CB Insights have released their latest report on “The State of FinTechs Q2 2020”.
Q2 saw a decline in the number of deals but an increase in funding totals, due to mega funding rounds.
The number of VC deals fell in April but has climbed in every month subsequently.
From our perspective, we note the continuing growth in embedded fintech services or the embedding of financial services in non-financial companies. We think that this trend is likely to continue as firms look to capitalise on innovation momentum gathered during the crisis and use micro-service providers to drive out new costs, inefficiencies and enhance customer experience.
CB Insight also notes that in Banking there are 95+ VC funded fintech automating everything from account opening, AML/KYC, risk management, compliance and Treasury.
It is hard to discern what is driving the falling number of deals. i.e. pandemic related or down to the increasing maturity of fintech. The appendix reveals that the number of seed/angel deals declined massively in Q2 which would suggest that much of the declines are Covid related.
Our sense is that the demand to employ fintech or financial services solution providers will only grow, that the risks associated with employing such services will remain or grow and that companies will increasingly be frustrated with deployment times of 12-24 months.
There is another way. We know that Enterprise fear the failure of a small cloud provider and are reticent to adopt their service. However, it is increasingly clear that the clamour to rapidly adopt providers will only increase. At Adoptech we ensure the service you depend on to keep your customers and regulators happy is always available, no matter what happens to the vendor.
Allowing you to get back to business.
Mitigate the risks of cloud technology adoption. #Adoptech