Victoria Treyger
Contributor
It’s been quite an eventful year. Fintech has fallen a long way from the highs of 2021, and while 2022 was largely about the reset of the funding environment, 2023 is going to be a year of recalibration for fintech companies.
The great news is that large enterprise and midmarket companies care more than ever about bottom-line impact. As revenue growth slows down, cost savings and efficiency have become critical. Larger companies are more likely to cut back on internal innovation efforts and technology investments that are not core to the business.
This opens the door for fintechs that can deliver real improvements to the bottom line by eliminating manual processes and saving their customers money.
First, let’s take a look at the sectors likely to be most challenging: lenders, neobanks and fintechs that serve SMBs.
Online lenders
Lending is going to be hit hard. Lenders have to manage three big tailwinds in today’s market:
Rising delinquency rates and charge-offs.
Higher cost of capital for the debt they lend.
Decreasing demand from custo …
