We are living the second wave of fintechs. After the initial boom marked by the appearance of new innovative proposals, products and customer journeys, we are beginning to see which business models in this segment have proven to be truly sustainable and which have a real chance of lasting and growing.
Now that the market is more mature, we can see a rapprochement between fintechs and traditional financial institutions. In this way, A strong trend that we can analyze is the emergence of solutions that enable and facilitate the digitization and repositioning of traditional banking, such as: construction of BaaS and CaaS APIs linked to the banking core, cloud solutions, and solutions focused on customer experience. Username mainly for the incorporation of new clients and also crypto-as-a-service solutions such as Mercado Pago and Nubank, among others.
María Cristina Kopacek, co-founder of Idez, points out that a second trend is the intensification of customization and niche market.
“In the first wave of fintechs, we saw the emergence of many consumer solutions. With the increase in competitiveness and the cost of acquiring this PF client in open market strategies, everything indicates that fintechs will increasingly focus on the PJ market niche, especially in solutions for SMEs, where there are still a lot of opportunities. Of course, we cannot fail to mention the evolution of embedded financial solutions, which should become more robust and expand into new market segments.”, comments Maria.
For Maria Kopacek today, Connecting financial transactions is already a feasible reality for ERPs, SaaS platforms in general, and retail systems—in other words, technology-savvy companies. However, it is new to several other segments that are still figuring out how to participate in this movement and what solutions fit their product and audience. When we talk about solutions we go beyond digital accounts, we are putting the financial product here as a means and not as an end, after all nobody wants to acquire financing, they want to have a car; no one wants a credit card limit, they want purchasing power. Integrated finance is the tool that connects the user with what they really want and need. Knowing how to implement this within your solution and/or product is the key to being successful in this new market..
Finally, a general trend beyond the payment methods market is the more careful search for business models and sustainable growth strategies focused on generating value for all stakeholders: users, fintechs, partners and investors.
“We can list three main trends in the segment for the coming year, they are: Evolution of the market niche and creation of more personalized solutions, even at the user level; growth of solutions focused on SMEs and expansion of Embedded Finance to new segments, plus learning and maturity of applicationsKopacek continues.
María believes that if we stop to make a brief analysis of the market so far, during all these years banks have managed to build robust, secure structures and a broad portfolio of solutions (much larger than fintech). The big challenge here is creating the technologies, processes, and partnership models to enable this core banking, regulatory, security, and compliance infrastructure as a service in an efficient, viable, and secure manner.
“A scenario of change always generates more negative expectations at first because it is a context of doubt and speculation. As for the payment methods market, regardless of this scenario, we see a positive scenario of evolution and development that depends less on the figure of the president himself, and is more driven by the evolution trend of user behavior and technology.“. concludes the co-founder.
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