At Money 20/20 in Amsterdam this week, business-facing fintechs like Airwallex, Payoneer, and ClearBank were all the rage, while consumer apps such as Revolut were nowhere to be found.
As nebulous as these terms may be, they reflected a very real push from tech startups, including the biggest names in the business such as Stripe and Starling Bank, to allow businesses of all stripes to develop their own financial services, or integrate other firms' products into their platforms. "I think many fintechs have pivoted to enterprise sales having found consumer hard to make sufficient unit economics — plus it's pretty expensive to get a stand and attend M2020 so you need to be selling to other attendees to justify the outlay," Richard Davies, CEO of U.K. startup lender Allica Bank, told CNBC.
Niklas Guske, who runs operations at Taktile — a fintech start-up focused on streamlining underwriting decisions for enterprise clients — describes the sector as being in the middle of a renaissance for B2B payments and financing. "That is kind of incredible," David Singleton, chief technology officer of Stripe, told CNBC. "There are not a lot of things you can do in a business that increase your revenue by 10%."We're going to protect what we've got in Silicon Valley Bank UK, new owner HSBC saysOne employee of a major firm that usually attends the event said they have cut down on the number of people they have sent to Money 20/20 and have not even bought a stand.
"This is another moment where the proliferation of new data sources and the adoption of sophisticated risk modeling enables fintechs to better target their ideal customers better than ever before," said Guske, who raised more than $24 million from the likes of Y Combinator and Tiger Global.The main area that drew the most hype from Money 20/20 attendees, however, was artificial intelligence.
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Source: CNBC - 🏆 12. / 72 Read more »
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