We'll be watching Fintech in 2021
Annual fintech wishlist
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Hi, this is Clément from HUB612👋
Welcome to all the new followers and happy new year to you all! 🎉🎉
I wish you all the best and I’d like to thank you for all the kind feedback and support you provided me over the last year.This week I’m writing something a little bit different from the usual. I summarized a few trends where I’m the most excited to see new products being built. I’ll be monitoring this closely over the next year!
Please comment below or tweet me with your thoughts and ideas! I’d love to know fintech/insurtech companies or markets I should look after.
2021 Fintech Trends and beyond
Innovation happens in all subsectors of the finance and insurance industries. My job is to spot innovation and support entrepreneurs toward their vision. Here are topics I’d like to discuss and cover over the coming month, in which I think great innovation will occur.
🎮 Multiplayer Fintech
Most recently, there’s been an explosion of personal finance content on Reddit, TikTok, Slack, Twitter, .. Showing a growing interest of the younger generation in optimizing their revenue, making better investments, and budgeting their life.
Fintech products tend to include social features to make them more fun/understandable for the user and sticky for the startup.
Finance which use to be a personal topic now tends to be more social than ever.
✈️ Travel Insurance
The pandemic has led to unprecedented upheaval in the travel industry with cancellations, border closures, and general uncertainty.
However, this situation has greatly aided the cause of travel insurance, which until then had been largely ignored. It is a large and rapidly growing market, which is expected to grow by $19.2 billion in 2019 and reach $39.3 billion in 2027. In the United States, Starr Insurance has seen its demand for travel insurance increase by 528% compared to 2019.
Any person who has already booked a trip has been confronted with a problem between taking the ticket and returning home at the end of the vacation. That plus the general uncertainty, travel insurance companies must innovate!
🗂️ Account Aggregation for SMBs
Account aggregation is not new for anyone reading these words. Yet, for businesses, it's normal to have many banks/accounts and many currencies. And that's still a huge pain.
From small startups to larger SMBs, consolidating data from numerous sources from spreadsheets across the corporation is a repetitive waste of time. Players working around spend management and account aggregation have a play here.
These startups will also supercharge CFO’s decision making!
🎓 Fintech helping students
Studying costs a lot more (+150%) than it did 20 years ago. The education system needs to be shaken up by companies helping students to (i) access knowledge at a lower cost (ii) finance their studies (iii) create a better fit between graduated student skills and the first job required skills.
Hopefully, fintech startups expand the range of possibilities. From savings in advance to a study investment, to alternative ways of paying your scholar fees, to helping you reach financial stability.
💵 Payroll management & flexibility
Fintech are moving up the value chain of consumer’s money to the point of payroll.
The typical use case? Salaried employees, with poor credit history and in need of quick-cash have relied upon payday lenders for decades. Things are evolving with new regulatory interventions in consumer awareness. Startups in this growing market are blossoming around the world
The payroll space is being structured around the following categories: (i) Salary On-demand (ii) Salary Advance (iii) Early Direct Deposit (iv) Crypto Payroll.
🔎 AI for investment research
Every day, in investment banks and financial institutions, investment teams spend a lot of time performing worthless tasks, distracting them from their job.
Data gathering (growing amount of information distributed on internal servers and internet) and data cleaning for data-driven investment decisions are common for them but repetitive. Having dedicated tools to support them in their investment decision will be an edge over the competitors.
📈 Decentralized Finance
A few months ago, I wrote about an emerging open-source and decentralized financial ecosystem built on top of the Ethereum blockchain. It appeared as Ethereum’s next big use case: an alternative to traditional centralized finance.
It’s a great time to follow this topic as the Ethereum economy is currently building a set of layers on top of each other. Each layer providing the foundation and the stability for the layers on top of it to express themselves effectively.
There, you can see the birth of a vibrant ecosystem of financial applications.
You’ve been great readers this year!
After 40 issues this year, we’ve covered a wide range of topics through market review, investment memorandum, data analysis, or news of the week format!
This resulted in plenty of engaging conversation, new connexion, many startup decks received, .. I can’t wait to see what will happen in 2021!
Curious about previous issues you may have missed? (wait, there’s more!)
💵 Cash Management for SMEs | Investment Memorandum #2 Agicap
✈️ Sorry, that’s excluded | Market Review #8 Travel Insurance
🖼️ Culture is the new asset | Investment Memorandum #6 MasterWorks
Reach me!
This year has been a great year for personal and professional development through this learn in public newsletter weekly obsession.
Feel free to reach me to:
Discuss fintech market, business model, regulation, ..
Co-write on a fintech topic
Invest in your company? I’m an early-stage investor @hub612, investing in pre-seed / seed mostly in fintech / insurtech startups
See you next week 👋
📧 I’m clement.parramon@hub612.com and @cparraam is my Twitter
Ps. If you like what I’m doing with Parram please feel free to share it on your social network of choice. Also, I’d appreciate it if you forwarded this newsletter to a friend you think might enjoy it ✌️