After a golden decade, fintech faces its first true test

Money 20/20 conference is where the rock stars of fintech come to cut deals and court investors. The shindig this month, the first proper extravaganza since 2020, had the added buzz of a long-awaited reunion, enhanced by s and brass bands. “Money 20/20 is back in full technicolour,” trumpeted Tracey Davies, the master of ceremonies. The tone, however, was out of sync with the mood outside the room. Rising interest rates and the threat of an economic slowdown are hanging over the industry. Many listed fintechs have seen their market capitalisation crash by more than 75% since July 2021; private firms are being forced into “down rounds” that value them at less than their previous worth. In recent weeks a sorry cast of multi-billion-dollar fintechs, from Klarna, a “buy now, pay later” (firm, to Wealthsimple, a trading app, have announced layoffs. In total, fintechs have sacked about 5,500 employees since May 1st, according to Layoffs.fyi, a website, compared with none last year.