Fintech Emerging Trends

I'm thrilled to share BCG's 2025 Global Fintech Report, which I had the privilege to co-author alongside a fantastic Boston Consulting Group (BCG) team and our partners at QED Investors. A few standout themes: • A class of scaled fintechs has come of age—these players are now firmly established as part of the financial services landscape and need to balance maturity with innovation. Most of these scaled fintechs are in payments • Agentic AI is set to change the game—expect to see not just productivity gains but also product innovation in online commerce, vertical SaaS, and personal financial management tools • On-chain finance is at an inflection point—stablecoins for payments are getting all the attention, but the tokenization of financial assets may be the real tipping point • Fintech lending is poised for growth—driven in large part by emerging partnerships between fintech lenders and private credit funds With only 3% of incumbent revenue pools penetrated and a strong 2024 in which revenues grew 21% and average EBITDA margins climbed to 16% - the industry has turned the page to a new chapter 👉 Read the full report here: https://lnkd.in/eJS_y_ES #BCGPayments #BCGFintech #BCGInsights #AgenticAI #Stablecoins

Small, focused fintechs are shaking things up in banking and payments. Payments remain the crown jewel of fintech, pulling in $21.4 billion in H1'24. But beyond the headline numbers we're seeing a shift towards fintechs that excel in specific, high-value areas: → Payments insurance → Unsecured lending → Insurance claims These companies are succeeding by tackling real issues with smart tech, not just adding bells and whistles. I've seen this shift coming and it's exciting to see it materialize. There is also increasing investor attention on emerging markets like Africa, Indonesia, and the Philippines. Places that were off the radar are now hotbeds of innovation due to massive unmet needs and leapfrog potential. The generalists had their day in the sun. For those of us who've been in the game a while, we know that the next big winners will be the specialists who can execute flawlessly in their niche. If you're in the trenches of specialized fintech I’d love to hear about what you’re seeing firsthand. Leave a comment.

Re-Bundling the Bank 💡 Costs are growing for fintechs, but it's not just higher interest rates affecting their margins. Customer acquisition costs (CAC) are also on the rise and contributing to overhead. In response, some fintechs are seeking partners with existing customer bases. In June, for example, eBay and Venmo announced a partnership, allowing shoppers to pay for their purchases with their Venmo balance or methods linked to their Venmo account. Other fintechs, including big names like SoFi, have applied for bank charters. There is also a move to diversify revenue streams, illustrated by Robinhood’s reduced reliance on transaction fees for the bulk of its income. Both trends underscore a clear reality: As fintechs get squeezed, it is less viable for them to offer single, standalone products 💳 At the center of these moves is a focus on customer value. One effective way to reduce CAC is offering customers value on the financial side through products that help build savings or offer rewards. Another strategy is to add products to an existing customers base. Driven by their customers' growing expectations for digital solutions, Large Financial Institutions are increasingly partnering with, investing in and acquiring fintechs, leveraging the functionality and customer bases that fintechs have built in their specialized areas. Acquisitions such as JPMorganChase’s purchase of wePay for payments are one way for retail banks to add capabilities without building them in-house. At the same time, strategic partnerships can create efficiencies in customer acquisition. However, achieving a proper win-win in those relationships can be difficult to strike 🤝 Fintech partnerships are intended to be symbiotic, with tech companies like Chime providing a user-friendly front-end while a chartered partner bank such as The Bankcorp or Stride Bank, N.A. provides the FDIC-insured accounts and handles risk and compliance. This allowed fintechs to walk like a bank and talk like a bank while leaving the actual banking to someone else. In the last decade, deposits in fintech partner banks have skyrocketed, growing 9x faster than deposits in small US banks overall 🚀 Regulators are stepping up their oversight by issuing 50 severe enforcement actions in the last six months. A lopsided number of these actions are targeting partner banks. Startups are responding to the increased regulation by beefing up compliance talent and by reviewing existing processes, in some cases severing ties with partners. That opens the door to AI-native startups who can meet a high bar for regulation. Source: Silicon Valley Bank - https://t.ly/LfKVy     #Innovation #Fintech #Banking #OpenBanking #EmbeddedFinance #API #BaaS #FinancialServices #Payments #Lending #Blockchain #Compliance 

