Q3 2022 insights into Fintech.

Claudio Alvarez, Partner at GP Bullhound, commented: “Several key trends continued to emerge in Q3 2022. India has solidified itself as a leading fintech hub, with over 4k fintech companies and more than 20 fintech unicorns. Further innovation and adoption in the space are expected across the country. Crypto wallets are bridging the gap between consumers and blockchain, with the opportunity for a market-leading wallet wide open. Lastly, behavioural authentication continues its rise, with growing numbers of users recognising its potential against online banking fraud. On the dealmaking side, fintech activity remained muted due to continued macroeconomic uncertainty, but category leaders like Klarna and wefox continued to raise capital, despite the difficult fundraising environment.”

What’s trending this quarter in Fintech?

India is now being recognised as a leading fintech ecosystem

• India is now home to 4,200+ Fintech’s and 20+ Fintech unicorns, establishing itself as a leading Fintech economy globally. Key Fintech verticals include Payments, Lending and Neo-banking
• Positive regulatory reform and increased digital penetration has encouraged innovation and adoption of Fintech across India. This has attracted interest from leading institutional investors, with the likes of Sequoia Capital opening offices in the country

The next step in web3 adoption lies with simplified crypto-wallet onboarding

• Crypto wallets are the bridge between consumers and blockchain technology, naturally solidifying the importance of wallets in the adoption of Web3 and cryptocurrency
• 2 million active wallets interacted with blockchain technologies on average per day in September 2022. With over 5 billion people in the world having access to the internet, the opportunity to be the market leading wallet is wide open

Is behavioral biometrics the future of fraud prevention?

• As 93% of all banking fraud attacks occur online, strong authentication and financial crime prevention technologies have become a key focus area for online banking providers
• Behavioural biometrics technologies measure unique patterns in human activity and compare them to past actions to detect anomalies and block bad actors

Enquiries
For enquiries, please contact Claudio Alvarez, Partner, at claudio.alvarez@gpbullhound.com

About GP Bullhound
GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s best entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 12 offices spanning Europe, the US and Asia. For more information, please visit www.gpbullhound.com.