Regulatory challenges are the biggest threat facing fintech companies right now, finds the Alloy/Gartner Peer Insights report

A survey of 100 fintech executives found that the industry’s priorities have shifted – from operating costs, fundraising and hiring in 2021 – to regulatory challenges, churn and fraud in 2022.

NEW YORK, 21 November 2022 /PRNewswire/ — Leading Identity Decisioning Platform Alloy, in partnership with Gartner Peer Insights, today released a report that found regulatory challenges have doubled in importance for fintech leaders from 2021 to the first half of 2022. Customer attrition and fraud have also increased in importance, while increased operating costs, difficulties in raising money and difficulties in hiring have become less important. Consistent with this data, fintech executives ranked regulatory challenges as the biggest threat to their business right now.

The report – Fintech in 2022 — illustrates that priorities have changed for fintech companies as markets have changed. While in 2021 a fintech may have been focused on fundraising in a bull market, in 2022 over half (53%) of respondents said they do not expect their company to raise new funds in the future.

Fintech leaders were optimistic about the shift away from fundraising as a priority. Of managers who did not expect to raise new funds, the majority (61%) said they did not need new funding. Instead, fintech companies plan to focus on core priorities in the second half of 2022 – including product development, profitability, partnerships and compliance.

“The benchmark for best-in-class companies has changed dramatically in recent months, and combined with the bearish macro environment, this has forced private fintech companies to prove they have what it takes to succeed,” said Charley Ma, GM of Fintech at Alloy. “The companies that demonstrate they can attract and retain customers, gain and stay compliant, and prevent fraud on their platforms will be well positioned to focus on aggressive growth as macro conditions improve.”

The report also found that many fintech companies are focused on the same segments. Respondents indicated that their companies primarily target low-income (37%) and Millennial (40%) customers. These results illustrate that competition has remained strong in the industry, despite the decline in fundraising.

The findings in the report are based on a survey of 100 fintech managers based in North Americacarried out from August to October 2022. You can read the full report here.

About Alloy

Alloy helps over 300 banks and fintech companies make secure and seamless fraud, credit and compliance decisions. Founded in 2015, Alloy’s platform is backed by lead investors from Lightspeed Venture Partners, Bessemer Venture Partners and Canapi Ventures. Alloy’s platform connects companies to more than 170 data sources for KYC/KYB, AML, credit and compliance data through a single API to help create a fraud-free future. Learn more at

About Gartner Peer Insights

Gartner Peer Insights is an online platform of ratings and reviews of IT software and services written and read by IT professionals and technology decision makers. The goal is to help IT managers make more informed purchasing decisions and help technology vendors improve their products by receiving unbiased, objective feedback from their customers. Gartner Peer Insights includes more than 350,000 verified reviews in more than 340 markets. For more information, please visit https://www.gartner.com/peer-insights/.

Consult:
Kylee Sibilia
[email protected]

SOURCE Alloy