Optimism is returning to Europe's fintech sector, driven by consolidation and embedded finance, with leaders focusing on sustainable growth and collaboration.

After a challenging period for the fintech sector in Europe, marked by a downturn in 2023, optimism is slowly returning among industry leaders in 2024. Factors contributing to this shift include increased consolidation activity and the rise of embedded finance as a primary growth driver, particularly in areas like payments, lending, and authentication. Larger players are capitalising on acquisitions, while pragmatic strategies and collaborations between banks and fintechs are reinforcing sustainable growth. The mood at major industry events reflects cautious optimism as the sector prioritises proven technologies and positions itself for a robust future.