Fintech Market Insights

What are the trends that will shape fintech in 2026? Here is my top 10 list. 𝟭. 𝗦𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻𝘀 as settlement infrastructure Stablecoins will be used at the settlement layer of financial services to bypass cross-border delays, cut-off times, trapped liquidity, and fee opacity in existing rails. They will sit underneath banks and payment schemes for specific B2B, treasury, and platform payout flows rather than replacing them. 𝟮. Commerce and payments become increasingly 𝗮𝗴𝗲𝗻𝘁-𝗱𝗿𝗶𝘃𝗲𝗻 An increasing share of commerce and payment activity will be initiated by software agents outside of pilots, as shared protocols, governance models, and accountability frameworks compete for adoption across the value chain. 𝟯. 𝗙𝗶𝗻𝘁𝗲𝗰𝗵𝘀 reclaim the 𝗯𝗮𝗻𝗸𝗶𝗻𝗴 stack More fintechs will pursue banking licences to gain direct control over deposits, settlement, and economics, primarily to reduce dependence on sponsor banks and external balance sheets rather than to operate as full-service banks. 𝟰. The rise of 𝗔𝗜-𝗻𝗮𝘁𝗶𝘃𝗲 fintechs A new generation of fintechs is being built with AI embedded into core operations by default, allowing them to operate at lower marginal cost and handle higher volumes vs. legacy operating models. 𝟱. The 𝗮𝗴𝗲𝗻𝘁𝗶𝗰 𝘄𝗮𝗿𝘀 escalate As AI agents become widespread, incumbents and challengers will increasingly compete for control of the agentic layer. Incumbents will embed agents into existing platforms, while challengers will position agents above multiple services to capture distribution. 𝟲. Fintech play moves 𝗳𝗿𝗼𝗺 𝗯𝗿𝗲𝗮𝗱𝘁𝗵 𝘁𝗼 𝗱𝗲𝗽𝘁𝗵 Fintech competition will shift from broad coverage to execution within specific industries. Advantage will come from handling sector-specific cash flows, risk, and workflows, favouring embedded vertical players over horizontal platforms. 𝟳. Increased fintech 𝗰𝗼𝗻𝘀𝗼𝗹𝗶𝗱𝗮𝘁𝗶𝗼𝗻 activity Fintech consolidation will increase as firms acquire capabilities rather than build them internally. Infrastructure providers will add vertical functionality, scaled technology firms will fill capability gaps, and incumbents will consolidate for defense. 𝟴. 𝗙𝗿𝗮𝘂𝗱 shifts to agent manipulation Fraud will increasingly target agent-driven workflows rather than individual accounts or cards. Attackers will influence outcomes through input manipulation, synthetic interactions, and falsified context. 𝟵. Banks 𝘁𝗼𝗸𝗲𝗻𝗶𝘀𝗲𝗱 𝗱𝗲𝗽𝗼𝘀𝗶𝘁𝘀' play Banks will expand focus on tokenised deposits to retain control over settlement and liquidity, particularly in wholesale and treasury contexts. 𝟭𝟬. 𝗧𝗼𝗸𝗲𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻 moves to the infrastructure layer Tokenization will advance where it improves core market infrastructure, with adoption concentrated in wholesale uses such as settlement, collateral management, and fund administration. What's missing? Opinions: my own 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐦𝐲 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫: https://lnkd.in/dkqhnxdg

Playing the Greens: Market Insights in a Rapidly Changing Economy ⛳ We’re living through one of the most dynamic economic environments I’ve seen in decades. In a recent conversation with Greg Dowling at FEG Investment Advisors on the Insight Bridge podcast, we explored how powerful forces—AI, automation, fiscal dynamics, and structural shifts in labor markets—are reshaping growth, risk, and portfolio construction. A few themes that stood out: • Economic growth can remain strong even as inequality widens—creating new challenges for policymakers and investors alike. • The scale and structure of U.S. government debt make nominal growth and rate dynamics more important than ever. • As AI reshapes markets, true diversification requires being intentional about where risk is not concentrated. I also shared a few personal reflections—from investing to golf—on how discipline and adaptability matter in uncertain environments. Listen to the full conversation on the latest episode of FEG’s Insight Bridge. Link → https://1blk.co/3P311JG #Markets #Investing #AI #FixedIncome #Macroeconomics #PortfolioConstruction #Podcast

