This article was written by our expert who is surveying the industry and constantly updating the business plan for a fintech.
If you are building a fintech company, your monthly retention rate is the most direct signal of product value and business durability.
Below you will find clear benchmarks, sector differences, and the exact levers that consistently move retention up, based on 2025 evidence. If you want to dig deeper and learn more, you can download our business plan for a fintech. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our fintech financial forecast.
For most fintechs in 2025, monthly churn typically sits between 5% and 10%, which implies monthly retention around 90–95%. Top performers consistently hold ≥94% monthly retention and combine this with strong activation, cohort survival beyond Month 6, and improving unit economics.
Neobanking and wealth management often retain better than payments and single-shot lending, but the healthiest businesses pair strong retention with monetization, cost control on CAC, and regulatory trust-building. The tables below give you practical targets you can adopt today.
| Topic | Key takeaway for a fintech founder | Quantitative target (2025) |
|---|---|---|
| Industry monthly benchmark | Plan around 90–95% monthly retention; below 85% signals urgent product fixes. | Churn 5–10% / month → Retention 90–95% |
| Top-tier goal | Hold ≥94% monthly retention with stable Month-6 cohort and rising ARPU. | Retention ≥94%; Month-6 cohort ≥70% of Month-1 |
| Sub-sector variation | Wealth & neobanks retain best; payments/lending need loyalty & cross-sell to keep users. | Wealth 93–96%; Neobank 92–95%; Payments 90–92%; Lending 88–92% |
| PMF threshold | Below 80–85% monthly retention usually means weak PMF for consumer fintech. | PMF guardrail: ≥85–90% monthly retention |
| New vs long-term users | Expect steeper early drop; lock in value by Day-7/Month-1 to reach plateau. | Month-1 75–85%; Month-12 plateau 60–75% of activated cohort |
| CAC vs retention | Retention multiplies CLV; 10% better retention can lift CLV ~30%+. | CLV/CAC ≥3x; payback <12 months |
| Regulation & KYC | Friction kills Day-0; trust boosts long-run stickiness—optimize compliant UX. | Onboarding completion ≥85%; KYC <3 minutes |
| Support & onboarding | Fast help and guided first use lifts first-month retention by double digits. | +10–20% Month-1 retention with live/chat support |
| Measurement | Track DAU/MAU, churn, cohort curves, CLV, NRR, activation of core features. | DAU/MAU ≥20–30%; NRR ≥100% (where applicable) |
What is the current benchmark for monthly retention in fintech?
Most fintechs should expect 90–95% monthly retention (5–10% monthly churn) as the prevailing 2025 benchmark.
Falling under 85% usually indicates activation friction or weak value realization and requires immediate product work. Maintaining ≥94% monthly retention generally correlates with stable cohorts beyond Month-6 and improving monetization.
Consumer-focused fintechs with recurring use cases (cards, deposits, auto-invest, bill pay) track toward the upper end of the range. B2B fintechs may vary by contract structure, but monthly net revenue retention at or above 100% strengthens the picture.
Anchor your forecast on conservative mid-range retention and run sensitivity cases at the low and high ends.
You’ll find detailed market insights in our fintech business plan, updated every quarter.
How do retention rates differ by fintech sub-sector?
Retention varies meaningfully across payments, lending, neobanking, and wealth.
To plan realistically, use the table below and adjust for your exact use frequency, incentives, and switching costs. Neobanks and wealth tools benefit from “always-on” usage and asset stickiness; payments and single-shot lending need loyalty mechanics and cross-sell to sustain cohorts.
| Sub-sector | Typical retention driver | Indicative monthly retention (2025) |
|---|---|---|
| Neobanking | Salary deposit, bill pay, card spend; app becomes primary account. | ~92–95% (strong with direct deposit + rewards) |
| Payments | P2P network effects, merchant acceptance, loyalty & cashbacks. | ~90–92% (higher if wallet is default at checkout) |
| Lending | Repeat loans, refinancing, bundled insurance/savings. | ~88–92% (lower if single-purpose, one-time use) |
| Wealth/Investing | Auto-invest, portfolios, advice, tax wrappers. | ~93–96% (assets and routines increase stickiness) |
| B2B Payments/Treasury | Operational embedding, workflow integrations. | ~93–96% (contracts + integrations reduce churn) |
| Crypto (retail) | Market cycles; education and DCA smooth volatility. | ~85–92% (highly cycle-dependent) |
| Insurtech | Auto-renewals, claims experience, bundling. | ~90–94% (renewal cadence matters) |
What is a healthy minimum monthly retention that signals PMF?
