A closer look into the 3 Ms: Monetisation, maturity and market sentiment

Tuesday July 18, 2023

In our latest article, Restructuring Advisory Partner Dan Conway explores the importance of monetisation, maturity and market sentiment

Whilst AI is leading the agenda when it comes to the future of technology, fintech still remains the ace in the pack for investors. In fact, fintech businesses contribute more than £10 billion to the UK economy every year – supporting 76,000 jobs.

Fintechs also tend to outperform firms in other sectors too, with an annualised growth rate of 16% over the past decade, against 1.3% for the average SME.

However, alike many sectors, fintechs are facing the ongoing macroeconomic pressures of inflation and increasing interest rates. We commissioned a report to uncover the ambitions and anxieties driving decision making in fintech firms across the country.

Our survey of more than 250 senior decision makers within the fintech industry revealed a broad spread of responses, reflecting the challenging conditions they are operating in.

My observations from the report, and from speaking with others within this vibrant and energetic sector, is that the landscape is evolving, particularly when it comes to seeking investment and funding, and riding the waves of economic uncertainty. At a high level, the 3M’s of monetisation, maturity and market sentiment play a key part in lenders’ or investors’ decision-making.

  • Monetisation – no longer is it solely a good idea that will generate investment, or a business model that is based primarily on scale. Investors are keen to know how and when a product or idea will be monetised.
  • Maturity – when refinancing or seeking further investment, it’s important to be able to demonstrate a track history of growth and/or maturity in the business proposition. Realistic forecasts that have been appropriately sensitised will be crucial to support a credible business case.
  • Market sentiment – the high-profile failures of FTX and Silicon Valley Bank appear to have dampened some investors’ interest in fintechs and heightened credit departments’ assessment of risk. Fintech owners and entrepreneurs will need to put forward strong cases to persuade funders or investors that the risk is worth the reward.

The future of UK fintech

The UK should be proud of its flourishing fintech sector, which is internationally recognised as being among the most innovative and important in the world. There is a huge amount of technical talent in the UK, both homegrown and imported, which will enable continuous innovation in the sector. There may be some hurdles to jump given the testing times we are in, but we can have faith in the long-term future of UK fintech.


Click below to read the report

A fork in the road: The future of UK fintech


Related team

Dan Conway

Dan Conway

Dan Conway

  • Partner
  • Restructuring Advisory
  • London