Fintech
Research from MHP Group reveals that European fintechs expect business growth
The leading integrated communications consultancy firm, MHP Group The research reveals a return of optimism among European fintech leaders after a difficult period for the sector. The report Reputation and future of European fintech: empowering growth through effective communicationsanalyzes the opinions of over 50 senior fintech leaders in the UK, France, Germany, Italy and Spain. Hosted by Savanta the research highlights that more than three quarters of respondents (77%) expect growth in the next 12 months, while exploring the key role of attracting customers, investors and talent, in realizing their ambitions.
After a period of instability, confidence is returning to the European fintech sector as a whole. UK fintech leaders are the most optimistic, with 83% expecting growth over the next 12 months, followed by France (80%), Germany (77%), Spain (72%) and Italy (66%) . The most established fintechs, those more than 10 years old, are the most likely to expect growth (79%), potentially signaling the value and trust that comes from experience. Early-stage fintech firms are slightly less confident, with 55% of those under five years old expecting “significant” growth over the next 12 months. The return of confidence in the sector has gone hand in hand with a renewed focus on achieving profitability, a top priority for more than two-thirds (68%) of fintech leaders.
Fintech leaders are clear about the critical factors that will support their ambitions for profitable growth in the coming year. Attracting customers, investors and talent are recognized as the top three objectives
factors, with relative consistency across markets, business maturity and size. Customer acquisition and retention are considered the top priority for over half (55%) of fintech companies, a percentage that rises to 71% for Italian fintechs. Larger (67%) and more mature (58%) fintechs appear to be paying more attention to this aspect than smaller (40%) and younger (33%) firms, potentially signaling that established players are prioritizing the fight to disruptions by new market entrants to protect the market. share.
Securing funding from investors also features prominently, with 45% of European fintech leaders prioritizing capital injections to fuel their growth. Data shows this is a priority for fintechs of all sizes,
with around half of large (54%) and small (50%) businesses looking for capital within the next year.
The third critical success factor for fintechs is identifying and attracting the right talent. In the war for talent, European fintechs are not only competing against each other, but against the tech sector in general
ecosystem, as well as those from America, Asia and the Middle East, where salaries and benefits may be more attractive. As a result, two-fifths (42%) of respondents said they will prioritize finding the right talent in the next 12 months.
Nick Woods, head of financial services at MHP Group, commented: “The return of optimism in the European fintech sector represents much more than a simple change in sentiment. After a challenging period, battle-hardened leaders are drawing on hard-won wisdom to guide their growth strategies.
“The heady days of cheap money and the scale-at-all-costs mentality have been replaced by a greater focus on profitable growth, signaling the dawn of a more mature approach.
“Engaging a discrete set of highly connected stakeholders is critical to this mission, while effective communications to customers, investors and talent play a critical role in driving growth.”
Reputation and the future of European fintech: fueling growth through effective communications, which also includes insights from numerous leading fintech leaders, can be downloaded
Here.
The MHP Group fintech team will be present Money20/20Europe in Amsterdam from 4 to 6 June and I would be very happy to discuss the findings of this report in more detail. Please message the team at fintech@mhpgroup.com to schedule a meeting.