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Hey, fintech fam! 💜

Happy 2025! Can you believe we’re already here? I, for one, am so ready for this year.

There’s something about the blank slate of 365 (well, 364 now) days ahead — full of opportunities, growth, and all the possibilities. Call me an optimist, but this is my season.

First up: I’ve been laser-focused on building the membership experience for The Academy of Fintech, which already boasts 50 founding members — including some of the most powerful women in fintech.

And in true New Year, New You spirit, I’m still accepting applications to join.

Want in? Fill out this application form, and you just might get an invite. Our first online event is coming up, followed by an exclusive soirée on January 24 (details below).

Speaking of events, the second annual Fintech Is Femme Leadership Summit, a part of New York Fintech Week, is here — and early bird tickets are available now.

Last year, we made history; this year, it’s going to be even bigger. The events section below has details and your ticket.

Now, let’s talk news!

#TRENDING

What’s Up In Fintech

Every Thursday, I bring you the latest fintech news and trends, delivering the key insights that matter most to the industry—and you.

#1 2024 Signals a New Era for Fintechs, According to F-Prime Fintech Index

On Tuesday, I dove into how 2024 was a strong year for fintech, according to the F-Prime Fintech Index. 

What was once a speculative, hit-or-miss sector is becoming more mature, especially after the market’s painful wake-up call in 2022. 

And you know what? It’s no surprise. The sector is proving to be more resilient than most “traditional” industries—and the data, as shared in the latest Fintech Prime Time newsletter, is hard to ignore.

The Numbers Don’t Lie: The F-Prime Fintech Index was up nearly 40% by year-end 2024, trouncing the Nasdaq (+33%) and S&P 500 (+25%).

Let’s not gloss over the bigger picture: Over the past decade, fintech has outpaced the S&P 500 by an astonishing 730 percentage points. Yes, you read that right. 

It’s a statement about fintech’s staying power and the world’s appetite for disruptive innovation.

Moving Beyond the Growth-at-All-Costs Era

Fintech is finally maturing. The days of “grow big, burn big” are over. Now, most companies in the F-Prime Index are profitable, collectively raking in $14 billion in profits. 

Remember 2021? On average, companies burned 21% of revenue for that shiny growth. But not anymore. The lesson? Capital-efficient growth is where it’s at—and investors are finally catching on.

The F-Prime Index also reported valuation multiples stabilized. At 5.6x in Q4, fintech’s current multiples are far from the heady 20x+ we saw in 2021. But it’s still below the historical median (8-10x), which suggests there’s an upside waiting to be tapped. 

Don’t let anyone tell you this market’s dead—it’s just evolving.

The Top Performers

Let’s talk about the standouts based on the data. 

Shopify is up 48% this year, driving its market cap to $132 billion, mainly on the back of its embedded financial services like Shop Pay. 

And then there’s Coinbase, which saw an eye-popping 78% surge to a $66 billion market cap.

Why? The growing institutional embrace of digital assets, even with the regulatory uncertainty. Thanks to the SEC’s approval of spot Bitcoin ETFs and the incoming administration’s more crypto-friendly stance, Coinbase is riding a wave of momentum.

But the story is Nubank. With a 28% bump in valuation to $47 billion, Nubank is proving that digital-first financial services can scale rapidly and maintain quality.

They’re adding users at a staggering rate—110 million and counting. That’s 42% of Brazil’s population. When the default rate is 30% below the local banking average, you know they’re onto something big.

AI: The Revolution

Forget just automating the basics—AI is deep in the weeds of fintech operations. Think Brex and Ramp: these companies use AI to do more than categorize expenses. They’re predicting cash flow, optimizing working capital, and streamlining processes that once took teams of humans. 

AI isn’t just about the future of fintech—it’s about becoming the backbone.

As for the next phase of AI: Agentic payments, according to F-Prime. Yes, that means AI autonomously handling financial transactions. We’re talking Stripe, Adyen, and Coinbase all making moves here.

The IPO Revival

After a two-year IPO freeze, the fintech market is waking up—and it’s not just the big players. Klarna, Chime, and Navan are filing confidentially to go public in 2025. The recent IPO of ServiceTitan (up 42% on day one, by the way) proves there’s an appetite for fresh exits.

