Fintech Bosses: What They Want & Don’t Want in their Santa Sack

Downturns, cutbacks, market exits and investor visits aside, 2022 certainly had its challenges for fintech. But fintech, as is its wont, battled through the unexpected macroeconomic perils this year to launch products, conquer new markets, reach milestones and take on incumbents.

So what gifts do fintech bosses want in their Santa sack (and what gifts don’t they want!) that bode well for the industry in 2023?

Crypto boss

Daniel Seifert, Coin base vice president and regional managing director, EMEA, said of his wish list: “I’m not sure how you would gift-wrap it, but I would like to see regulators come together to deliver a coherent and consistent framework for the entire crypto industry to operate within.

“Knowing what is wanted and expected from crypto instead of guessing politicians would make a better world for everyone. As a publicly traded company we play by the rules so I hope we are on Santa’s nice list and get this soon.”

Not on his Christmas wish list, Seifert said: “The fallout from FTX is causing knee-jerk regulation that hasn’t been properly thought through. Regulation that is settled quickly is usually bad regulation, and doubly so if it drives consumers to offshore platforms with even less oversight.”

Digital wealth manager

Moving from crypto to digital wealth and Giovanni Dapraco-founder and CEO of Moneyfarmsaid he wants (probably what many want) and that is market stability.

Daprà said: “I don’t think it would be too greedy to want market stability, investor confidence and innovation, both in the UK and the rest of the world.

“The market turmoil is having a detrimental effect on people’s saving and investing habits, and it is so important that we encourage everyone to save for the financial future they want and help them become more confident in their investment choices.

“If supported by sustained innovation in the financial sector leveraging the fintech revolution, this would engage consumers and help them take control of their finances and become more confident.”

What Daprà does not want to see in the Christmas bag are monetary policy mistakes next year.

He said: “I believe that the role of central banks remains critical to market stability and economic recovery. A failure in the implementation of monetary policy can lead to an important halt in the global recovery and a soft landing for inflation.

“When I look at the financial industry, I would like to avoid slowdowns in innovation in the sector. Last but not least, I really don’t want to see any lack of confidence in the digital wealth management sector, it is so important from the perspective of private investors.”

Digital bank manager

Over to digital banking ZopaAmong other things, it wants to see more industry collaboration and healthier fintech.

Clare Gambardella, Chief Customer Officer Zopa said: “I hope the industry will come together to help consumers build their financial resilience in this challenging time.”

On wanting to see healthier fintech, she said: “In an uncertain economy, there have been clear changes in how investors assess businesses in the sector. Along with consumers’ need for robust, sustainable businesses to see them through today’s economic challenges, we must prioritize sustainable growth and a clear path to commercial profitability.

“Achieving positive return on equity with healthy profit margins has now become the holy grail for most high-growth venture capital-backed businesses.”

On the customer front, she said: “Customers can (and should) look for the most competitive products. Take savings as an example, interest rates vary greatly from supplier to supplier and these change every day. It is important to be on the lookout for better returns. »

Savings and investment app manager

Talking about savings, founder and CEO of the savings and investment app Plum believes fintech is well positioned to ride the economic storm.

Victor Trokoudes said: “Here at Plum, we would like to see the fintech industry rise to the challenges ahead in 2023 and fulfill its potential. We’re headed for a recession, but tough economic times bring opportunity, and we feel that fintech, including apps like Plum, is uniquely positioned to help people get through what’s ahead.

“While higher risk or nice non-essential propositions may become less popular, there will be new ways of using fintech that are ideally suited to a turbulent financial climate. It will be exciting to see what we as an industry can achieve.”

Trokoudes would also like to see closer ties between the UK and the EU. He added: “We also want the government to develop closer relations with the EU as we continue to expand the Plum product across Europe.

“The government has indicated that it is moving in this direction, with potentially closer regulatory alignment, albeit within the commitment not to be part of a single market. It would be great to see a long-term plan for growth and improved productivity that is international.

Fintech Lender Manager

Josh Levy, managing director i Ultimate Finance, probably speaks for the entire fitntech community when he said he wants “the war in Ukraine to come to a swift conclusion without further suffering from the Ukrainian population”.

Also on Levy’s wish list are “the government to strike a better balance between fiscal responsibility and promoting growth, as well as protecting vulnerable households and businesses” and “SMEs to take proactive measures regarding their funding needs and take specialist advice from accountants, brokers and other advisers when it is appropriate’ and ‘greater use of secure data exchange practices for open finance’.

What Levy does not want in his bag is “excessive government intervention in the corporate finance market” and “the continuation of friction in the supply chain coming out of China in particular”.

Open bank manager

Meanwhile, CEO of Open Banking Platform Nordickeeps his Christmas wish list close to home.

Roland’s Masters said: “By 2023, I would like to see open banking used more strongly in industries across Europe that can really benefit from accurate, up-to-date financial data, such as the lending sector.

He adds: “I would also like to see open banking adoption rates continue to grow. The opportunities that open banking provides within the financial sector are huge and it can significantly simplify, streamline and automate processes across different industries.

“However, open banking is currently still underutilized. As open banking will continue to grow across Europe and elsewhere, financial services companies will continue to evolve and create better user experiences for their customers.”

Head of stock trading platform

Finally, Matt Leibowitzco-founder and CEO, effort, admits he may be in the minority who choose the top of the wish list. He said: “While it’s probably not at the top of most people’s lists, I’d like Santa to give everyone the skills and confidence to keep an eye on their long-term financial goals.

“The markets are one of the best ways to build wealth, and if we are able to think rationally and avoid an emotional response, this leads to better results. As for books, Mastering the market cycle of Howard Marks is a big one for the situation we are in today.”

And on the flip side, he would like to see the rise of social media stop, accusing it of being a playground for scammers.

He adds: “The rampant rise in online investment scams on platforms like YouTube, Instagram and TikTok is something we all need to see end by 2023. Today, many people are particularly financially vulnerable, and if scams and bad advice are allowed to spread as they have, they will pose an increased risk over the next year. Some scammers advertise via social media to catch potential victims, which means the tech giants often make money.”