Why B2B fintech is on fire in 2023 ??

Thank you! But what for, I hear you ask? ???

Well, you’re one of 10,000 CFOs, finance professionals, and fintech enthusiasts who have signed up for the Fintech for CFOs newsletter – powered by Papaya Global .?

To express our gratitude, we’re adding a new feature called Who to follow. Each issue, we’ll recommend a leading fintech expert to follow on LinkedIn ???

Who to follow:?

Francesco Simoneschi regularly shares his secrets and wisdom on topics like open banking, payments, and global regulation.?

A successful investor and entrepreneur, Simoneschi is co-founder and CEO of TrueLayer, Europe’s leading open banking payments network.?

?? Follow him here ???

?

What you need to know right now:?

It’s been a big couple of weeks for fintech.?

Money 20/20 , the world’s largest event for fintech and banking, took place in Amsterdam.?

CNBC report that business-facing fintechs were highly visible at the event, while consumer apps such as Revolut were notable by their absence.?

“B2B is definitely in good shape - both SME and enterprise SaaS - providing you can demonstrate your products and services, have proven customer demand, and good unit economics. Embedded finance certainly is part of this and has a long way to run as it is in its infancy in most cases,” said Richard Davies, CEO of Allica Bank.?

?

Predictably enough, AI was the hot topic among attendees, with companies looking for ways to harness revolutionary advances in the sector.?

But there was also plenty of discussion about the risks posed by AI. Here’s our expert’s take on why AI chatbots are not reliable for compliance questions .

?

And as one sector heats up, another cools. Several fintech executives that CNBC spoke to were not interested in launching products tailored to crypto as they don’t see demand for them.?

?

And blockchain, the buzzword of the last five years, was “barely mentioned” at Money 20/20 this year, with interest in crypto and blockchain tech falling amid plunging liquidity and a regulatory crackdown on crypto in the US.?

The Top Trends Shaping FinTech in 2023?

Fintech Connect has just released Unleashing the Future: The Top Trends Shaping FinTech in 2023. The report is based on a survey of CEOs, CTOs, and other fintech leaders.?

?

Here are the key insights:?

??? Financial crime and fraud are as popular a topic as generative AI. With cyber threats on the rise, 61% of institutions having implemented an adaptable cybersecurity strategy.?

?

??? Despite its transformative potential, Banking-as-a-Service has only been adopted by 16% of respondents.?

?

??? Notably, financial inclusion emerges as a “crucial” priority for 29% of respondents. Fintech aims to bridge the gap and provide access to financial services for underserved populations, fostering economic empowerment and inclusion.?

?

Sleepless nights for hotel execs?

In other news, Skift report that CFOs at top hotel chains are experiencing “sleepless nights” at the prospect of fintech players disrupting their value chain.?

“The reality is there’s tremendous capital and good digital know-how in these spaces,” said Leeny Oberg , CFO at Marriot International.?

?

“I am nervous that, in the next three or four years, the value chain will be disrupted by financial services firms,” said Alex Cosmas, a partner at McKinsey.?

?

There is some evidence to support their thinking:?

?? JPMorgan Chase believes its recently launched Chase Travel will by 2025 process $15 billion in gross bookings a year out of a possible $80 billion in online travel bookings.?

?

?? Capital One has invested in, and bought, a few travel-based businesses to create a consumer-facing travel offering, partly powered by online travel agency Hopper.?

?

?? Citi in the U.S. and Amazon in India have shown interest in selling travel.?

These businesses need much less spending on marketing because the financial firms are cross-selling current customers through existing channels, often amplified by their credit card offerings with loyalty programs.?

?

See you next time for more fintech news and insights.

?