India among top fintech hotspots globally: WEF study

New Delhi: A new global study on Wednesday listed India among the top fintech hotspots alongside the US and the UK.

The World Economic Forum study, released at its Annual Meeting of New Champions in China's Tianjin, also said the fintech sector growth is stabilising amid strengthening profitability and inclusion.

The study revealed that fintech hotspots include the UK, India, the US, Singapore, Brazil and Indonesia, each of which headquartered over 10 firms and showcased a booming fintech sector.

Additionally, the top operating countries for fintechs included the US, the UK, India, Singapore, the United Arab Emirates, Brazil, Colombia, Mexico, Indonesia, and Germany, the WEF said.

Despite post-pandemic moderation, the fintech sector continues to show strong, sustainable growth while reaching traditionally underserved groups, it said.

The global survey of 240 fintech firms indicate customer growth stabilising at 37 per cent, while financial performance remains strong with revenue growth at 40 per cent and profit growth at 39 per cent.

Carried out in collaboration with the Cambridge Centre for Alternative Finance (CCAF), at Cambridge Judge Business School, University of Cambridge, the 'Future of Global Fintech: From Rapid Expansion to Sustainable Growth' also highlighted 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 per cent, 47 per cent and 41 per cent, respectively), particularly in emerging markets and developing economies (EMDEs) where these segments are also contributing meaningfully to fintechs' bottom lines.

The survey also suggested that AI adoption is improving performance, with 83 per cent of fintechs reporting improved customer experience and approximately three-quarters of respondents noting higher profitability and reduced costs.

While macroeconomic conditions remained the most cited challenge to growth, only 18 per cent of respondents viewed them as a hindrance, down from 56 per cent in 2024.

Concerns about the funding environment have also eased significantly, with only 12 per cent citing it as a hindrance, compared to 40 per cent last year.

Despite these improvements, there is more to be done to foster sustainable fintech growth, particularly in expanding access to capital and enhancing regulatory efficiency, WEF said.