Latest news with #DeepakGoyal
Hans India
3 days ago
- Business
- Hans India
India stands out as a Global Fintech Bright Spot as Credit Demand Surges: BCG Report
Global fintech is entering a new era of maturity and momentum. According to a new report from Boston Consulting Group (BCG) and QED Investors , Fintech's Next Chapter: Scaled Winners and Emerging Disruptors, the sector has emerged from a tough funding environment stronger, more disciplined, and with greater growth prospects than ever. In 2024, fintech revenues grew by 21%—up from 13% in 2023—marking a threefold acceleration over the financial services industry at large. Meanwhile, the average EBITDA margin of public fintechs climbed to 16%, and 69% of public fintechs are now profitable. Importantly, much of this performance is being driven by a new class of scaled players generating $500 million or more in annual revenue. These now account for approximately 60% of total fintech revenues. 'Global fintech is entering a new phase—defined by profitability, disciplined growth, and AI-led innovation. In 2024 alone, fintech revenues grew by 21%, nearly 3x the pace of traditional financial services, and 69% of public fintechs turned profitable, with average EBITDA margins reaching 16%. India is a critical part of this growth story. The Asia-Pacific region (excluding China) contributed 10% ($22 billion) to global scaled fintech revenues, with India emerging as a standout market—driven by a young, digital-first population and public digital rails like UPI, which processed over 100 billion transactions last year. Yet, vast white spaces remain—only ~2–3% of global deposit and lending revenue pools have been penetrated by fintechs, mirroring the opportunity in India across banking & insurance with only ~4-5% and ~1-2% revenue penetration by fintechs, respectively. The next generation of Indian fintechs must seize this moment: by embedding agentic AI at the core, leveraging India's digital infrastructure, and solving for underserved segments with sustainable economics.', said Yashraj Erande, India Leader, Financial Institutions Practice, and Global Leader, Fintech Practice, BCG 'A class of scaled fintechs is coming of age. Investors are demanding greater maturity, and regulators want more accountability,' said Deepak Goyal, a managing director and senior partner at BCG. 'Meanwhile, emerging disruptors are harnessing next-generation technologies like agentic AI and pioneering new business models, pushing established players to continuously innovate.' As Revenues Jump, Fintech Is Ready for Even More Growth Among the key findings of the report: Fintech revenues surged 21% in 2024, outpacing the 6% growth rate of incumbent financial services players Public fintech profitability jumped, with EBITDA margins rising from 12% to 16%, and 69% of public fintechs now in the black. AI is already reshaping the industry: Many early-stage fintechs are ahead of their larger peers in leveraging AI—particularly for software development. Agentic AI is the next wave of disruption, and will change the game in commerce, vertical SaaS, and personal financial management. Fintechs are IPO-ready, but patient: 150 private fintechs founded before 2016 with over $500 million in cumulative equity remain on the sidelines, with many poised to go public. Massive white space remains: Fintechs still penetrate only 3% of global banking and insurance revenue pools—leaving vertical and geographic gaps to be filled. Challenger banks are scaling fast: 24 institutions with over $500 million in annual revenues are growing deposits at 37% annually—30 percentage points higher than traditional banks. Private credit is emerging as a key tailwind for fintech lending, establishing itself as a core funding partner. A $280 billion white-space opportunity remains for private credit funds to acquire fintech-originated loans. 'Fintechs are winning in spaces where traditional banks have largely ceded the competitive ground, such as banking for lower-income households and buy now, pay later,' said Nigel Morris, managing partner at QED Investors. 'Fintechs are growing three times faster than incumbents as they leverage digital distribution channels and increasingly utilize AI. Having emerged from the last two years with stronger fundamental unit economics and high net promoter scores, it's easy to see why there's an appetite for IPO-ready companies that deliver profitable growth. Fintech is ushering in a new era in financial services.' Strategic Imperatives for the New Chapter of Fintech The report outlines clear calls to action for fintech founders, investors, regulators, and banks—each critical to unlocking the next phase of industry growth: For Fintechs. Scaled leaders must double down on the fundamentals and focus on their home markets while embedding AI at the heart of their business models. Fintech players should also remain alert to the right M&A opportunities. For Investors. Capital should diversify into underpenetrated areas like financial infrastructure and in regions that are primed for growth (Middle East, Africa, parts of Latin America and Asia-Pacific.). Investors should push for faster AI adoption and disciplined growth. For Regulators. Clarity, speed, and harmonization are now essential. Without agile regulation around AI and digital assets, innovation is at risk of stagnating. Governments also have a unique opportunity to spur growth through digital public infrastructure. For Banks. Banks should partner with fintechs in areas like financial infrastructure where it makes strategic sense. At the same time, they must embrace AI with purpose and the desire for experimentation. Banks should also have a strategy for digital assets.
