PORTUGAL Trends and Developments Contributed by: Diogo Pereira Duarte, Ricardo Henriques, Isabel Pinheiro Torres and João Diogo Barbosa, Abreu Advogados
The global fintech sector continued to navigate a complex economic landscape in 2024 as com - panies struggled with inflation, volatile market conditions and evolving consumer expectations. However, innovation in the sector flourished, particularly as regulatory frameworks matured and the impact of new technological develop - ments began to shape the industry positively. In particular, the Portuguese fintech ecosystem has seen steady growth, characterised by increasing investment rounds and an increasingly robust network of local investors looking to ensure the long-term viability of their portfolios. With an eye on innovation and scalability, many players are optimistic about 2025, as the industry will ben - efit from a more stable economic environment and the implementation of key regulations such as the Markets in Crypto-Assets Regulation (MiCA) and the Digital Operational Resilience Act (DORA). 2024 has been a pivotal year for the Portuguese fintech sector. The market kept maturing, and industry players grew increasingly hopeful about the opportunities in 2025. The much anticipat - ed – and delayed – implementation of MiCA will continue to shape the market for crypto-assets, including issuers and service providers, for this year. Furthermore, DORA and the Artificial Intel - ligence Act (AI Act), which will come into effect in 2025, are expected to introduce more com - prehensive guidelines regarding security, resil - ience, and AI usage across financial platforms, with advantages likely to come in the way of those that are early adopters. Developments in payment services, open banking, digital wal - lets and increasing interest in the Savings and Investments Union (SIU) proposals will be key to understanding the market in the future. The past year showed some interesting market moves. The most relevant milestones are adopt -
ing new legislation at the national and European levels, introducing new technology for the imme - diate transfer of funds, and increasing the num - ber of funding rounds. According to the Fintech Report 2024, 71% of startup companies had received funding from foreign investors, and the total funding to date had surpassed EUR 1 billion. National fintech companies are mostly focused on Insurtech, payment solutions, lend - ing and cybersecurity. There has been a grow - ing movement to expand and diversify, with new players bringing new market opportunities. Trends for 2025 Artificial Intelligence and Machine Learning AI and Machine Learning remain dominant forc - es within fintech, revolutionising areas such as risk management, fraud detection, credit scor - ing, and customer service automation. In 2024, integrating AI with blockchain technology, smart contracts, and decentralised finance will likely deepen, creating more sophisticated, secure, and user-friendly financial products. However, with the implementation of the AI Act during the course of 2025, fintech companies will need to navigate complex compliance requirements, especially as the ethical and regulatory conver - sations around AI gain momentum. The debate on AI risks, data privacy, and transparency will be central as governments continue to evaluate the industry’s evolving landscape. The push to establish European AI players has been a con - stant subject within the context of the funding of Portuguese fintech projects. The AI Act aims to create a comprehensive regu - latory framework for AI across member states and will significantly impact how fintech compa - nies operate and innovate. The legislation seeks to ensure that AI is developed and deployed safely and transparently, aligning with European values, particularly in areas such as privacy, fair -
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