Fintech’s Double-Edged Sword: 70% Growth, But 47% Struggle with Collections

DONNA DELAROSABlog

Growth is Beautiful. Delinquencies? Not So Much.

Fintech is the darling of Wall Street pitch decks. Sleek apps, cool UX, and triple-digit growth rates. According to PwC, some segments like BNPL (Buy Now Pay Later) grew 70% year-over-year. Cue the confetti.

But here’s the hangover: TransUnion reports 47% of BNPL borrowers missed at least one payment in 2022. That’s nearly double the delinquency rate of credit cards. Suddenly, the “fin” in fintech feels a lot heavier than the “tech.”

The Investor’s Paradox

Investors love fintech growth, but hate fintech losses. Bloomberg reports VC funding dropped 48% in 2024, with “liquidity concerns” as the biggest red flag. Translation: It’s hard to keep raising money when nearly half your customers aren’t paying on time.

The Receivables Edge

Here’s the kicker: fintechs that use structured receivables strategies—AI-powered risk scoring, automated collections, and outsourced recovery—report 32% higher repayment rates than those relying on “gentle reminder” emails. Because let’s face it: growth without cash flow isn’t innovation, it’s just… a really expensive science project.

TL;DR

Fintechs need to start treating receivables like code: clean, optimized, and scalable. Otherwise, that hockey-stick growth graph may start looking suspiciously like a flatline.

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