The UK is a global fintech hub. It’s a sector that has enjoyed rapid growth since the early 2010s, and in recent years has been the UK’s most dominant sectors for funding.
However, fintech in 2022 – like most other industries – was full of challenges. The tech industry-wide trend of lower valuations did not make an exception for fintech, and cautious investors are becoming less patient when it comes to waiting for profitability.
At the start of the new year, four industry experts look ahead to see both the positives and the new challenges that UK fintech will face in 2023.
Investors will focus on profitability
“I think we are going to see a lot more M&A activity in the UK fintech sector in 2023 as funding becomes harder to secure,” says Oliver Prill, CEO of digital banking service Tide. “Increasingly investors are going to be looking at companies with business models that solve the real problems that consumers and businesses are facing and that also have a clear path to profitability.”...