Fintech has been touted as the future of finance for quite some time now. Everything is becoming fintech and fintech will become everything, possibly. Although, for fintech to become everything the question arises – what does the future of fintech look like?

Well, that's what we're setting out to discover through this newsletter aimed at nascent, emerging, and developing branches of fintech that we believe have the potential to become the future of the industry. Analyzing the trends surrounding business models, collaboration, and innovation in the finance industry along with macroeconomic trends of rapid digitalization and sustainability brought about by the pandemic and the imminent climate catastrophe, we identify the following six segments as the Future of Fintech.

  1. Open Finance comprises collaborative innovation trends resulting from open banking policies and data sharing through open APIs.

  2. Digital Finance facilitating digital-only propositions of neobanks, challenger banks powered by cloud-native technology providers.

  3. Embedded Finance, the emerging trend of embedding financial products into lifestyle experiences through banking-as-a-service and digital technologies.

  4. Decentralized Finance that enables disintermediation in finance resulting from web3 capabilities involving blockchain, smart contracts, and tokenization.

  5. Platform Finance is rebundling initiatives towards turning independent propositions into super-apps, ecosystems, and marketplaces.

  6. Green Finance comprises FinTech initiatives contributing towards net zero and low-carbon economy goals to build a sustainable future. 

We'll be tracking these six segments through weekly updates and analyzing which segments saw the most activity during the week. You will also find a monthly tracker on upcoming iterations that will keep track of the activity across segments, based on a simple scoring framework.

If you're as excited about the future of fintech as we are, then don't forget to subscribe to this newsletter and stay tuned for our weekly installments as they come!