Fintech experts believe Covid-19 will drive sector growth despite immediate challenges
The report, ‘Fintech Driving Global Change: Building a Better Future’, is released by global communications agency FleishmanHillard in partnership with Money20/20. Some of the key findings include:
- Lack of seed funding: 68% think early stage fintech startups will find it more difficult to secure funding, while 87% do not think late-stage fintechs will be affected. A further 44% believe B2B companies will prove more attractive for investors than B2C companies;
- Focus on profitability: 80% think that fintechs that have built successful platforms through partnership models are more likely to achieve profitability, and 40% cite expansion into new areas and diversifying their offering as the most crucial factor to long-term success;
- Spike in M&A: 90% believe there will be a spike in fintech acquisitions. As many fintechs are cash crunched, this could present a clear acquisition opportunity for strategic acquirers;
- Serving customers’ changing needs: 77% expect to see an increased focus on customer experience as fintechs and financial services organisations strive to build their reputation;
- Driving economic recovery: 62% believe Covid-19 has highlighted the need for further innovation in lending for both SMEs and consumers; 53% say this is closely followed by payments and money transfer as more people move to digital payments.
The poll surveyed over 60 fintech and insurtech experts globally including AXA Investment Managers, Currencycloud, Klarna, Ripple, 11:FS and DocDoc – providing predictions for the future of fintech and how it can help drive economic recovery, particularly by helping support the needs of financially excluded groups.
Source: The Paypers