Next phase of fintech reflected in strong financials, says World Economic Forum

Digital-powered finance firms might not be growing their customer base as fast as the immediate post-pandemic period, but revenue and profits are strong

Karl Flinders,
Chief reporter and senior editor EMEA

Published: 26 Jun 2025 17:00

Fintechs are growing customer bases at a lower rate, but profits and revenues are strong as the industry becomes sustainable, according to a World Economic Forum (WEF) report.

In the second edition of The future of global fintech: From rapid expansion to sustainable growth, completed with the Cambridge Centre for Alternative Finance at the University of Cambridge, the WEF found that in 2022-23, fintech customer bases grew 37%, compared with 55% in its previous survey, covering 2020-21.

The 2020-21 report covered the Covid-19 pandemic period, when fintechs added huge numbers of customers during lockdowns as users wanted fully digital services that traditional banks couldn’t offer. The acquisition of customers was the main objective of emerging fintechs in their early days, but that rate is now falling.

However, the WEF’s survey of 240 fintechs revealed revenue and profit growth at 40% and 39%, respectively.

While big banks still hold huge customer bases, the report highlighted the role of fintechs in reaching underserved market segments. Small businesses represent 57% of the fintech customer base, with low-income individuals and women also making up significant portions, particularly in emerging markets and developing economies.

“Fintechs have embedded accessibility and reach into their business models, positioning themselves as essential players in creating a more equitable global financial system,” said Drew Propson, head of tech and innovation in financial services at the WEF.

“These findings underscore fintech’s ability to help drive economic expansion, even as the sector adapts to more moderate post-pandemic growth trends.”

The survey also asked fintechs about their use of artificial intelligence (AI). It found that 83% have seen improved customer experience, and about three-quarters said it has led to higher profitability and reduced costs.

The use of AI was cited as one of the reasons for positivity amid challenging global macroeconomic challenges. “Fintechs’ concerns on macroeconomic conditions and funding environments have eased but still linger on,” said Bryan Zhang, executive director at the Cambridge Centre for Alternative Finance. “However, coupled with more favourable regulatory conditions, ample opportunities to collaborate with incumbents and increasing adoption of AI in operations and business models, the growth perspective for fintechs remains promising.”

According to the report, only 18% of respondents view the global macroeconomic conditions as a hindrance, down from 56% last year. Concerns over funding have reduced significantly, with 12% citing it as an issue, compared with 40% in the previous edition.

Recent research by Boston Consulting Group found the global fintech sector saw its revenues increase three times that of the finance sector as a whole in 2024, claiming it was entering a new era of maturity.

It reported that global fintech revenues grew by 21% last year, about a third higher than the growth in 2023, when a 13% increase was reported.