Fintech Insider Podcast by 11:FS 954. Insights: Is the ground shifting for fintech funders and founders?
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Apr 17, 2025 Tom Easterby, Head of FinTech at HSBC Innovation Banking, and Ruth Foxe Blader, General Partner at Foxe Capital, discuss the shifting dynamics in the fintech landscape. They explore the 48% drop in global investment and the challenges founders face in securing funding. The conversation highlights the critical role of innovation, cybersecurity, and diverse funding strategies in this evolving market. There's an emphasis on adapting business models to thrive amidst competition and the impact of geopolitical factors on future investment trends.
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Fintech Investment Decline is Regional
- Fintech investment dropped 48% globally in 2023 compared to 2022, signaling a market shift after pandemic highs.
- This decline doesn’t mean fintech is dead; regions like the Middle East still show strong fintech activity.
Macroeconomic & AI Shift Funds
- The shift to higher interest rates and AI has transformed fintech funding dynamics and investor appetite.
- Large VC funds now focus on mega bets, while AI drives a new wave of disruptive technology investments.
Generative AI Transforms Fintech
- Generative AI can revolutionize fintech by automating complex back-office operations.
- Early AI companies focus on narrow, highly effective, compliant slices of finance processes, though disruption scares incumbents.