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How fintechs can win with data header
Mastercard Market Trends

How fintechs can win with data

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By: Jo Ollier, Ankita Wasan and Mallika Srinivasan

Published: May 01, 2024 | Updated: May 17, 2024

Read time: 2 minutes

Fintech companies are shifting their focus from growth to financial health and profitability.

In this new paradigm, data has become a key driver of competitive advantage.

Read our latest Market Trends report from the Fintech and Digital segment to learn more about:

The global fintech sector has surged in recent years, capturing an increasing share of the financial services market.

  • From 2020 to 2022, the fintech sector exhibited consistently strong customer growth, with an average growth rate of over 50%.

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How fintechs can win with data illustration 1

Fintechs now encompass a range of players with diverse needs, including:

  • Payments (PayTech)
  • Digital banking (Neobanks)
  • Fintech enablers
  • Lending and credit platforms (LendTech)
  • Investment and wealth management
  • Insurance (InsurTech)
  • Regulatory compliance (RegTech)


However, a growing global economy and an evolving regulatory environment are reshaping the sector

  • Global VC fintech funding decreased 63% between 2022 and 2023
  • 47% of fintechs think that an unfavourable regulatory environment is hindering their ability to grow
How fintechs can win with data illustration 2

In this market landscape, many fintech companies are shifting their business models from rapid growth to value creation, where the focus is on profitable growth.

Data will play a central role in fueling informed decision-making across the business, including:

  1. Strategy
  2. Operations
  3. Information technology

Important data sources for fintech companies include:

  1. Customer data
  2. Financial data
  3. Market data
  4. Network data
  5. Operational data


Key data analytics tools:

  • Business intelligence platforms for reporting and visualizations
  • Big data processing for predictive and real-time analytics
  • AI and machine learning for personalization and fraud detection

When leveraging these data sets, it's paramount that fintechs adhere to the highest standards of data and tech responsibility.

Mastercard has developed seven principles of responsible data-driven innovation:

  1. Security and Privacy
  2. Transparency
  3. Accountability
  4. Fairness
  5. Inclusion
  6. Innovation
  7. Social Impact
How fintechs can win with data illustration 3

Read the full report to find out how fintech companies can harness the right data and tools to streamline their operations, accelerate growth and optimize customer experiences.

Access the full report


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