London Daily News

How a London-based fintech grew into a global business in 2022

Dima

Established in 2016, payments fintech Clear Junction has enjoyed a lot of success over the past couple of years, and if you ask their CEO, Dima Kats, he will say that comes down to ‘doing the right things, doing things right, and a little luck.’ That mindset has propelled the company into becoming the fastest-growing founder-led firm in the UK.  

Dima’s approach to Clear Junction’s growth sets an example for London-based entrepreneurs and start-up businesses. Focusing on what is happening now – and how to capitalise on that – allows them to bring the best solutions to customers, whilst maintaining a view of longevity. Since 2021, Clear Junction’s revenue has increased from $4 million to $35 million.  

Catalysts for rapid growth success in tumultuous circumstances 

In 2020, the pandemic represented a challenging time for all businesses as they scrambled to adapt to the pressures of the lockdown. Now, at the tail end of 2022, the looming threat of a recession poses a new threat to the security and growth of businesses based in the UK. Across all markets, the threat of recession is forcing many business leaders to become more efficient regarding their spending and budgets – with the view that adopting a ‘leaner’ operation during these tough times will lead to a more resilient organisation.  

For a growth-centric organisation such as Clear Junction, striking the balance between operational security and taking risks is difficult.  

Choosing to scale a company during a recession is a high-risk gamble with potentially high returns. As companies look to tighten their operations, a gap in the market emerges where business leaders can look to take a bigger market share.  

Maintaining a near-future view to create growth both in the short- and the long-term 

There are three major benefits to scaling a company in an uncertain economic situation – all of which revolve around the fact that there is often less competition. First, in an economic downturn, restructuring and layoffs happen, and companies can lose some of their best employees. A larger talent pool of qualified professionals is a core feature of growing the company to match long-term growth plans. When money is tight, the talent pool can shrink.

Second, marketing budgets are often one of the first areas of a business that leaders will look to cut during a recession. This creates an open field where the fight for advertising space is easier and cheaper.  

Third, a company with the available capital can adjust its pricing to remain competitive during difficult times. Organisations often have to reduce prices to entice clients – especially if said clients face financial challenges. Flexibility in pricing helps support financial institutions – while the margins might be tighter, new business is secured, and clients can continue operating.

Dima believes that although the possible recession will be a challenge for Clear Junction and the payments industry, there are still opportunities to grow. 

“Much like other industries, for players in the payments landscape, the possibility of recession is a challenge. This is because, at its core, a recession affects real consumption, which is the base layer of payments industry growth. However, there is still more investment money available and opportunity for growth, but the reality is that during a recession, investors take fewer risks and take longer to make investment decisions.”

“I believe the payments industry has a more nuanced outlook than current valuations imply. There are many aspects of payments that may be more resilient in a recession than many investors expect, creating the potential for enormous investment opportunities.” 

Over the next 12 months, Clear Junction has plans to further develop its product offerings and expand geographically to take advantage of the opportunities that are still present during economic hardship. Having a flexible strategy that can be adapted for an unpredictable future is essential.

How to be both a local and global business by facilitating international business connections in the truly digital landscape of the future 

Focusing on a strong operation for both local and global needs is crucial to future success, especially for fintech and payments. At a time when competition for business deals globally will likely be reduced, ensuring that your organisation has the widest range of potential partners will allow you to secure the best deals.  

A robust digital business strategy is essential for long-term economic success and part of that robustness is the flexibility to adapt to constantly shifting global macroeconomic influences. Clear Junction’s plans to expand into new geographic areas and to provide payment solutions to new audiences across the globe make that flexibility even more crucial. Growing a business in 2022 is an intimidating but exciting prospect – one that necessitates the need for organisations to adapt to uncertain times. 



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