Fun Times for Fintechs

Now that we've reached the mid-point of 2023, a year marked by a range of uncertainties in the financial marketplace, one issue is abundantly clear: it's a great time to be a fintech.

It wasn't all that long ago when the majority of fintechs were small, startup companies offering new out-of-the-box technologies to change how people purchase, save, and invest. Formed in reaction to the financial meltdown of 2008, fintechs aimed to challenge an entrenched banking and financial system that caused carnage on Main Street. Cryptocurrencies emerged during this time and capital raised for fintechs came from friends, family, crowdsourcing, and small fintech events where entrepreneurs solicited funds from anyone with a wallet and a few dollars to spare.

Fast forward to 2023 and the dynamics have seriously changed. Fintechs are no longer just alternatives, offering ways to buck the financial system. They are disrupting it. With more agile technologies and greater responsiveness to market needs, fintechs are leading the digital transformation that is reshaping the financial services industry.

Hand holding digital globe with fintech written in front

The fintech market is growing at a compound annual growth rate (CAGR) of 26% and is estimated to reach a market value of $324 billion by 2026. No longer a fringe component of the financial industry, fintechs are attracting serious players addressing serious issues. More importantly, its growth is being fueled by a number of trends including:

Hands holding digital globe with the words 'Digital Transformation' written in front

So, what does this all mean for go-to-market specialists and communications pros?

It’s a bonanza. There are a wide variety of ways in which to support the growth and evolving nature of the fintech landscape, as well as address its challenges and risks. For example, working with fintechs requires:

As the fintech industry continues to expand and opens up a large swath of opportunities for the greater financial world, the fun times for fintechs will only continue. Let the games begin.

This Insight was prepared by Maria Lilly. As always, comments and feedback are welcomed.