). Read the full story here.

RegTech news

• Eighth RegTech100 highlights top industry players in the regulatory technology sector - RegTech Analyst has unveiled the latest edition of its RegTech100 ranking, underlining some of the top RegTechs you need to keep an eye on in the RegTech industry. Read the full story here.
• AI and collaboration lead the charge in sanctions compliance transformation - Global Screening Services (GSS), a prominent RegTech innovator, has published its 2024/2025 Sanctions Survey, revealing key insights into how financial institutions are adapting to the evolving sanctions landscape. Read the full story here.
• Best practices for monitoring employee trades in SEC-regulated firms - In the complex arena of financial markets, where conflicts of interest and misconduct like insider trading are ever-present threats, the importance of rigorous compliance cannot be overstated. Read the full story here.

CyberTech news

• Data protection leader Cohesity secures $7bn valuation following Veritas merger - Cohesity, a leader in AI-powered data security, has completed its combination with Veritas’ enterprise data protection business, solidifying its position as the world’s largest data protection software provider by market share. Read the full story here.
• Bitsight strengthens cyber risk management with Cybersixgill acquisition - Bitsight has completed its acquisition of Cybersixgill, a leading provider of real-time cyber threat intelligence. Read the full story here.
• Silent Push secures $10m in Series A to boost global cybersecurity efforts - Silent Push, a Reston, VA-based company, has recently completed a $10m Series A funding round. Read the full story here.

ESG FinTech news

• ACA Group introduces advanced ESG data management solution - ACA Group has launched the next generation of ACA Vantage for ESG, its advanced ESG data management and risk monitoring solution. Read the full story here.
• Leveraging AI for enhanced sustainability reporting under CSRD - In the realm of corporate responsibility, the European CSRD stands as a formidable challenge, urging enterprises to extend their disclosure beyond mere financial metrics to encompass ESG impacts. Read the full story here.
• Deciphering COP29: Financial divides and carbon market clarity - COP29, convened in Baku, Azerbaijan, earned the moniker of the “finance COP,” a summit poised to forge substantial financial pledges to combat climate change. Read the full story here.

Other FinTech news

• The role of risk service plans in modern insurance - In today’s fast-changing insurance industry, addressing the human side of risk is more important than ever. Insurance has evolved beyond just policies and claims, focusing instead on fostering safety, trust, and collaboration between insurers and their clients. Risk service plans tailored to these human factors can create significant advantages for all parties involved, fostering a win-win scenario, according to Risk Control Technologies. Read the full story here.
• Why modernising records management is critical for compliance - In the complex world of FinTech, where regulatory demands are continuously intensifying, financial institutions, including banks, trading platforms, and contact centres, are under immense pressure to maintain rigorous compliance standards. Read the full story here.
• Klarna expands Apple Pay integration to Canada with flexible payment options - Klarna, the AI-powered global payments network and shopping assistant, has expanded its footprint to Canada. Read the full story here.