Looking back and moving forward: How fintechs will beat back the dark clouds of 2024, capitalize on trends like AI, and build resilient firms in 2025 - Tearsheet
Briefly

In 2024, fintechs navigated significant shifts, moving from 'growth at all costs' to operational discipline and efficient scaling. Victoria Zuo of QED Investors noted a recovery in public markets that renewed confidence following successful IPOs, while private markets sought profitable firms. Challenges such as high interest rates forced fintechs to adapt by focusing on high-quality borrowers and diversifying their revenue streams, particularly through interchange fees. Overall, the year highlighted the sector's resilience in responding to macroeconomic factors and emphasizing long-term success.
The year showcased the resilience of the sector as it adapted to macroeconomic challenges and recalibrated for long-term success.
Rising rates squeezed margins for lending-focused fintechs, forcing them to diversify revenue streams and focus on underwriting excellence.
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