Future of Global Fintech Second Edition 2025

Rate of profit growth (2022-2023) FIGURE 6 39% 37% 37%45% 42%45% 27% US and Canada MENA Global average APAC Europe LAC SSA In terms of profits, the fintech sector demonstrated strong growth in 2023, with an average profit growth rate of 39% (Figure 6), indicating efficient operations. Deeper impact evaluation identified partnerships with local financial institutions and the integration of micro, small and medium enterprises’ (MSMEs) products as key factors driving fintech profit growth by 12% and 9%, respectively.7 Overall, profit performance highlighted the industry’s ability to adapt and thrive in a dynamic environment. The regions with the greatest profit growth rates were LAC (45%), the US and Canada (45%) and MENA (42%). APAC and Europe (both at 37%) reported near-average profit growth. In comparison, SSA reported the lowest profit growth rate of 27%, largely due to the region’s struggles with economic instability, limited access to capital and infrastructural constraints.8 Fintechs in AEs outperformed those in EMDEs, with a profit growth rate of 41% and 36%, respectively. This slight disparity can be attributed to the lower growth rates observed in SSA, which reduced the overall performance of EMDEs. Across verticals, all except for digital capital raising fintechs reported above-average profit growth. Digital banking and savings led at 59%, driven by strong customer adoption caused by increasing demand for digital financial services. Insurtech followed with a profit growth rate of 42%, reflecting the growing interest in innovative insurance solutions.9 Digital capital raising had the lowest profit growth at just 14%. The regions with the greatest profit growth rates were LAC (45%), the US and Canada (45%) and MENA (42%). APAC and Europe (both at 37%) reported near-average profit growth.Change in profit from 2022-2023 The Future of Global Fintech: From Rapid Expansion to Sustainable Growth 12