Building Bridges for the Next Decade of Finance

The fintech sector has undergone a tumultuous period, facing intense regulatory scrutiny and a harsh funding winter. This challenging phase has led to the emergence of a more mature and resilient fintech ecosystem, where the focus has shifted from aggressive customer acquisition to sustainable growth, high-quality governance, and economically rewarding innovation. Incumbent financial institutions are increasingly integrating or incubating fintechs, while regulatory frameworks have evolved to support orderly development. However, the industry must continue to prioritize governance, regulation, and efficient use of resources to thrive. In this context, BCG, as the thought leadership partner of the Global Fintech Fest 2024 (GFF), has launched the flagship report - "Building Bridges for the Next Decade of Finance“.

The report is organized into three chapters. The first chapter is rich with data on trends shaping the fintech landscape, offering a rigorous analysis of growth trajectories, capital allocation, and regional convergence. The global fintech sector is on track to achieve $1.5 trillion in revenues by 2030, driven predominantly by the Asia-Pacific (APAC) and North American (NAMR) regions. The chapter explores the stabilization of global fintech funding and the increasing convergence in capital allocation between developed and emerging markets.

The second chapter provides a temperature check on the priorities of founders, boards, regulators, and investors in the Indian financial landscape. "Profitable and compliant growth" is the new mantra for fintech founders, rather than unbridled expansion. A collaborative regulatory framework that supports innovation while safeguarding against systemic risks will be crucial in shaping the future of finance. Emerging technologies such as generative AI and API-based open architecture are seen as key drivers of future growth.

The third chapter discusses the critical bridges that fintechs, traditional incumbents, regulators, and investors need to jointly build to approach the next decade of finance. We are at an inflection point in the global financial journey. To navigate these transformative waters, six bridges must be constructed: the Bridge to Future-Ready Technology, the Bridge between Incumbents and Fintechs, the Bridge to Internationalization, the Bridge to Capital Access, the Bridge to Regulation, Compliance, and Risk Management, and the Bridge to a Brighter and Greener Future.