In 2021, the fintech industry maintained its continuous rate of growth, generating $121.6 billion, a 153 percent rise in terms of worldwide VC transaction value year over year. The Finovate conference, held in London this week, addressed a good year for Fintech businesses and outlined what’s next in fintech and we take a look at what this means for London fintech in 2022. 

Here are some of the key takeaways that we learned from Finovate this year:

London played host to Finovate 2022

Fintech’s three sub-verticals.

Brokerage experience hasn’t kept pace with advice experience. And, despite the fact that B2B WealthTech funding soared in 2021 (156 percent in dollars and 46 percent in deals)according to CBinsights, it remains a laggard.

Proptech has remained at its same level on the Fintech sub-vertical ranking which surprised some. Despite the fact that there are several opportunities to tackle problems in this industry, the hashtag #proptech is not popular.

Around € 9 trillion in deposits are held in Europe. DreamsTech, a behavioural PFM Fintech, stated this startling figure to demonstrate how much more work has to be done to encourage individuals to invest. They are a fintech company that has achieved success in the Nordic region and is currently expanding geographically in Europe.

Back when Betterment and Wealthfront were the most appealing Fintechs, the € 9 trillion topic was referred to as “unadvised assets.” Unadvised asset tracking has lately revealed that the needle hasn’t moved in the last few years.

Narrative:

With the distressful situation currently unfolding in Ukraine, it was always going to be a hot topic at this year’s conference. 

Purpose-driven banking is clearly here to stay, and those who don’t understand it will suffer. Polarisation and global tensions have brought the G for Governance to the fore. Businesses can no longer remain neutral, and they must decide how to assist society with serious concerns that governments are unable to address. This is a difficulty, but it also presents an opportunity to rethink your objective as a company with a broader economic mission than just a profit motive.

Interesting points:

There were some great points put forward by speakers ranging from investors, founders, and professionals from all over the world, giving attendees plenty to think about.

 

  • Payments are the gift that keeps on giving, and macro events (such as Brexit, sanctions, and so on) and shifts in consumer behaviour, ironically, continue to confirm this.

 

  • Fintech is going through a midlife crisis. Andrew Vorster, the moderator, and the panellists, Chris Skinner and Jamie Broadbent, Head of Innovation at RBS International, was a discussion encouraged by Ghela Boskovich.

 

  • The transition from data warehouses to data lakes, and now to Data Mesh, is required to cut costs while simultaneously enabling real-time analytics and insights inside complex ecosystems.

 

  • Current AI algorithms excel at computational tasks, but we now need to teach them how to think emotionally and psychologically. To teach algos, Facebook (Meta) is already hiring philosophers and psychologists.

Multiple talking points at Finovate last week

London Fintech in 2022

In short, everything leads to a long-term expansion, especially with London fintech.

Regardless of Brexit or the continuous disruption caused by the epidemic, a recent Tech Nation study revealed a high level of confidence in the tech sector. Two-thirds of individuals believe that the UK’s IT sector will expand over the next five years, with fintech and cybersecurity expected to receive the most investment. Half of those polled believe there will be more year-over-year exits, resulting in a new high.

The year 2022 will be the year of fintech for social benefit. Companies with a social mission have been rising in popularity for some years, and Ipsos Mori has long tracked the public’s growing antipathy for companies that fail to meet their social, ethical, and environmental commitments.

Finally, the fintech sector in the United Kingdom raised more money in the first half of 2021 than it did in the entire year of 2020. In 2022, we can expect someone to develop a word to represent the group of fintechs that have achieved unicorn status, particularly in the London fintech market.

Conclusion
Regardless of how you look at it, I think are unmistakably in the midst of a revolution. Nobody could have imagined the massive increase of London exits just five years ago, and it doesn’t appear to be slowing down anytime soon. London fintech enterprises should expect exciting times ahead.

Amit Khanna is the founder of www.7startup.vc and has 19 years of experience with Startups and the Enterprise, holds an MBA, focusing on Growth and Investments. Amit supports Startups, Family offices, and VCs as an Advisor.

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