Is this the end of InsurTech as we know it? Every six months, we compile data on the European InsurTech ecosystem using market research, deal tracking, and our proprietary scouting tools. Below is a summary of our recent webinar, highlighting key KPIs, major trends, and future expectations. 1/ InsurTech KPIs Investment headlines often focus on declines, but the picture is more nuanced in InsurTech. While the number of deals dropped to 61 last year, total funding reached €820m, a year-on-year increase. France led in total funds raised (thanks to massive rounds by Alan and Akur8), the UK topped deal activity, and Germany lagged behind. Outside these core markets, Switzerland and Spain showed strong performance, particularly in "emerging risks." To me, InsurTech investment trends mirror global VC and FinTech dynamics, showing a post-peak stabilization rather than sector-specific decline. 2/ Major Trends The post-pandemic shift from “growth at all costs” to “profitable growth” is reshaping the ecosystem. Startups like Mila and Acheel (France), Clark (Germany), Cuuva (UK), and EIR (Sweden) have achieved profitability, with others aiming to follow by optimizing CAC/LTV ratios and operational efficiency. Meanwhile, private rounds and cost-cutting measures dominated last year, but consolidation is increasing. Allianz Direct was notably active, acquiring Luko, iptiQ, and Friday. CEO resignations were frequent in 2024, with 10 companies—including unicorns like Wefox and Clark—publicly announcing leadership changes. This reflects challenges & opportunities in navigating profitability and market shifts. 3/ What’s Next? a/ AI in Insurance With 30% of InsurTech funding going to AI-first companies, and 18% of deals focused on AI, automation is set to transform the sector. Agentic AI, predicted as the next wave of RPA, could unlock operational efficiencies across the industry. b/ Embedded Insurance Long discussed, embedded insurance is finally gaining traction. Platforms like Qonto and Ornikar did integrate insurance into their ecosystems, reflecting a broader trend where platforms adopt financial services—and insurance is the natural next step. c/ Emerging Risks Startups addressing risks like cybersecurity, carbon credit insurance, and climate-related threats are on the rise, accounting for 20% of deals last year. This segment presents opportunities for technology and data-driven solutions to support incumbents in managing new risks. #insurance #insurtech #venturecapital

Re-Bundling the Bank 💡 Costs are growing for fintechs, but it's not just higher interest rates affecting their margins. Customer acquisition costs (CAC) are also on the rise and contributing to overhead. In response, some fintechs are seeking partners with existing customer bases. In June, for example, eBay and Venmo announced a partnership, allowing shoppers to pay for their purchases with their Venmo balance or methods linked to their Venmo account. Other fintechs, including big names like SoFi, have applied for bank charters. There is also a move to diversify revenue streams, illustrated by Robinhood’s reduced reliance on transaction fees for the bulk of its income. Both trends underscore a clear reality: As fintechs get squeezed, it is less viable for them to offer single, standalone products 💳 At the center of these moves is a focus on customer value. One effective way to reduce CAC is offering customers value on the financial side through products that help build savings or offer rewards. Another strategy is to add products to an existing customers base. Driven by their customers' growing expectations for digital solutions, Large Financial Institutions are increasingly partnering with, investing in and acquiring fintechs, leveraging the functionality and customer bases that fintechs have built in their specialized areas. Acquisitions such as JPMorganChase’s purchase of wePay for payments are one way for retail banks to add capabilities without building them in-house. At the same time, strategic partnerships can create efficiencies in customer acquisition. However, achieving a proper win-win in those relationships can be difficult to strike 🤝 Fintech partnerships are intended to be symbiotic, with tech companies like Chime providing a user-friendly front-end while a chartered partner bank such as The Bankcorp or Stride Bank, N.A. provides the FDIC-insured accounts and handles risk and compliance. This allowed fintechs to walk like a bank and talk like a bank while leaving the actual banking to someone else. In the last decade, deposits in fintech partner banks have skyrocketed, growing 9x faster than deposits in small US banks overall 🚀 Regulators are stepping up their oversight by issuing 50 severe enforcement actions in the last six months. A lopsided number of these actions are targeting partner banks. Startups are responding to the increased regulation by beefing up compliance talent and by reviewing existing processes, in some cases severing ties with partners. That opens the door to AI-native startups who can meet a high bar for regulation. Source: Silicon Valley Bank - https://t.ly/LfKVy     #Innovation #Fintech #Banking #OpenBanking #EmbeddedFinance #API #BaaS #FinancialServices #Payments #Lending #Blockchain #Compliance 

