• Mike Lobanov, Partner at Target Global


• 11.03.2016 10:45 am
undisclosed

“The fintech investment figures seen in the KPMG & CBInsights reports reflect the rude health the industry finds itself in across the globe. Taking a closer look it is evident that most fintech unicorns are in payments and lending. However these multiple trillion dollar sectors are just the first two and there is potentially so much more to come. I firmly expect the next unicorns to arrive in fintech ‘niches’, with each market niche reaching anywhere between $10-50 billion.

“Certainly in the short and medium term I expect strong growth in asset management. Robo-advisors have already raised significant rounds at really high valuations and there’s more space for disruption. I also foresee big changes in Securities Lending, a niche which is currently very inefficient and further changes in currency conversion for both retail and business customers. Finally, smart routing which helps e-commerce go global seamlessly, like Zooz, will have a big impact for fintech players.

“Beyond the niches there will also be the second generation opportunities off the back of the already established sectors. This means I expect to see aggregators, like as happened with travel, and then infrastructure / brokerage booms as has already been achieved by the likes of Orchard and Blackmoon.