2023 Outlook — Fintech everything everywhere all at once

Much has been written about high inflation, slowing growth, valuation multiple contraction and rising interest rates. But despite the lingering effects of the COVID-19 pandemic and the many macroeconomic concerns, our conviction over the region’s potential stays strong. Here are just a few of the sub-sectors within fintech and healthtech which we think are poised to capitalise on present conditions and would perform well in 2023.

Embedded fintech. Accelerated.

Our medium term thesis that fintech is becoming a horizontal layer, embedded across all industries, continues to hold true and accelerates as companies seek more monetisation opportunities and disintermediate expensive channels. In the past, financial services were typically offered by banks and other financial institutions, and were only used by consumers and businesses in specific contexts such as making a purchase or obtaining a loan. Data made it possible for fintech companies to create new, more personalised financial services tailored to the specific needs of different sectors and industries. We have seen financial services integrated into literally every industry across the region — from agriculture (eFishery offering credit to farmers), logistics (Kargo financing truck drivers), eCommerce (Graas providing revenue based financing to brands), to climate (Cleanhub creating a market for plastic credits), just to name a few. To echo Angela Strange from A16z, “Every Company Will Be a Fintech Company”. This trend continues to hold true, although not all companies in this region will derive a “significant portion of their revenue from financial services” as she puts it, most will eventually incorporate financial services as a revenue stream.

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Written by Joshia Kwa, Principal at Integra Partners