Assignment - The Old and The New in Fintech

Fintech 101
#43

In the US 1 out of 3 customers using digital services uses two or more fintech products. As of 2018 the US accounts for more than 55% of the fintech market. Most of this boom can be attributed to mobile payments.

We already know that fintech products offer more than Legacy banking systems do so in my mind the obvious elephant(s) in the room, as far as the US is concerned are stable coins/CBDCs. Just within the last month the OCC ruled that state and federal banks can use stable coins for settlements. So…when?

I can imagine using DAI to pay my bills, wonderful - or rather as a MahaDAO early adopter…ARTH. If I had my way I would exit fiat completely and operate solely within crypto/digital payments. I hold physical assets as well, I would just prefer they not be in the form of fiat.

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#44

In Spain, we have many Fintech see below map:

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Many Fintech are located in the Borrowing/Lending, Investment, Payment, Insure.

I would say the underserved field is Save. There are not Fintech serving savings, maybe that is why Crypto is so disruptive with DeFi.

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#45
  • Chime (Saving ) is a pioneering mobile bank that offers no-fee and automatic savings accounts as well as early payday via direct deposit
  • Tala ( Loans ) Tala offers the world’s most accessible consumer credit product, instantly underwriting and then disbursing loans to people who have never had a formal credit history, all through a smartphone app. Loans range from $10 to $500.
  • Pitchbook (Saas) is a SaaS company that delivers data, research and technology covering the private capital markets, including venture capital, private equity and M&A transactions
  • Avant (Loans) formerly AvantCredit, is a private Chicago, Illinois-based company in the financial technology industry
  • Braintree (payments) "Braintree provides the global commerce tools people need to build businesses, accept payments, and enable commerce for their users. It’
  • Morningstar(investor tools/0 Our independent research, ratings, and tools are helping people across the investing ecosystem write their own financial futures.
  • Robinhood (investing) The company offers a mobile app and website that offer people the ability to invest in stocks, ETFs, and options
  • Acorns (investing) that specializes in micro-investing and robo-investing.
  • Brex(business accounts) Brex Inc. is an American financial service and technology company based in San Francisco, California. Brex offers business credit cards and cash management accounts to technology companies.
  • Varo Money(Neo bank) Varo is an American mobile only neobank based in San Francisco, California. The company provides financial services through its mobile app and currently has 1 million customers
  • Blend (lending) Explore the leading digital lending platform for streamlining mortgages , consumer loans, and deposit account openings.
  • TrueAccord(debt collection) s a digital debt collection agency that is reinventing the collections
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#46

Amazing! I learned about some new fintechs I didn’t know about :smile:

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#47

Boston is a world education and innovation hub and I think is standing in a good position when it comes to the fintech space. Recently Mass Mutual made the headlines by investing a small percentage of their portfolio in BTC.

There is an upcoming MIT Fintech Conference in March 2021 and we are expecting the Boston FinTech Week in September. Hopefully, these events don’t get postponed or canceled.

https://www.builtinboston.com/companies/type/fintech-companies-boston

https://www.bizjournals.com/boston/subscriber-only/2020/09/24/largest-fintech-companies-in.html

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#48

Fintech Startups in the Philippines
The Philippines is currently home to more than 190 fintech companies, with lending (24%), payments (21%), digital wallets (12%), and remittances (12%) being the four most predominant verticals.

:face_with_monocle:Opportunity: With only 29% of adults in the Philippines having bank accounts, it is unsurprising to see a large number of startups within the lending space attempting to tackle this issue.

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More: https://fintechnews.sg/43467/fintechphilippines/fintechnews-ph-launches-fintech-philippines-report-and-map-2020/

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#49

Hello,

I have found this map of all of the Fintech in Switzerland, it is very handy
https://fintechmap.ch/map/

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#50

Fintech Startups in Portugal

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#51

Thank you for screening different fintechs in your region. :smile:

Could also expand on what areas you feel may be underserved in your region to finish the assignment?

