The fintech sector wrapped up October with a bang – and the numbers tell a powerful story. Total financing volume hit $26 billion, nearly double the yearly average and more than 2.5 times last October’s figure. In short, the industry didn’t just perform well, it outperformed expectations on nearly every front.
Financing Booms Across the Board
In total, 203 equity and debt financing deals were completed last month: up 13.5% from the annual average and 11% higher than last year. Out of these, 137 were equity raises, slightly below last year’s figure but still 6% above the 12-month average.
The real story, though, was debt financing. 66 debt deals were closed in October – a record-breaking month for 2025 and 32% above the annual moving average. It’s a clear sign that investors are increasingly comfortable with structured financing in fintech, especially as the broader market stabilizes.
In terms of value, the sector’s $26 billion total was 63% above the yearly average, underscoring a strong appetite for fintech innovation and growth.
Debt Financing Leads the Way
Debt financing accounted for a massive $19.4 billion of October’s total: 58% above the moving average and 2.6 times higher than a year ago. Even with just a 4% month-over-month increase, the level remains impressively high, showing sustained momentum.
Meanwhile, equity financing rebounded strongly to $6.6 billion, nearly triple last October’s amount and double September’s total. Clearly, investor confidence in fintech equity has returned – and it’s helping fuel a new growth wave across the sector.
Fintech Meets AI: JPMorgan Leads the Game
At JPMorgan, over 300,000 employees now use the bank’s in-house AI system, which cuts text generation time by 40%. And the commitment doesn’t stop there: in 2025, the bank plans to allocate $2 billion solely to AI development out of its $18 billion tech budget.
Across the financial world, three major AI strategies are emerging:
- In-house AI development to ensure data security and reduce reliance on external chatbots.
- AI for internal efficiency, from code reviews to legal document generation and even employee performance analysis.
- Human resource reallocation, using automation to shift people toward higher-value, creative tasks.
In short, AI is becoming a core pillar of how modern banks operate.
Digital Banking in Transition
In the meantime, Hungary’s banking landscape is evolving fast. By 2024, the country’s number of branches dropped to 1418, while digital adoption soared to between 60% and 80%. Still, physical branches remain important: research shows that three out of four customers still want access to an in-person location.
Security vs. Convenience: OTP’s Controversial Move
OTP Bank will roll out new digital service packages starting November 18. However, a key change sparked debate: certain transactional push notifications will only remain available in the paid Plus package.
While OTP positions the change as part of its digital restructuring, critics note that these notifications aren’t just “nice-to-have” features – they’re an essential digital security layer that helps prevent fraud and unauthorized transactions.
The Bottom Line
October’s fintech performance shows one thing clearly: the sector is back in full swing. With record-breaking financing, a booming debt market, and AI-driven transformation across global banks, fintech’s next phase is shaping up to be not just about innovation.
Don’t forget to check out our brand new video in which we examine the fintech sector’s performance. (Disclaimer: the below video was made using artificial intelligence.)
(Cover photo: Depositphotos)
