Focusing on the fundamentals

The current economic disruption, following the pandemic, global supply-chain problems, and war in the Ukraine, poses a strong challenge. Fintech firms have a tough couple of years ahead, but those that are agile with strong business fundamentals will survive and emerge stronger. Vendors who can deliver reliable, cost-effective business solutions will be in demand at MWC. Attendees will be eager to see how peer companies have evolved their strategies.

Increasing efficiencies

As interest rates rise, fintech firms must balance cost of capital against customer expectations. At MWC, companies can explore solutions to help them increase efficiency or protect their bottom lines, such as fraud-prevention software. Companies will be able to review various technologies and discuss how they might enhance their current offerings while staying competitive in the marketplace.

A clear path to profitability

Underlying these themes is the fact that changing economic conditions have reduced fintech funding and valuations. Private funding saw a 33% decline between Q1 and Q2 of 2022, for example. Affected companies are likely to re-evaluate their strategies, from a growth-at-all-costs approach to one focused on expense management and hiring discipline. They will be looking for solutions to help them reduce risks and costs to stay competitive in the current atmosphere.

It is highly likely that the fintech sector will experience consolidation over the next couple of years, and in such an uncertain climate, the mood at MWC may be a cautious one. However, the event provides a great opportunity to explore options and find solutions that can help you stay competitive even amid challenging macroeconomic headwinds.