Fintech sector bolsters profitability and inclusivity as growth solidifies
The global fintech sector is experiencing a significant transformation, driven by the adoption of artificial intelligence (AI) and other innovative technologies. According to a recent report, AI is playing a crucial role in improving fintech performance, with 83% of fintech companies reporting improved customer experiences and approximately three-quarters noting higher profitability and reduced costs.
The report, titled "The Future of Global Fintech: From Rapid Expansion to Sustainable Growth," surveyed 240 fintech companies across six regions and six retail-facing fintech business verticals. The key growth drivers identified in the report are generative AI, open banking, and decentralized finance, which are reshaping financial service delivery.
AI is enabling fintech companies to deliver personalized, accessible financial services to traditionally underserved demographics. By analysing transaction histories, spending patterns, and goals, fintechs are designing bespoke financial products, such as customized loan repayment plans and investment strategies aligned to individual risk tolerance. This level of personalization is enhancing customer experiences and driving growth.
Moreover, AI is improving customer service through advanced chatbots and virtual assistants that provide real-time, context-aware financial advice. These tools are not only improving efficiency but also providing a more seamless and convenient experience for customers.
The global AI in finance market is forecasted to grow from $38.36 billion in 2024 to over $190 billion by 2030, reflecting a 30.6% Compound Annual Growth Rate (CAGR). Major financial institutions like Morgan Stanley, JP Morgan Chase, and Bank of America are also deploying generative AI-powered tools, demonstrating a broad industry push toward embedding AI for improved operational efficiency and customer experience.
Fintech companies are also attracting significant venture capital funding focused on high-quality startups creating inclusive, innovative financial solutions. The sector saw robust revenue increases, with a 21% year-over-year growth in 2025.
Partnerships between fintechs and traditional financial institutions play a critical role in fintech strategies, with 84% of fintechs collaborating with incumbents. The fintech sector continues to show strong, sustainable growth, with customer growth stabilized at 37%, financial performance remaining strong, and AI adoption improving performance.
The 16th Annual Meeting of the New Champions, organized by the World Economic Forum, will take place from 24 to 26 June in Tianjin, China. The meeting will explore entrepreneurial solutions to global challenges with a theme of "Entrepreneurship for a New Era." Over 1,700 leaders from various sectors are expected to attend the event.
Despite the positive outlook, fintech companies still face challenges related to macroeconomic conditions and funding environments. However, the report indicates that the fintech sector is showing sustainable growth with customer growth stabilized, financial performance remaining strong, and AI adoption improving performance. The sector continues to prioritize AI adoption, regional interoperability, collaborations with incumbents, and continued progress on regulation and funding environments for future growth.
The report also focuses on financing, insurance, investment, inequality, gender, women, innovation, fintech, and artificial intelligence. It highlights that fintechs are serving traditionally underserved market segments, including micro, small and medium enterprises (MSMEs), low-income individuals, and women. In emerging markets and developing economies (EMDEs), these segments constitute significant portions of fintechs' customer base and contribute meaningfully to their bottom lines.
In conclusion, the future of fintech is bright, with AI playing a pivotal role in driving personalization, expansion, and sustainable growth. The sector continues to attract significant investment and partnerships, and the regulatory environment is generally suitable. However, challenges remain, particularly in terms of macroeconomic conditions and funding environments, which fintechs must navigate for continued growth.
Fintech companies are leveraging artificial intelligence (AI) to design bespoke financial products, such as customized loan repayment plans and investment strategies, for traditionally underserved demographics, thereby enhancing customer experiences and driving growth. The global AI in finance market is projected to reach over $190 billion by 2030, demonstrating a strong industry push toward embedding AI for improved operational efficiency and customer experiences.
Investing in AI technologies is becoming critical for traditional financial institutions as well, with major players like Morgan Stanley, JP Morgan Chase, and Bank of America deploying generative AI-powered tools to stay competitive in the evolving fintech landscape.
