The report, "Reputation and the Future of European Fintech: Powering Growth through Effective Communications", analysed the views of over 50 senior fintech leaders across the UK, France, Germany, Italy, and Spain. Conducted by Savanta, the research highlighted that more than three-quarters of respondents (77%) anticipated growth in the next 12 months, while also exploring the key roles of attracting customers, investors, and talent in realising their ambitions.

After a period of instability, confidence returned to the European fintech sector as a whole. UK fintech leaders were the most optimistic, with 83% expecting growth in the next 12 months, followed by France (80%), Germany (77%), Spain (72%), and Italy (66%). More established fintechs, those over 10 years old, were the most likely to expect growth (79%), potentially signalling the value and confidence that comes with experience. Earlier-stage fintech businesses were slightly less confident, with 55% of those younger than five years predicting “significant” growth in the next 12 months. A return in confidence to the sector came hand in hand with a renewed focus on achieving profitability, a top priority for over two-thirds (68%) of fintech leaders.

Fintech leaders were clear on the critical factors that would underpin their profitable growth ambitions in the coming year. Attracting customers, investors, and talent were recognised as the top three factors, with relative consistency across markets, business maturity, and size. Customer acquisition and retention was regarded as the top priority for over half (55%) of fintech businesses, rising to 71% for Italian fintechs. Larger (67%) and more mature (58%) fintechs appeared to place more focus on this than smaller (40%) and younger (33%) businesses, potentially signalling that established players were prioritising combating disruption from new market entrants to protect market share.

Securing funding from investors also ranked highly, with 45% of European fintech leaders prioritising capital injections to fuel their growth. The data showed this was a priority for fintechs of all sizes, with around half of both large (54%) and small (50%) businesses seeking capital within the next year.

The third critical factor of success for fintechs was identifying and attracting the right talent. In the war for talent, European fintechs were not just competing against each other, but the wider tech ecosystem, as well as those from America, Asia, and the Middle East, where salaries and perks can be more attractive. As a result, two-fifths (42%) of respondents said they would prioritise finding the right talent in the next 12 months.

Nick Woods, Head of Financial Services at MHP Group commented: “The sense of optimism returning to Europe’s fintech sector represents more than just a shift in sentiment. After a challenging period, battle-hardened leaders are drawing on their hard-won wisdom to guide their growth strategies. 

“The heady days of cheap money and a scale at all costs mindset have been replaced with a sharper focus on profitable growth, signalling the dawn of a more mature approach. 

“Engaging a discrete set of highly connected stakeholders is fundamental to this mission, with effective communications to customers, investors and talent playing a critical role in fuelling growth.”