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Hi, fintech fam! 💜

It's only January, but I can already feel my excitement for the upcoming event season building up.

It's about coming together as a community to solve big financial problems and supporting each other's businesses.

It's the ultimate way to achieve success. Fintech Is Femme can help you drive your impact on the community and accelerate your growth through content-driven experiences and events.

That's why I want to ensure you're in the loop about some of the most important industry events coming up:

• Fintech MeetUp in Las Vegas (I'm speaking on a powerhouse panel).

• New York Fintech Week (We're hosting our iconic Storytelling Event and Leadership Summit at our friend's venue, Rise by Barclays, on April 8 and will speak at Empire Startup's Conference on April 10). Interested in partnering? Fill out this form to work together.

• Women's History Month all March (my calendar is booking up for speaking engagements, fill out this form to have me speak at your company's event!)

Now, onto fintech updates from the World Economic Forum.

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IMPACT

World Economic Forum Outlines Fintech's 2024 Growth Strategy

World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala didn't mince words in Davos 2024 when she dropped a truth bomb on leaders and policy-makers:

In simpler terms, the old way of globalization left the less fortunate out in the cold, and Okonjo-Iweala isn't about to let history repeat itself. 

She emphasized that the new paradigm requires a different approach, one that ensures that those who missed out on the first round finally get their fair share.

Why does this matter? Trust in our institutions and innovations is hanging by a thread on the World Economic Forum stage. 

But fear not, the demand for innovations from our fintech industry is rising.

So, as we embark on a year of growth with sustainability in mind, here's a question for you to ponder: 

Will your actions make life better for the people you represent?

This is the fundamental question for leaders. 

It's not just about building the next enterprise SaaS unicorn that lines the pockets of the wealthy. 

It's about asking what you've done to uplift the most vulnerable in our economies. 

That, my friend, is innovation. 

It's also the key to rebuilding trust—the primary theme at the World Economic Forum’s Annual Meeting 2024 in Davos, Switzerland.

So, how do we contribute to the grand solution of rebuilding trust in our economic system?

Simple. Ensure that the fintech companies we build and the products we develop become vehicles for widening access to finance for the underserved, regardless of region.

And here's the kicker: When we align with this mission, the fintech industry remains robust, weathering macroeconomic storms. 

This insight comes straight from the latest research by the World Economic Forum in collaboration with the Cambridge Centre for Alternative Finance at the University of Cambridge Judge Business School. 

The data, drawn from a panel of 227 fintechs across diverse regions, provides a compelling case for understanding what influences our growth and why. 

Allow me to give you the TL;DR from the ~50-page research report. 

Let's kick off with the good news, shall we?

Challenges abound in the realm of fintech, but guess what's keeping us afloat? 

Consumer demand. 

According to the World Economic Forum’s survey, 51% of fintechs acknowledged that consumer demand is the major force propelling their growth. 

It's like the heartbeat of our existence. 

Not far behind, a skilled workforce (39%) and a favorable regulatory environment (38%) play crucial supporting roles.

Now, let's address the hurdles. 

Macroeconomic factors, an unfavorable regulatory environment, and a less-than-stellar funding atmosphere top the list of impediments, as cited by 56%, 47%, and 40% of respondents, respectively. 

Unsurprisingly, macroeconomic factors take the lead, especially with global inflation and interest rates hitting the roof. 

The funding environment dances closely with macroeconomic conditions, as high-interest rates tighten the purse strings of capital market funding and venture capital, the lifeblood of fintech growth.

Regardless of what fintechs find crucial for their growth or hindering, the regulatory environment consistently holds a top-three position. 

This is a testament to regulation's pivotal role in shaping fintech's destiny (that’ll be a future column).

Scaling services to new customers also comes with its own challenges. 

Consumer education is the most formidable hurdle across regions, verticals, and economic levels. 

The industry unanimously recognizes the importance of educating consumers digitally and financially to broaden the adoption of fintech products. 

