Why fintech is the next frontier for investors

Financial technology has evolved far beyond payment platforms. Today, fintech serves as a bridge between startups, established financial institutions, and emerging markets — redefining how innovation, inclusion, and investment converge. As the sector matures, it continues to attract strong investor interest for its ability to transform the global financial landscape.

Here’s why fintech investment opportunities are gaining momentum:

Growth potential

Investors are attracted to fintech’s adaptability and long-term growth potential. The sector draws steady capital as it responds rapidly to new technologies and shifting consumer expectations.

Next frontier for investors

Fintech transformation is reminiscent of the early days of e-commerce, when those who invested early saw substantial gains as adoption increased. Today, fintech is making progress by addressing gaps that traditional institutions have left unfilled.

Artur Mildov, Chief Visionary Officer at Dubai-based Velex Investments, notes that the strongest outcomes arise when fintech startups are in sync with market momentum. “Mismatches waste resources, while the right fit accelerates adoption,” he says.

Risks and rewards

Investing in fintech comes with clear challenges. Regulations can change without warning, compliance failures can block expansion, and cybersecurity lapses can undermine trust. Still, the upside remains considerable. Fintech’s complexities often create rewarding conditions for those who choose the right companies and markets.

Ecosystem growth

Fintech draws strength from a diverse ecosystem. Startups, regulators, established institutions, and investors all contribute to its expansion.

Velex Investments ensures smart capital connect with regional fintech ecosystems. The firm combines venture building, corporate finance, and digital financial services to help founders expand throughout the Middle East and Africa, from payments and liquidity to growth capital.

Payment innovation

PSP (payment service provider) expansion is vital to fintech ecosystem growth. By linking merchants, banks, and consumers, PSPs make fintech adoption possible. Supporting them gives investors access to both core infrastructure and new revenue streams.

Investor strategies for fintech growth

Capital alone rarely delivers the full potential. Nikita Perevezentsev, Senior Portfolio Manager at Velex Investments, points out that the greatest results come when investors add strategic input. This means guiding founders, connecting them with regulators, and offering partnership advice.

Emerging markets

Emerging markets already generate 15 per cent of global fintech revenues. Projections show this share could reach almost 30 per cent by 2028, with Africa and the Middle East leading due to strong demand for financial inclusion.

Environmental, social, and governance (ESG) priorities now guide many investment decisions. Companies focused on strong ESG practices can deliver value to both shareholders and communities.

Global value

As international trade expands, cross-border payments are becoming one of fintech’s most lucrative investment categories. Unipesa, one of the portfolio companies of Velex Investments, illustrates this potential.

Chief Commercial Officer Vasily Raku explains that their growth relies on working with licensed PSPs and maintaining high compliance standards. PCI DSS compliance is now considered a baseline for scaling fintech across borders. The approach of Unipesa payments centres on building a trusted infrastructure to support both regional and international expansion.

Resilient, operator-grade infrastructure is essential for cross-border payments investment. Success requires the right mix of regulation, technology, and collaboration among established institutions and fintech companies.

Digital wallets growth

Digital wallets now serve as platforms for a range of financial services. Their features encourage long-term engagement, including lending, savings, and insurance. Research shows that digital wallets growth is highest in Asia, but is accelerating in the Middle East and Africa.

By layering services into wallets, businesses create platforms that deepen user engagement and open fresh revenue streams. They’re gateways to a broader set of financial services, including embedded finance opportunities for investors and startups alike.

Embedded finance opportunities

Emerging markets fintech is accelerating the transformation of the financial sector. Embedded finance, where financial services are integrated directly into platforms people use daily, represents the next layer of fintech innovation. The frontier belongs to investors and operators who read the demand curves early and support the infrastructure that will carry them.