Over the last decade, financial services have reached a market value of 5 trillion dollars. In this regard, financial inclusion -or the global drive to ensure people have access to useful and affordable financial products and services- has a lot to do with this. 

Broadly speaking, the finance sector not only has broad political support around the world, but in the wake of the pandemic it has received a strong boost from consumers with the digitization of financial services and the growing acceptance of Blockchain technology. As a result, the gross profit volume of the sector has far outperformed even the software sector, e-commerce, semiconductors and healthcare. Since financial services are integrated in almost every aspect of our lives and our work, it is a natural target for disruption and innovation.

According to Technavio, the global Fintechs (or financial technology companies) market size is estimated to grow to 277.22 billion dollars from 2022 to 2027, at a CAGR of 20.5%, with Asia-Pacific region occupying the largest share of the global market in 2022, and is estimated to experience an additional growth of 39%.

Added to all this comes the conviction that the world is moving towards sustainable economic models, which by 2030 could be generating economic opportunities worth 12 trillion dollars a year. Through technologies such as blockchain, big data, artificial intelligence or cybersecurity, fintechs may be able to help companies to evaluate and reduce their environmental impact, and investors to channel their operations towards the most sustainable assets.

While macroeconomic headwinds are hurting consumer-oriented companies of late, at New Gen we still believe that now is a good time for building. After all, some of the world’s biggest tech companies (such as Airbnb and WhatsApp) were born during the last recession. 

Precisely these market conditions have led investors to focus their attention on B2B Fintechs which are apparently more protected from market volatility and poised for strong growth amid digitization efforts, underlining the relative dynamism of the sector, as well as intense venture capital funding activity.

Thus, we find a wide variety of secular trends stimulating innovation and disruption in the global economy, creating what we feel are attractive investment opportunities in areas such as:

💸 Consumer lending.

💳 Microfinance.

☂️ Insurance

📈 Access to capital markets

🐷 Savings/investment

Leading countries for fintech adoption, by category

Source: BI Intelligence