The global fintech industry is leaving its “growth-at-all-costs” phase behind, according to a new report from the World Economic Forum. The shift marks a turning point—one defined by sustainable profits, deeper collaboration with traditional banks, and the rising influence of artificial intelligence.
From rapid expansion to steady profits
The report, released in June 2025, surveyed 240 fintech companies worldwide. It found that customer growth slowed to 37% between 2022 and 2023, down from 52% in the previous period. But the deceleration isn’t a sign of trouble. Instead, it reflects a deliberate move away from chasing user numbers toward strengthening customer relationships and improving financial performance.
That strategy appears to be working. Revenue growth held steady at 40% in 2023, with profits rising 39%. Digital banking and savings firms led the way, posting a 67% revenue increase—evidence that demand for digital financial services remains strong.
Partnerships replace disruption
The report highlights a striking trend: 84% of fintech companies now partner with traditional financial institutions. The era of fintechs as pure disruptors is giving way to one of collaboration.
The most common partnerships involve API integrations (52%), technology alliances (41%), and funding agreements (36%). These arrangements allow fintechs to scale quickly while giving established banks access to cutting-edge innovation. The result is a financial ecosystem where the lines between new and old players are increasingly blurred.
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AI is at the center of this transformation. Eight in ten fintech firms are already using it, primarily for customer service, process automation, and risk management. Looking ahead, 74% see AI as the most critical area for development over the next five years. Other priorities include regional interoperability (53%) and embedded finance (52%).
This isn’t just about efficiency. The report suggests AI will soon become a core driver of new revenue streams, enabling hyper-personalized services that could redefine customer expectations. If that happens, the distinction between fintech and traditional finance may fade entirely—leaving only those who adapt fastest to shape the future.
The shift toward collaboration and AI isn’t just a tactical move. It reflects a broader recognition that the industry’s next phase will demand more than speed or scale. The real test will be whether fintechs can balance innovation with stability, and whether their partnerships with incumbents can deliver value without sacrificing agility.
The report makes one thing clear: the fintech industry is no longer in its experimental stage. The focus now is on building a financial system that’s not just digital, but durable—and AI will likely be the thread that holds it together.
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