The latest fintech & payment reports – October 2020
Over the Summer there has been a significant number of new reports and articles analysing the direction of the industry as a result of the pandemic. We have collected the most shared and insightful content below:
Detour: An altered path to profit for European fintechs
McKinsey concluded that the fintech sector was going to feel a significant squeeze. Venture capital funding is slowing, business model vulnerabilities are being exposed, and competitive dynamics are shifting. Their belief is that the sector’s underlying profitability and long-term business model sustainability is under threat.
This analysis looks at the decisions and new directions they believe many fintech companies will need to take to reach and maintain profitability.
A new wave of challenger banks prioritising profitability
Sifted reported that, while the press has been saturated with the talk of new banks changing the financial landscape, there is a new breed that has a different emphasis.
“The new players want to grow to make money, not conquer the world,” they report.
This article focuses on a different approach to sales, the use of Banking as a Service to reduce costs, and how the new challengers are learning from the mistakes of the past two years
With profitability the continuing theme over the summer, the last fintech article is also from Sifted and looks at funding trends across the sector:
World Payments Report 2020
Capgemini’s Payments Report is one of the leading sources for data and insights on payments. The 2020 report is their 16th edition and provides a detailed look at the formation of trends which will shape the industry over the years ahead.
Open Banking and Payments Survey
PWC conducted a consumer survey of 3,500 people across 12 countries in Europe. The objective was to get the latest views on Payments and Open Banking and assess whether and how behaviour is changing.
The Payment Methods Report
The final piece is The Paypers 2020 edition of the Payment Methods Report, an overview of what’s new in how people pay in the most relevant ecommerce markets. The key topics are:
- analysis of insights into A2A payments, Request-to-Pay, and Open Payments
- how the COVID-19 pandemic has influenced payment behaviour
- best practices for a high-converting checkout
- disruptive payment technologies and solutions that shape the way people pay
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