4 Challenges to a Fintech's Exponential Growth

US fintechs continue to transform the financial services landscape. They raised $12.8 billion in Q1 of 2021, a 220 percent YoY increase in investments [1]. Driven by consumer adoption, fintechs’ transactional value is growing at 8.6 percent [2]. An estimated one out of three digital consumers today use at least two fintech services [2]. Fintechs across the spectrum continue to outpace the market and traditional players.

While fintechs want to build reliable, cost-effective operations and compliance, their growth concerns need to answer these pertinent questions:

• How to keep the advantage of staying “lean” as they continue to grow?
• How to grow the business without losing the innovation, agility, and responsiveness that made them attractive in the first place?
• How best to navigate operational challenges?

Let’s look at the four big challenges that today’s fast-moving fintechs face, and what they can do to keep from stumbling and slowing their growth.

1. Managing operations with limited resources

2. Establishing a deeper customer connection

3. Addressing financial regulations and compliance

4. Managing cybersecurity and business-critical risks

This is an abridged version of the original article published on the sutherland.com website.

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