The Future of Global Fintech: From Rapid Expansion to Sustainable Growth

The global fintech industry is transitioning from rapid pandemic-era expansion to a phase of sustainable growth, characterized by resilient revenue and profit growth despite a normalization in customer acquisition rates. The sector is increasingly focused on financial inclusion for underserved segments, strategic partnerships with incumbent financial institutions, and the widespread integration of AI to improve operational efficiency and customer experience. While regulatory perceptions are generally positive, challenges remain regarding the technical capacity of financial authorities and the high cost of AI implementation.

• The global fintech industry is experiencing a normalization of growth following the COVID-19 pandemic; average customer growth fell to 37% in 2022-2023 from 55% in 2020-2021, though revenue and profit growth remained strong at 40% and 39% respectively.
• Financial inclusion is a core driver of fintech profitability, particularly in emerging markets and developing economies (EMDEs). Micro, small and medium enterprises (MSMEs) make up 57% of customers, low-income populations 47%, and women 41%.
• Collaboration with traditional financial institutions is widespread, with 84% of surveyed fintechs partnering with incumbents. The most common methods are API integrations (52%), technology providers (41%), and funding agreements (36%).
• While 62% of fintechs view the regulatory environment as adequate, there are significant gaps in the knowledge and capacity of financial authority staff, which is identified as the area with the most room for improvement.
• AI adoption is high, with 80% of fintechs implementing AI in at least one application area. The primary uses are customer service (37%) and process automation (34%), leading to reported improvements in customer experience (83%), cost reduction (75%), and profitability (75%).
• The most significant barriers to AI implementation are the costs of implementation and maintenance (cited by 87% of firms), regulatory uncertainty (77%), and data access and quality (69%).
• Fintechs identify AI, regional interoperability, and open banking/open finance as the most critical drivers for industry development over the next five years (2025-2030).
• Cross-border expansion is a priority for 55% of firms, but it is hindered by complex regulatory and licensing requirements (68%), the need to adapt products to local markets (58%), and establishing local partnerships (48%).

APA

World Economic Forum (2025). The Future of Global Fintech: From Rapid Expansion to Sustainable Growth. https://reports.weforum.org/docs/WEF_Future_of_Global_Fintech_Second_Edition_2025.pdf

Chicago

World Economic Forum. The Future of Global Fintech: From Rapid Expansion to Sustainable Growth. 2025. https://reports.weforum.org/docs/WEF_Future_of_Global_Fintech_Second_Edition_2025.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=The Future of Global Fintech: From Rapid Expansion to Sustainable Growth |date=June 2025 |url=https://reports.weforum.org/docs/WEF_Future_of_Global_Fintech_Second_Edition_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2025future, author = {{World Economic Forum}}, title = {{The Future of Global Fintech: From Rapid Expansion to Sustainable Growth}}, institution = {World Economic Forum}, year = {2025}, month = jun, url = {https://reports.weforum.org/docs/WEF_Future_of_Global_Fintech_Second_Edition_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }