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Fintech Sector Bottoms Out As Valuations Drop From 2020-21 Highs: Leaders Underscore Shift From 'Crazy Ideas' And Excessive Funding

The financial technology sector, which experienced a significant drop in valuations, has now reached a “bottom,” according to industry leaders and investors. This change marks a shift from the sector’s previous high valuations in 2020 and 2021. What Happened: The Money20/20 event in Amsterdam saw industry executives and investors expressing their belief that the fintech sector has hit a low point, CNBC reported. Executives and investors at the event noted that the sector has undergone a significant correction from its previous unsustainable highs. This correction comes after a period when venture capital was heavily invested in startups with ambitious ideas but weak business metrics. Iana Dimitrova, CEO of OpenPayd, a company specializing in embedded finance, stated that the market has “recalibrated.” She noted that the market now values businesses with strong use cases and business models, a shift from the “crazy ideas” and excessive VC funding seen a few years ago. Despite the recent challenges, the ...