If you thought fintech’s moment was over, think again. The global fintech scene is not just alive and well — it’s thriving, and things are getting seriously interesting. A brand-new report by Boston Consulting Group (BCG) and QED Investors, fittingly titled “Fintech’s Next Chapter: Scaled Winners and Emerging Disruptors”, reveals how the industry has bounced back from a tough couple of years, and it’s doing it with style (and bigger profit margins).

Fintech’s Growth Is Leaving Traditional Finance in the Dust

First off, the numbers are wild. In 2024, fintech revenues surged by 21%, a major jump from 13% in 2023. To put that in perspective, the rest of the financial services world only managed a 6% growth rate. Fintech isn’t just catching up; it’s sprinting ahead.

And those profits? Up too. The average EBITDA margin for public fintech companies climbed to 16% (from 12%), and now 69% of them are turning a profit. That’s a big deal in an industry where break-even once felt like a distant dream.

According to Deepak Goyal of BCG:

"A class of scaled fintechs is coming of age. Investors want maturity, and regulators want accountability."

In other words, the kids have grown up — and they’ve got their business together.

AI Is the New MVP

Let’s talk about the real star of the show — Artificial Intelligence. Fintechs aren’t just using AI for the usual fraud detection and chatbots. They’re building smarter products, faster. A good number of early-stage fintechs are leading this AI charge — take a look at how Stripe or Plaid are embedding AI across their services.

And coming up next? Agentic AI, essentially AI’s sharper, more independent cousin, is poised to shake up everything from e-commerce to personal finance management tools. Miss this, and you’ll miss one of the biggest innovation waves in finance.

As Goyal put it:

"Emerging disruptors are harnessing next-generation AI and creating business models so fresh, they're forcing the big players to keep up."

IPO-Ready Fintechs Are Waiting to Drop

Even with tricky market conditions, there’s a whole lineup of fintech heavy-hitters waiting for their big public debut. About 150 private fintechs founded before 2016, each with over $500 million raised, are standing by, and many of them are more than ready.

And while fintech currently claims just 3% of global banking and insurance revenue, that leaves a lot of room to run. High-potential markets like the Middle East, Africa, Latin America, and Asia-Pacific are wide open for the taking. 

Challenger Banks Are Crushing It

Meanwhile, challenger banks are having a moment. The report spotlights 24 of these digital-first banks, each raking in over $500 million a year while growing their deposits at an eye-watering 37% annual rate. For comparison, traditional banks are inching along at about 7%.

Nigel Morris of QED Investors summed it up:

"Fintechs are thriving in spaces where traditional banks left the door wide open — like services for lower-income families and buy now, pay later."

To see which challenger banks are making waves, head over to Finextra's Challenger Bank Tracker.

Private Credit and Fintech: A Smart New Partnership

Another rising trend? Private credit. With a tempting $280 billion opportunity for private credit funds to acquire fintech-originated loans, this partnership could become one of fintech’s most powerful growth engines. Learn more about how private credit is intersecting with fintech in PitchBook’s Private Credit Market Report.

What’s Next?

The report isn’t just packed with numbers — it offers some sharp advice too:

For fintechs: Stick to your core strengths, get serious about AI, stay alert for smart acquisitions, and focus on sustainable growth.

For investors: Move capital into underpenetrated spaces like infrastructure and emerging markets, while pushing for fast AI adoption in your portfolio.

For regulators: Keep up. Clear, timely policies around AI and digital assets will keep the innovation engine running. The Financial Stability Board’s AI Regulation Guidelines are a great reference.

For traditional banks: Either partner with fintechs or risk getting left behind. And it’s time to take AI seriously — no more half-measures.

As Morris put it best:

"Fintech is ushering in a new era in financial services."

And it’s about time.