Our fintech analysts uncover 3 trends emerging from our banking industry data.
Fintech funding stumbled in Q3’22, falling 38% quarter-over-quarter to $12.9B.
Banking startups were also hit hard, with dollars invested falling to the lowest level since 2018. But even with financing becoming tighter, technologies are still emerging that could shake up the industry.
Using CB Insights data, we surface 3 banking trends to watch and highlight what’s next across:
- Open banking
- Embedded finance
- Digital transformation
OPEN BANKING
Trend to watch: Variable recurring payments
Why we’re paying attention: Variable recurring payment (VRP) technology allows a third-party provider to authenticate the direct transfer of funds from a consumer’s account without the need for continuous or repeated authorization. Rather than having to re-enter payment information every time a customer purchases from the same vendor, the VRP provider can automatically authenticate the transaction. This is similar to direct debit in some ways but it leverages open banking to enhance the speed, flexibility, and security of transactions.