Did you know that while North America and Europe capture most fintech headlines, emerging markets in Asia, Africa, and Latin America now attract nearly $10 billion in fintech funding, representing over 22% of global fintech investments? Despite this significant market share, these regions remain under-reported, misunderstood, and disconnected. Therefore, I'm excited to share that I'm launching a new podcast: Emerging Fintech - your weekly guide to financial technology innovation in emerging markets! Why another podcast? Because those markets aren't just adopting Western financial models - they're leapfrogging them entirely. Through conversations with entrepreneurs, corporate innovators, regulators, investors, and industry experts, we'll explore how technology is transforming financial services in these dynamic economies. For our inaugural episode, I'm thrilled to welcome Henrique Weaver, co-founder and CEO of Pagaleve, a Brazilian fintech pioneering buy-now-pay-later services via PIX. Henrique brings extensive experience from his time at global companies like Uber, OYO, and McKinsey & Company. In our conversation, Henrique shares fascinating insights about: -How Pagaleve's state-of-the-art credit engine achieves approval rates of 70% with remarkably low delinquency -Why their innovative approach assesses risk based on what people are buying rather than just who they are -How they've grown 8x year-over-year while achieving positive EBITDA -Their vision to become synonymous with installment payments for all Brazilians We're starting with Latin America, but will soon expand to cover groundbreaking fintech innovations across Africa and Southeast Asia. You can watch an extract of the first episode down below. The full episode launches this Monday. Subscribe now at emergingfintech.co to get it in your favorite podcast platform (YouTube, Spotify, or Apple Podcast) and join me as we explore the most dynamic and underreported financial ecosystems in the world.

Banking on Invisibility ? Envisioning the next generation of financial products, services, and paradigms involves anticipating and adapting to evolving trends in technology, regulation, consumer behavior, and global economic conditions. 1. Open banking has enabled brands across the board—from fashion to mobility to healthcare—to act as financial institutions, embedding loans, payments, payroll and more into existing offerings. 2. Digital-First Banking: The next generation of financial services will continue the shift toward digital banking. Traditional banks and fintech companies will offer seamless online and mobile experiences, making banking more convenient and accessible. 3. Automated Regtech and Compliance Automation: Regulatory technology (Regtech) will continue to evolve, automating compliance processes and ensuring financial institutions adhere to increasingly complex regulatory requirements. 4. Behavioral Finance: Understanding consumer behavior and psychology will play a more significant role in designing financial products and services. 5. Sustainable Finance: The financial industry will increasingly incorporate sustainability factors into investment decisions and risk assessments. 6. Blockchain : Blockchain technology will disrupt traditional financial systems, enabling faster, more secure, and transparent transactions. 7. Artificial intelligence will power advanced analytics, personalization, fraud detection, and robo-advisors, enhancing the efficiency and effectiveness of financial services. These trends represent a glimpse into the future of finance, where innovation and technology will continue to reshape the industry. The financial services sector will need to adapt and embrace these changes to remain competitive and meet the evolving needs of customers. Let's imagine - An entirely new form of finance is on the horizon: one that’s abstracted, seamless and connected at its core.