As a rule of thumb, ≥85–90% monthly retention indicates you are approaching product–market fit in consumer fintech.
Below ~85% suggests users are not reaching a recurring value moment or are facing onboarding friction. Sustaining ≥90% while growing cohorts, with a visible retention plateau by Month-3 to Month-6, is a strong PMF sign.
Pair this with rising engagement (DAU/MAU ≥20–30%) and improving unit economics (CLV/CAC ≥3x) to validate PMF fully. For B2B fintech, also monitor net revenue retention (≥100%).
Document your PMF checkpoints and tie them to launch gates and budget unlocks.
We cover this exact topic in the fintech business plan.
How do top-performing fintechs push retention above the median?
Leaders win by compressing time-to-value, removing friction, and nudging recurring behaviors.
They target fast KYC, instant funding, immediate first transaction/investment, and early habit loops (e.g., direct deposit, auto-invest). They also track granular activation and cohort survival, not just MAU.
Key metrics they manage: onboarding completion rate, Day-1/Day-7 activation, Month-1 retention, feature adoption for core actions, DAU/MAU, NRR, and ticket resolution time. They A/B test rewards, pricing, and messaging continuously.
Bake these targets into weekly reviews and owner dashboards.
This is one of the strategies explained in our fintech business plan.
How do user acquisition costs and retention interact in profitability?
Retention is the main multiplier of CLV, so it is the fastest lever to improve payback and margins.
As CAC has risen with tighter funding and competition, boosting retention by 10% can lift CLV roughly ~30%+, improving the CLV/CAC ratio and de-risking growth.
| Unit economics element | What to track | Targets |
|---|---|---|
| CAC | All-in paid + organic costs to acquire an activated user. | Declining trend; segment by channel |
| CLV | Gross profit over life (ARPU × gross margin × retention curve). | Grow via retention + ARPU expansion |
| CLV/CAC | Primary efficiency ratio for scale. | ≥3x for consumer; ≥4–5x for B2B |
| Payback period | Months to recoup CAC from gross profit. | <12 months (consumer); <18 months (B2B) |
| Churn sensitivity | Scenario impact of ±2–5 pts monthly churn. | Board-level sensitivity analysis each quarter |
| NRR | Expansion minus contraction/churn (where applicable). | ≥100% monthly/annualized |
| Cohort gross margin | Contribution by cohort over time. | Up-and-to-the-right trend after Month-3 |
What retention trends have emerged in the last 12–18 months?
Retention volatility increased with funding slowdowns and higher rates, raising the bar for perceived value.
Lending and commoditized payments saw more churn, while core banking and wealth benefited from risk-off users consolidating finances. Budgets shifted from pure acquisition to retention mechanics and ARPU growth.
Founders who invested in compliance trust signals, loyalty economics, and automations (DCA, recurring bill pay) defended cohorts best. These moves stabilized Month-3 to Month-6 curves.
Track these external pressures quarterly and refresh targets accordingly.
Get expert guidance and actionable steps inside our fintech business plan.
How do retention rates differ between new users and long-term users?
Early months drop faster; surviving cohorts usually plateau after Month-3 to Month-6.
Focus on getting users to the first “value moment” in minutes, not days, then reinforcing weekly routines. Long-term users who set direct deposit, enable auto-invest, or complete a second loan show materially higher LTV.
| Tenure band | What to expect | Operational target |
|---|---|---|
| Day-0 to Day-7 | Onboarding friction dominates; KYC and funding must be instant. | KYC <3 min; first action <10 min |
| Month-1 | Activation defines curve shape; education and nudges matter. | Month-1 retention 75–85% |
| Month-3 | Habit formation or drop-off; push recurring features. | ≥65–75% of activated users remain |
| Month-6 | Plateau emerges; users with 2+ core actions are sticky. | Plateau ≥60–70% of activated users |
| Month-12 | Long-run economics visible; optimize ARPU and support. | Churn trend decelerates; upsell/expansion live |
| Reactivation | Winbacks via fees waivers, “come back” offers. | 10–20% reactivation on targeted cohorts |
| High-risk cohorts | Single-feature users; seasonal borrowers; inactive payroll. | Lifecycle campaigns and cross-sell |
How do regulation and compliance affect retention?
