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8 Fintech Verticals & Trends for 2020

Fintech is rapidly evolving, and becoming a complex eco-system – sometimes interacting with each other, and sometimes working more on their own. I wanted to give you an overview of some of the different fintech verticals.

 

Insurtech

Insurtech is rapidly on the rise – and for good reasons. Insurance has been complicated, expensive, and rigid, and as a result, especially the younger audience hasn’t had any insurance, sometimes resulting in terrible and costly situations. A great example of an Insurtech startup is Undo (DK). Using Undo, you can pick and choose to create your custom insurance plan, including only paying for your travel insurance, when you’re actually traveling. Other examples of Insurtech startups are Penni.io (DK), Oscar (US), and ZhongAn (CHN). The Insurtech global market is valued at just under 1.6bn dollars, growing +40% YoY. 

 

Proptech

Proptech is disrupting a very conservative industry by harvesting data and automating, enabling stakeholders to make data-driven decisions. Great examples of prop-tech startups in Denmark are Proper (automating rent collection, and funded by investors like Bjarke Ingels), Deeds Capital (Innovative Property financing), Bolighed (online real estate database company) and globally, of course, Zillow (THE online real estate database company). Other verticals that might be related to proptech could be IoT (harvesting data, data visualization, remote control, automation) startups like Omnio or construction startups like Molteo (The construction industry alone is valued around $10.3 trillion)! Proptech market is valued at around $18 billion. 

 

Pension

Pension is another huge market ripe for disruption. Global pension assets are estimated to a whopping 44.1 trillion dollars (end of 2018)!. We recently built a founding team for a pension startup, launching later this year, which we’re really excited about.

 

Process automation / AI

Robotic Process Automation (RPA) is the use of specialized software and tools for carrying out recurring, rule-based, and high-volume tasks in the fintech industry. Using RPA to solve some of the repetitive tasks and making humans more productive, often means a 10-25 % cost reduction. AI can be used to predict business outcomes. 

 

Mobile payments

Mobile payments are executed through a variety of different models or a combination of said models. Mobile wallets include Apple Pay, Google Pay, and Venmo, account/card combos like MobilePay, NFC, and others. Companies like Unwire (Swish and Swipp) also build custom solutions. Global Mobile Payments Market was valued at USD 897.68 billion in 2018. 

 

Blockchain 

Blockchain Markets are headed to $60 Billion Worldwide by 2024, but has had a modest start and evolved rather slowly.

Startups like Chainalysis can quickly identify transactions linked to money laundering, cybercrime, or sanctions evasion and can bridge blockchain and the existing financing eco-system.

 

Lending 

As of 2019, there were still 2.45bn underbanked and/or unbanked people globally, representing a huge market. In fact, only 27 percent of people in Southeast Asia have a bank account. Lending startups cover areas like peer to peer, blockchain, lending automation (using AI and big data), alternative banking services like Pockit and – sigh – payday loans / quick loans.

There are also a couple of runner ups, which we’ll do a separate post on, but one example could be: 

 

Remittance

A remittance is a transfer of money, often by a foreign worker to an individual in their home country. It’s a significant part of international capital flows and reached 715bn dollars in 2019. India is the top receiver globally, and countries like Libanon pretty much only exist due to remittance these days.

 

For more on Fintech, please check out or last blog:

Fintech Hiring & Recruitment Trends for 2020