India rises as global fintech hub alongside the US, UK amid sustainable growth trend: WEF

India has been identified as one of the key operating countries for fintechs in the world, alongside the UK, the US, and Singapore, according to a new study by the World Economic Forum (WEF). The study, titled "The Future of Global Fintech: From Rapid Expansion to Sustainable Growth," which was released at its annual meeting of new champions in China's Tianjin today, revealed that global fintech hotspots include the UK, India, the US, Singapore, Brazil, and Indonesia, each of which headquarters over 10 firms and showcases their booming fintech sector.

Most fintechs in the WEF study (60%) operated in multiple jurisdictions, and 31% operated in multiple regions. Asia-Pacific (APAC) fintechs, which also comprises India, exhibited "a more local focus," expanding less internationally than firms from other regions, finds the WEF study. "Even when they did expand, it was predominantly within their region."

The WEF says that despite post-pandemic moderation, the fintech sector continues to show strong, sustainable growth while reaching traditionally underserved groups. A new global survey of 240 fintech firms indicated customer growth stabilising at 37%, down from 55% in the previous edition of the survey. However, financial performance remains strong with revenue growth at 40% and profit growth at 39%.

It highlights fintech’s continued role in expanding financial access to traditionally underserved market segments. "Micro, small and medium enterprises (MSMEs), low-income individuals and women constitute significant portions of fintechs’ customer base (57%, 47%, and 41%, respectively), particularly in emerging markets and developing economies (EMDEs) where these segments are also contributing meaningfully to fintechs’ bottom lines."

Drew Propson, Head of Tech and Innovation in Financial Services, WEF, says fintechs have embedded accessibility and reach into their business models, positioning themselves as essential players in creating a more equitable global financial system. "These findings underscore fintech’s ability to help drive economic expansion, even as the sector adapts to more moderate post-pandemic growth trends.”

Optimistic Outlook Amid Challenges

The WEF study finds that while macro conditions remain the most cited challenge to growth, only 18% of respondents view them as a hindrance, down from 56% in 2024. Concerns about the funding environment have also eased significantly, with only 12% citing it as a hindrance, compared to 40% in the previous edition. However, despite these improvements, there is more to be done to foster sustainable fintech growth, particularly in expanding access to capital and enhancing regulatory efficiency.

Call for Efficiencies in Processes

The WEF survey shows fintechs find their regulatory environment "generally suitable," with 62% of respondents stating that regulations in their regions are "adequate" and 35% citing "strong regulatory clarity." However, firms continue to highlight areas for improvement, including the capacity and coordination of financial authorities and efficiencies in licensing and registration processes.

Partnerships between fintechs and traditional financial institutions play a critical role in fintech strategies. The report indicates that an overwhelming 84% of fintechs collaborate with incumbents, primarily through API integrations (52%), reflecting the sector’s growing integration into the broader financial ecosystem.