FinTech Magazine - July 2022 | Page 5

FOREWORD

TANKING TECH

AND INFLATION WOES The fintech industry is facing its first real storm as rising inflation hits leaders

“ I ’ m looking forward to seeing what happens next , and which disruptors stand out from the crowd . It ’ s an exciting time to be involved in fintech ”

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The past couple of years have been turbulent for the technology sector , with supply chain issues causing delays . The rising costs for upgrades hit many companies hard .
But up until May 2022 , the fintech space appeared relatively untouched by the global crisis . In fact , the pandemic accelerated digital transformation and meant that cash reduced its circulation , while companies found innovative ways to make the transactional and banking space more frictionless than ever .
Essentially , fintech skyrocketed in the eye of the crisis .
So , the news that leading brands are now dropping their valuations – some by as much as 60 % – while others have paused their hiring process ( and even rescinded recent job offers ) has come as a shock to the system .
Recessions come and go , and though this period is the first truly turbulent time for the majority of fintech startups , its also a process that resets the business model . Only the most disruptive and resilient companies will weather the drama unscathed , giving rise to more robust entities in the future .
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