FRP - A fork in the road - the future of UK fintech

A fork in the road: The future of UK fintech

A fork in the road: The future of UK fintech

Ranking the biggest operational or cost pressures for fintechs over the next six months

Female founders lead from the front Analysing this research, it was notable that female leaders were more likely to be enjoying success. These results should serve as a helpful reminder in an industry where women have historically been underrepresented in senior roles and which has faced criticism for its above average gender pay gap.

Unsuprisingly interest rates and energy costs ranked top amongst the biggest pressures.

1. Higher interest rates 2. Higher energy costs

6. Challenges retaining staff

11. Weaker customer demand 12. Challenges hiring staff 13. Exchange rate fluctuation

7. Investor uncertainty 8. Greater competition

3. Higher input costs (other) 4. Higher real estate costs 5. Higher staff wage costs

9. Meeting existing regulation 10. Meeting new regulation

“The UK is blessed with innovators but an unfortunate bi-product is that there’s lots of competition and duplication in the market. At the same time, investors are rightly being more discerning about how much they put up and what say they have in the running of the business. “The FCA is also getting tougher on regulation and my experience is that too many fintechs see themselves as start-ups and therefore don’t nail compliance early enough. “Those that are successful are the ones that remain focused and see themselves as addressing a need rather than looking to simply build a sellable business around a product. If you combine that with some proper corporate governance and the support of a good network, it is much easier to generate top line revenue as well as a healthy P&L.” Andrew Doukanaris is the founder and CEO of specialist fintech consultancy, Flotta. He established Flotta following a career that involved senior roles with Visa, JCB International and Chevron/Texaco: Emmanuel Riou is a partner at Eight International, a global network including FRP and other international advisory specialists: “Globally, the fintech sector navigates a multi-faceted landscape of international regulation. While regulatory frameworks aim to promote stability and protect consumers, they often pose challenges for fintechs themselves. Compliance with stringent regulations can be resource-intensive and requires significant investment in technology, human resources and legal expertise. “However, it’s important to strike a balance between regulatory requirements and fostering innovation. To create a coherent and globally harmonised regulatory framework, co-operation between governments, regulators and industry stakeholders is essential. Such harmonisation wouldn’t only simplify operations for fintech companies, but also create a level playing field across jurisdictions, promoting market growth and cross-border co-operation.”

55% 34% 44%

While 55% of female decision makers said their firm had grown in value in the past year, for example, just 38% of males could say the same.

A third (34%) of female fintech leaders also said that their growth had accelerated in the previous year, contrasting with just a quarter (27%) of male decision makers.

And 44% of females expect revenue growth to accelerate in the year ahead, against just 35% of the males we surveyed.



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