Name: What’s hot, what’s not in fintech
Uploaded: 2023-08-16T11:54:35.103Z
Duration: 254.52
Description: Three seasoned fintech investors reveal which solutions and sectors are seeing the biggest cash injection, and on the flipside, which areas of fintech are currently not feeling the love.

ADF_2023_08_10_FINTECH_WHAT'S HOT WHAT'S NOT_V03_1.mp4

ADF_2023_08_10_FINTECH_WHAT'S HOT WHAT'S NOT_V03_1.vtt

English

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And where I'm seeing the most investments

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is actually in the intersection of

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embedded FinTech and the future of work.

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They're combining two things that used

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to be combined, maybe even a hundred

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years ago, weren't really combined

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in the latter part of last century,

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but now it's being combined again.

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And that is if I need money, I can

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go and get a loan or it can work

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to get a paycheck, and I can get

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money in one of these two ways.

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If you embed financial services

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into the  workplace, You get both

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of these things under one roof.

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And what's more important is that

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there's a huge data advantage in doing

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this because now the person that's,

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you know, doing financial services

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also know my work history and that's

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something that traditional banks

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really didn't have direct access to.

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I think we're, probably seeing

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the most money being put into

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things like climate change from

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a financial services perspective.

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A lot of the larger financial

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institutions also have mandates to back

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companies innovations and technologies

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that are gonna help them and their

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customers get closer to net zero.

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And so what we're seeing is large

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institutions and investors are all

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plow a lot of capital into that

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space in order to make a difference.

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It's also really kind of

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financially savvy, right?

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If we think about where upstream

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investments gonna happen, where we think

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the future IPOs are gonna happen, my bet

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would be that things like alternatives

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in terms of energy and things that are

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gonna help us reduce climate change,

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that's gonna be the major win.

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We're seeing FinTech following that trend.

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Well, I would mention a

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few spots within FinTech.

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There is definitely revenue

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based finance, which is one spot

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that has attracted attention.

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Another one is Buy Now, Pay Later for B2B.

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So the side of it, which serves

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corporations instead of individuals.

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And the more broadly

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like embedded finance.

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The, ability to apply financial

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services and lending activities to

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marketplaces and ecosystems of consumers.

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There is a certain amount of hype

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in some areas and you know, the

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movement forward was a bit too fast.

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What's interesting about FinTech

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is that it combines fin and tech.

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And a lot of people that come at it

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from the tech angle don't understand

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the fin angle, and in particular,

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they don't really understand the

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regulation and how regulators think.

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So one area that's been felt the

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most, I would say, is something

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like ICOs, initial coin offerings.

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A lot of people didn't realize

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that the regulator would

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consider these to be securities.

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And securities are regulated for good

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reason in a very specific way, and

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that good reason being to protect

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the consumer and retail investors.

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So I think there was a lot of

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boom and activity there, and the

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regulation wasn't really forefront

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for a lot of people in their minds.

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So I think that's been an area where

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people realize, well, if these are

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securities, the regulators will

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come and regulate them as such,

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and some of these models may not

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work under those circumstances.

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So I definitely think when it comes

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to cryptocurrencies and the blockchain

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we're kind of in that dip, if you

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think about the Gartner hype cycle.

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We went through a huge inflation.

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We went through a huge element of

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popularity, and then it really kind

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of declined previously through things

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like ICOs and more recently through

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things like FTX and what's happening

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with the regulatory environment.

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I do think these things will see a

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rebound, but for now, FinTech financial

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services investors in these industries

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and retail and business customers

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are really focusing elsewhere, rather

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than doubling down on investments

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they might've made in that space.

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Well, I would say that you know, some

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of the areas of FinTech, which have

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lost the popularity in recent times

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have, definitely been the peer-to-peer

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activity and the peer-to-peer lending.

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That is the concept of effectively

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individuals lending to other

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individuals within the marketplace.

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Clearly, we have seen a decrease in

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popularity of those lending activities.

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It has become clear and clear that

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institutional capital institution

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versus are required if that the

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asset class of intech lending is so

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sustain itself for the long term.

And where I'm seeing the most investments

We're seeing FinTech following that trend.

Another one is Buy Now, Pay Later for B2B.

marketplaces and ecosystems of consumers.

FinTech Futures

Trend

Three seasoned fintech investors reveal which solutions and sectors are seeing the biggest cash injection, and on the flipside, which areas of fintech are currently not feeling the love. 

Regulation

Climate Change

Fintechs

Investment

Lending

Crypto

Interest rates

Inflation

Fintech

AI fintech

Artificial intelligence fintech

Fintech startup

Fintech start up

Financial startup

Digital lending

Lending technology

Fintech investing

Embedded Finance

Alt lending

Startup

Cryptocurrency

Startups

Fintech Solution

Green Investment

Ethical Investment

Economic Outlook

Financial Investment

Bitcoin

Impact investing

Trends

Crypto Assets

Industry trends

Workplace

Environmental

Recession

Future of Work

Macroeconomic Outlook

Investment Trends

Alternative Lending

BNPL

Market trends

Global macroeconomic

Tech investing

Sustainable Investment

Sustainable Investing

macroeconomics

Securities regulation

 Inflation

Cost of borrowing

Funding

Green Banking

sustainability investing

Challenging Economic Environment

Macro Trends

 rising interest rates

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Yusuf Özdalga

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Founder, General Partner

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What’s hot, what’s not in fintech