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New York, NY — Retail fintech investment displayed a bifurcated performance in the second quarter of the year, with venture capital (VC) funding rising modestly but still falling short of previous benchmarks. According to recent Emerging Tech Research, total VC investment in the sector reached $2.2 billion, marking a 17% increase from the previous quarter. However, this figure remains nearly 50% below the pace recorded during the same period last year.
Analysts attribute the slowdown to a continued investor preference for business-to-business (B2B) fintech models over consumer-facing platforms. While retail fintech has seen pockets of growth, particularly in wealthtech, the broader sector continues to lag behind enterprise-focused counterparts in terms of deal volume and valuation.
Wealthtech stood out as the strongest performer within retail fintech, securing $1.3 billion across 82 deals. The segment benefited from increased adoption of artificial intelligence (AI) among consumer users, driving interest in personalized financial planning and digital asset management tools.
Despite this momentum, retail fintech’s median deal size—just over $5 million—remains below the $6.5 million median observed in enterprise fintech transactions. This disparity underscores the concentration of the so-called “AI premium” in B2B models, where automation and data analytics are more deeply integrated into operational workflows and infrastructure.
Industry observers note that while consumer fintech continues to evolve, especially in areas like robo-advisory and embedded finance, investor appetite remains cautious amid macroeconomic uncertainty and shifting regulatory landscapes.
As the second half of the year unfolds, stakeholders will be watching closely to see whether retail fintech can regain momentum or whether B2B dominance will persist in shaping the sector’s investment narrative.
Source: Pitchbook
