TMCnet News

Regulatory challenges are top threat to fintech companies right now, Alloy/Gartner Peer Insights report finds
[November 21, 2022]

Regulatory challenges are top threat to fintech companies right now, Alloy/Gartner Peer Insights report finds

A survey of 100 fintech leaders found that industry priorities have shifted—from operating costs, fundraising, and hiring in 2021— to regulatory challenges, customer attrition, and fraud in 2022.

NEW YORK, Nov. 21, 2022 /PRNewswire/ -- Leading Identity Decisioning Platform Alloy, in collaboration with Gartner Peer Insights, today released a report finding that regulatory challenges have doubled in importance to fintech leaders from 2021 to the first half of 2022. Customer attrition and fraud have also risen in importance, whereas increased operating costs, difficulty fundraising, and difficulty hiring have all decreased in importance. In accordance with this data, fintech leaders ranked regulatory challenges as the top threat to their business right now.

The report — Fintech in 2022 — illustrates that priorities have shifted for fintech companies as the markets have shifted. Whereas a fintech in 2021 might have been focused on fundraising in a bull market, in 2022, over half (53%) of respondents indicated they do not expect their company to raise new funds in the future.

Fintech leaders were optimistic about the shift away from fundraising as a priority. Of leaders who did not expect to raise new funds, the majority (61%) stated they are not in need of new funding. Instead, fintech companies plan to focus on core priorities in the second half of 2022 — including product development, profitability, partnerships, and compliance.

"The benchmark for best in class companies has changed dramatically in the past few months, and combined with the bearish macro environment, this has forced private fintech companis to prove they have what it takes to be successful," said Charley Ma, GM of Fintech at Alloy. "The businesses that show they can attract and retain customers, get and stay compliant, and prevent fraud on their platforms will be well-positioned to refocus on aggressive growth once macro conditions improve."

The report also found that many fintech companies are focused on the same segments. Respondents indicated that their companies primarily target low income (37%) and Millenial (40%) customers. These results illustrate that competition has remained strong in the industry, despite the fundraising slowdown.

The findings of the report are based on a survey of 100 fintech leaders based in North America, conducted from August to October 2022. You can read the full report here.

About Alloy

Alloy helps over 300 banks and fintech companies make safe and seamless fraud, credit, and compliance decisions. Founded in 2015 and backed by leading investors from Lightspeed Venture Partners, Bessemer Venture Partners, and Canapi Ventures, Alloy's platform connects companies to more than 170 data sources of KYC/KYB, AML, credit, and compliance data through a single API to help create a future without fraud. Learn more at

About Gartner Peer Insights

Gartner Peer Insights is an online platform of ratings and reviews of IT software and services that are written and read by IT professionals and technology decision-makers. The goal is to help IT leaders make more insightful purchase decisions and help technology providers improve their products by receiving objective, unbiased feedback from their customers. Gartner Peer Insights includes more than 350,000 verified reviews in more than 340 markets. For more information, please visit

Kylee Sibilia
[email protected]

Cision View original content to download multimedia:


[ Back To's Homepage ]