Fintechs face reckoning as easy money dries up

Quick Summary

Funding peaked in the second quarter of 2021 as investors such as Accel, Sequoia Capital, SoftBank and Berkshire Hathaway backed groups including Brazilian digital lender Nubank, German broker Trade Republic and Amsterdam-based payments company Mollie.

Venture capital firms more than doubled their investments in the sector last year to $134bn, helping fintech valuations outperform any other tech subsector, according to Crunchbase data.

Deals so far this year include UBS’s acquisition of Wealthfront and Fiserv’s purchase of Finxact.“What consumers want is the best of what the neobanks have to offer in terms of experience and an ability to get products quickly, but at the same time what they’re going to need in a rising rate environment is the balance sheet of a bank,” said Abbott.

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Article Details

Author / Journalist: Siddharth Venkataramakrishnan

Category: MarketsFinanceInvesting

Topics: Fintechs Funding Valuations Capital Year Valuation Companies Financial Fintech

Source Website Secure: Yes (HTTPS)

News Sentiment: Positive

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-06-24, 04:00:15

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Reading Time: 8 minutes read

Article Length: 1273 words

Coverage Area: United States

Availability: Desktop Web, Mobile Web

News ID: 7205

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Official Website: ft.com

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