Global FinTech revenues surpassed $500 billion in 2025, growing four times faster than traditional financial institutions as profitability, funding and dealmaking all strengthened, according to a report released on Monday by Boston Consulting Group (BCG) and FT Partners.

The Global Fintech Report 2026 found the sector generated $504 billion in revenue last year, up 22 per cent year on year, while attracting $58 billion in equity funding, a 53 per cent increase. The report said FinTech now accounts for around 4 per cent of global financial services revenues, marking a significant milestone for an industry that emerged only two decades ago.

Profitability improved sharply across the sector. BCG and FT Partners reported that 74 per cent of the largest publicly listed FinTech companies were profitable in 2025, up from 68 per cent a year earlier, while average EBITDA margins rose by 400 basis points to 20 per cent.

Inderpreet Batra, managing director and senior partner at BCG, said: “FinTech has not simply bounced back from the reset years, it has come out the other side as a fundamentally more mature industry.” He added that leading firms were now “profitable, disciplined, and expanding into new products and geographies”.

The report highlighted strong momentum in capital markets and acquisitions. FinTech initial public offerings increased by 50 per cent to 42 deals in 2025, while global mergers and acquisitions activity climbed to $251 billion, up from $184 billion in 2024 and $105 billion in 2023.

BCG and FT Partners said FinTech firms completed 659 acquisitions in 2025, exceeding the 589 transactions completed by incumbent financial institutions. The authors described the shift as evidence that larger FinTechs are increasingly acting as consolidators rather than acquisition targets.

Europe was one of the fastest-growing regions, recording average revenue growth of 24 per cent, with UK FinTech firms achieving growth of 30 per cent. The report cited expansion by neobanks into lending, wealth management, insurance and cross-border payments as a key driver of growth, and identified firms including Revolut, Monzo and N26 as continuing to take market share from traditional banks.

The report said regulatory differences between banks and FinTechs are narrowing across the US, UK and EU as licensing and charter routes become more accessible. FinTech firms are increasingly pursuing regulated banking status to lower funding costs and gain greater control over customer relationships.

Artificial intelligence was identified as another major competitive factor. Steve McLaughlin, chief executive and managing partner of FT Partners, said: “A real divide is emerging between FinTech companies that have made AI foundational” and those using it only for limited applications, arguing that organisational change rather than spending alone would determine future winners.

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