From Reset to Resurgence—Why the Fintech Rebound Signals a New Era
Let’s rewind for a second. Just a couple of years ago, fintech was limping. Valuations were slashed, funding dried up, and we all started wondering if the golden era of financial disruption had run its course. Turns out? Not even close. According to the QED-BCG Global Fintech Report, fintech revenue jumped 21% in 2024—crushing the 6% growth rate of traditional financial institutions. But here’s what really matters: nearly 70% of public fintech companies are now profitable.
Fintech didn’t just rebound—it leveled up.
Growth Is Back… But This Time, It’s Sustainable
- 21% revenue growth YoY in 2024 (up from 13% in 2023)
- 69% of public Fintechs are profitable (up from <50% in 2023)
- EBITDA margins climbed from ~12% to 16%
- Late-stage valuations up 12% YoY
What’s Driving the Rebound?
Embedded Finance Is Now Expected – Consumers want the bank embedded into whatever they’re already doing. Examples?
- Shopify Capital and banking inside the store platform
- Apple Pay Later and Apple Card integrated into iOS
- Square enabling lending, payroll, and instant cash access
Klarna’s Reinvention & Revolut’s LATAM Play
Klarna has evolved from BNPL poster child to full lifestyle bank. In 2025, they’ve:
- Launched a Visa debit card
- Bundled AT&T mobile plans into their product suite
- Positioned themselves for a U.S. IPO
Revolut acquired Cetelem Argentina (BNP Paribas-owned) in mid-2025. This gives them banking infrastructure in one of the world’s most dollarized, high-potential fintech markets.
Source: Financial Times / Reuters
Funding Is Back—With Strings Attached
Global fintech funding hit $10B in Q1 2025, up 18% YoY, according to CB Insights. But there’s a new standard: profitable growth, clear TAM, and real customer traction. Smart Fintechs are focused on targeted initiatives:
- Focusing on infrastructure: KYC, real-time APIs, onboarding automation
- Using AI where it matters—risk, fraud, lending, operations
- Expanding globally with compliance-first launches
- Operating like they’re being audited tomorrow
What to Watch in Late 2025
- More M&A between profitable fintechs and niche players
- AI behind the scenes, powering ops, not just chatbots
- Banking-as-a-Service 2.0: APIs and compliance bundled together
2025 isn’t just a comeback year. It’s a blueprint for what responsible innovation in fintech looks like.
Sources
- QED-BCG Report: https://m.economictimes.com/tech/technology/where-the-fintech-sector-is-headed-next-qed-bcg-global-fintech-report-2025/articleshow/121565312.cms
- Klarna – FT: https://www.ft.com/content/c0b696e0-4453-4f2a-a762-ba1f33f958a7
- Revolut – Reuters: https://www.reuters.com/business/finance/revolut-acquire-bnp-paribas-owned-argentine-lender-market-expansion-2025-06-26/
