As customer growth slows, FinTech bets on deeper impact, study shows

By Puja Sharma

The global FinTech sector is entering a new phase—not just one of growth, but also one of maturity. According to the “Future of Global FinTech: From Rapid Expansion to Sustainable Growth,” the second edition of a joint report by the World Economic Forum and the Cambridge Centre for Alternative Finance, the industry is stabilising after years of rapid expansion. The post-pandemic spike is giving way to something far more meaningful: strategic partnerships, financial inclusion, and tech-powered resilience.

This isn’t just a story of metrics—it’s a narrative shift.

Between 2022 and 2023, FinTech firms saw an average customer growth of 37%, a slowdown from the pandemic-fuelled highs of over 50%, but a sign of market normalisation rather than stagnation. What’s striking is that revenue and profit growth remained strong—at 40% and 39% respectively. Growth is no longer just about onboarding users at lightning speed, but about retaining them with deeper, more relevant services.

At the heart of this evolution lies inclusion. The report finds that micro, small and medium enterprises (MSMEs) make up 57% of FinTech customer bases globally. Low-income users follow closely at 47%, and women at 41%. In many emerging economies, these groups aren’t just beneficiaries—they’re driving revenues. FinTech is finally proving what many have long speculated: that inclusion and profitability are not mutually exclusive.

Nowhere is this more visible than in Sub-Saharan Africa. FinTechs in SSA reported deriving 60% of their revenue from low-income users and 58% from rural customers. In MENA, women made up the highest share of customers among all emerging regions. While developed markets like the US and Europe lead in WealthTech and seniors, the Global South is quietly rewriting the FinTech playbook—one underserved customer at a time.

There’s also a marked shift in how FinTechs see the world. The 240 firms surveyed (spanning six verticals and 109 countries) are no longer lone disruptors but active collaborators. A staggering 84% have formal partnerships with incumbent financial institutions. These partnerships, often powered by APIs and co-branded services, are less about market access and more about mutual reinforcement—building trust, plugging into tech infrastructure, and navigating compliance together.

The report notes that tech integrations, particularly for payments and remittances, remain the top reason for these tie-ups. But what’s more revealing is the growing appetite for enhanced credibility and joint innovation. This suggests that the age of ‘us vs them’ between banks and FinTechs is on its way out. The new reality? A digital financial ecosystem that learns, builds, and scales together.

Of course, challenges persist. FinTech funding, though stabilising, remains fragile. Nearly half of all firms said the funding environment improved in the last year—but around one-third still reported worsened conditions. In Sub-Saharan Africa and parts of Latin America, access to capital continues to be a bottleneck, especially for those eyeing international expansion. Cross-border ambition remains high (55% of firms plan to expand globally), but many are tripped up by fragmented regulations, local compliance barriers, and the sheer complexity of adapting products to new markets.

Regulators, however, are slowly catching up. The report shows that 62% of FinTechs believe the regulatory environment is now adequate. This is a sharp improvement from earlier perceptions, especially in MENA and APAC. Key pain points like licensing, coordination between authorities, and clarity of supervision still remain, particularly in developing economies. But there’s no mistaking the overall trend—governments and regulators are learning to listen, iterate, and engage with FinTech stakeholders.

Technology remains the jet fuel. Eight in ten firms are already deploying AI across customer service, risk analysis, and operational efficiency. AI is delivering tangible results: improved customer experience (83%), cost savings (75%), and boosted profitability (also 75%). But with adoption comes responsibility. Concerns about data bias, deepfakes, and the cost of implementation are rising, and the industry will need to tackle these proactively to maintain public trust.

What stands out in this report is not just the data—it’s the tone. There is a growing consensus that FinTech’s ‘move fast and break things’ moment is over. The new imperative is scale responsibly, serve deeply, and collaborate wisely. Whether it’s the boom in API-led partnerships or the embrace of inclusive customer segments, the industry is clearly entering what can only be called its adulthood.

The FinTech revolution hasn’t run out of steam—it has found a longer road to run.

As central banks flirt with digital currencies, governments push for open finance, and AI reshapes the nature of money, the next five years will test whether FinTech can be both agile and accountable. For once, it’s not about who grows the fastest, but who grows the smartest. And if this report is any indication, the smartest players will be those who understand that disruption is just the beginning—transformation is the real endgame.