The Banking Executive Magazine - March 2023 Issue

ISSUE 171 MARCH 2023 the BANKING EXECUTIVE 49 FinTech and AI Chornicle Global fintech funding sank by 46% in 2022 compared to 2021 figures but still managed to exceed 2020 levels by a whopping 52%, said TradingPlatforms.com, a leading on- line comparison platform for online traders, in a new report. One of the main drivers behind this is the pandemic’s effect on venture capital investment activity. Given the uncertain economic conditions, ven- ture capitals (VCs) have not been as eager to make significant investments in fintech startups since last year. TradingPlatform’s financial analyst Edith Reads commented on the data: “The financial sector is not immune to the pandemic’s economic impact. However, fintechs have shown re- silience in their ability to adapt to changing market conditions and continued to raise funding despite the challenging environment.” Fintech resilience was evident in African venture capital deals that surged to record levels in 2022. A staggering 227 deals were closed during the year — a 25% increase from 2021, representing this region’s highest number of deals ever recorded. Furthermore, 89% of these deals were early-stage, indicating that African investors are confident about fintech’s potential and are willing to invest at the earliest stages of devel- opment. FINTECH FUNDING LAST YEAR TOPS 2020 LEVELS BY 52%