Fintech's rapid rise in 2020–2021 was fueled by low rates, abundant capital, and digital adoption, but the tide turned as interest rates climbed, exposing weaknesses in lending-heavy models. The downturn eliminated weaker players, while survivors evolved into more sustainable, full-stack operations. Today, the sector is rebounding, driven by AI, embedded finance, and deeper collaboration between startups and traditional institutions. AI is proving transformative—not just for innovation, but alarmingly in enabling sophisticated fraud at scale, prompting urgent development of countermeasures like Plaid’s Protect suite. Meanwhile, new tools such as LendScore are redefining credit access and risk assessment. Companies like Plaid have used the 'fintech winter' to strengthen infrastructure and product offerings, positioning themselves for long-term impact. The future points toward autonomous financial systems, smarter underwriting, and more secure, seamless experiences—ushering in what feels less like a restart and more like the early bloom of a new era.