OatFi reposted this
We’re into December, so before putting out 2024 predictions, how did I do in 2023? 🤔 Let’s see: At the beginning of 2023, I made a few predictions on where I thought fintech was headed. Given the global unrest, rising inflation, tighter capital markets, and potentially more hawkish Fed Reserve actions, it was a particularly apprehensive period. Given the drastic changes the course of 2023, how did these predictions do? Prediction 1: B2B financial products will behave like software Grade: C+ There are signs of this happening, but the majority of B2B payments are still locked into huge ERP systems in large enterprises. The reality is that this market is penetrated by establishing highly specialized purpose built workflows that incorporate payments as a feature. If you want a detailed breakdown, Matt Brown’s post details this extremely well: https://lnkd.in/gX3jxJmK Prediction 2: Alternative lending will explode in demand Grade: A 😎 Not going to lie, feels like a humble brag on this one. When I initially made this prediction, a lot of folks were very bearish on lending. The reality is entrepreneurs need to grow their businesses, and if classic forms of lending aren’t available, then newer models such as embedded lending, combining acquiring and issuing, and different trade finance models come into play. If you’re interested in checking out who’s doing cool stuff, I’m a huge fan of Pipe, Kanmon, Vartana, OatFi, Slope, Canopy. Prediction 3: Mass adoption of machine learning in lending Grade: F 😩 Got skunked on this one. As someone with a data science background, I overlooked how difficult operationalizing machine intelligence is for folks who don’t live and breathe data. This becomes the critical linchpin of any ML-based value chain. In financial services, marginally better ML technology that is easily implemented at scale will always outperform. Well…overall I think stick to building embedded finance. I’ll drop 2024 predictions in January, so make sure you tune in :) and if you have any strong predictions of your own, let me know in the comments. #embedded #embeddedfinance #fintech #baas
Charles Taylor
7mo
Love this Yan!
What is great about predictions is being able to review them ex-post to improve ones framework. #continuouslearning
On alternative lending,I like what Treyd is doing. They pay invoices for ecomm companies and get their money later. I Snooped...they have an interesting growth trajectory: Dec 2021-61customers Dec 2022-350+ customers Sep 2023-600+ customers
Nussi Einhorn
7mo
Absolutely! the crystal ball sometimes gets cloudy, but the insights are always valuable.
Ha! A+ for transparency, Yan Wu. 😆
Peter Sweeney
7mo
Psyched to see what you come up with for 2024!
Fintech Product and Data Leader | Bond (acquired by FIS), SoFi, BlackRock
7moPrevious year's predictions: https://www.linkedin.com/posts/yanwu26_newyear2023-fintech-financialtechnology-activity-7016172966631669760-dBBm?utm_source=share&utm_medium=member_desktop