• Matic Jug, Head of Growth at ICONOMI


• 21.03.2026 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.