🗣️ 2025: The State of 🇺🇸 Fintech – Why MENA Leaders Should Pay Attention to this report focussed on US-Fintech The US fintech market has long been a #bellwether for global financial #innovation—and 2025 is shaping up to be yet another pivotal year. The attached report “2025 State of Fintech” report highlights major trends that won’t just shape the US market, but will ripple across multiple regions, including MENA. Key Insights from the Report Relevant to MENA: 🕹️ Embedded Finance 2.0: In the US, embedded finance has gone beyond payments into lending, insurance, and wealth management. As MENA’s super apps get traction and platforms proliferate, there’s a clear opportunity to adopt and adapt these models to local ecosystems. 🕹️ Vertical SaaS + Fintech: The rise of industry-specific fintech solutions is a trend MENA can capitalize on. Think fintech offerings tailored for sectors like oil & gas, logistics, or tourism—major economic drivers in the region. 🕹️ Regulatory Lessons: The US has seen the collapse of key #BaaS providers due to regulatory gaps. MENA regulators and fintechs can learn from these missteps to build more resilient frameworks as Open Banking and BaaS emerge in the region (but that doesn’t mean that they should paralyze the progress and keep everyone in limbo) 🕹️ AI’s Second Act in Fintech: In the US, AI is moving beyond chatbots into risk management, underwriting, and personalized wealth. With MENA’s growing interest in AI, these use cases can serve as a roadmap for localized adoption; but banks will need to address their legacy infrastructure, legacy mindset and legacy approach to digital transformation 🕹️ Funding Shifts: As the US fintech funding landscape evolves, MENA investors—especially sovereign wealth funds, CVCs and family offices—can spot new opportunities for strategic investments and partnerships. One thing is clear that the VCs in the MENA region have a long way to go in being able to fully support the growth required 📣 If you’re a fintech founder, investor, regulator, or operator in MENA, this report offers invaluable insights to shape your strategy. Don’t just watch the future of fintech happen—help define it in our region. Let me know which trend you think will hit MENA next! 👇💬 #Fintech #MENA #EmbeddedFinance #RegTech #AI #VentureCapital #FintechTrends2025 #BaaS

Welcome back to another edition of Fintech Wrap Up! This week, we’re diving into some exciting trends reshaping the banking and fintech landscape. First, we take a closer look at the rise of platform banking, where banks shift from traditional models to offering customers a digital marketplace of services. This new approach, driven by regulations like PSD2, allows for better customer experiences and opens up new revenue streams, but it requires careful strategy and investment. Platform banking is set to be a game changer in the financial world. Next up, we explore the transition from embedded to orchestrated finance. As fintech matures, we’re seeing the re-bundling of services. Companies like Wise and Revolut are great examples of how fintechs expand by integrating additional products, creating a seamless ecosystem for their users. This bundling trend is particularly relevant for bancassurance, where the embedded finance model allows for personalization and increased loyalty. Then, we shift gears to scaling fintechs. Moving from $1 million to $10 million ARR is the critical stage where companies go from a feature-driven business to a full-fledged platform. Companies like Netlify and Twilio illustrate how adding features and upsell opportunities can help fintechs expand their customer base and solidify their presence in the market. We also take a deep dive into Airwallex’s business model. Founded in 2015, Airwallex grew rapidly by offering affordable cross-border payments, and now, it’s evolving into an embedded finance platform. Their ability to process transactions through their own network gives them a unique advantage, allowing faster, cheaper international transfers and positioning them as a leader in cross-border finance. Lastly, we explore the Bank of Thailand’s Retail CBDC pilot, where over 4,000 users and 140 merchants tested a digital currency across live transactions. The test results offer a glimpse into the future of retail payments, showcasing the technical capabilities and real-world potential of central bank digital currencies. #fintech #embeddedfinance #openbanking Prasanna Marcel Richard Panagiotis Tony Efi Nicolas Arjun Dr Ritesh

Fintech is evolving faster than ever... from embedded payments to open banking, here are the 3 trends I believe will shape the future of our industry in 2025: 1️⃣ Hyper-Personalization in Financial Services AI and machine learning are enabling fintechs to offer tailored products and services like never before. By leveraging real-time data, businesses can move beyond segmentation to deliver true 1:1 customer experiences. ➡️ Example: Banks are launching a personalized insights tool in their mobile app, helping users track spending habits and offering recommendations based on individual financial goals. 2️⃣ Expansion of Embedded Finance Financial services like payments, lending, and insurance are becoming integral to non-financial platforms. In 2025, we’ll see embedded finance reshaping industries like healthcare, education, and gaming. ➡️ Example: Shopify now enables merchants to offer “Buy Now, Pay Later” financing directly through their storefronts, simplifying checkout and boosting sales conversions. 3️⃣ Real-Time Payments (RTP) and Instant Settlement The global push for faster, more efficient payment systems is transforming how money moves between individuals and businesses. RTP isn’t just about speed—it’s unlocking new business models and creating better customer experiences. ➡️ This trend has a broader impact with greater liquidity for businesses and consumers, especially in industries like gig work, e-commerce, and cross-border payments. 👉 What excites you the most about fintech in 2025? 👀 #fintech #startups #payments #banking

