Overview
- The Boston Consulting Group and FT Partners report released Monday finds global fintech revenue reached $504 billion in 2025 after 22% growth that was roughly four times faster than traditional banks.
- Profitability strengthened across the sector with 74% of the largest public fintechs profitable and average EBITDA margins rising about 400 basis points to roughly 20% in 2025.
- Deal activity and funding surged as fintechs became net consolidators, completing 659 acquisitions versus 589 by incumbents while equity funding rose 53% to $58 billion and M&A hit $251 billion.
- Regulatory pathways are narrowing in the US, UK and EU as more firms pursue bank charters or licences and leading neobanks expand into lending, mortgages, wealth and insurance to become multi-product platforms.
- Public investors remain cautious: fintech IPOs jumped 50% to 42 deals but five-year public returns trail the broader financial-services sector, which keeps focus on earnings durability, customer concentration, and compliance.