Report: The Future of Global Fintech – From Rapid Expansion to Sustainable Growth (2025)

In June 2025 the World Economic Forum (WEF) and the Cambridge Centre for Alternative Finance published the second edition of their study “The Future of Global Fintech: From Rapid Expansion to Sustainable Growth”. The report draws on data from 240 fintech companies across six verticals (lending, capital raising, payments, banking & savings, insurtech and wealthtech) and six regions. It aims to assess how the sector is moving from the hyper‑growth phase accelerated by the pandemic towards a more sustainable growth model. The researchers analyse market performance, financial inclusion, regulatory environments, partnerships with banks and artificial intelligence (AI) adoption, and identify drivers and barriers to fintech development.

Healthy slowdown in customer growth

The data show that average customer growth fell to 37 % from 2022‑2023, compared with 55 % in 2020‑2021 – a widespread slowdown after the pandemic‑fuelled boom. This “soft landing” signals the market’s maturity: fintechs are now focusing on deepening value propositions rather than unrestrained user acquisition. The US/Canada region led customer growth (44 %), followed by MENA and Latin America (42 % each); APAC and Europe were close to the average, and Sub‑Saharan Africa grew the slowest at 21 %. Digital banking & savings, payments and wealthtech verticals maintained above‑40 % growth, while insurtech and capital raising slowed down.

Resilient revenues and profits

Despite slower customer acquisition, the industry remains financially robust. In 2023, fintech revenue grew by 40 % and profits by 39 %. Emerging regions like Latin America and APAC posted above‑average revenue growth, while Europe and Sub‑Saharan Africa lagged. Banking/savings and payments verticals drove gains, whereas capital raising and insurtech recorded the smallest increases. Integrating micro, small and medium enterprises and partnering with local financial institutions boosted profits by 12 % and 9 %, respectively.

Financial inclusion as a lucrative opportunity

The study highlights that historically underserved segments are key to growth: 57 % of fintech customers are micro, small and medium enterprises, 47 % are low‑income and 41 % are women. These groups also generate substantial revenue, especially in emerging markets, showing that inclusion and profitability can go hand in hand. Initiatives in financial education and tailored products for women and informal entrepreneurs are seen as priorities.

Collaboration between fintechs and banks

Far from pure disruption, 84 % of fintechs surveyed are partnering with incumbent financial institutions. API integrations (52 %) and agreements with technology providers (41 %) are the most common forms; funding arrangements and co‑branded products also appear. The main reasons to collaborate are access to technology infrastructure (48 %), enhanced credibility and trust, and product and service innovation (34 % each). “Co‑opetition” shows that fintechs and banks can complement each other, widening reach and reducing costs.

Regulatory environment and persistent challenges

Perceptions of regulation improved in 2024‑2025: 62 % of respondents say the regulatory framework in their regions is adequate and 35 % perceive high clarity. Nevertheless, bottlenecks remain in regulatory capacity, agency coordination and licensing processes. The report notes that the data set consists of invited fintechs; being self‑reported and limited, it may not capture the full ecosystem and thus requires caution in interpretation.

Rise of artificial intelligence

AI adoption has intensified: 80 % of fintechs use AI in multiple domains, and 91 % employ it for customer service and process automation. Reported benefits include improved customer experience (83 %), cost reduction (75 %) and profitability gains (75 %). Over the next five years, AI, regional interoperability, open banking and open finance are seen as the most important topics. At the same time, experts warn of risks such as algorithmic bias, deepfakes and AI‑driven phishing, underscoring the need for ethical governance and data protection.

Enablers and inhibitors of growth

Consumer demand and access to skilled talent remain the top enablers of fintech expansion. In the study, 90 % of fintechs view consumer demand as very supportive or supportive. The biggest obstacles are macroeconomic conditions (18 % deem them unsupportive), users’ digital and financial literacy (14 %), the regulatory environment (11 %) and the funding environment (12 %). Even with improvements over the previous year, high interest rates and reduced venture funding continue to pressure start‑ups.

Critiques and recent events

Although the report paints an optimistic picture, caution is warranted. First, the research relies on self‑reported data from a selected group of firms, which may bias results. Second, the transition to sustainable growth still depends on external forces: persistent inflation, tightening monetary policy and geopolitical tensions can dampen demand and access to capital. Third, the rapid uptake of AI brings risks of algorithmic bias, data leaks and misuse of generative models, calling for specific regulation. Finally, recent debates about “buy now, pay later” and central bank digital currency pilots illustrate that the boundary between innovation and systemic stability remains delicate. Firms and regulators must balance experimentation with consumer protection.

Conclusion

The fintech industry is robust and maturing. The focus now is on building sustainable business models, expanding financial inclusion and collaborating with traditional finance. Despite macroeconomic uncertainty and regulatory challenges, responsible innovation, public‑private cooperation and improved financial education are paths to consolidate the gains achieved over the past decade.