Despite setbacks, fintechs will continue their triumphal march. This is also supported by the successful financing round for the Swiss fintech Teylor. There is still a lot of untapped potential, especially in the small and medium-sized enterprise segment.
Fintechs have been innovating to change the way we live at an incredible pace. In an increasingly cashless society, they have developed apps and platforms to help better understand and manage finances. Today, when consumers talk about fintechs, they think of cryptocurrencies, startup banks, crowdfunding and more.
The success of the Zurich-based startup Teylor also shows how much fintechs are turning the world of finance upside down. It has raised a three-digit million amount, as finews.ch reported on Thursday.
With 275 million euros in fresh capital, the startup can continue its rapid growth and cover the financing needs of small and medium-sized enterprises (SMEs) with a variety of credit products via the Teylor credit platform.
Dynamic, but still comparatively small
In general, fintech companies continue to expand their presence in all countries and open up financial horizons in many areas. However, this dynamically growing sector currently accounts for only 2 percent of global financial services turnover.
However, more than half of the world's population still has no or too few banking services, and financial technology continues to open up new use cases in leaps and bounds.
By 2030, fintechs will therefore reach an estimated annual turnover of 1.5 trillion dollars, accounting for almost 25 percent of all global bank valuations, as the management consultancy Boston Consulting recently predicted in a study.
Bigger piece of the pie
The $12.5 trillion financial services sector is currently split roughly equally between banks and insurance companies. By 2030, global banking and insurance revenues are expected to reach $21.9 trillion. This represents an average growth rate of 6 per cent per year from 2021.
Fintechs will have a significant and increasing share in this growth. Their annual revenue is expected to increase more than six-fold by 2030. Fintech revenues in the banking sector - loans, deposits, payments, and trading and investments - are expected to increase from 4 to 13 per cent of banking sector revenues. The market share of insuretechs is expected to grow from 0.3 to 2 per cent.
"Fasten your seatbelts please"
Despite the setback last year, fintechs remain a driving force that will continue to plough up the financial landscape in the years to come. "Fasten your seatbelts - the fintech journey has just begun," BCG comments.
While payments dominated the last fintech era, experts predict that B2b (for small businesses) and B2B2X (B2B for any user) will lead the next one. In particular, the segment of fintechs targeting SMEs, such as the Zurich-based company Teylor, shows enormous growth potential. With over 400 million SMEs worldwide, this is an underserved segment.
SMEs are where the music plays
Fintechs operating in the B2b sector have plenty of room to innovate, especially since the annual unmet credit needs of SMEs worldwide are estimated at $5 trillion. B2b fintech revenues are expected to grow at an average rate of 32 per cent to a market volume of $285 billion by 2030, according to BCG.
Given this outlook, it is hardly surprising that international financial giants such as Barclays and M&G Investments, together with other investors, have closed one of the largest financings to date with Teylor in the European private debt alternative finance and fintech market.
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