Fintech Firms Turn the Corner with 21% Revenue Surge in 2024: Report EBITDA margins improved from 12% in 2023 to 16% in 2024, a 25% year-over-year gain.

After years of turbulence and cautious recovery, the global fintech sector is entering a new phase—one defined by scale, innovation, and sustained profitability. A new report from Boston Consulting Group (BCG) and QED Investors titled Fintech's Next Chapter: Scaled Winners and Emerging Disruptors reveals how the industry has emerged from a volatile funding environment stronger, leaner, and poised for continued growth.

The report captures the momentum behind fintech's revival. In 2024, revenues jumped by 21%—a substantial leap from 13% the previous year and over three times the growth rate of traditional financial services. Notably, public fintechs achieved an average EBITDA margin of 16%, with nearly 70% now operating profitably.

"A class of scaled fintechs is coming of age," said Deepak Goyal, Managing Director and Senior Partner at BCG. "Investors are demanding greater maturity, and regulators want more accountability."

These scaled fintechs—defined as companies with more than USD 500 million in annual revenue—now account for about 60% of total industry revenue. This marks a significant shift toward consolidation and performance-driven leadership.

The report highlights standout growth across several fintech sub-sectors:

• Deposits: Challenger banks like Nubank, Revolut, and Monzo drove 23% growth.
• Trading and Investment: Revenues rose 21%, led by crypto platforms such as Coinbase and a rebound in equity markets.
• Insurance: Service providers and brokers propelled an impressive 40% revenue increase.

These figures illustrate a broader trend of fintechs outpacing their traditional counterparts in core financial services categories.

Profitability is no longer just a target—it's becoming the standard. EBITDA margins improved from 12% in 2023 to 16% in 2024, a 25% year-over-year gain. In contrast to the previous year, when fewer than half of all public fintechs were profitable, 69% are now in the black.

Meanwhile, agentic AI is set to be the next disruptor, especially in software development, commerce, and personal finance. Early-stage fintechs are often outpacing larger players in AI adoption, signaling a reshaping of competitive dynamics.

Challenges and Optimism

The sector still faces regulatory scrutiny. In 2024, Chime was fined USD 2.5 million for delayed fund returns, while Block incurred an USD 86 million penalty for AML failures. The collapse of Synapse added to industry tension, risking USD 96 million in customer funds. However, late 2024 and early 2025 brought optimism: equity funding in Q1 2025 rose 34%, and revenue multiples increased 10%.

Despite a 13% decline in equity funding in 2024, this was a marked improvement over the 51% plunge in 2023. Fintechs are also more IPO-ready than ever, with 150 privately held firms—such as Stripe and Revolut—sitting on over USD 500 million in equity funding, yet waiting for favorable market conditions.

"It is hard to read the tea leaves on IPOs," said James Loftus, Managing Partner at PayPal Ventures. "Everyone wants the market to open, but tariffs are roiling the market… The best candidates are happy and able to sit on the sidelines until there is more certainty."

Looking Ahead

The report outlines key imperatives:

• Fintechs should embed AI deeply, focus on core markets, and pursue strategic M&A.
• Investors must target underpenetrated regions like the Middle East and Africa, and promote AI-led, disciplined growth.
• Regulators are urged to provide clarity and speed, particularly on AI and digital assets, to avoid stifling innovation.
• Banks should forge alliances with fintechs and embrace AI as a strategic differentiator.

Nigel Morris of QED Investors concluded, "Fintechs are growing three times faster than incumbents… It's easy to see why there's an appetite for IPO-ready companies that deliver profitable growth. Fintech is ushering in a new era in financial services."