Entrepreneur
3 days ago
- Business
- Entrepreneur
Fintech Firms Turn the Corner with 21% Revenue Surge in 2024: Report
Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. After years of turbulence and cautious recovery, the global fintech sector is entering a new phase—one defined by scale, innovation, and sustained profitability. A new report from Boston Consulting Group (BCG) and QED Investors titled Fintech's Next Chapter: Scaled Winners and Emerging Disruptors reveals how the industry has emerged from a volatile funding environment stronger, leaner, and poised for continued growth. The report captures the momentum behind fintech's revival. In 2024, revenues jumped by 21%—a substantial leap from 13% the previous year and over three times the growth rate of traditional financial services. Notably, public fintechs achieved an average EBITDA margin of 16%, with nearly 70% now operating profitably. "A class of scaled fintechs is coming of age," said Deepak Goyal, Managing Director and Senior Partner at BCG. "Investors are demanding greater maturity, and regulators want more accountability." These scaled fintechs—defined as companies with more than USD 500 million in annual revenue—now account for about 60% of total industry revenue. This marks a significant shift toward consolidation and performance-driven leadership. The report highlights standout growth across several fintech sub-sectors: Deposits : Challenger banks like Nubank, Revolut, and Monzo drove 23% growth. : Challenger banks like Nubank, Revolut, and Monzo drove 23% growth. Trading and Investment : Revenues rose 21%, led by crypto platforms such as Coinbase and a rebound in equity markets. : Revenues rose 21%, led by crypto platforms such as Coinbase and a rebound in equity markets. Insurance: Service providers and brokers propelled an impressive 40% revenue increase. These figures illustrate a broader trend of fintechs outpacing their traditional counterparts in core financial services categories. Profitability is no longer just a target—it's becoming the standard. EBITDA margins improved from 12% in 2023 to 16% in 2024, a 25% year-over-year gain. In contrast to the previous year, when fewer than half of all public fintechs were profitable, 69% are now in the black. Meanwhile, agentic AI is set to be the next disruptor, especially in software development, commerce, and personal finance. Early-stage fintechs are often outpacing larger players in AI adoption, signaling a reshaping of competitive dynamics. Challenges and Optimism The sector still faces regulatory scrutiny. In 2024, Chime was fined USD 2.5 million for delayed fund returns, while Block incurred an USD 86 million penalty for AML failures. The collapse of Synapse added to industry tension, risking USD 96 million in customer funds. However, late 2024 and early 2025 brought optimism: equity funding in Q1 2025 rose 34%, and revenue multiples increased 10%. Despite a 13% decline in equity funding in 2024, this was a marked improvement over the 51% plunge in 2023. Fintechs are also more IPO-ready than ever, with 150 privately held firms—such as Stripe and Revolut—sitting on over USD 500 million in equity funding, yet waiting for favorable market conditions. "It is hard to read the tea leaves on IPOs," said James Loftus, Managing Partner at PayPal Ventures. "Everyone wants the market to open, but tariffs are roiling the market… The best candidates are happy and able to sit on the sidelines until there is more certainty." Looking Ahead The report outlines key imperatives: Fintechs should embed AI deeply, focus on core markets, and pursue strategic M&A. should embed AI deeply, focus on core markets, and pursue strategic M&A. Investors must target underpenetrated regions like the Middle East and Africa, and promote AI-led, disciplined growth. must target underpenetrated regions like the Middle East and Africa, and promote AI-led, disciplined growth. Regulators are urged to provide clarity and speed, particularly on AI and digital assets, to avoid stifling innovation. are urged to provide clarity and speed, particularly on AI and digital assets, to avoid stifling innovation. Banks should forge alliances with fintechs and embrace AI as a strategic differentiator. Nigel Morris of QED Investors concluded, "Fintechs are growing three times faster than incumbents… It's easy to see why there's an appetite for IPO-ready companies that deliver profitable growth. Fintech is ushering in a new era in financial services."
