From CNBC: 2024-06-13 01:51:45

The fintech industry has shifted to a new normal, with valuations corrected from unsustainable highs of 2020 and 2021. Executives and investors at the Money20/20 event in Amsterdam agree that the sector has now reached a “bottom,” focusing on proven use cases and solid business models.

Global fintech funding reached an all-time peak of $238.9 billion in 2021 but sharply declined to $164.1 billion in 2022 and further dropped to $113.7 billion in 2023. Despite growth, companies face challenges in acquiring funding due to higher interest rates, reflecting a potential market bottom.

Nium, a Singaporean payments unicorn, recently saw its valuation fall to $1.4 billion. CEO Prajit Nanu believes investors are overly focused on AI, similar to the frothy valuations seen in the past. Nanu predicts that the current market conditions mark the lowest point in the fintech cycle.

Crypto has made a comeback at the Money20/20 event, with major players like Ripple, Fireblocks, and CoinW grabbing attention. Stablecoins are seen as the next wave in cryptocurrencies, offering real-world asset backing. ClearBank is developing a stablecoin backed by the British pound with plans to receive approval from the Bank of England soon.

Read more: Fintech has hit a bottom after valuation plunge, execs and VCs say