Global Fintech Funding Slides 20% as Crypto Declines

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Global fintech funding experienced a decline in the second quarter of 2026, with deal volume dropping 25% quarter-over-quarter (QoQ) to 726 transactions and overall volume seeing a more modest decline of 20% QoQ, amounting to US$11.7 billion, according to new data released by CB Insights.

Cryptocurrency emerged as one of the most severely impacted fintech verticals, with a significant QoQ decline of 28.9% in volume and a 19.5% decrease in deal counts. Fintech exits also saw a decline, marking the fewest quarterly initial public offerings (IPOs) in over four years, along with a reduction in mergers and acquisitions (M&A) activities.

In contrast, digital banking stood out as the bright spot of Q2 2026, with funding doubling despite a slight dip in deal counts.

Mega-rounds lead digital banking

Digital banking emerged as a standout in fintech funding during Q2 2026. Funding surged 100% compared to the previous quarter, reaching US$2.6 billion, despite a slight decline of 4% in the number of deals.

Deal sizes increased significantly, with the average deal size rising 53% from 2025 to US$52.5 million, while the average media deal size saw a growth of 16% from 2025 to US$10.9 million.