Fintech Investments Experience 7-Year Low in Middle East, Europe, and Africa

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The fintech investment landscape in the Middle East, Europe, and Africa (EMEA) regions has witnessed a significant decline over the past year, echoing a global trend affected by geopolitical tensions and elevated interest rates.

According to a recent KPMG report, fintech investments in the EMEA region plummeted to a seven-year low of $24.5 billion across 1,514 deals in 2023, down from $49.6 billion across 2,478 deals in 2022.

Despite the downturn, the report highlights the EMEA region’s resilient geographic diversity, with fintechs from seven different countries representing the top 10 deals in the region. Notably, the UAE’s Tabby ($950 million) and Haqqex ($400 million) secured significant investments, underscoring regional interest and potential.

Looking ahead, the report anticipates a growing emphasis on embedded finance and banking offerings, as well as increasing interest in models such as buy now, pay later (BNPL). Additionally, sectors like asset tokenization and AI-driven solutions for fraud prevention and customer services are expected to witness consolidation and expansion.

On a global scale, fintech investment decelerated significantly as investors adopted a cautious approach, retaining their funds. In 2023, fintech investments totaled $113.7 billion across 4,547 deals, down from $196.6 billion across 7,515 deals in 2022, as reported by KPMG’s bi-annual publication.

The decline in fintech investments was attributed to a combination of factors including geopolitical events, high interest rates, and a challenging exit environment, as stated by KPMG.