Survey Indicates Major Shift in Threats to Fintechs

Over a decade of experience in the marketplace has contributed to a core of hard-earned wisdom among fintech leaders: if a company is to survive past the idea phase, it needs to emphasize fundraising above all else.

However, according to a new study led by Alloy and Gartner Peer Insights, the old rulebook may not be applicable to the new market landscape. Indeed, data gathered through interviewing more than 100 fintech leaders in the fall of 2022 suggests that fundraising is now much less of a priority, with over half of respondents claiming their company will not need to raise new funds.

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“The benchmark for best in class companies has changed dramatically in the past few months, and combined with the bearish macro environment, this has forced private fintech companies to prove they have what it takes to be successful," wrote Alloy’s General Manager of Fintech, Charley Ma. "The businesses that show they can attract and retain customers, get and stay compliant, and prevent fraud on their platforms will be well-positioned to refocus on aggressive growth once macro conditions improve.”

Other priorities have arisen to take fundraising’s place at the top of fintech leaders’ lists, with companies reporting in the survey that they will be focusing on product development, partnerships, and profitability in the future. Notably, regulatory compliance has doubled in importance compared to last year’s survey, now becoming the top threat to fintech companies.