The global fintech industry experienced a decline in funding in 2024, with startups raising a combined $33.7 billion, a 20% drop from the previous year, according to CB Insights' State of Fintech 2024 Report. Despite this decline, there are signs of resilience, with deal volume dropping by only 17% to 3,580, and funding rebounding in the fourth quarter of 2024 to reach $8.5 billion, an 11% increase compared to the third quarter.

The report also highlighted a 33% annual increase in median fintech deal size, reaching $4 million. This growth in deal size suggests that investors are becoming more selective and willing to invest larger sums in promising fintech startups. While the decline in funding may be a cause for concern, the rebound in the fourth quarter and the increase in median deal size indicate that the fintech industry is still attracting significant investment.

In other fintech news, several startups have secured significant funding rounds. LemFi, a London-based financial services platform designed for immigrants, raised $53 million in new funding to fuel its customer acquisition and expansion efforts. Recharge, a European player in online prepaid payments, secured a €45 million debt facility with ABN AMRO to pursue M&A and fintech-style services. French startup Hyperline, which aims to build the next-generation Chargebee, raised an additional $10 million from Index Ventures, following an initial €4 million funding round in 2023.

However, not all fintech startups have been successful. Bench, an accounting startup, filed for bankruptcy in Canada, revealing massive debts. According to documents seen by TechCrunch, Bench had $2.8 million in cash on hand but $65.4 million in liabilities. This highlights the risks and challenges faced by fintech startups, even those that have received significant investment.

In other news, trading platform eToro has reportedly filed confidentially for a U.S. IPO that could value the company at over $5 billion. This follows a trend of fintech companies going public, and could signal a shift towards more mature and established fintech businesses. Amazon has also agreed to acquire Indian buy now, pay later startup Axio, deepening its push into financial services in one of its fastest-growing markets.

Ex-SoftBank veteran Akshay Naheta's Switzerland-based startup, Distributed Technologies Research (DTR), is attempting to bridge the gap between traditional banking and blockchain technology, joining an army of companies trying to modernize the global payments infrastructure. Meanwhile, Barclays' Rise is shutting down in 2025, marking a significant shift in the fintech landscape.

In people moves, Synctera has hired its first CFO, Matias Pino, while Mark Fiorentino has left Index Ventures to join Bain Capital as a partner focused on growth-stage AI-native, vertical SaaS, and fintech startups.

Finally, Plaid Inc., which provides infrastructure to connect fintechs and banks, reportedly saw its revenue spike by over 25% last year, according to Bloomberg. Cryptocurrency-wallet provider Phantom Technologies also raised $150 million in a funding round at a $3 billion valuation, led by Sequoia Capital and Paradigm.

In conclusion, while the decline in fintech funding in 2024 may be a cause for concern, the industry is still showing signs of resilience and growth. The increase in median deal size, the rebound in funding in the fourth quarter, and the significant funding rounds secured by several startups all point to a continued interest in fintech innovation. As the industry continues to evolve, it will be important to monitor these trends and watch for signs of further growth and development.