Fintechs: a new growth paradigm

A new horizon for Fintechs

The fintech industry has reached a significant turning point, standing at the crossroads of innovation and finance. The McKinsey report, themed “Fintech: A New Paradigm of Growth”, explores this crucial transition. It outlines a future where, after years of tumultuous growth, the industry enters a maturation and stabilisation phase.

This evolutionary phase marks a shift from aggressive, risk-oriented expansion to prioritizing sustainable growth and profitability.

The McKinsey report emerges as an indispensable guide to understand the current and future dynamics of fintechs. Through an analytical approach, they explored how these companies are now navigating more complex waters, facing unseen challenges and seizing unseen opportunities in a rapidly changing global financial environment.

Growth and challenges in the Fintech sector

Over the past decade, the fintech industry has grown exponentially, revolutionizing the financial services landscape with technological innovations and a customer-centric approach. The sector’s estimated market value of $550 billion, with over 272 Fintech unicorns, testifies to its phenomenal growth and impact on the global economy.

However, 2022 was a year of change, marking the end of the hyper-growth era and introducing new challenges. The slowdown in funding growth and the market correction forced fintechs to adopt strategies more focused on sustainability and financial prudence, rather than pursuing unlimited growth at all costs.

In this context, companies such as October are innovating. October, a European Fintech specialized in corporate financing, has developed October Connect, a solution that allows third parties enhancing their digital lending activities through real-time, data-driven analysis based on qualitative and quantitative information. This approach aligns with the industry trend towards more sophisticated, data-driven solutions, highlighting how the ability to innovate remains central to the fintech industry, despite the current challenges.

Transition to a sustainable growth

The McKinsey report provides a detailed analysis of the shift in the fintech growth paradigm. While the sector has been notable for its ability to attract significant investments and rapid adoption of innovative technologies, it now faces a more restrictive funding environment and an increased focus on profitability and sustainability.

Pathways to future success

To navigate this new environment, fintechs must adopt differentiated strategies. The report identifies four key areas for sustainable growth:

  1. Cost Discipline: In the new financial reality, fintechs must focus on managing resources efficiently, reducing operating costs, and improving profitability.
  2. Measured Growth: Firms must identify strategic growth areas, expanding into adjacent sectors and geographies only after establishing a strong commercial core.
  3. Planned M&A: Targeted acquisitions and strategic partnerships can accelerate growth and expansion into new markets or sectors.
  4. Maintain an Innovative Culture: Fintechs must continue to foster an environment which promotes innovation and agility, aspects that defined their early success.


The strategies detailed in McKinsey’s “Fintech: A New Paradigm of Growth” report offer a roadmap for fintechs in an evolving financial landscape. The decisions made today will shape the medium and long-term future of these companies, highlighting the criticality of sustainable growth.