Close Menu
fintechbits
  • News
  • AI
  • Acquisitions
  • Trends
  • Insights
  • Rumors
  • Startups
  • finjobsly

Subscribe to Updates

Get the latest news from Fintechbits.

Trending Now

Oracle and Auditoria AI Enhance Financial Automation in This Week’s Cloud AI Updates

October 10, 2025

European small and medium-sized enterprises face risks while developing AI strategies on unstable digital groundwork, reveals recent Qonto survey.

October 10, 2025

Fintech financing in India declines by 17% in 2025, yet early-stage startups maintain resilience against the slowdown: Tracxn – Startups News

October 10, 2025

Global regulator raises concerns about major tech control while AI in finance continues to be significant

October 10, 2025
Facebook X (Twitter) Instagram
Trending
  • Oracle and Auditoria AI Enhance Financial Automation in This Week’s Cloud AI Updates
  • European small and medium-sized enterprises face risks while developing AI strategies on unstable digital groundwork, reveals recent Qonto survey.
  • Fintech financing in India declines by 17% in 2025, yet early-stage startups maintain resilience against the slowdown: Tracxn – Startups News
  • Global regulator raises concerns about major tech control while AI in finance continues to be significant
  • Niro officially ceases operations after securing $20 million, with the founder stating that they achieved the unachievable.
  • Athenahealth Introduces Complimentary AI Enhancements for Revenue Cycle Management
  • Financial Advice New Zealand introduces AI training program for advisors to enhance professional development.
  • Bank of England cautions about increasing likelihood of an AI bubble collapse
Facebook X (Twitter) Instagram Pinterest Vimeo
fintechbits
  • News

    European small and medium-sized enterprises face risks while developing AI strategies on unstable digital groundwork, reveals recent Qonto survey.

    October 10, 2025

    PM Modi invites international investors to be part of India’s growth narrative at the Global Fintech Fest.

    October 9, 2025

    What $9.6T Daily FX Trading Means for Fintech Startups

    October 1, 2025

    How Finjobsly is Helping Candidates Connect With Fintech Firms

    September 29, 2025

    AI-powered fintech job platform Finjobsly.com Launches

    September 16, 2025
  • AI

    Oracle and Auditoria AI Enhance Financial Automation in This Week’s Cloud AI Updates

    October 10, 2025

    Global regulator raises concerns about major tech control while AI in finance continues to be significant

    October 10, 2025

    Athenahealth Introduces Complimentary AI Enhancements for Revenue Cycle Management

    October 10, 2025

    Financial Advice New Zealand introduces AI training program for advisors to enhance professional development.

    October 10, 2025

    Bank of England cautions about increasing likelihood of an AI bubble collapse

    October 9, 2025
  • Acquisitions

    Amazon concludes its acquisition of the Indian lender Axio, expanding its fintech efforts.

    September 11, 2025

    The incident involving the Kaustubh Kulkarni movement in Moomoo

    September 3, 2025

    Overview of Acquisitions for US Fintech Companies from the Clifford Chance Guide

    September 2, 2025

    Dentons guides PEAC Solutions in acquiring Fintech Topi

    August 29, 2025

    Truckstop.com purchases the denim division of the transport finish company

    August 24, 2025
  • Trends

    Vietnam Fintech Market Overview: Trends, Growth Potential, and Future Directions

    October 8, 2025

    Industry size projected to reach 550.9 billion USD

    October 3, 2025

    Germany’s Fintech Market Expected to Reach 29.25 Billion USD by 2030

    October 3, 2025

    Expansion of the Blockchain and Fintech Sectors in Tokenization

    September 30, 2025

    Expansion and Investment Prospects in the GCC Fintech Sector

    September 25, 2025
  • Insights

    Finance Minister Sitharaman inaugurates foreign currency settlement system in Gift City.

    October 7, 2025

    What $9.6T Daily FX Trading Means for Fintech Startups

    October 1, 2025

    Exploring the Boundaries of Technology: Advantages of the Fintech Sector

    September 30, 2025

    Examining the recent evaluation of Up Fintech following new analyst coverage that emphasizes its growth prospects.

    September 24, 2025

    Riyadh Establishes a New Benchmark with Record 20/20 Middle East Funds, Enhancing Saudi Arabia’s Influence

    September 21, 2025
  • Rumors

    American regulators dismiss rumors of a dry CFTC merger, aiming to eliminate fear, uncertainty, and doubt in the cryptocurrency space.

    October 5, 2025

    Insights on OKX Communication Strategies for the Future of BTC Futures

    October 3, 2025

    Has the Texas Senate authorized the XRP reserve bill for purchasing $100 million in XRP annually?

    October 1, 2025

    Bitcoin and Ethereum dominate the market surge

    September 23, 2025

    Dogecoin price aims for $0.30 as the launch of Doje ETF boosts market optimism.

    September 18, 2025
  • Startups

    Fintech financing in India declines by 17% in 2025, yet early-stage startups maintain resilience against the slowdown: Tracxn – Startups News

    October 10, 2025

    Niro officially ceases operations after securing $20 million, with the founder stating that they achieved the unachievable.

    October 10, 2025

    Key Startup Updates Today – Major Investments in AI, Fintech, and Funding

    October 9, 2025

    Europe’s top venture capital fund claims FinTech startups will influence the future economy.

    October 9, 2025

    Insights for Fintech Startups Exploring the Crypto Landscape from BitMine’s Experience

    October 9, 2025
  • finjobsly
fintechbits
Home » 5 Reasons Why Launching a Fintech Startup Has Become So Difficult
Startup News

5 Reasons Why Launching a Fintech Startup Has Become So Difficult

4 Mins Read
Facebook Twitter Pinterest Telegram LinkedIn Tumblr Email Reddit
Money Hard To Get.jpg
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link

By Pavel Chynkarenko

The fintech industry recorded its best year ever in terms of investment value in 2021, but the market has been much more difficult for two years.

