PitchBook News - Fintech's future post-bank crisis

And there's still a multitude of reasons why fintech funding will stay healthy going forward.

Whether in retail or enterprise, there are several large underserved and underbanked communities. Digital lenders and neobanks around the world have attempted to solve for this in the last several years, but they haven't cracked the code quite yet.

Critical gaps also remain to be filled in capital markets, B2B payments, know-your-customer and anti-money laundering, and infrastructure. Investors are certainly recognizing these opportunities, given B2B fintechs captured 62% of total VC in 2022.

It's most important, however, to remember that some of the greatest fintechs can rise in times of crisis. Looking back, Stripe, Venmo, and Square (now Block) all emerged from the ashes of the global financial crisis.

New opportunities are already presenting themselves following SVB's collapse, including sweep networks and better treasury management solutions. In addition, tough economic conditions can also amplify opportunities in specific segments.

In our Q4 Retail Fintech Report, for example, we highlight how challenged consumer wealth and market returns put the spotlight on loyalty & rewards and alternative asset solutions.

Current market conditions for fintech may be frightening, but it's still an exciting time for fintech. History has shown us that in the wake of financial catastrophes, there will always remain several founders sharing the same thought: "There has to be a better way."

If you're interested in additional fintech analysis, we have several reports coming soon. Our quarterly Fintech & Payments Public Comp Sheet and Valuation Guide comes out next week, with our Q1 2023 Retail and Enterprise Fintech Reports scheduled to be released shortly after.