More Spark for a Buck: Innovations to Watch in Fintech

Welcome to the 6th BizTech by Django Stars, packed with fresh intel from the unceasingly advancing world of FinTech!

As we approach 2024, experts and leaders are increasingly pondering what will outweigh: the inflaming economic crisis or the promising technological breakthrough. Each item in this issue is curated to contribute to your understanding of the bigger picture.

Just don't forget to subscribe for the next ones — before the latest news, opinions, and insights grab your attention. ??

A Silver Lining for Fintech?

Amid a second-year VC slowdown, as noted in SVB's Future of Fintech 2023 report, the fintech sector is grappling with tougher macro conditions. Funding for models like BNPL and alternative lending has grown costlier. Regulators intensify their scrutiny of the sector. This adds complexity for fintech founders and investors.?

Particularly, business models have to adjust for rising interest rates. Let's take a look at a widespread margin squeeze in consumer debt products:

For home lending, it's a fall of 75%, especially painful after the home-buying boom with nearly doubled mortgage originations in 2021. (By contrast, credit cards remain profitable as consumers use them to offset rising costs and diminishing savings.)

Still, the report suggests a number of reasons for optimism.??

Fintech finds opportunities in the growing demand for regtech and embedded finance, supported by AI efficiency. Strong fintech valuations persist despite reduced VC investments, indicating long-term potential. Blockchain and digital assets may be entering a new growth phase, with rising prices and institutional support. In short, "a new era begins." Perhaps.

Inside Django Stars: The Power of Partnerships

→ Our team is pleased to share a recent 5-star Clutch review from a Palo Alto financial services firm. ?? Together, we crafted a cutting-edge tool for claims automation and underwriting journey design, using a robust technology stack. Check the details of this journey from a proof of concept and a developing functional MVP to a fully-fledged platform.

→ Francesca Carlesi, the co-founder and CEO of Molo, enters a new career chapter. ?? Since 2017, we've been involved in Molo's incredible journey, from pre-MVP to becoming the UK's first digital mortgage lender. Francesca's role in this journey cannot be overestimated. Django Stars extends deepest gratitude and best wishes for her future endeavors.

→ Django Stars' co-founders, Roman Gaponov and Artur Bachynskyi, are currently visiting Switzerland ???? until October 30th. They eagerly invite clients, friends, and partners, both existing and potential, to meet in person. If you're seeking a tech partner, let's collaborate and innovate together.

Blog Highlight: How to Get Funding for Your Startup Project?

Capital is the fuel that will drive your product from ideation to execution and launch. The challenge lies in accessing it. The better you understand what investors seek in startups, the more effectively you can develop a product they'll be eager to fund. ?? The illustration below offers a glimpse into their expectations.

Part of the secret is prioritizing customer value over tech details. Another crucial moment is enlisting experienced developers who can deliver a working prototype, tangible evidence of your concept's viability and potential. Equipped with this, you can confidently approach potential investors. ??

Explore the various investor types, startup funding requirements, common pitfalls founders encounter, and how to get funding for your startup project.

AI in Fintech: Trends and Discussions

• By Leaps and Bounds. The global AI market size reached USD 168.5 billion in 2022 and is projected to grow to USD 2,760.3 billion by 2032, exhibiting a CAGR of 32.5%. The Asia Pacific region is projected to have the fastest growth during this period. ??
• Changing the Game. In 2023, AI's multifaceted role in banking product development and management has reached unprecedented heights, reshaping how financial institutions create and manage their offerings. It revolutionizes banking with personalized customer experiences, operational efficiency, risk mitigation, and compliance. ?? AI-driven innovation empowers tailored financial products, promising a customer-centric future for adopting banks.?
• It's Time We Had a Talk. The AI 2030 Conference Series, spanning from April 2024 to January 2025 in global cities, brings industry leaders together to explore AI's impact on finance. ?? Topics cover AI's current state, practical uses in banking, payments, capital markets, insurance, investments, and ethical concerns like data privacy and algorithmic bias.

Industry Trends: The Django Stars' Perspective

?? Disrupting Technologies in Banking 2024?

In The Fintech Times, Renato Oliveira, the chairman of ebankIT, traces out emerging technologies poised to lead the way in the banking sector for 2024. These encompass hyper-automation, open banking, cloud, and blockchain. While "uncertainty creates opportunity," trends suggest "planning for an era of disruption."

?? How CIB Reap Benefits of Gen AI

Сorporate and investment banks (CIB) are adopting generative AI, capable of generating initial drafts in many areas. The McKinsey Global Institute (MGI) estimates that gen AI could add between $200 billion and $340 billion in value to the banking, wholesale, and retail sectors by unlocking greater productivity and other benefits. However, there are also some challenges.

?? 2024 Trends in Digital Banking?

The digital banking sector is evolving markedly in response to technology, customer preferences, and regulations. As we approach 2024, it's vital to monitor key trends reshaping the industry: enhanced personalization, neobank growth, AI integration, blockchain integration, improved cybersecurity, open banking ecosystems, sustainability initiatives, digital identity solutions, and heightened regulatory and privacy focus.

Tips and Guides: More From the Blog

• How to Create an Investment Platform — Learn how to ??? tailor a solution to business needs, covering pre-development considerations, essential features, and cost estimation.
• Using Python for FinTech Projects: All You Should Know — Uncover ?? Python's utility in crafting customized fintech solutions, weighing its pros and cons. Also, check out some top Python-based apps for banking and finance developed by Django Stars.
• How to Build Digital Mortgage Software Successfully: Tips & Insights — Explore how to develop effective online mortgage services ?? that improve user engagement and reduce dropout rates — learn about essential features, software architecture, integrations, design, and navigating complexities.