New Horizons in Fintech: Payments, Big Data and Partnerships [Infographic]

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By Diana

Published April 3, 2019

First appeared on
Reposted with permission

The global fintech market saw a period of consolidation in 2018, which is exactly what we saw also in terms of price evaluation of crypto assets.

In spite of the “crypto winter”, which is apparently how the year 2018 will enter history, it cannot be stressed enough that the fintech industry is booming.

Blockchain technology industry did what every sensible business built around crypto did during the slumber: They used the void to build things.

We now have a full landscape of fintech startups that compete in providing mobile payments, p2p lending or remittances. We also have marketplaces for related technologies, services and infrastructures, such as Perlin that is developing a new way for anyone to lease out extra power in their smartphones and let it be used for cloud computing.

Fintech Startups Partnering With One Another

New fintech ventures will typically partner with other ventures that focus on the backend side of finance - mainly data mining and analysis of said data.

Where blockchain technology and AI enter the scene is in making sure the data cannot be tampered with, and in anonymizing it to resell it without giving away the edge.

Data processed in such way can still be used to train a machine learning algorighm and ultimately build a financial model from it - Check out what Numerai are doing to learn more.

Larger Players Back Fintech Ventures

All together, the new fintech companies are looking for backing of larger and more established institutions.

The partnership of a small, agile venture and a large corporation is a win for both sides.

While the startup gets funding and support, the backer gains access to new technology: Large organizations cannot afford the risk of losing their position as a leader which is an option associated with wild experimentation, but at the same time they realize they need to keep up with new technology developments.

The Mania Is Over

The number of closed partnerships has decreased on 2018, which only shows a mania phase is over, because the total amount of funding dealt with in these partnerships actually grew.

It means companies are now more careful in terms of who they work with. They are looking for value.

New Horizons

Now in early 2019, fintech seems to be synonymous with the United States.

Nonetheless, it is starting to show that Europe does not want to be left behind either: the amount of available venture funding for tech innovation projects in Europe is rising along with the ease of administrative work necessary to get it, even for foreigners.

Given that getting visa in the ever more protective United States has become a major road block, the easiness of moving to Europe to build a startup or work for a startup is perhaps even more important than the current leaderboard of trendy technologies.

If the idea of venturing into fintech and disruptive technology is new to you, go ahread and dive in. Here’s all you need to know about fintech trends in 2019.

Fintech Trends 2019