FinTech has been going through challenging times over the past year following a strong 2021. These are the latest 20 ideas from our wonderful IdeaSpies FinTech Editors Ben Ford and Adam Caines along with others who follow the sector.
They should give you a good background on FinTech trends.
1. Thriday Ups The Ante With Compare Our Competitors Feature
Small business banking, accounting & tax solution provider, Thriday, has upped the ante in the sector by rolling out an 'us against our peers' comparison feature.
Up to 30 so-called competitors are bench-marked against Thriday across metrics including features, cost & support.
Without any experience of using Thriday, nor any affiliation with them, I find this approach interesting, bold and intriguing, and wonder if it may set a precedent for further such differentiation pieces to aid the vendor-selection process in FinTech.
2. Worried about fraud, maybe don't clean the fish tank....
Fraud and Scams (or at least attempts), plague our lives. Emails, texts, calls, FB Marketplace, everywhere.
However, are we looking close enough to home, at our own pets even?
Sometimes good ideas should just stay as ideas, as one unlucky YouTuber found when his pet fish exposed his credit card details on his channel and started an online shopping spree.
That's a pretty big flaw in the payment authentication workflow, don't you think?
I for one would love to see the chargeback request for this!
3. My 2023 Predictions for Fintech
Survival of the Fittest: proven business models, profit focussed, who knew?
Security & Fraud: if 2022 taught us anything, this is you should be prioritising CAPEX in 2023.
Normalized funding rounds and valuations: 2021 was a mistake, let’s just forget it happened and move on.
Big Tech Vultures: off the back of Fintech’s validating products, Big Tech swoop in and replace or acquire capability.
AI (*cough* ML): plays a prominent role in new products and experiences.
BaaS Consolidation: It’s Highlander time for providers and NEO’s, how many do we really need?
BNPL Evolution: not revolution, times’ changing.
4. I asked ChatGPT if it needs an AFSL, this is what it said...
As a language model, ChatGPT does not need an Australian Financial Services (AFS) licence
because it is not capable of providing financial services or advice. It is a tool that generates
text based on the input it receives, but it does not have the ability to make decisions or offer
recommendations. It is the responsibility of individuals and businesses to obtain financial
advice from qualified and licensed professionals. In Australia, it is a legal requirement for
businesses and individuals to hold an AFS licence if they provide financial services, including
giving financial advice, to clients.
5. Inspiring Financial Independence in Girls
UN Women notes 65% of men (globally) report having an account at a formal financial institution, only 58% of women do. In part, a lack of financial literacy can also contribute to women being less likely to start their own businesses or to hold senior leadership positions in organisations. On a much darker note, a lack of financial independence can mean a lack of options, trapping women in desperate situations. This podcast aims to inspire parents, women, and of course, girls themselves to think early about the importance of financial independence and basic financial literacy.
6. GroupTogether is gifting without the hassle
Humans love to offer group gifts saying "thank you," "congratulations" or "best wishes" in a number of situations.
For example, an end of year gift for a classroom teacher or soccer coach. A farewell gift for a colleague. A baby shower or wedding gift for a friend or family member.
Someone has to do the work of collecting the money, circulating the card, and actually buying and delivering the gift.
This is the problem that GroupTogether very neatly and elegantly solves for with an online solution that has already been used by 1 million Australians.
7. Financial Censorship - A Weapon of War or the Norm??
When sanctions on Russia removed access to SWIFT, Payments and Financial Services became a weapon of war.
Whilst a justified response, where does the line stop and start when a provider or country doesn’t like the services you offer, or where and how those services are provided?
Or maybe as a citizen you said something online that provoked a response where your access to financial services were removed.
Though hate crime and other behaviour deserves action. Should we be worried that access to financial services is becoming a mechanism for censorship?
And will DeFI solve or create more problems?
8. I "wrote" this using AI, what do you think?
That's right, a few keywords, click and alakazam..............
The financial sector is under siege. In recent years, a number of high-profile hacks have left consumers reeling, and Fintech startups are chipping away at the traditional banking model.
To stay ahead of the curve, banks are turning to artificial intelligence (AI) for help. AI is already being used in a number of ways in the financial sector, from fraud prevention to customer service.
But, its use is only going to increase in the coming years. Banks are investing billions of dollars in AI, and the results are already starting to show.
9. How an economic crisis will impact Fintech and affect your daily life
These are 3 things startups (on the whole) and Fintechs bring to our daily lives. New products, new ways to interact across different mediums and greater choice, creating competitive tension and theoretically greater value for consumers.
So what happens if and/or when an economic crisis or a talent shortage impacts the Fintech industry?
Well, frankly, some of these products may no longer be in market, snapped up by an incumbent or at a minimum progress slowed.
Will your daily life get easier or harder?
Will your access to innovative products be lessened?
Only time will tell.
10. Is MYOBs deal with Flare a key indicator on the future of Fintechs?
Barely a month after failed takeover talks with ANZ, MYOB shifted its focus and invested in one of the biggest fintech deals of the year, buying Flare, in my humble opinion a great deal.
For platforms in the SME space, MYOB are coming.
Does this demonstrate Fintech is thriving as an industry?
Or do you have to build until bought? Risk de-banking or go overseas for primary revenue streams?
What this really says is, Fintech is here to stay.