🚨𝗝𝗨𝗦𝗧 𝗜𝗡: Plata Card raises up to $500M as it prepares to launch as a bank in Mexico 🇲🇽 Mexico’s FinTech momentum just hit another gear. Here’s what happened: • Plata secured up to $500M in financing, arranged by Nomura • Banking license approved in December 2024 — now in the final stretch before going live • Valuation already at $3.1B after a $250M equity round led by Kora Management • Backed by global investors from the US, Europe, Japan & LatAm • 2.5 million active credit customers • Heavy focus on proprietary tech + AI Source/more info: https://lnkd.in/d4anrrKi Why this matters: Mexico is quietly becoming one of the most attractive fintech banking markets globally: • Large underbanked population • Strong digital adoption • Regulators increasingly open to digital banks • Growing international capital inflows Plata moving from FinTech → full bank is another signal that LatAm neobanks are entering their scaling phase, not their experimentation phase. Next question: How many more LatAm FinTechs will make the same leap in 2026? Curious to hear your take.

In this week's blog we discuss: - Treasury Yields & Market Dynamics: The 10-year Treasury yield hit a 14-month high but retreated with positive inflation data, continuing to test market resilience as previous highs triggered notable pullbacks in the S&P 500 #stocks. - Historical Insights & Fed Policy: Historical patterns suggest bond yields peak at the end of Fed rate cycles, echoing past soft landings like the mid-1990s, with current trends indicating a similar path without reaching previous peak levels. - Inflation & Economic Indicators: Encouraging signs are emerging, with housing costs and wage growth slowing, aligning with the Fed's #inflation targets, despite persistent uncertainties in services inflation and potential monetary policies. - Strong Economic Fundamentals: The robust U.S. economy with solid job growth and consumer spending is projected to benefit from potential pro-growth policies, although concerns about stimulative fiscal measures and tariffs add complexity to inflation forecasts. - Earnings Season & Market Outlook: Impressive earnings from the banking sector signal strong macroeconomic health, with S&P 500 #earnings expected to grow significantly. Upcoming reports from major corporations like Netflix and key economic indicators will shape market sentiment and valuation trends.

