- Matic Jug, Head of Growth at ICONOMI
- 23.03.2026 08:45 am #FintechScaling #MarketChallenges
The last decade has been incredible for the fintech industry. As the sector has found its feet and expanded, many companies have enjoyed rapid growth. But after every period of expansion comes a natural phase of consolidation. This isn’t inherently negative. In fact, it often leads to greater efficiency, reduced costs, and the emergence of more resilient business models. However, it also inevitably raises new challenges, especially for smaller players trying to scale. When you then factor in tightening regulatory requirements and broader economic stress, the landscape begins to look more hostile. This is the reality fintechs are facing today. So, what can you do to ensure that your company not only survives but flourishes in the evolving ecosystem?
Is it possible for a fintech to scale in the current climate?
There’s a depressing statistic that around 60% of fintechs fail. And there obviously isn’t any one single reason for that. However, it has to be acknowledged that the ‘growth at any cost’ mindset that dominated within the space for most of the last decade undoubtedly played a part. As startups focused on rapid expansion, aggressive market entry, and chasing customer acquisition, there wasn’t enough time or energy left for thoughts of long-term sustainability, and the businesses ultimately paid the price for their lack of foresight. The only upside to that scenario is that today’s fintechs can learn from it. Now is not the time for uncompromising growth, but rather a foundation of deep-rooted resilience.
Tactical and resilient growth strategies for fintech
Be data driven
In the last few years, data has become the linchpin of every technology business. But while everyone knows that they should be using it, the challenge lies in using it effectively. And not just for the obvious. When leveraged properly, data informs decisions throughout a business, enabling better outcomes for all. That’s why, in my company, data is embedded in everything we do. Like most other companies, we began by tracking user engagement metrics, but we didn’t stop there, choosing instead to go far deeper, analysing the entire customer journey from first touch to sign-up or drop-off.
Not long ago, we noticed a dip in conversions. Rather than guessing the cause, we tested. We ran A/B tests across every step of the onboarding process to pinpoint where users were getting stuck. That deep dive revealed key friction points, which we then addressed and streamlined, resulting in a 600% increase in conversions. But as well as providing this dramatic uplift in conversions, it also provided some critical insights for the company. The most important among them being that most users don’t abandon platforms because they dislike the product. They leave because the experience is unclear, slow, or overly aggressive. When used well, data doesn’t just highlight problems; it shows you how to fix them.
Maximise the potential of user experience
User experience (UX) is another of those things that has ceased to be optional. It’s now a key differentiator, especially in fintech, where trust, clarity, and ease of use are essential. If you want your business to reach its full potential, you have to find a way to cut through the confusion and inspire confidence in your customers. If users feel uncertain or overwhelmed when navigating your app or website, they’re unlikely to stick around, let alone trust you with their money. By designing a seamless, intuitive experience that feels simple, secure, and welcoming, you can help your users to understand what they're doing and feel in control of the process. And when that’s the case, they're far more likely to complete sign-up, engage with your product, and stay loyal over time.
Stay focused on your niche
In fintech’s early days, it was common for companies to target everyone. The theory being that the wider you cast your net, the more fish you’re going to catch. But people are more discerning than fish. And the broader your audience, the harder it is to meet their expectations effectively. If you focus on a specific niche, you gain the benefit of being able to create products and services that completely meet the explicit needs of your targeted market. And that’s a sure-fire way to drive customer satisfaction. But more than that, it gives you the opportunity to build trust and long-term loyalty.
Once you’re fully established within your sector, you can then think about expanding into adjacent markets. But only do so when you’re confident that you have processes in place to ensure that your core customers will continue to be fully served. And even then, growth should be deliberate and incremental.
Put trust and transparency first
One of the reasons why fintech has been relatively quick to find its feet is because the public lost faith in traditional finance following the 2008 financial crisis. Fintechs offered something different. But that does mean that they are now expected to deliver more than the bare minimum. For my business, that has meant prioritising security, communicating risks openly, embracing third-party audits, and owning up to mistakes when they happen. We’ve actively built transparency and accountability into every stage of the customer journey. And made trust-building a proactive, continuous effort. It’s something I’d recommend to every fintech seeking longevity.
Use education to build trust, understanding, and loyalty
Education has never really played a role in investment or finance. The industry expects would-be customers to do their own research. And that’s such a wasted opportunity. That’s why education has been a core pillar of my business. Our theory is that if you want users to feel confident engaging with your platform, you need to help them to get the best from it. Whether through tutorials, market insights, webinars, or simple explainers. And this is particularly important in areas such as fintech and cryptocurrency because they’re still relatively new. Investors with conventional backgrounds are often unfamiliar with how it works. When you offer education, you open the door to new customers, whether you’re targeting individual users or businesses. But more than that, you’re boosting trust, engagement, and long-term retention.