No matter the end game.
So if you have a good idea to disrupt CeFi, there's never a bad time.
11. Intersekt Conference Shows Fintech Still Alive & Kicking
Reports of the demise of the Fintech sector may be somewhat premature, based on the optimistic mood prevailing at last week's Intersekt Festival, hosted by Fintech Australia.
Despite many (or most) Fintechs doing it tough, there was still much to share and celebrate across a program covering the latest Fintech innovations.
Fintech Editor, Ben Ford, appeared on the Fintech Chatter podcast discussing the hot topics arising from the two-day conference, as well as some of the other major talking points (beginning at 11 minutes).
12. Still Plenty To Celebrate in Fintech
Despite encountering some choppy waters of late, the Australian Fintech ecosystem is still strong & weathering the storm well.
Last night's Fintech Awards saw 22 gongs handed out with Dom Pym of Up and Josh Vernon of Wagestream repeating their victories at the Fintech Australia 'Finnies' Awards last month.
Zepto, Basiq, WeMoney and Cache were amongst the other big winners on the night.
13. Trusted Company Ideas for Financial Fraud Detection
Many crimes are typically committed for financial gain. The same applies to cybercrime which is being conducted more frequently for financial gain. Financial fraud incidences have increased in tandem with the enormous expansion in the usage of Mobile banking, Internet banking, Mobile Wallets, e-commerce, and online share trading. Israel is renowned for being a leader in Fintech innovation and cyber security. Also regarded as a “Start-up Nation” over the past three decades, she has been at the forefront of developing solutions that have improved the security of countries and even organizations
14. Feelings trump Features!
’m an avid fan of David Brear and the whole 11:FS team (even Jimmy).
Recently David wrote about Features vs Feelings and JTBD (link below).
It’s so obvious when you think about it. No-one wakes up excited to get a loan, open a bank account or transfer money. There are however triggers, whether emotional or transactional to make someone’s life better and sometimes not their own.
For the Fintechs out there, have a read and think about what your product is doing for your customers and how it can make their life better.
That’s how you win.
15. Ocean Impact Organisation announces the 2022 Cohort of inaugural Ocean Impact Accelerator Program!
This week we’re going off road and into the ocean!
Ocean Impact Organisation announced their inaugural cohort for their 2022 Accelerator Program which I’m proud to be supporting as a mentor.
What’s this got to do with Fintech? Well, there’s some loose crossover, everyone’s a Fintech when it comes to money in and money out! But really this is just a shout out for something great and impactful that’s happening, so we don’t have to hear about how bad our stocks and crypto are doing today.
16. The Great Redundancy?
Fed up with the great resignation? How hard it is out there to find people?
Is it a lack of talent? Big tech hoarding? Overinflated salaries?
Big tech are secretly laying off up to 30% of staff, managing reduced valuations and increasing costs.
This trickles down to startups as a resetting of valuations and raises. Fintech's will need to do more with less. But as the great resignation turns into the great redundancy, maybe the gravy train is over.
Can Fintech pickup talent searching for a new home? Perhaps, but there might be a slight re-adjustment on salary expectations.
17. Australia, it's time to put on your big boy tech pants!
In between bites of their sausage sizzles, many Australians may not have realised the impact of their vote on the 4th largest export industry in Australia, Technology.
Australia contributes c1.6% of Global GDP. In comparison we contribute c2.1% of the Fintech market size globally as the 6th largest hub.
Payments, Crypto, CBDC and other financial regulatory and infrastructure changes sit poised with our new Government.
The next steps we take will demonstrate to the world if we are a tech follower or leader.
The opportunity exists, isn't it time Australia put on their big boy technology pants?
18. Two Thirds Of Consumers Would Use Open Banking To Change Banks
Open Banking FinTech Frollo's latest consumer report suggests two thirds of consumers would consider changing banks if the process was easier and friction was removed.
The report surveyed consumers from a range of backgrounds, and not just those who already use FinTech products, supporting the hypothesis that if banks offers products & services that have hitherto been offered only by FinTechs, consumer appetite would be high.
Recent changes to the Open Banking accreditation process have seen a flurry of activity outside the banking section, offering further vindication and traction of the CDR (consumer data right) regime.
19. Green Fintech, Revolution or Evolution?
If you ask many of the founders applying new models to financial services, then yes.
From supporting reforestation, powering solar energy projects, tracking and highlighting carbon emissions to enabling access to ethical and sustainable investments, the rise of Green Fintech is no longer a trend.
A new ecological awareness of product use is here, customers care and why shouldn't that include financial products?
Investors are also taking note with a significant increase in sustainable investments in Fintech.
And at the forefront in Australia is Startup Bootcamp's recently launched Sustainable Fintech Fund.
20. The first real test for QR since lockdown!
Woolworths announced today the launch of their Everyday Pay Wallet, a new way to pay and collect rewards at check-out.
As a payments nerd, I'm excited to see what the update will be in what is the first real test for QR codes since we had to check-in everywhere we went!
I for one look forward to using it and seeing what the experience is like but as ever, the public will determine it's success through adoption.
In the future will there just be a QR code check-in and no check-out to broaden the Scan & Go experience?
By Ben Ford, Head of Growth, Frollo and Adam Caines, Co-Founder Upplft
IdeaSpies FinTech Editors