I just reviewed some numbers that are quite revealing about where the fintech sector is headed. Global revenues are projected to grow at a CAGR of around 23% until 2030, according to BCG and QED Investors. To put it into context: in 2023 they reached $245 trillion and could surpass $1.5 trillion by the end of the decade if current trends continue.

The interesting part isn't just the number itself, but what it represents. Traditional banking grows between 3% and 5% annually. Fintech is growing four or five times faster. That gap is where all the action is.

So, where do these revenues come from? It’s not just one thing. Transaction fees remain the largest source: every digital payment, every international transfer through platforms like Wise, every processing with Stripe or Adyen generates a small percentage that adds up. The digital payments market is projected to surpass $20 trillion in 2028. Even with fees of 1% to 3%, the numbers are enormous.

But there’s something else gaining traction: subscription models. Companies like Plaid (data connectivity) and nCino (banking software) charge recurring fees, which generate more predictable income and command higher valuations. Digital lending also moves significant money through interest margins, and insurtech (insurtech) is growing at approximately 30% annually according to the latest estimates.

Now, why is fintech leaving traditional banking behind? There are three clear reasons. First, they are creating entirely new revenue streams. When a ride-hailing app pays drivers instantly or a store offers 'buy now, pay later,' that didn’t exist before. It’s not just market redistribution; it’s real expansion.

Second, their cost structures are radically lower. A neobank without branches serves customers at $0.50-$2 per interaction versus $4-$10 at a traditional branch. That allows them to serve markets banks don’t reach: low-income consumers, small businesses in emerging markets. Third, they expand geographically at lightning speed. Revolut went from the UK to 35 countries in less than a decade. Traditional banks take years for licenses and permits.

Within that 23% CAGR, some segments are growing even faster. Embedded finance hit $138 billion in 2026, and some projections see more than $7 trillion by 2030. Basically, every software company is becoming a fintech. B2B is also accelerating: Brex, Ramp, Airwallex are solving financial problems for businesses instead of consumers, which yields better margins.

What strikes me is what a sustained 23% CAGR means for innovation. Small companies today can become major players in an economic cycle. Stripe went from its first transaction in 2011 to processing hundreds of billions annually. Nubank went from zero to 100 million customers in less than a decade. Those timelines are unthinkable in traditional finance.

For anyone considering where to build, the message is clear. Financial services remain the largest industry in the world, the share captured by tech companies continues to grow, infrastructure is better than ever, and the market is global. Fintech revenues have grown every year since 2018, and all signs point to that streak continuing at least until the end of the decade.