I’ve been to more accelerator demo days than I can count, but this one was different. Innovation Day showcased impactful POC collaborations with FIS that are pushing the boundaries in fintech: 1. Prelim: A seamless integration pulling core data into treasury management documents, removing manual input and boosting efficiency. In partnership with FIS, this innovation transformed a bank’s workflow, making data entry accurate and fast. 2. RiskScout: As financial crime rises, RiskScout provides real-time solutions that streamline compliance, automate workflows, and ease BSA team workloads. Partnering with FIS, they tested transaction monitoring, risk scoring, and automation, setting a new standard for regulatory compliance at reduced costs. 3. Entrio: Simplifying vendor management, Entrio offers visibility into tech stacks, identifying and optimizing existing solutions. FIS worked with Entrio to clean and consolidate its own vast supplier network, unlocking new efficiency in vendor governance. 4. Spade: With real-time merchant intelligence, Spade identifies genuine merchant identities to enhance transaction clarity. A POC with FIS saw 96.4% of transactions accurately matched to merchants, improving approval rates while preventing fraud. 5. MoneyKit: Connecting fragmented financial accounts is key, and MoneyKit offers FIS a single API for five major platforms, driving seamless customer interactions. The POC demo showed how consolidating data can boost engagement and loyalty in digital banking. 6. Blooma CRE: Automating commercial real estate underwriting, Blooma’s cloud-based platform delivers faster and smarter insights. FIS’s POC confirmed Blooma’s potential to minimize implementation fatigue and manage risk, with AI adding value without replacing human judgment. Stay tuned for Part 2, where I’ll cover the remaining companies and panel takeaways! #fis #innovationday #fintechinnovation #ecosystembanking

Central America has a Banking Gap. A look at Latin America’s credit card penetration tells an intriguing story. While Chile, Brazil and even Venezuela (yes, Venezuela!) boast an incredibly high adoption, much of Central America remains almost entirely cash-based. Why does this matter? First, the stark differences within a region many would consider homogeneous is striking and shows how different user behaviour can be. But second, where some see challenges, others see huge opportunities. 💡 A booming middle class, rapid digital adoption, with a lack of accessible financial services create the perfect conditions for a fintech revolution. The bigger the problems the stronger the need to change something. 🔥 Venezuela’s high credit card usage? It became a necessity due to inflation making cash impractical. A handful of fintechs, in particular Cashea, that would be unicorns elsewhere have single handedly rebuilt the financial infrastructure of their country. 🚀 Brazil’s rise? Fueled by Nubank and PIX, democratizing banking access. I remember well my knowledge exchanges with Nubank at a time when they had just reached 5 million customers. Today they are at 120 (!) million. 🌎 Central America, in contrast? Still one of the most underbanked regions in the world—even El Salvador, despite making Bitcoin a legal tender. Having worked with neobank founders and their shareholders worldwide, I’ve seen this pattern before—from Eastern Europe to the Middle East and Africa. And the shift from cash-based societies to going full-on digital can happen fast. Many African nations even skipped credit cards entirely and jumped straight to mobile payments, e.g. via Wave Mobile Money in Senegal. Also Brazil’s PIX proves how quickly digital adoption can happen. 📢 The next wave of fintech disruption is coming to Central America. And I’m excited to support the launch of a new digital bank in the region and contribute my part to shaping this transformation. And once we've increased credit card penetration in Central America, who knows—maybe one day, even Berlin will finally go cashless. 😉 #Fintech #DigitalBanking #Banking #LatinAmerica

