Fintech companies focus in my region (US) focus primarily on services for capital markets, payment and settlements, lending, wealth management. Insurance is under served, and so is security and identity management–both these areas would be great for implementing blockchain technology for smart contracts and extra security layers. Insurance is under served because of scaling issues.
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Hi everybody,
Another member from Australia here, so I’ll try to add to what has previously been provided by other Aussies.
@Roger777 : Assignment - The Old and The New in Fintech
@Yeleva : Assignment - The Old and The New in Fintech
The opportunities are limited as the market has been so readily embraced by many startups and co-ops. Maybe there’s opportunity to work with government/country level banks, but that has already well established players, BPay/Osko, that provide the payment rails and infrastructure that has all the necessary regulatory framework incumbent within it. Looking through the Fintech registry, it is apparent that Wealth Management (e.g. GBST), Corporate (e.g. Trade Ledger) and Government (e.g. Civic Ledger) are all well represented now, where they weren’t 3 years ago.
Given the level of maturity in the market, I’d really need to spend more time to look at the offerings of each of the Fintechs, as there are many who’ve entered the market targeting consumer/retail, SME, but their aspirations are to provide the full suite of banking products, across the entire range of banking customers, so whilst it would be easy to preclude some based on their marketing now, when you dig deeper, you might find they have big plans to challenge the bigger, high-net-worth players in the market.
Still loads of opportunity, but difficult to easily identify the underserved areas.
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Well known fintechs In the United States: (these figures were of my own analysis and may be subject to human error)
Savings banks - 4.66%
Lending Banks - 27.24%
Investment Banks - 15.89%
Borrowing Banks - 6.81%
Payment Banks - 31.78%
Insurance Banks - 13.62%
With overlapping included of the banks that fit more than one type of banking under their services.
Payments and Lending were of the highest served (Good old fashion American Debt.)
I tend to see savings more as investment but long term. Borrowing and savings were of the lowest found. Those may have a greater opportunity in the US in the future.
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Payments&Remittances make up the largest percent of Market Followed by
Consumer lending
Enterprise Financial Management
Crowdfunding
Personal Finacial Management
Business Lending
Enterprise Technologies for Financial Institutions
Insurance
Wealth Management
Trades and markets
and finally Digital banking and Crypto payments
Digital banking and crypto payments being newer niech markets here in Mexico are underserved yet are still largely undiscovered as well.
as it’s the germans most favourite thing Fintechs in the area of saving are over represented. The area of investment is not very exploited eventhough some bigger Fintechs already exist in this area, here might still be opportunities
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I am based in the UK and the following is an analysis of the market there.
https://www.beauhurst.com/blog/fintech-startup-companies/
Majority of the fintech companies are London based which is the financial hub of the UK if not Europe(world).
Looking at this data the main markets being focused on are retail and investment, which is not surprising since you mentioned the way banks make money!
From my dive into the market there seems to be opportunity in the insurance area fintech market the UK.
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Traditional banking in Iceland:
Comercial banks: Landesbankinn, Îslandsbanki, Arion Banki, MP Banki
Central bank: Seðlabanki Íslands
Investment banks: ALMC hf, kvika bank
In Iceland everything ís located in Reykjavík:
The icelandic fintech cluster:
https://en.fjartaekniklasinn.is/
Akureyri in the north starts to grow, because there ís á big university. So fintech companies should be focused to the north. Furthermore the government of Iceland wants to support the east. There are important habours and because of the silk road fintech solutions will be very important for this area.
Innovative Fintech services Iceland:
Algrím and Ripple: on demant liquidity, trading and exchange, cryptocurrency in the Local marketplaces
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- This is probably one of our biggest areas that they are currently focusing on in South Africa.
SME banking
While 2019 saw the introduction of consumer digital banks such as TymeBank and Discovery Bank; in 2020 the focus will turn towards the SME market.
Following its R3.56 billion takeover of Mercantile Bank earlier this year, Capitec Bank has shown that it views the SME and entrepreneurial sectors as providing significant growth opportunities. We expect them to do for SME banking in 2020 what they did for consumer banking over the last decade.
Bank Zero will also be launching, and it will be interesting to watch how this digital bank will put more pressure on the incumbents to innovate.
FNB has already responded to the influx of digital SME banks with the launch of its First Business Zero account. Designed for digital-savvy sole proprietors, this account provides zero-rated account fees to entrepreneurs and includes unlimited free card swipes.
Mobile point of sale (mPOS) players like Yoco and iKhokha are also making further inroads in the SME market – with more than 100 000 small businesses already part of their payment network.
Fintechs vs the incumbents
Who’s going to win or is there space for everyone in fintech? We will see agile incumbents competing with the rising fintechs and insurtechs.
The new entrants in banking, Tyme and Discovery; in insurance Naked and Pineapple, and in online investments OUTvest, Franc and Easy Equities, will continue to gain traction.
Some of the incumbents will change to compete, and those that can’t will become irrelevant. Incumbents like FNB and Capitec are poised to become formidable players to compete digitally with Tyme and Discovery. Insurers like OUTsurance have focused and improved digital capabilities substantially.
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My country is Latvia
From all of these, I have only heard about 7.
I think that there is still opportunity to create a startup for saving. Also I am surprised about so many start ups in blockchain field, so there also must be an opportunity to join in.
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Total fintech companies in Italy:
• 71 on crowdfunding (borrowing)
• 35 on analysis data, machine learning and artificial intelligence (basically investments)
• 34 on smart payments
• 30 on lending services
based on this analysis and comparing the list of the six financial activities in the course I can say that in Italy at the moment the best fintech opportunities are on crowdfunding and investment and payment
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From the data reviewed - significant FinTech approach opportunities exist (are immerging) within the public service and government sectors.
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In Japan, there are many existing fintechs in many areas such as payment, borrowing, saving for individuals and institutions, insurances, securities, P2P lending, crypto exchanges, and cloud funding.
It is very hard to find underserved areas, but I think that blockchain/crypto areas are still very small compared to other areas.
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I feel I need to do more research to find where the opportunities are. However, from simply researching these few firms, I can already see job opportunities here. This was a great exercise!
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http://jaypalter.ca/wp-content/uploads/2019/03/Columbia-fintech-ecosystem-Logos-SIN-FN.001.jpeg
In my country there is a lot of opportunities are on investing and saving.
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Found on duckduckgo, looking into it majority of fintech companies are in California and some others around the east coast. Would be an opportunity in the Northwest part MT,ID,WY area. Not sure if Kraken bank license in Wyoming counts for Fintech but believe that is still in progress
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There are a huge amount of Fintech in Sweden and looking at a mapping of the ones serving corporations says a lot.
I think there is a very big opportunity to serve those who want to invest in the crypto market combining personal service and easy interfaces.
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Not based on the image but other research. Agricultural banking is under-serviced right now.
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There are a very large number of Fintechs operating within or from Australia, including some blockchain companies. Some of the latter are basically exchanges, whilst there are some that aim to apply blockchain to other industries, eg travel, personnel hire, agriculture supply chains.
There do not appear to be many fintech companies using blockchain technology and I think this is an opportunity. Blockchain would clearly lower costs by reducing transaction fees and potentially eliminating fraud. For example, “Buy Now, Pay Later” has become very popular in Australia and is also taking hold in other countries. It essentially pays merchants upfront minus a discount and then takes full payment from the customer in instalments. Transaction fees and fraud are two of the biggest contributors to the costs of these companies.
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