Global fintech revenues hit a record high in 2025, totaling $504 billion and growing four times as fast as bank revenue, according to a new report.

Fintech revenue “has not simply bounced back” from its 2022 tumbling but has “come out the other side as a fundamentally more mature industry,” said Inderpreet Batra, who co-authored a Boston Consulting Group and FT Partners’ study, released last week.

“The firms leading today are profitable, disciplined, and expanding into new products and geographies with a seriousness that was not always present in the boom years,” said Batra, a global leader of BCG’s payments and fintech business, in a press release. “The question now is how far they will go in reshaping financial services.”

Fintech now accounts for roughly 4% of the global financial services revenue pool, according to the report. There were 42 initial public offerings in fintech in 2025, marking a 50% increase year-over-year. Meanwhile, merger and acquisition volumes in the sector rose from $184 billion in 2023 to $251 billion in 2025.

Fintech sector growth and revenue contribution are somewhat concentrated among top firms, the report said.

The top 20 fintechs globally account for 40% of overall fintech revenue. These firms drove roughly 30% of global revenue growth, but they grew more slowly than the overall market (17% versus 22%).

The right way to characterize the 22% fintech revenue growth, according to BCG Transaction Banking Global Leader Alex Paddington, is “broad-based, but not uniform.”

“Growth is clearly not coming from just a handful of companies or a single vertical,” he said in an email to Banking Dive, noting that payments remained the largest revenue pool but that deposits, lending, trading and investments also contributed meaningfully to the growth.

“But the report is also clear that some subsectors and geographies are breaking away from the pack, so this is not an evenly rising tide,” he said. “It is a healthier market in which scaled leaders are widening their advantage.”

Payments was the largest revenue vertical overall. But trading and investments grew 28%, and deposits grew 30%.

Paddington suggested that banks should feel threatened by verticals in which fintechs combine “strong digital distribution with structurally better user experience and faster iteration” in particular in trading and investments, deposits, selected lending segments and parts of SMB financial workflows.

“Those are the places where fintech growth is already outpacing incumbents materially and where product breadth, lower-friction [user experience], and artificial intelligence-enabled servicing can continue to take share,” he said. “By contrast, some bank revenue pools are probably more defensible than investors assume, especially where trust, balance sheet strength, regulatory complexity, and sticky customer relationships matter most.”

Other areas where banks likely feel competition from fintechs are insurance tech, wealth tech and brokerages, according to Abdul Abdirahman, principal in fintech-focused venture firm F-Prime Capital.

“There’s a lot of Gen Z-ers and millennials who want a different digital experience, and [firms] like Robinhood have done a really good job of going and capturing those individuals,” he said. “They're launching products at a much faster velocity than a lot of us anticipated, and because of that, their revenue has ramped really significantly and their number of customers [and] number of products the average customer is using are significantly higher than a few years ago.”

But, he noted, Wall Street behemoth JPMorgan Chase has also had a significant growth in customers. Banks that are succeeding, he said, are “hungry for better technology” — and investing in it — to keep pace with more agile fintechs.

F-Prime’s fintech industry report debuted in February.

Paddington predicted that the next half-trillion dollars in revenues will come from a variety of verticals, including B2B financial services, deposits, lending, trading and investments, broader financial infrastructure, and AI-enabled workflow solutions.

B2B, Paddington said, remains “underpenetrated,” and many SMB workflows remain manual and expensive.

AI has given fintechs the ability to automate and monetize these workflows, he said.

Abdirahman, too, said AI is “going to produce even bigger winners” in the fintech space, in part because of a decrease in labor spend.

“With [the help of] AI agents, the winners are going to be the fintech startups that are leveraging AI to be able to … automate a lot of those tasks that humans were previously doing, so the humans are freed up to do higher value tasks that are much more judgment-oriented.”