A look at the latest fintech trends for 2022 from Money 20/20 Europe
The Money 20/20 Europe fintech conference was held in Amsterdam this June, bringing together leading entrepreneurs, analysts and startup investors from across the fintech sector. But which hot topics were on the table?
Let’s take a look at some of the key fintech trends, insights and facts you need to know about as we move into the second half of 2022.
Investors are backing the digitisation of payment processing
Investment in fintech firms by global venture capitalists fell 18% in Q1 2022, according to CB Insights. This drop in funding is possibly due to concerns about a recession on the horizon. However, it also means that investors are being more selective about the fintech firms they choose to back.
At Money 20/20, it emerged that it isn’t previously red-hot sectors like crypto that investors are pouring their money into. Instead, it’s the digitisation of business payments, and how the processing of payments can be easier for both businesses and their customers.
Writing on CNBC.com, tech correspondent Ryan Browne explained how the fintech investment landscape has shifted over the last few months:
“That’s led to something of a rotation out of certain pockets of fintech that were hyped by venture capitalists last year, such as crypto and “buy now, pay later,” and into less sexy areas focused on generating stable streams of income, like digitizing payment processing for businesses.”
Investors are now looking for the next big ideas in the digital payments space, and buzzwords like ‘open banking’ are increasingly in use.
Open banking has been around for a while, making it easier for non-banks to develop personalised financial products by linking directly to customer bank accounts. But fintech firms are now using this technology to facilitate payments, and this has caught the eye of investors.
Embedded finance – in companies that have nothing to do with finance
Another hot industry trend is embedded finance, where companies far outside the financial world offer their own financial services and products. For example, a theme park operator like Disney offering its own bank accounts for use in its parks.
To make embedded finance happen in a company that isn’t already set up for it, you’ll need a lot of work and expertise happening behind the scenes. And this means using third-party experts to integrate financial services.
Iana Dimitrova, the CEO of embedded finance software company OpenPayd, explained at Money 20/20:
“You can either start building the tech yourself and start applying for licenses yourself, which is going to take years and probably tens of millions in funding, or you can find a partner.”
Looking for your new opportunity in fintech, or the brightest talent to drive your projects forward? Whether you’re job hunting or hiring, our specialist fintech recruiters here at M-Wek are perfectly placed to help.