Fintech founders: the right metrics can make or break you. In 2025, growth and retention aren’t just buzzwords – they’re survival. Track what matters and skip the vanity stuff. Investors look for clear signs of traction and stability, so focus on data-driven metrics that show real progress and health.

Growth metrics

Growth is (almost) everything for a startup, especially in fintech. Keep one eye on user growth – think monthly active users (MAU) or daily active users – and on revenue growth. In practice, track the number of new sign-ups or users per month and your revenue each quarter. Calculate revenue growth rate as (current – previous) ÷ previous × 100% to see if sales are really climbing. And don’t ignore Customer Acquisition Cost (CAC) – how much you spend to win one customer. A high CAC can crush your ROI, so push to lower it over time.

Avoid getting fooled by vanity metrics. Big sign-up numbers feel good but mean little if costs are exploding. Compare user growth to spend (CAC) and revenue growth to ensure you’re building something real, not chasing vanity.

Retention metrics

Growth is only half the story – the other half is keeping users. Track churn rate and engagement. Churn rate (percentage of customers who leave in a period) should stay as low as possible. Also watch DAU/MAU as engagement indicators. If daily and monthly active users climb, people are sticking around and using your platform.

And don’t forget Lifetime Value (LTV). This tells you how much revenue a typical customer will bring in before they leave. A healthy rule of thumb: aim for LTV at least 3× your CAC. In other words, if you spend $100 to acquire a customer, that user should ultimately generate about $300 or more in profit.

Unit economics

Metrics like gross margin and LTV:CAC embody your unit economics – basically, are you making money on each user? Gross margin is the simplest: (revenue – direct costs) ÷ revenue. Fintech SaaS businesses often enjoy high gross margins. A high margin gives you cash to cover support, R&D, etc. If your margin is too low, it’s a red flag.

Equally, watch your CAC to LTV ratio. A good target is LTV ≈ 3× CAC. If CAC creeps up or margins dip, you may still grow but at the cost of sustainability. In short: high gross margin plus a healthy LTV:CAC ratio means you’re building a solid business.

Regulatory and compliance metrics

Fintech is hyper-regulated, so compliance KPIs matter. Every fintech should track a “Regulatory/Compliance Exceptions Ratio” or similar. Practically, this could be a stat like the percentage of transactions that trigger a KYC/AML flag.

Why fuss? Because regulators can shut you down overnight if you slip. Use metrics like number of audit findings, percentage of resolved issues, or flagged KYC cases. Track the count of red-flag transactions, average time to resolve them, and percent of staff trained on compliance.

Operational efficiency

Metrics on spending and operations keep your startup alive. Burn rate (cash spent per month) is critical – it tells you how fast you’re draining the bank account.

From burn you get runway – how many months of life remain at the current spending pace. Simple formula: runway = cash reserves ÷ monthly burn. Aim for at least 12–18 months of runway.

Finally, watch support costs. Calculate cost per support ticket by dividing total support expenses by number of tickets in a period. This helps you keep operational costs under control while scaling.

Key takeaways for fintech startups

Here’s what fintech founders can learn from this:

• Focus on true growth: Track active users (DAU/MAU) and revenue growth, not just sign-ups or likes.
  
  
• Mind CAC and LTV: Keep CAC low and ensure LTV is ≥3× CAC.
  
  
• Prioritize retention: Lower churn through great product/experience.
  
  
• Optimize unit economics: Aim for high gross margins and healthy LTV:CAC.
  
  
• Stay compliant: Measure and reduce compliance issues before they become real problems.
  
  
• Manage cash wisely: Know your burn and runway.
  
  
• Control support costs: Use automation and self-help to keep cost per ticket low.

Let’s talk

Have questions or need support with your fintech metrics? Reach out to us. We help founders decode their data, set smart KPIs, and grow sustainably. Let’s turn your numbers into a success story.