Fintech startups have had to adapt to this new reality, where explosive growth is no longer the priority, and companies that cannot demonstrate a clear path to profitability struggle to raise follow-on funding.

That doesn’t mean it’s impossible to launch a new fintech business. It just means the rules have changed. Here are five reasons why the landscape has become more complex.

Decrease in investment volume due to changing trends

According to S&P GlobalVenture capital investments in fintech companies fell 36% year-over-year in Q3 2023. The fintech sector no longer has the FOMO factor, which is now mainly in the hands of AI and machine learning.

This has particularly affected early-stage companies, which now have to compete with more established startups for funding. Fintech startups in the development stage are an exception. could grow by another 15% in the coming yearsproving that the field is open to those who focus on long-term value.

Governments tighten regulation

Regulators are introducing strict measures that make it difficult for businesses to grow sustainably. Cryptocurrency is also now targeted by regulators.

Pavel Shynkarenko, Founder and CEO of Solar Staff

In the United States, Europe and Asia, compliance requirements for knowing your customer and your business are becoming more stringent.

For example, Singapore, Malaysia, Thailand and the Philippines have all introduced bills aimed at regulating electronic money transactions. In Europe, due to the PSD3 Directive issued by the EU, Electronic money institutions have completely disappearedbecause companies must now be licensed as payment institutions.

The fintech sector has reached maturity and, in this phase, margins are decreasing and standardization is increasing. Each new player must adhere to established standards and will often not be able to achieve operational profitability in the short term. This makes the barrier to entry higher and prolongs the “valley of death” for companies that have survived their early years.

Deglobalization

Apart from global policies, there are also national restrictions that fintech companies must comply with.

This makes it particularly difficult for companies operating cross-border, as they have to take into account different rules at the same time. and these rules can sometimes conflictthereby eliminating the viability of smooth and affordable cross-border transactions.

Price competition

For a new startup, it is difficult to compete in the market because of the prices charged by existing players. For example, it is currently impossible to offer costs lower than those Wise, Skrill Or Bandespecially when Wise charges less than a dollar for cross-border transfers.

It should also be noted that many deposit and withdrawal methods are expensive to integrate and it takes time to reach the scale needed to make them more affordable. Specific subcategories or specializations may need to be explored, but other challenges listed here will likely hinder progress.

Geopolitical instability

Military conflicts create uncertainty, which generates volatility in foreign exchange markets. The fragmentation of the geopolitical landscape makes opening offices in new countries even more difficult, especially as the list of entities and individuals with which U.S. companies cannot interact – due to sanctions – continues to grow.

However, the situation is not entirely hopeless.

On the one hand, startups that focus on a specific niche where regulation and bureaucracy are not pervasive – for example, personal finance – can experience healthy growth and generate impact.

On the other hand, fintech startups that have considerable capital and a network to navigate the complex regulatory landscape may still have a chance to emerge triumphant on the other side.


Pavel Chynkarenko is the founder and CEO of Solar sticka fintech/HR company for freelancers that generated $9M in revenue in 2023 and works with freelancers from 143 countries. He has over 20 years of experience in financial and legal technology, business development, and client-contractor relationship automation.

Illustration: Dom Guzman

Stay up to date on the latest funding rounds, acquisitions, and more with the Crunchbase Daily.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Fintech financing in India declines by 17% in 2025, yet early-stage startups maintain resilience against the slowdown: Tracxn – Startups News

October 10, 2025

Niro officially ceases operations after securing $20 million, with the founder stating that they achieved the unachievable.

October 10, 2025

Key Startup Updates Today – Major Investments in AI, Fintech, and Funding

October 9, 2025
Leave A Reply Cancel Reply

Latest news

Oracle and Auditoria AI Enhance Financial Automation in This Week’s Cloud AI Updates

October 10, 2025

European small and medium-sized enterprises face risks while developing AI strategies on unstable digital groundwork, reveals recent Qonto survey.

October 10, 2025

Fintech financing in India declines by 17% in 2025, yet early-stage startups maintain resilience against the slowdown: Tracxn – Startups News

October 10, 2025
News
  • AI in Finance (1,712)
  • Breaking News (173)
  • Corporate Acquisitions (71)
  • Industry Trends (207)
  • Jobs Market News (309)
  • Market Insights (216)
  • Market Rumors (279)
  • Regulatory Updates (174)
  • Startup News (1,115)
  • Technology Innovations (179)
  • X Feed (1)
About US
About US

FintechBits is a blog delivering the latest news and insights in fintech, finance, and technology. We cover breaking news, market trends, innovations, and expert opinions to keep you informed about the future of finance

Facebook X (Twitter) Instagram Pinterest Reddit TikTok
News
  • AI in Finance (1,712)
  • Breaking News (173)
  • Corporate Acquisitions (71)
  • Industry Trends (207)
  • Jobs Market News (309)
  • Market Insights (216)
  • Market Rumors (279)
  • Regulatory Updates (174)
  • Startup News (1,115)
  • Technology Innovations (179)
  • X Feed (1)
Happening Now

November 28, 2024

“ Intentionally collaborative ”: how the Rotman school of U of T leads Innovation Fintech

February 6, 2025

‘1957 Ventures’ to Drive FinTech Innovation in Saudi Arabia

September 10, 2024
  • About FintechBits
  • Advertise With us
  • Contact us
  • Disclaimer
  • Privacy Policy
  • Terms and services
  • BUY OUR EBOOK GUIDE
© 2025 Designed by Fintechbits

Type above and press Enter to search. Press Esc to cancel.