In 2022, funding for fintech startups experienced a significant decline due to factors like increasing interest rates and the looming recession, which affected various sectors. This drop was somewhat expected following the financial services sector's prominent position in venture investment in 2021, with a global total of at least $131 billion, as reported by Crunchbase.
Despite the challenging macroeconomic conditions, Israeli startups had previously benefited from the fintech boom in 2021. However, these startups are resilient and are continuing to develop innovative fintech solutions to address the growing demand in the industry. The widespread adoption of fintech technology is evident, with nearly nine out of ten Americans now utilizing digital payment methods.