Madalina Sumedrea
RoFintech
As the fintech industry navigates an evolving financial and technological ecosystem, the funding landscape for 2025 appears poised for significant shifts. From cautious investments to the rise of emerging markets and innovations such as Central Bank Digital Currencies (CBDCs) and decentralised finance (DeFi), fintech players must remain agile and forward-thinking.
A More Cautious Investment Climate
Economic headwinds in recent years have led to a more selective approach by investors, focusing on businesses with proven resilience and robust growth models. Startups securing funding in this environment often demonstrate a clear path to profitability and strong innovation capabilities. This “fintech Darwinism” is driving consolidation, enabling the most adaptable companies to thrive while streamlining market players.
‘’As we approach the end of 2024, a year marked by geopolitical tensions, economic challenges, and elections in the U.S. and Europe, there are reasons for optimism in fintech. For example, we have witnessed encouraging growth in the fintech sector and an ever-increasing investment appetite from regional funds, with companies like Pago and Fagura raising €2.3 million and €1 million, respectively. Established Romanian tech firms, including FintechOS, Druid, and Flowx.AI, have collectively secured over €100 million in funding. This is, indeed, encouraging and sets higher expectations for 2025.’’, says Cristian Pasa, board member, RoFintech, and COO Fagura.
Key Geographical Shifts
While traditional hubs like the U.S. and U.K. remain dominant, Eastern Europe is gaining traction as a fintech hotspot. Romania, in particular, is emerging as a key player, thanks to its strong tech talent, competitive operational costs, and regulatory support. The region’s fintech ecosystem is thriving, with a growing focus on solutions for financial inclusion and cross-border payments. As global investors increasingly look beyond established markets, Eastern Europe, especially Romania, the Balkans, and the Baltics is poised to play a larger role in the global fintech landscape.
Emerging Trends to Watch
- Decentralised Finance (DeFi): Peer-to-peer financial services without intermediaries continue to attract investment, particularly in regions with limited banking infrastructure.
- Sustainable Finance: With growing interest in ESG goals, fintechs offering green investment platforms and tools for sustainable financial transparency are well-positioned for growth.
- AI and Automation: Advanced AI applications in fraud detection, customer engagement, and personalised financial products are transforming the industry.
- Superapps: Platforms combining financial and lifestyle services are gaining popularity, with companies like PayPal and Revolut expanding service portfolios to stay competitive.
Opportunities for Collaboration
Partnerships between fintech startups, traditional financial institutions, and regulators remain critical for fostering innovation. Regulatory sandboxes allow startups to experiment while ensuring compliance, creating a win-win environment.
Insights for 2025
Cristian Pasa, board member, RoFintech, and COO Fagura comments: ‘’Looking ahead, I anticipate that interest rates will continue their downward trend. Combined with further deregulation in the US and clearer regulations in Europe, this should facilitate funding moving forward. We may see more Romanian finance and tech companies raising capital in 2025, particularly in areas such as cryptocurrency and trading, natural language processing, artificial intelligence, and connected finance (ex. Open banking, embedded services etc.).
Cristian continues, ‘’I urge fintech companies to prioritise products that meet real customer needs, whether in B2B or B2C’’. He adds: “Many businesses fail because they don’t address this fundamental requirement. Moreover, fintechs should aim for global markets from day one. We can learn valuable lessons from case studies such as eToro (Israel) and Monese (Estonia), which have emerged as international successes from relatively small local markets.’’
Our Takeaways
The fintech funding landscape in 2025 will reward resilience, innovation, and adaptability. While challenges such as cybersecurity and market volatility persist, the sector’s ability to evolve suggests a bright future. For fintech founders, investors, and policymakers, staying informed and ready to collaborate is key to navigating this dynamic environment.
To stay ahead, join the conversation with organisations like RoFintech, which is shaping the future of fintech.
Visit us at RoFintech to learn more.