Yahoo
3 days ago
- Business
- Yahoo
Fintech's Next Chapter: Profits Rise, AI Reshapes the Landscape, and Scaled Winners Come of Age
New BCG and QED Report Reveals the Fintech Industry's Strongest Fundamentals to Date—Poised for Its Next Wave of Disruption Through Breakthrough Technologies, Disciplined Growth, and New Market Penetration BOSTON, June 2, 2025 /PRNewswire/ -- Global fintech is entering a new era of maturity and momentum. According to a new report from Boston Consulting Group (BCG) and QED Investors, Fintech's Next Chapter: Scaled Winners and Emerging Disruptors, the sector has emerged from a tough funding environment stronger, more disciplined, and with greater growth prospects than ever. In 2024, fintech revenues grew by 21%—up from 13% in 2023—marking a threefold acceleration over the financial services industry at large. Meanwhile, the average EBITDA margin of public fintechs climbed to 16%, and 69% of public fintechs are now profitable. Importantly, much of this performance is being driven by a new class of scaled players generating $500 million or more in annual revenue. These now account for approximately 60% of total fintech revenues. "A class of scaled fintechs is coming of age. Investors are demanding greater maturity, and regulators want more accountability," said Deepak Goyal, a managing director and senior partner at BCG. "Meanwhile, emerging disruptors are harnessing next-generation technologies like agentic AI and pioneering new business models, pushing established players to continuously innovate." As Revenues Jump, Fintech Is Ready for Even More Growth Among the key findings of the report: Fintech revenues surged 21% in 2024, outpacing the 6% growth rate of incumbent financial services players. Public fintech profitability jumped, with EBITDA margins rising from 12% to 16%, and 69% of public fintechs now in the black. AI is already reshaping the industry: Many early-stage fintechs are ahead of their larger peers in leveraging AI—particularly for software development. Agentic AI is the next wave of disruption, and will change the game in commerce, vertical SaaS, and personal financial management. Fintechs are IPO-ready, but patient: 150 private fintechs founded before 2016 with over $500 million in cumulative equity remain on the sidelines, with many poised to go public. Massive white space remains: Fintechs still penetrate only 3% of global banking and insurance revenue pools—leaving vertical and geographic gaps to be filled. Challenger banks are scaling fast: 24 institutions with over $500 million in annual revenues are growing deposits at 37% annually—30 percentage points higher than traditional banks. Private credit is emerging as a key tailwind for fintech lending, establishing itself as a core funding partner. A $280 billion white-space opportunity remains for private credit funds to acquire fintech-originated loans. "Fintechs are winning in spaces where traditional banks have largely ceded the competitive ground, such as banking for lower-income households and buy now, pay later," said Nigel Morris, managing partner at QED Investors. "Fintechs are growing three times faster than incumbents as they leverage digital distribution channels and increasingly utilize AI. Having emerged from the last two years with stronger fundamental unit economics and high net promoter scores, it's easy to see why there's an appetite for IPO-ready companies that deliver profitable growth. Fintech is ushering in a new era in financial services." Strategic Imperatives for the New Chapter of Fintech The report outlines clear calls to action for fintech founders, investors, regulators, and banks—each critical to unlocking the next phase of industry growth: For Fintechs. Scaled leaders must double down on the fundamentals and focus on their home markets while embedding AI at the heart of their business models. Fintech players should also remain alert to the right M&A opportunities. For Investors. Capital should diversify into underpenetrated areas like financial infrastructure and in regions that are primed for growth (Middle East, Africa, parts of Latin America and Asia-Pacific.). Investors should push for faster AI adoption and disciplined growth. For Regulators. Clarity, speed, and harmonization are now essential. Without agile regulation around AI and digital assets, innovation is at risk of stagnating. Governments also have a unique opportunity to spur growth through digital public infrastructure. For Banks. Banks should partner with fintechs in areas like financial infrastructure where it makes strategic sense. At the same time, they must embrace AI with purpose and the desire for experimentation. Banks should also have a strategy for digital assets. Download the report here: Media Contacts: BCG Eric Gregoire +1 617 850 3783 QED Investors Ashley Marshall +1 518 577-9984 ashley@ About QED Investors QED Investors is a global leading venture capital firm based in Alexandria, Va. Founded by Nigel Morris and Frank Rotman in 2007, QED Investors is focused on investing in disruptive financial services companies worldwide. QED Investors is dedicated to building great businesses and uses a unique, hands-on approach that leverages its partners' decades of entrepreneurial and operational experience, helping companies achieve breakthrough growth. Notable investments include AvidXchange, Betterfly, Bitso, Caribou, ClearScore, Creditas, Credit Karma, Current, Flywire, Kavak, Klarna, Konfio, Loft, Mission Lane, Nubank, QuintoAndar, Remitly, SoFi, Wagestream and Wayflyer. About Boston Consulting Group Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact. Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place. View original content to download multimedia: SOURCE Boston Consulting Group (BCG)
Economic Times
06-05-2025
- Business
- Economic Times
AI set to disrupt pricing models for business communication services
