No. 1055 - Innovation in the financial industry: fintech and venture capital

Questioni di Economia e Finanza (Occasional papers)
by Antonia Manzini and Diego Scalise
September 2026
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The diffusion of advanced digital technologies has facilitated the entry of new firms into the financial industry, reshaping its traditional boundaries. This paper analyses the development of the fintech sector across the world's major economies over the medium term and the role of venture capital in supporting the emergence, growth and maturation of fintech firms, with particular attention to their size, sectoral composition and geographical distribution.

The fintech sector is highly concentrated across a limited number of countries and, within them, in the major financial centres. Venture capital plays a key role in financing fintech innovation by fostering strategic partnerships and technological integration between fintech firms and incumbent financial institutions.