Compliance can both add friction and create trust that lifts long-term retention.
Fintechs that streamline KYC, explain data use clearly, and resolve disputes transparently reduce Day-0 drop-off and prevent later churn. Security certifications and consistent comms build confidence.
Design KYC as a guided flow with progress indicators, fallback paths, and instant verification where possible. Monitor abandonment at every step and iterate.
Make compliance a UX asset, not a blocker, by surfacing protections and guarantees in-product.
This is one of the many elements we break down in the fintech business plan.
How much do support and onboarding quality move retention?
Fast, human support and frictionless onboarding can lift first-month retention by 10–20%.
Offer real-time chat during KYC/funding, proactive tips for first tasks, and clear error recovery. Route complex cases to specialists quickly.
Track time-to-first-value, abandonment by step, CSAT, and first-contact resolution. Treat onboarding as a product with owned targets and weekly experiments.
Publish in-app education with checklists, tooltips, and short videos to cement early habits.
It’s a key part of what we outline in the fintech business plan.
Which product features and incentives most reliably increase monthly retention?
- Direct deposit / default payment method / auto-invest to create automatic usage.
- Cashback, tiers, and point systems that scale with depth of relationship.
- Proactive notifications at high-value moments (salary in, bill due, market event).
- In-app education and personalized insights that trigger repeat actions.
- Social or network features (P2P, shared goals) that add switching costs.
- Bundled features (savings + lending + insurance) to diversify use.
- Fee holidays and winback offers for at-risk cohorts.
How should fintechs measure and report retention performance?
Measure both frequency (DAU/MAU) and survivorship (cohort retention and churn).
Report a dashboard that includes DAU/MAU, monthly churn, Month-1/3/6 cohort survival, CLV, NRR (if applicable), activation and feature adoption, and support SLAs.
Align these metrics to owner teams and quarterly targets; review weekly with experiment readouts. Use cohort tables and retention curves to show plateau formation.
Tie changes in retention to revenue, margin, and payback to keep decisions economic.
Make sure product and finance share a single metric glossary.
What are realistic short-term and long-term retention improvement targets?
Set aggressive but achievable targets tied to activation and habit-forming features.
In the next 60–90 days, aim to lift Month-1 retention by +5–8 pts via better onboarding, instant KYC/funding, and one core habit (e.g., direct deposit or auto-invest). Over 6–12 months, target ≥94% monthly retention with a visible plateau by Month-6.
Translate these goals into 3–5 experiments per week with ownership, instrumented funnels, and success thresholds. Re-forecast CLV/CAC after each step change.
Communicate targets to your board with a simple cohort table and payback chart.
This is one of the strategies explained in our fintech business plan.
Which specific metrics do top fintechs target to beat the median?
They obsess over activation speed, early habit adoption, and support responsiveness.
Their scorecards include: onboarding completion ≥85–90%, KYC time <3 minutes, first value <10 minutes, Day-7 activation ≥50–60%, DAU/MAU ≥20–30%, and ticket first-response time <60 seconds during onboarding.
They also manage net revenue retention ≥100% (where applicable), cohort survival at Month-6 ≥60–70% of activated users, and reactivation ≥10–20% on targeted campaigns. These are tracked by cohort segment and channel.
Adopt these targets, then localize by your model and geography.
Put them into your weekly exec dashboard and OKRs.
What tactics explain retention outperformance in practice?
Outperformers stack many small wins that compound over cohorts.
Common patterns: native wallet defaulting, paycheck routing incentives, automated savings/investing, contextual nudges, and high-availability support. Pricing clarity and transparent fees further reduce churn.
They run disciplined experimentation—a backlog scored by impact/effort, clean A/B setups, and post-mortems. They pair product with lifecycle CRM to reach users at the right moments.
Copy their operating cadence, not just their features.
Reassess quarterly against your cohort curves and CLV/CAC.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Want more help with your fintech?
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Sources
- DojoBusiness – Fintech: Ideal Retention Rate
- Coinlaw – Fintech Adoption Statistics
- Coinlaw – Neobank Industry Statistics
- Propel – Customer Retention Rates by Industry
- Product School – Customer Retention Metrics
- Pushwoosh – Increase User Retention
- McKinsey – Fintechs: A New Paradigm of Growth
- KPMG – Pulse of Fintech H1 2025
- GrowthRocks – Product-Market Fit
