Louise Nickson recently sent me the below article entitled Why fintech startups fail. 5 mistakes and conclusions, which inspired me to do a little primary research of my own into the reasons promising FinTech start-ups have toppled in recent years. We’re not talking “couldn’t get off the ground”, but more “couldn’t survive” or “couldn’t scale”. As a consultant by trade, I’m sworn to be ‘action-oriented’ in all my conclusions, so here, then, are three actions the numbers say FinTechs could be focusing on about more than it seems they are.

To start with, the five reasons the authors lists for FinTech failure are:

  • Ignoring legal aspects
  • Ignoring the concept of money (understanding psychological behaviours around money, credit, savings, payments, etc.)
  • Choosing the wrong strategic investor
  • Ignoring the customer adoption challenges
  • Being trapped by “financial institutions are our competitors”

But what does that mean FinTechs can do differently?


So that’s three actions to stop your FinTech from failing, but it’s far from the three actions. What are the lessons learnt from FinTech’s success and failure of recent years future FinTechs would be wise to follow?