The FinTech Year in Stories: January

By Louis Thompsett

December 22, 2024

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We look at the articles that made the news in fintech in 2024. Today, it is January…

McKinsey & Company Heralds new era for Fintech

Following an exciting period of hypergrowth, 2023 was widely recognised as being the year of consolidation for fintech, as the market matured and countless industry players pressed on with digital transformation efforts.

McKinsey & Company contends that fintech is now in the midst of a new era of value creation, where firms are scrambling to achieve sustainable, profitable growth.

So, just how can businesses sustain and enhance their influence on customers, the broader financial ecosystem and the global economy?

Based on its research, McKinsey & Co has come up with a number of key themes shaping the future of the sector.

Cost discipline key for fintechs

In its research, McKinsey highlights that fintech firms placed far more emphasis on rapid growth than they did managing costs during the aforementioned period of hypergrowth, when they had easier access to cash and funding opportunities came around more frequently.

Now, striking the right balance between cost savings, customer satisfaction and continued growth has risen to the top of priority lists, with leaders exploring various avenues in a bid to lower expenses and achieve profitability.

McKinsey’s research finds 50% of public fintechs were profitable in 2022, and the key differentiator between profitable and non-profitable fintechs was cost management, as opposed to revenue growth.

“Successful implementation of cost management efforts is the key for fintechs in their next phase of evolution,” write the authors.

“While fintechs establish a clear focus on costs, they should also consider adjusting how they operate, thereby creating a more agile and flexible organisation that can deal with the current environment.”

In fact, four in five fintechs interviewed by McKinsey reported making changes to their operating models, with two-thirds of those citing a focus on profitability and sustainable cost structure as a dominant factor.

Deloitte and Memcyco: Taking Fraud Prevention to a New Level

Deloitte is an organisation well accustomed to collaborating with many of the world’s leading innovators.

Now, the professional services giant has joined forces with Memcyco, a provider of real-time digital impersonation detection and prevention solutions, in a bid to crack down on the growing problem of impersonation fraud.

Deloitte and Memcyco’s pivotal partnership combines the former’s consulting expertise with the latter’s cutting-edge platform for detecting and preventing digital impersonation fraud in real time.

Taking fraud prevention to a new level

As a result of an alliance that looks set to take fraud prevention to a new level, government organisations, enterprises and brands will be better positioned to protect themselves from damage, while stopping their reputations from being tarnished through attacks that use phishing sites to target customers.

Memcyco and Deloitte will leverage additional solutions related to integration and cooperation, such as Deloitte’s Strategic & Reputation Risk Services, thus offering a more comprehensive service to clients.

“Memcyco is delighted to build a partnership with Deloitte due to its dedicated team, expertise and innovation capabilities,” comments Israel Mazin, CEO at Memcyco.

“Our shared commitment to empowering organisations to make informed decisions about their cybersecurity strategy is at the heart of our collaboration. In the long term, this partnership will pave the way for organisations of all sizes to mitigate impersonation and brandjacking attacks, and to gain more trust from their customers.”