Following a record level of USD 238.9 billion in 2021, global fintech investments in 2022 dropped dramatically to USD 164.1 billion. Although declining significantly from 2021, 2022 was still the third-best year for fintech investments. It is notable that investments in the second half of 2022 saw a 50% drop-off from investments in the first half of the year. Much of this decline is likely due to investors prioritizing profitability and cashflow as macroeconomic factors erode and valuations decline. 2022 also showed a clear concern in regard to the crypto sector as investments in this space plunged following the Terra (Luna) crash in May 2022. In what is likely a corresponding trend, investments in regtech in 2022 actually hit a record high of USD 18.6 billion.
It is important to keep in mind that, globally, interest in fintech was rather robust in most places in 2022 and that there has been a surging interest in seed- and early-stage investment opportunities, both positive signs for the fintech ecosystem in the long term.