Fintech, or financial technology, is a hot sector of investing and innovation in general. All financial services are going through an extended period of disruption as digital replaces analog and startups and early-stage ventures challenge incumbents. In our opinion, this transition is a multi-decade event as new services emerge, existing ones adapt and entrepreneurs surface with concepts nobody has imagined. The winners in all of this are consumers and (mostly) small businesses that will gain access to better, less costly services once only available to the very affluent.
There is another benefactor in the ongoing Fintech revolution, investors who back the successful Fintech firms – hopefully early on in their evolution.
Last week, OurCrowd, a global securities crowdfunding platform that caters to accredited investors, held a digital event on investing in the Future of Fintech. Hosted by OurCrowd founder and CEO Jon Medved, the event engaged with several active investors in the Fintech sector.
OurCrowd, while active in various verticals, has invested in multiple Fintechs – most recently Rewire, a neobank that caters to the needs of migrant workers. The company raised $25 million that included the participation of OurCrowd. There are others.
Participating in the OurCrowd event, Guy Kashtan, CEO & co-founder of Rewire, explained they want to empower migrants to fulfill their potential and provide for a better future:
“We are looking at roughly 270 million migrants worldwide, estimated over 150 millions of them are the blue-collar migrants that we target and build our services for. These potential customers send over $1.5 trillion every year and their financial services are estimated at a similar amount, over $1 trillion. And this population is growing faster than any other population in the market today. We are in the process of providing the first credit services for migrants and we have launched our first insurances service in Europe with AIG, and in their home countries for their families,” said Kashtan who added that they are currently processing nearly $1 billion a year with more than 70,000 customers. Their goal is to host more than 500,000 clients by the end of the year.
Claire Tomkins, CEO and founder of Future Family said Fintech can solve some pain points on the financial side. Future Family is currently raising capital on OurCrowd today. Future Family is a Buy Now, Pay Later (BNPL) platform providing credit that covers fertility treatment – leveraging technology to support a niche lending vertical.
plans cover full fertility treatment costs, including value-added services including fertility coaching, after-hours care and payment management.
“It’s not uncommon to have to pay up to $50,000 to go through successful fertility treatments,” explained Tomkins. “That is a huge financial barrier to a lot of folks who are looking to start a family. It’s never been a more pressing issue than today where we see falling birthrates and a moment in time where it’s never been more difficult to start a family.”
Tomkins shared that instead of paying $50,000 up-front you can finance treatments for $400 to $500 a month.
OurCrowd states that one out of five dollars in the world was invested in Fintech during 2021. That’s a lot of funding. OurCrowd said that while some people predict Fintech funding will dip in 2022, others believe ti will hold constant or move higher. We believe Fintech is just getting started.