Fintech Recap September: Funding Dips but Innovation Thrives

September was a mixed month for the fintech industry, with a slight drop in funding but exciting new tech developments. A total of 140 funding deals occurred—23% fewer than September 2023 but only down by 3% compared to August. Among these, 103 were equity investments and 37 were debt financings. While overall funding levels dipped, the rise in debt financing suggests many fintech firms are increasingly leaning towards credit options to support growth. Qvik, a new mobile payment option, launched in Hungary as part of the country’s Instant Payment System. Available in major banking apps, Qvik allows users to make quick, secure payments via QR codes, NFC, and deep links—whether in stores, with service providers, or online. While card payments remain popular, Qvik’s success will hinge on how seamlessly it fits into everyday transactions, along with strong collaboration between banks, merchants, and payment providers. The European Payments Initiative (EPI) continued its expansion of Wero, a mobile wallet now available in Germany, France, and Belgium. With support from 16 regional banks, Wero enables instant payments using phone numbers, emails, or QR codes. EPI’s broader goal is to create a unified, sovereign European payment system that reduces reliance on major U.S.-based card networks like Mastercard and Visa. This move underscores a push towards greater financial autonomy within Europe. Hungary’s Gránit Bank introduced Gránit Guru, an AI-driven assistant designed to automate many banking processes, offer personalized financial advice, and improve customer service round-the-clock. This innovation aims to automate up to 80-90% of banking processes, far beyond the current 30-40%, improving both customer experience and internal efficiency. Gránit Bank’s move is part of a broader trend as banks look to AI for a competitive edge. AI is revolutionizing the fintech sector, from customer service to internal operations. Klarna, for example, has used AI to automate hundreds of customer service tasks, resulting in both cost savings and improved customer satisfaction. Internally, Klarna has developed AI-based knowledge tools to improve team collaboration, showcasing the wide-ranging potential of AI. This trend is seen across fintech, with companies like Stripe and Ramp using AI to enhance everything from compliance to customer service, helping them stay competitive while offering better service. The fintech industry’s adaptability makes it a prime environment for AI’s continued integration. September reflected a shifting fintech landscape: while funding activity softened, debt financing rose. Innovative products like Qvik and Wero showed the sector’s focus on regionalized and tech-forward solutions. AI advancements are also reshaping fintech, enhancing service quality and operational efficiency. Together, these developments indicate a bright future where fintech companies continue pushing the boundaries of what’s possible. Don’t forget to check out our brand new video in which we examine the fintech sector’s performance. (Disclaimer: the below video was made using artificial intelligence.).