Pulse of Fintech H2 2021 – Fintech segments

The breadth of fintech solutions attracting investment continued to expand and grow, with surging interest in cryptocurrencies and blockchain, wealthtech, and cybersecurity. 

2021 saw jurisdictions taking vary different tacks in terms of crypto with China fully banning the facilitation of cryptocurrency trading. At the same time interest significantly picked up in the US, Canada, and Caribbean. Investors also began to get truly acclimated with the blockchain space — seeing both the value for today and the opportunities for future. 

Fraud detection remains a big priority across jurisdictions with investors and corporates showing particular interest in preemptive solutions and platforms capable of managing the complex array of security needs of companies.

Global wealth managers are on the rise and looking to expand their footprint. An increasing focus on addressing the ‘middle’ is expected to drive investments towards solutions such as digitally enabled service platforms. Headwinds in the public markets are causing investors in Insurtech to focus on underwriting and profitability. 

The payments space saw a renewed focus on challenger banks and a growing appetite for M&A amid the rise of ‘super apps’. Embedded banking drove key partnerships and investments while cross-border investments gained momentum as companies pushed to expand.

Regtech investments continue to diversify with this fintech segment touching all areas of financial services.