Investors are hungry for what’s next, and fintech companies are eager to deliver.

There are now 27+ fintech companies with $1 billion+ in revenue. And that number is only going to grow. We’ve officially moved from speculative to scalable.

Looking Ahead: Fintech’s Next Chapter

Fintech is entering a new, more sustainable phase. The growth-at-all-costs mentality is giving way to profitability and capital efficiency. The IPO pipeline is robust. And integrating AI into core processes sets the stage for a major transformation.

Fintech’s future is poised to be one of the global economy's most powerful, disruptive forces. The next chapter is unfolding. Make sure you’re in the front row.

#2 Fintech Hype Versus Reality: Synapse, Bench Reveal Harsh Truths

While the fintech space has plenty to be excited about in 2025, it’s crucial to take a step back and reflect on the industry’s failures.

As much as we love the success stories and innovations, the reality is that fintech is still learning many hard lessons. After all, you learn more from your losses than your wins.

As venture capital investor Ilona Limonta-Volkova put it in a recent Forbes piece, “New solutions are often just dressed-up versions of outdated systems…offering little in the way of protection for consumers.” 

She’s right. And that’s fintech’s dirty little secret.

Synapse’s Collapse

When Synapse declared bankruptcy in 2024, thousands of customers lost access to their money. The situation got messier when Evolve, the bank backing Synapse, halted payments, leaving everyone wondering how they’d get their funds back.

The twist? Evolve, insured by the FDIC, wasn’t the failing entity—it was Synapse. So, FDIC protections didn’t apply. Welcome to the fintech wild west.

This debacle underscores a major flaw: just because a company promises the future doesn’t mean it’s built on solid, modern systems. Fintech often dresses up old tech in a shiny new interface, and so do protections when the system fails.

Bench: A Cautionary Tale

And then there’s Bench, the Canadian accounting startup that closed shop in late 2024.

Despite raising $113 million from high-profile investors, Bench couldn’t scale its cloud-based accounting services. Customers found errors in their financial statements due to a heavy reliance on machine learning and minimal human oversight.

Turns out, you can’t replace accountants with algorithms—not in a business where accuracy is everything.

To make matters worse, the company hiked its prices by 50% with just 48 hours notice, forcing clients into annual contracts. Alarm bells went off: Was the company scrambling for cash?

For any fintech startup trying to scale, it’s a wake-up call: tech is only half the equation. You need a solid operational model and human expertise.

Just because something looks sleek doesn’t mean it’s secure.

Fintech’s biggest challenge? Balancing innovation with trust, stability, and real, functioning systems.

Investors can’t just throw money at “the next big thing” without considering whether the company has the foundation to weather the storm.

So, What’s Next?

Fintech needs to stop chasing hype and start building things that actually work.

Innovation is great, but let’s get real: without reliable infrastructure, transparency, and consumer protection, we’re all just buying into the next flashy failure.

As we move into 2025, it’s time for fintech to stop focusing on the front-end glitz and get serious about what’s powering these platforms behind the scenes.

Because if history’s taught us anything, it’s that a shiny interface can’t save you when the system falls apart.

#3 DOJ Takes Legal Action Against Dave

On December 30, 2024, the Department of Justice (DOJ) filed a lawsuit against Dave, the mobile banking app, and its CEO, Jason Wilk.

The DOJ claims Dave deceived consumers with hidden fees, misleading tips, and recurring charges. It’s a bold move, but let’s be clear: this isn’t just about one app—it’s about how fintech startups handle transparency and consumer trust.

What’s the Issue?

The DOJ’s complaint isn’t small potatoes. It accuses Dave of violating consumer protection laws by deceptively advertising its cash advances, misrepresenting its “tip” model, and charging monthly fees without clear cancellation options.

For its part, the company is fighting back, calling the lawsuit “government overreach” and insisting it’s acted within the law. But this isn’t the first time Dave’s business practices have drawn scrutiny.

A Tipping Point?

Central to the DOJ’s case is the “tip” model. The suit argues that Dave led users to believe that tips were optional when, in reality, they were part of the total cost.

