Is India A Sweet Spot In Global Fintech Sector’s Future?

Fintech Insights 2025: On the backs of profitability, disciplined growth, and AI-led innovation, the global fin-tech space has reported a threefold acceleration as revenues grew 21 per ceny year-on-year (YoY) in 2024 from 13 per cent in 2023, according to a Boston Consultancy Group (BCG) report.

India emerged critical in the global fintech arena with nearly 3x the pace of traditional financial services, and 69 per cent of public fintechs turned profitable, and average EBITDA margins reaching 16 per cent, the report said.  

Notably, much of this performance is being driven by a new class of scaled players generating USD 500 million or more in annual revenue. These now account for approximately 60 per cent of total fintech revenues.

Deepak Goyal, a managing director and senior partner at BCG, said, “A class of scaled fintechs is coming of age. Investors are demanding greater maturity, and regulators want more accountability.”

“Meanwhile, emerging disruptors are harnessing next-generation technologies like agentic AI and pioneering new business models, pushing established players to continuously innovate.”

According to a new report by Boston Consultancy Group, “India emerged as a standout market—driven by a young, digital-first population and public digital rails like UPI, which processed over 100 billion transactions last year.”

“Yet, vast white spaces remain—only ~2–3 per cent of global deposit and lending revenue pools have been penetrated by fintechs, mirroring the opportunity in India across banking & insurance with only ~4-5 per cent and ~1-2 per cent revenue penetration by fintechs, respectively,” it said. 

Yashraj Erande, Global Leader for Fintech Practice at BCG, said, “The next generation of Indian fintechs must seize this moment: by embedding agentic AI at the core, leveraging India’s digital infrastructure, and solving for underserved segments with sustainable economics.”

· AI is already reshaping the industry: Many early-stage fintechs are ahead of their larger peers in leveraging AI—particularly for software development. Agentic AI is the next wave of disruption, and will change the game in commerce, vertical SaaS, and personal financial management.

· Fintechs are IPO-ready, but patient: 150 private fintechs founded before 2016 with over USD 500 million in cumulative equity remain on the sidelines, with many poised to go public.

· Massive white space remains: Fintechs still penetrate only 3 per cent of global banking and insurance revenue pools—leaving vertical and geographic gaps to be filled.

· Challenger banks are scaling fast: 24 institutions with over USD 500 million in annual revenues are growing deposits at 37 per cent annually—30 percentage points higher than traditional banks.