The optimism that permeated the fintech market at the end of 2021 quickly transformed into concerns about a potential recession in H1’22 as uncertainties related to the Russia-Ukraine conflict, ongoing supply chain challenges, and rising inflation and interest rates took their toll on public and private companies alike.
Heading into the second half of 2022, market challenges are expected to continue, with investors increasingly focusing on top-line revenue growth, profitability, and cash flow. M&A activity is well-positioned to grow as mature sectors see consolidation and investors look for attractive deals amidst the downward pressure on valuations and as some startups contemplate alternatives to downrounds.
Whether you’re the CEO of a large financial institution or the founder of an emerging fintech, understanding how market dynamics have shifted could be critical to your competitiveness and sustainability — while finding ways to become more efficient could help minimize cash burn. As you read this edition of Pulse of Fintech, ask yourself: What can we do now to make sure we’re positioned to face whatever challenges the future might hold?