The Rise of Fintech in India: Looking Ahead to 2025 India's Fintech revolution is nothing short of extraordinary. Over the past decade, the country has emerged as a global Fintech hub, driven by innovation, digital transformation, and a rapidly growing economy. As we step into 2025, the trajectory of Fintech in India looks brighter than ever. The Growth Story So Far From digital payments and lending platforms to wealth management and insurtech, India's Fintech ecosystem has evolved into a dynamic, multifaceted industry. Government initiatives like Digital India and the introduction of Unified Payments Interface (UPI) have been game-changers, enabling financial inclusion for millions. Today, India processes over 12 billion UPI transactions monthly, underscoring its leadership in digital payments.   Trends to Watch in 2025 Embedded Finance: Seamlessly integrating financial services into non-financial platforms is set to redefine consumer experiences. AI and Blockchain: From fraud detection to smart contracts, these technologies will drive efficiency and transparency. Financial Inclusion 2.0: Targeted solutions for rural India will unlock new opportunities, addressing untapped markets. Green Fintech: ESG-focused innovations will align the sector with India's sustainability goals.   Challenges and Opportunities While Fintech growth is promising, challenges such as data security, regulatory compliance, and infrastructure gaps remain. However, collaboration between startups, traditional financial institutions, and policymakers can pave the way for sustainable and inclusive growth. As India marches toward becoming a $5 trillion economy, Fintech will undoubtedly be a cornerstone of its success. The next few years will be about harnessing the potential of technology to create a future where financial services are accessible, affordable, and tailored for all. The question is not whether Fintech will shape the future of India but how fast and effectively it will. Are you ready for the ride? Let’s shape the future, one innovation at a time. 🌟

Cambridge Centre for Alternative Finance, Cambridge Judge Business School, Drew Propson, Bryan Zhang, “The Future of Global Fintech: From Rapid Expansion to Sustainable Growth - Second Edition” Key findings: The global fintech industry remains robust in its transition to a more sustainable growth phase. Macroeconomic factors continue to be the primary challenge for fintech growth, though improvements have been noted. Financial inclusion remains central to the fintech value proposition, with traditionally underserved segments comprising significant portions of customer bases. Partnerships play a critical role in fintech strategies. Fintechs are generally satisfied with the regulatory landscape and approaches taken by regulators. Technology adoption continues to accelerate. This second edition of the Future of Global Fintech provides empirical insights to help bridge knowledge gaps and support stakeholders working to advance the financial ecosystem. The findings reflect a fintech sector maturing beyond the rapid acceleration brought on by the COVID-19 pandemic, shifting towards more sustainable and inclusive growth. Despite moderate customer acquisition rates, fintechs are demonstrating strong revenue and profitability gains, indicating solid business fundamentals and continued relevance in the broader financial services landscape. At the same time, a sharper focus on underserved populations, particularly in emerging markets, reinforces fintechs’ central role in expanding global financial inclusion. Looking ahead, priorities such as AI adoption and regional interoperability, along with growing collaborations with incumbent institutions, improved regulatory sentiment and a stabilizing funding environment, all signal a more integrated and resilient financial future. Supporting this evolution will require ongoing, data-driven research to track emerging trends and equip decision-makers to respond effectively. CONCURRENCE Keith Bear Hugo Coelho ——— #datasharing #dataportability #concurrence #dataaccess #M2MI #aiagents #agenticai #automatedM2Mintelligence #datainteroperability #FMI #globalsupplychain #crossboarderpayments #securefinancing #fraudprevention #tradefinance #openbanking #fintechdataplatform #tradematters #sustainability #digitaltrade #globaltrade #FinancialMarketInfrastructure #technology #LEI #digitalidentity #C4DTI #paperless #digitalidentities #datasharing #innovation #digitalisation #paperlesstrade #digitaltransformation   #digitaltradechampion #digitaltradeevangelist #openfinance #internationaltrade #digital #crossbordertrade #smartdata #cbdc #regtech #suptech #payments #innovation #banks #digitalrevenueimpact #risk #regulations #digital #m2mi #cybersecurity #risk #banking #embeddedfinance #openbanking #sustainablefinance #iot #money #bankofengland #digitaleconomy #fintech #multicurrency #privacy #artificialntelligence