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More than 26,000 new startups in the fintech sector are created in just one year

Fintechs are an irreversible trend with a high rate of change, in a growing market and subject to the pace of technological innovation. These innovative companies are focused on offering the customer better service, reducing bureaucracy and improving the user experience, compared to traditional banking. In recent years, fintech companies have evolved to double the number of startups in the sector by the end of 2021, reaching a total of 26,000 new companies worldwide, with a total financing value of 20,400 million dollars (20,379 million euros). euros), according to the ‘2022 Fintech Market Ecosystem’ report.

Despite its development, there are still challenges facing this fledgling sector. In this sense, Emmanuel Anton, founder of the Neo group, indicates: “Despite finally having been legally recognized as investment and payment companies in Spain, it is true that finding investors who understand the corporate business but also the fintech sector, regulation and technology is very difficult”.

In addition, although the fintech sector is beginning to consolidate “some big scaleups buy startups that already have some traction but fail to internationalize”adds Emmanuel Anton, a TBS Education alumnus. On the other hand, regarding Barcelona, ​​despite being an international city, “in Barcelona, There is still a lack of institutional support for new companies in the sector. The administrative burden, the low level of digitization of the administration together with the impossibility of working with it in English are a problem on a daily basis”.

Opportunities in the Spanish fintech sector

The report mentioned above and collected by TBS Education presents the strengths and the ideal market conditions for companies belonging to this sector can be developed efficientlywithout falling behind. Emmanuel Anton recognizes that the areas that stand out the most are:

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  1. New Banking. Digital acceleration will be the indispensable factor for this sector, since it gives it rapid growth and differentiation from its competition. To do this, the focus of this activity must put the customer experience at the center and, therefore, new alliances with fintechs and other financial providers will be necessary.
  2. payments. Payments through social channels and messaging, which were a great innovation in this sector, will continue to grow and will get rid of the limitations that are currently imposed on them. The use of open platforms that expand payment possibilities will increase, and they will become the main trend in the future.
  3. crowdfunding. “Now it is at a certain moment of slowdown due to the growth of other payment and financing methodologies, but it is positioned among the main trends with greater future prospecting”comments Emmanuel Anton.
  4. WealthTech. On the one hand, this sector is dependent on advances in Big Data and data analytics to be able to carry out its basic functions (data control, management and protection). On the other hand, innovation connected to AI will be an aspect that will provide great opportunities for future growth.
  5. regtech. Data, privacy and security systems will continue to maintain the importance they have acquired in recent years. “The future in the RegTech area is marked by the ESG (Environmental, Social and Governance) approach”.
  6. RiskTech. The future objective of this sector is to establish itself as a risk control strategy at the constitutional level. “AI is back in action, which together with RiskCloud systems are consolidated as key technologies during the next two to five years”says the COO of the Neo group.
  7. blockchain. It offers greater control and scope of possibilities for consumers. In addition, it will create a new universe of inclusive finance, within which new systems such as cryptocurrencies or NFTs will be developed and democratized, which in turn will contribute to the creation of new and secure payment systems through Blockchain networks. “Even so, the future of the sector is focused on the development of the Metaverse, which can already be seen in most economic and social sectors.”

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