Following closely is the challenge of navigating a highly competitive market, especially for digital lending fintechs facing the heat of market saturation.

Compliance, the perpetual thorn in the side of fintech companies, grabs the third spot in challenges. 

This rings true for digital payments-focused fintechs, who express even greater concerns about compliance complexities.

Now, let's zoom in on North America – the United States and Canada, to be precise.

Major factors supporting fintech growth:

1. Consumer demand (51%)

2. Availability of skilled workforce (43%)

3. Favorable regulatory environment (43%)

Major factors hindering fintech growth:

1. Unfavorable regulatory environment (71%)

2. Macroeconomic factors (55%)

3. Poor funding environment (43%)

Having laid out the landscape, let's talk action

Here are some key initiatives that can steer the ship in the right direction:

Market-led Initiatives:

- Sustainable finance schemes

- Membership to fintech associations

- Private sector initiatives (innovation programs)

- Networking events with venture capitalists/funders

Regulator-led Initiatives:

- Sustainable finance incentives

- Streamlined or fast-tracked product or service approvals

- Standardization on cybersecurity/fraud prevention

- Open banking/finance frameworks

- Support on remote onboarding/electronic know your customer (eKYC) or simplified customer due diligence

- Hackathon/TechSprint Digital regulatory and supervisory infrastructure (digital regulatory reporting)

- Regulatory sandboxes

- Innovation offices

Not all initiatives are created equal, though. 

Market-led initiatives take the crown for effectiveness, emphasizing the significance of community-building, according to the report.

Membership in a fintech association and networking events with venture capitalists/funders emerge as the top strategies, highlighting the power of relationship building.

So, fintech leaders, here's your 1-step playbook for harnessing the most effective growth strategy: 

1. Host and Attend Networking Events:

Organize and participate in networking events with venture capitalists, funders, founders, and industry peers.

Build relationships that go beyond transactions – it's about forging lasting connections.

That’s the key to growth.

Want an edge? 

Fintech Is Femme helps produce content-driven event experiences for fintech execs and brands to elevate their thought leadership, develop their community, expand their networks, and drive growth.

Email [email protected] or fill out this form to start working together on your next growth phase. 

Next week, let’s dive into the other driver of fintech growth: creating a more inclusive financial system. 

_{WTF ELSE?}

• Fintech heavyweight Kaspi.kz valued at $17.5 bln in tepid Nasdaq debut

• The Law Offices of Frank R. Cruz announced an investigation of Future FinTech

• Mastercard looks to transform B2B healthcare payments with virtual cards

• Cybrid launches B2B payments on its embedded finance API platform

• Faster payment networks are a 'must-have' for 78% of US-based Financial Firms

• Davos 2024: AI most relevant for fintech development until 2029 

• Retirement-focused fintech Guideline reaches $100M in recurring revenue

_{I WANT IT, I GOT IT}

• 📚 Today’s Read: Did you see our first Sunday send? I covered 4 tactics to become a better public speaker for my fintech fam ready to level up. Read it, here.

• 👀 Today’s Watch: America Ferrera receives the SeeHer Award at the 29th Annual Critics Choice Awards, and if her speech in Barbie made you tear up, grab the tissues for this inspirational moment from Queen America (this is a must-watch for all of you).

• 🍣 Today’s Eats: Had the most fabulous time getting together with my Fintech Is Femme community members last Friday at Sel-Rose. The happy hour burger and martini combo is chef’s kiss perfection.

_FINTUNES

🎵 Reneé Rapp - Snow Angel (Live - SNL)

I cannot stress enough how utterly obsessed I am with this song. I was left absolutely speechless when I saw Reneé's mind-blowing performance on SNL. Don't just take my word for it, see it with your own eyes and prepare to be completely floored.

That’s all for now! Stay safe, everyone. Hug your loved ones. See you Thursday!

Love,

Nicole

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