fintech digest
Fintech Momentum Into 2025, Tech Impact On Online Lending And More
Research Team
29 November 2024
FinTech Momentum Could Continue into 2025
Sentiment around FinTech has turned positive after a challenging period, and we believe that several converging secular trends point to a favorable outlook for 2025. Strong consumer spending, supported by receding inflation and a robust employment market, has payment volume growth trending higher for digital financial solutions providers.
The Impact of Technology on the Development of Online Lending
Financial technology has brought about a significant shift in online lending. Getting a loan became faster, easier, and safer. Now, you can borrow money through your phone or computer from the comfort of your home without coming to a physical bank. These changes ease the borrowers’ daily lives while helping banks and lending companies improve their services.
Digital Lending 2024
When interest rates started to rise at the tail end of 2022, digital lending fintechs found themselves in a Catch-22. As fintechs saw an increase in income from lending, the cost of borrowing went up, decreasing the number of potential borrowers. That can be particularly seen in the 2023 revenue profiles of Europe’s fintechs.
Private Debt Fund Survey 2024
The annual KPMG Private Debt Fund Survey 2024 once again shows substantial growth in the Luxembourg private debt industry. Despite global market challenges, AuM increased by 21% to €510 billion from June 2023 to December 2023. This compounds on last year’s AuM growth of 51%, highlighting the ongoing appetite for private debt funds domiciled in Luxembourg.
Understanding the Risks Shaping Fintech Lending in 2024
The fast-paced growth of financial technology (fintech) lending has transformed the consumption of credit, making it more user-friendly for borrowers and more innovative for players in the financial services sector. However, several new risks have emerged because of this that must be managed. The 2024 FACE Risk Barometer Report discusses some of the key risks that affect fintech lenders and the overall market.