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Mumbai: Companies that provide call-centre and business messaging services are expecting a shift in the way they charge customers to a more outcome-based and bundled pricing structure from the traditional pay-per-message or pay-per-seat models, as artificial intelligence takes over voice and text conversations and reduces manpower costs, executives said.'Call centres are still charging there is a huge risk that that will be disrupted as AI reduces that cost significantly,' said Ivan Ostojic, chief business officer at London-based Infobip, which offers cloud-based communications tools for marketing, sales and support.'We expect to see a telco-type model where I have some predicted consumption per user and then I can create a bundle for you — from SaaS or AI, down to the channel. It'll be like interaction, consumption conversation. And then there'll be bundles that secure you from price hikes or drops,' he (CPaaS) companies like Infobip are now experimenting with unlocking use cases where the cost of implementation justifies the benefit incurred. Going forward, multi-channel conversations across SMS, voice, WhatsApp, RCS and in-app notifications could well be priced in bundles as AI agents automate workflows, industry executives said.'Our pricing models vary depending on several factors, including the complexity of the use case, the extent of AI integration and backend systems involved,' said Deepak Goyal, chief business officer at Tanla Platforms , a Hyderabad-based company providing tools to help businesses communicate with their AI use cases are costlier than structured, rule-based conversational offerings, customers are willing to pay a premium as value created outweighs the incremental cost, he instance, Tanla ran a campaign for a retail brand where users were prompted to upload images of broken appliances via WhatsApp in exchange for an exclusive coupon. Although multimodal AI image recognition is expensive to deploy, this campaign achieved redemption rates as high as 30 times, Goyal said.'GenAI based use cases are at an early stage of their journey and are yet to find a right pricing fit,' said Gautam Badalia, CEO of Route Mobile , another CPaaS company. 'There is a significant cost involved in GenAI interactions based on the various engines available today.'As AI agents unlock new use-uses in customer services, the pricing models will also evolve to be more outcome based, he said. 'Currently, pay-per-message is the most prominent pricing model with AI agents.'Route Mobile enabled an insurance company to use an AI agent which converses with users on WhatsApp to understand their profile and needs and suggests the most relevant policy. 'This solution is targeted to overcome any human errors in policy suggestions and avoid potential mis-selling,' Badalia said.
Time of India
06-05-2025
- Business
- Time of India
AI set to disrupt pricing models for business communication
Companies that provide call-centre and business messaging services are expecting a shift in the way they charge customers to a more outcome-based and bundled pricing structure from the traditional pay-per-message or pay-per-seat models, as artificial intelligence takes over voice and text conversations and reduces manpower costs, executives said. #Pahalgam Terrorist Attack India orders nationwide defence drills as Indo-Pak tensions rise From blackouts to bunkers: Inside India's civil defence mock drills across 244 districts on May 7 A woman spy who helped India defeat Pakistan in 1971 'Call centres are still charging there is a huge risk that that will be disrupted as AI reduces that cost significantly,' said Ivan Ostojic, chief business officer at Croatia-based Infobip , which offers cloud-based communications tools for marketing, sales and support. 'We expect to see a telco-type model where I have some predicted consumption per user and then I can create a bundle for you — from SaaS or AI, down to the channel. It'll be like interaction, consumption conversation. And then there'll be bundles that secure you from price hikes or drops,' he said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 cheap and easy DIY tricks with empty plastic bottles. Story to Hear Undo Communication-platform-as-a-service (CPaaS) companies like Infobip are now experimenting with unlocking use cases where the cost of implementation justifies the benefit incurred. Going forward, multi-channel conversations across SMS, voice, WhatsApp, RCS and in-app notifications could well be priced in bundles as AI agents automate workflows, industry executives said. 'Our pricing models vary depending on several factors, including the complexity of the use case, the extent of AI integration and backend systems involved,' said Deepak Goyal, chief business officer at Tanla Platforms , a Hyderabad-based company providing tools to help businesses communicate with their customers. Live Events Although AI use cases are costlier than structured, rule-based conversational offerings, customers are willing to pay a premium as value created outweighs the incremental cost, he said. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories For instance, Tanla ran a campaign for a retail brand where users were prompted to upload images of broken appliances via WhatsApp in exchange for an exclusive coupon. Although multimodal AI image recognition is expensive to deploy, this campaign achieved redemption rates as high as 30 times, Goyal said. 'GenAI based use cases are at an early stage of their journey and are yet to find a right pricing fit,' said Gautam Badalia, CEO of Route Mobile , another CPaaS company. 'There is a significant cost involved in GenAI interactions based on the various engines available today.' As AI agents unlock new use-uses in customer services, the pricing models will also evolve to be more outcome based, he said. 'Currently, pay-per-message is the most prominent pricing model with AI agents.' Route Mobile enabled an insurance company to use an AI agent which converses with users on WhatsApp to understand their profile and needs and suggests the most relevant policy. 'This solution is targeted to overcome any human errors in policy suggestions and avoid potential mis-selling,' Badalia said.