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#52

My region: Brazil

“there are in total 377 fintechs spread over 12
areas in Brazil with the biggest areas being Payments and Remittances (electronic money transfers), Enterprise Financial Management (organize financial data for companies), Consumer and Business Lending. Although not the biggest areas, the fastest growing areas are Digital Banking and
Investments in Wealth Management and Markets & Trading. The most well-known and biggest fintechs in Brazil are in the areas of digital banking (Nubank) and payments (Stone Pagamentos and
Pagseguro; both companies recently had an IPO2 in the US)”

Source

So, being Brazil the gate for wider Latam market, I big opportunities in:

Insurance
Borrowing
Investment

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#53

Based on my research I found something interesting on the Swiss Skills shortage in this article: https://ssi.springprofessional.ch/en/swiss-skills-shortage-index-2020/

IT sectors in Switzerland si growing very quickly but with a lot of need of professionals in these sectors, Fintech is growing very quickly was and Switzerland has high finances professionals but lack of IT professionals. this is a great opportunity for someone how will be able to create a recruit porta to serve the Fintech Industry.

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#54

UK is a well known world’s capital of Fintech.
Difficult to say what we don’t have. 1373 companies have been registered since 2011
Of those 1,373 companies that are still active and operating in the private market, 71% are based in London—mainly the City of London and Westminster. Most of these 1,139 fintechs are in the seed (45%) and venture (34%) stages of evolution, indicating that this is a burgeoning sector with plenty of room for growth. An impressive 88% of companies secured investment since 2011 – significantly higher than the sector-agnostic average of 55%.

What is really empty niche is real estate which run by a very routine way in the uk. Letting agencies are good candidates to be embedded.

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#55
  • Make a screening of existing fintechs in your region using google and map out which kind of banks they are focusing on.

At first I search FinTech in SE Asia and found that my nation is not as active as Singapore or Indonesia. My sister is actually working on a new FinTech start up in Thailand. Anyway I use this link for this discussion.
https://fintechnews.sg/44329/thailand/fintech-thailand-startup-map-2020-showcases-growing-industry/

Here’s my assessment, financial market is highly regulated because it is dominated by large incumbent banks which act somewhat like an oligopoly. But there is room for micro loans. And as you suggest in the lecture, large banks carry a big burden of their traditional legend data. As a consumer, we are already exposed with B2C FinTech like Rabbit, GRAB, Lazada and some other lifestyle wallet apps. Cryptocurrency is becoming more well known with the sharp rise of BTC’s price. This actually caused the exchange market for Cryptocurrency BitKub’s network failure in January.

The area of focus can be segmented into main areas like you explained in BAAS. Initially, consumers get comfortable with daily use of Rabbit (wallet card for Metro services), shopping on Lazada platform for convenience and cheaper prices, GRAB for messenger and food delivery (hugely expanded during 2020 due to COVID-19), etc. Now we begin to see more services expanded to investment areas like FInnomena which provide lower cost to purchase mutual funds and lowering the initial sum of investment to acquire a personalized investment advisor.

All in all, Thailand should see an exciting growth of FINTECH over the next 10 years because the country will need also the infrastructure for the expansion as well as knowledgeable workers to provide much needed services.

  • Estimate the areas that are currently underserved in your region (in other words, where the opportunities are)

I mentioned this on the last paragraph of the above reply. To summarize, these areas should see explosive growth for the next decade.

  • micro financing - needed for smaller SMEs especially to cover their A/P and expansion - this area is problematic in most countries where incumbents don’t have time to pursue or view these as too small.
  • integration of digital payment to existing retailers
  • infrastructure of FinTech development both as in terms of software and hardware
  • education for both the operator and for the regulator
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#56

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#57

https://thefintechtimes.com/greater-manchester-has-largest-regional-fintech-ecosystem-report-map/

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#58

Here is a list of the top 25 Fintech companies by Venture Radar. I hadn’t heard of quite a few of these and some are very interesting. When doing research I noticed that there is a lot of distrust in many fintech companies when it come down to data sharing. When these companies are outsourcing products to other companies, I can see why people may see this as a concern. Blockchain could be the solution to this?!

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#59

A good article, no shortage of work in fintech for you!

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#60

20200409__20200412_-irish-fintech-companies-v3.0-fintech-ireland-peter-oakes
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Most of there companies I have never seen before, however I believed we are missing some sort of bank using block chain infrasture , we people can trust y feel secure

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#61

Here in Brazil we have over 740 fintechs!

Below link show the Top 10 Fintech companies here in Brazil! Nubank between then.

https://payspacemagazine.com/fintech/10-best-players-of-the-brazilian-fintech-market/

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#62

UK Fintech Market Map & Opportunities

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Looking at the map we can see that Insurance is currently underserved in the Uk which would provide the greatest opportunity for starting a Fintech.

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