Fintech-Backed Banking Services Are Growing at Record Pace
Banks that run on fintech infrastructure now serve more than 500 million customers worldwide, according to a 2025 report from Boston Consulting Group. That number has doubled since 2021, driven by lower operating costs, faster product launches, and a customer base that expects mobile-first financial services.
A McKinsey analysis found that banks using fintech-powered core systems reduced their cost-to-income ratios by an average of 15 percentage points compared to peers on legacy technology. In markets where regulatory frameworks support digital banking licenses, fintech-powered banks are capturing a growing share of new customer accounts.
What Is Driving the Expansion
Three factors explain most of the growth. First, cloud-based banking platforms allow new entrants to launch with a fraction of the capital that traditional banks require. Mambu has enabled more than 200 banks and lenders across 65 countries to go live on its platform. Second, fintech revenue is growing at a 23% compound annual rate, creating a feedback loop where increased revenue funds further expansion.
Third, consumer expectations have shifted permanently. A Bain & Company survey of 29,000 banking customers found that 73% now consider a strong mobile app the most important factor when choosing a bank. That gives fintech-powered banks a structural advantage, since their platforms were built for mobile from the start.
Regional Growth Patterns
Southeast Asia and Latin America are the fastest-growing regions. In Brazil, Nubank reached 100 million customers in 2024. In Indonesia, Bank Jago grew its customer base by 180% in a single year. Africa is also seeing rapid expansion — South Africa’s TymeBank passed 9 million customers in 2025, while Nigeria’s fintech ecosystem produced banking platforms serving millions of previously unbanked users.
In Europe, fintech-powered banks hold an estimated 8% of total retail banking deposits, up from less than 2% in 2019, according to the European Central Bank. The UK remains the most developed market, with Monzo, Starling, and Revolut collectively serving more than 30 million customers.
How Traditional Banks Are Responding
Many legacy banks are licensing fintech platforms to rebuild their own operations. JPMorgan Chase, Standard Chartered, and BBVA have all invested in or partnered with fintech infrastructure providers. Accenture estimates that 60% of the world’s 100 largest banks will run at least part of their core operations on fintech-built infrastructure by 2027.
Banks that operate on modern, API-first platforms can deliver products faster, at lower cost, and with better customer experience metrics. Those that remain on legacy systems face growing competitive pressure from digital-native banks and from peers who have already switched.
The Investment Case
Venture capital and private equity firms invested $12.3 billion in banking infrastructure companies in 2024, according to CB Insights. The largest deals went to companies building core banking platforms, identity verification systems, and compliance automation tools.
Fintech venture funding has grown more than 10x over the past decade, and banking infrastructure companies that went public in 2023 and 2024 have outperformed the broader fintech index. Fintech-powered banks represent the fastest-growing segment of global banking, backed by $12.3 billion in infrastructure investment in 2024 alone and serving half a billion customers across every major continent.