The fintech industry is maturing, and that’s inevitably going to mean some level of attrition, whether through the closure of startups, consolidation of SMEs, or even the downfall of established players. But even in this more challenging environment, success is still eminently possible. You just need strategic focus and a genuine commitment to serving your customers' needs.
Facts Only
Matic Jug, Head of Growth at ICONOMI, authored the article on March 23, 2026.
The fintech industry has grown rapidly over the past decade but is now entering a consolidation phase.
Around 60% of fintechs fail, with past "growth at any cost" strategies contributing to these failures.
Data-driven decision-making is emphasized as a core strategy for fintech success.
A/B testing of the onboarding process led to a 600% increase in conversions for the author’s company.
User experience (UX) is identified as a key differentiator in fintech, with clarity and ease of use being critical.
Focusing on a specific niche is recommended to better meet customer needs and build trust.
Trust and transparency are prioritized, including security measures, risk communication, and third-party audits.
Education is highlighted as a tool to build trust, with tutorials, webinars, and explainers used to engage users.
The fintech industry is maturing, leading to potential closures, consolidations, or downfalls of established players.
The article suggests that strategic focus and customer-centric approaches are essential for success in the current market.
Executive Summary
The fintech industry has experienced rapid growth over the past decade, but it now faces a phase of consolidation marked by tighter regulations, economic stress, and heightened competition. While this shift can drive efficiency and resilience, it also poses significant challenges, particularly for smaller firms aiming to scale. The "growth at any cost" mentality that dominated earlier years has given way to a focus on sustainability, with data-driven decision-making, user experience (UX), and niche specialization emerging as critical strategies. Companies that prioritize trust, transparency, and customer education are better positioned to navigate this unstable market. The article highlights real-world examples, such as a 600% increase in conversions achieved through A/B testing and UX optimization, underscoring the tangible benefits of these approaches. However, the high failure rate of fintechs—around 60%—serves as a cautionary reminder of the risks inherent in the sector. Success in this environment requires balancing innovation with operational discipline, ensuring that growth is both deliberate and customer-centric.
The broader context suggests that fintech’s evolution is tied to its ability to address public distrust in traditional finance, a legacy of the 2008 financial crisis. By embedding education, security, and accountability into their models, fintechs can differentiate themselves and foster long-term loyalty. Yet, the industry’s maturation also implies inevitable attrition, with startups and even established players facing closure or consolidation. The key takeaway is that resilience, not just rapid expansion, will define the next phase of fintech growth.
Full Take
The narrative presents a compelling case for fintech resilience in an unstable market, grounded in practical strategies like data-driven decision-making, UX optimization, and niche focus. The strongest version of this argument acknowledges the industry’s past excesses—such as the "growth at any cost" mentality—and positions the current consolidation phase as an opportunity for maturation. The emphasis on trust, transparency, and education aligns with broader trends in consumer expectations, particularly in finance, where skepticism toward traditional institutions persists. The article’s use of concrete examples, like the 600% conversion uplift, lends credibility to its claims, avoiding the pitfalls of vague or hyperbolic advice.
However, the piece operates within a broader paradigm of market-driven resilience, where success is framed as a function of strategic adaptation rather than systemic critique. The assumption that fintechs can "flourish" by merely refining their approaches overlooks structural challenges, such as regulatory capture or the inherent volatility of financial markets. The focus on individual company strategies also risks downplaying the role of luck, timing, or macroeconomic forces in determining outcomes. While the article avoids overt emotional exploitation or distortion, it leans into a narrative of controllable resilience, which could be seen as a form of "sanewashing" the inherent risks of the fintech sector.
**Patterns detected: none**
The root cause of this narrative is the tension between innovation and stability in financial services. The fintech industry’s rapid growth was fueled by disillusionment with traditional finance, but its next phase requires proving long-term viability. The implications for human agency are mixed: while the strategies outlined empower companies to adapt, they also place the burden of survival squarely on individual firms, potentially obscuring broader systemic issues. Who benefits? Fintechs that can afford to invest in data, UX, and education—likely those with existing resources. Who bears the costs? Smaller players without the capital to compete on these fronts, as well as consumers who may face fewer choices if consolidation accelerates.
**Bridge questions:**
How might regulatory changes or economic shocks disrupt even the most resilient fintech strategies?
What role should public policy play in ensuring that fintech innovation doesn’t exacerbate financial inequality?
If trust is the cornerstone of fintech success, how can companies balance transparency with the competitive need to protect proprietary insights?
**Counterstrike scan:** If this narrative were part of a coordinated influence campaign, the playbook would likely emphasize individual agency over systemic critique, framing market challenges as solvable through better business practices. The actual content aligns with this pattern but does not exhibit signs of bad faith or manipulation. It serves as a pragmatic guide rather than a tool of persuasion.
Sentinel — Human
The article exhibits strong human authorship signals, with natural language patterns, personal anecdotes, and industry-specific nuance. Minimal stylometric or coherence red flags suggest low likelihood of synthetic origin.