Many fintechs simply want to survive in 2021, study reveals

The priority for one in ten fintech firms over the next year is survival, according to FinTech Connect’s FinTech State of Play Benchmarking Report.

The report is based on a survey of 144 fintech professionals and explores the biggest industry issues of 2020 and looks forward to what 2021 has in store. Referring to COVID-19’s impact on the industry, the report revealed that fintechs have adapted their offerings to serve a large segment of population working from home. Some findings include:

• 40% said Covid-19 had accelerated their digital transformation model;
• 36% said they had launched new services addressing new demand;
• 34% said their growth had accelerated as a result of the pandemic;
• 65% said that the remote working had driven innovation.

Other points discussed were the Wirecard's scandal impact on the fintech industry and the uncertainty caused by Brexit. Despite the uncertainty caused by Brexit, fintechs remain confident in their ability to manage Brexit:

• 40% of respondents believe London will remain the European capital of fintech after Brexit;
• 30% of fintechs admit they haven’t made significant headway preparing for Brexit.

When it comes to the Wirecard scandal, 83% of fintechs said the collapse had no impact on their own business. However, when fintechs are asked about the wider impact on the industry:

• 59% said it will result in overcorrection from regulatory bodies;
• 42% said it will result in declining trust from customers;
• 25% said it will lead to declining investment into the sector.