State of #fintech at the end of Q3’2024 by CB Insights Global Funding Trends: 🔵 Fintech #funding fell to $7.3B in Q3’24, a 25% quarter-over-quarter (QoQ) drop. However, the decline adjusts to 13% when excluding large deals from the prior quarter (e.g., Stripe, AlphaSense) 🔵 The average deal size in 2024 remains steady at $12.7M, reflecting a focus on fewer, higher-value #investments despite a 16% drop in total deal volume, reaching the lowest level since 2017. Geographic Insights: 🟠 Emerging Markets Lead Early-Stage Deals: 52% of early-stage deals occurred outside traditional hubs (e.g., US, UK), favoring regions like India, France, and Kenya Sector-Specific Trends: 🟢 Wealth Tech: Notable funding increase with a focus on solutions targeting niche demographics, such as medical professionals. #Wealthtech saw a 67% increase in funding QoQ, driven by significant deals such as Human Interest ($242M) and Earned Wealth ($200M) 🟢 Digital Lending: Continued activity in Asia and the US, with standout deals like DMI Finance ($334M) and MNT-Halan ($158M) 🟢 Payments and Insurtech: Both sectors experienced declines but retained pockets of high-value activity, particularly in #insurance #innovation Investor and Exit Activity: 🟣 #VentureCapital Shift: VC investments accounted for 29% of deals, highlighting a cautious but persistent interest in fintech 🟣 Exits: M&A dominated the exit landscape, with fewer IPOs or SPACs, indicating a shift toward #consolidation over public market enthusiasm. So what does all this mean for the near future? ♻️ We are entering a consolidation phase: With deal volumes at a historic low, the industry is undergoing a consolidation phase. Expect M&A to drive market realignments, especially in crowded subsectors like #payments and lending. ♻️ Increased focus on Emerging Markets: The shift toward less-crowded geographies reflects the untapped potential in markets like #Africa and parts of Asia. Companies targeting these regions may enjoy less competition and high growth prospects. ♻️ Selective Investment Persists: Investors are prioritizing fewer, higher-quality deals. #Startups will face increased pressure to demonstrate solid unit economics and scalability before securing funding. ♻️ Some Sectoral Bright Spots: The wealth tech boom signals a growing appetite for personalized financial management solutions. #Insurtech and #lending (especially in the small business) innovation remain attractive as they address core pain points with digital solutions. ♻️ Challenges for #Unicorns: The slowed rate of unicorn births underscores a recalibration of valuations. Companies aspiring to cross this threshold will likely need to showcase strong #profitability or growth metrics. Also, some of the existing unicorns 🦄 will lose their wings 🪽 if they test the market

Fintech Pulse Check: 5 Hard-Hitting Trends from Southeast Asia (& the Human Cost) Two weeks of whirlwind travel, back-to-back events, and countless conversations across Singapore and Indonesia have left me inspired, introspective, and eager to share the trends shaping the future of fintech and payments. But beyond the glossy presentations and networking events, here's what's really happening on the ground. Warning: Brutal honesty ahead. 5 Critical Trends I'm Seeing: 1. The AI Revolution is Reshaping Everything > AI is no longer just a buzzword; it’s driving efficiency, decision-making, and hyper-personalization across industries. > But also witnessing the human cost as traditional roles get automated 2. Digital Assets & CBDCs Are More Than Just Hype > Central Bank Digital Currencies are moving from discussion tables to pilot programs, with governments exploring how to balance innovation with regulation. > Payment providers pushing innovation boundaries > Yet regulatory challenges remain a major hurdle 3. Cybersecurity as a Priority, Not an Afterthought > With increasing digital transactions, ensuring secure ecosystems has become critical. > Collaboration across borders to combat fraud and data breaches is growing stronger 4. Connecting Communities Through Payments
> Beyond transactions, payments are becoming a tool for economic inclusion, bridging gaps between countries, businesses, and underserved populations. 5. Innovation in AI, Cloud, Blockchain, and Data
> These pillars are transforming how businesses operate, offering speed, scalability, and actionable insights that can reshape industries. Let’s also address The Silent Crisis, I observed - >Startups Running Out of Runway > Skilled Workers Losing Jobs > C-Level Leaders not finding the roles they left in their last organisation * The human toll is real and heartbreaking * Difficult conversations happening behind closed doors * Watching brilliant teams struggle with funding delays * This phase is testing our resilience as individuals and as a community. We have to come together and help each other to tide past this very difficult phase, with no real end in sight. In times like these, when the challenges seem insurmountable and the horizon offers no clear end to the storm, we must find strength in each other. Every burden feels lighter when shared, and every struggle is less lonely when faced together. This phase isn't just difficult; it's breaking spirits, testing limits, and leaving many wondering how to keep moving forward. But together, we can create hope where there seems to be none. What trends have you noticed in your industry or region that align with—or diverge from—these?Share your insights below.