In response, Dave is rolling out a new fee structure that removes optional tips and express fees from its ExtraCash product. A shift signals a broader move in the fintech space toward cleaner, more consumer-friendly practices. Finally, right?

This lawsuit highlights a larger trend in the fintech sector: Regulators are watching.

With fintechs booming, consumer protection is becoming a hot-button issue.

Misleading fees, tricky ads, and subscription traps could mean serious consequences—not just for Dave, but for the whole industry. The lesson here? It’s all about consumer trust—or risk losing it entirely.

Bottom Line

The days of “innovate first, figure out the details later” are done. The future of fintech will be about transparency, compliance, and consumer protection—and anyone who forgets that will get left behind.

So, here’s the deal: fintech is maturing, but it’s got a long way to go. And the DOJ’s lawsuit is a reminder that innovation shouldn’t come at the expense of trust.

_{MARK YOUR CALENDARS}

Join us every Thursday to keep up with fintech events!

_{WEDNESDAY, APRIL 23}

[NEW YORK] Fintech Is Femme Leadership Summit 2025

​After 40 sold-out live events, the Fintech Is Femme team is back, and we’re ready to make waves at the second annual Fintech Is Femme Leadership Summit 2025.

​In 2024, our inaugural summit brought together 25 inspiring speakers and 300 incredible attendees. This year? Well, let’s just say we’re going even bigger, bolder, and more unforgettable than ever!

​So, are you ready to level up?

​This isn’t your typical summit. It’s a game-changing experience where you’ll hear from fintech’s most impactful leaders, connect with powerhouse professionals during curated networking sessions, and leave with actionable insights to take your career to the next level.

​Expect a day packed with inspiring fireside chats, high-energy networking, expert-led panels, and unique performance coaching opportunities designed to help you conquer your next career milestone.

​Oh, and don’t forget our fan-favorite Evening of Storytelling—it’s going to be a night to remember.

Early bird tickets are going fast (only 50 are available). Grab yours here.

_{THURSDAY, JANUARY 16}

[NEW YORK] Style, Sip & Shop: A Networking Night with DALYA (open to the public)

Join Fintech Is Femme for a one-of-a-kind networking event at DALYA, where women in fintech come together to celebrate leadership, innovation, and personal style. 🌟

We’ll dive into the powerful intersection of leadership and style, exploring why it’s essential for women to feel confident and authentic in what we wear. After all, the way we dress is a reflection of the leaders we are. 💪👗

Plus, you’ll have the chance to explore custom-suiting options with DALYA founder Farida Raadat, sip refreshing drinks, and engage in inspiring conversations with women who are shaping the future of fintech. RSVP here.

_{FRIDAY, JANUARY 24}

[NEW YORK] Community Soirée: The Academy of Fintech (Members only)

We’re excited to invite you to the Academy of Fintech’s first-ever members event on January 24, 2025—an evening inspired by Gloria Steinem’s legendary living room discussions: warm, intimate, and full of meaningful connections.

The event will be hosted at the home of Lule Demmissie, creating the perfect setting for great conversations and shared insights.

With 50 incredible members already part of our community, we’re opening up applications to bring in even more passionate voices to help shape the future of fintech.

We’d love for you to join us—apply now to get on the waitlist and be a part of this exciting new chapter in fintech leadership.

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This isn’t traditional business news

Welcome to Morning Brew—the free newsletter designed to keep you in the know on the business news impacting your career, company, and life—in a way you didn’t know you needed.

Note: this isn’t traditional business news. Morning Brew’s approach cuts through the noise and bore of classic business media, opting for short writeups, witty jokes, and above all—presenting the facts.

Save time, actually enjoy business news, and join over 4 million professionals reading daily.

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🎵 Billie Eilish - THE GREATEST

I'm enjoying this series of videos where Billie is rocking out to her album in a massive stadium packed with fans. The visuals are super cool and inspiring. These videos are perfect if you're like me and need something soothing to help you drift off to sleep.

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📚 Increase your expertise by ordering your copy of my book, Fintech Feminists: Increasing Inclusion, Redefining Innovation, and Changing the Future for Women Around the World.

That wraps up today’s edition—thanks for reading! Until next week, keep innovating and challenging the status quo. See you Tuesday!

Love,

Nicole 💜