Following a challenging couple of years for the industry, MHP conducted future expectations interviews with over 50 fintech leaders from the UK, France, Germany, Italy, and Spain.

The fintech industry in Europe is starting to regain confidence. With 83% of leaders in the UK anticipating growth in the upcoming year, they are the most optimistic, followed by those in France (80%), Germany (77%), Spain (72%) and Italy (66%).

The majority of more seasoned fintechs—those with over ten years of experience—expect growth (79%). Businesses in their earlier stages are marginally less optimistic; of those under five years old, 55% anticipate "significant" growth over the course of the next 12 months.

Regaining trust in the industry was closely correlated with a renewed emphasis on profitability—a goal that more than two thirds of those surveyed ranked as their top priority.

Attracting talent, investors, and customers are acknowledged as the top three factors—along with relative consistency across markets, business maturity, and size—that lead to successful expansion.

For 55% of fintech companies, acquiring and keeping customers is the primary goal; for Italian companies, this number rises to 71%. Bigger, more established players give this more weight than smaller, more recent outfits.

Obtaining funds from investors is also very important; according to 45% of European fintech leaders, this is the strategy they prioritize when looking to expand.

European fintech companies are up against not only the rest of the IT industry, but also competitors from America, Asia, and the Middle East, where benefits and pay may be more alluring, in the talent war. Thus, in the upcoming year, finding the proper talent will be a top priority for two fifths of the respondents.

"The sense of optimism returning to Europe's fintech sector represents more than just a shift in sentiment," states Nick Woods, head of financial services at MHP Group. Leaders who have endured difficult times are using their acquired knowledge to direct their expansion plans.

"A more mature approach has dawned with a sharper focus on profitable growth, replacing the heady days of cheap money and a scale at all costs mindset."