Investors will be cautious and investments will be meaningful, Alexander Lukianchuk of TAG Fintech
Alexander Lukyanchuk of TAG Fintech believes that investors will be cautious when investing in new fintechs in the near future.
The turbulence in the financial markets in 2022 has undoubtedly affected the development of fintech projects and startups in all areas. High inflation across the globe, the increase in interest rates, high volatility in the stock markets and other economic events make investors extra cautious.
Despite this, a crisis in the neobanking sector is much less likely than in other industries. Back in 1994, Bill Gates said, “Banking is necessary, banks are not”. Vantage Market Research expects the fintech market to exceed $330 billion by 2028. The market is growing at 20% annually. And experienced market players know that. That is why the TAG Fintech team is quite optimistic about the future of the industry.
TAG Fintech is a Pakistani fintech startup founded by Talal Gondal in 2020. Later, Alexander Lukianchuk joined the team. In 2021, the startup became a sensation by being among the top 5 companies in the Middle East and South Asia for the increased investment. According to Alexander Lukianchuk, the startup raised more than $12 million after graduating from Y-Combinator, and the latest investors valued the company at $100 million.
Fed interest rates and inflation. How the market reacts: TAG Fintech
Alexander Lukianchuk said that the situation in the global market, namely the level of inflation, interest rate increases, fall in the valuation of fintechs and startups in the venture capital market puts great pressure on the industry, which includes TAG Fintech.
Under these circumstances, we must become even more efficient. This will allow us to go through the turbulence with minimal losses and become stronger. Otherwise, you could lose everything. For many startups, this time period and this severity of the recession will be fatal.
When it comes to cryptocurrency market events that people are concerned about, TAG Fintech is only indirectly affected, the company’s CTO explained. Today, TAG only works with fiat money. But the oversaturation of the global market with resonant events can lead to mistrust or excessive caution on the part of investors, which is reasonable.
Cryptocurrency will change the market. TAG is ready for the transition
Alexander Lukianchuk believes that cryptocurrency undoubtedly has a great future. Now it is difficult to predict when this trend will really take hold. One thing is known, the transition will happen quickly and this will change the market dramatically.
Currently, neobanks are working more on integrating existing fiat features, as well as improving the user experience and service in general. Along with this, players are trying to be prepared for greater use of crypto and TAG Fintech also follows this strategy.
It should be noted that the scope of business interests of the company and its founders is wider than just banking. It is expected that there will be more service transformation in the future.
Alexander Lukianchuk: “We are constantly developing. I am interested in observing the innovation of mechanisms in fintech: payments, money transfers, curious to explore opportunities in Proptech & Legaltech. I am keen to find viable ways to use smart contracts and build a full-fledged DAO in these domain models. Today, our goal is to create a very competitive service for working with fiat money, and we all stay abreast and follow the trends. In the future, this will allow us to offer new and unique solutions at a time when the TAG team and the market are ready for this. I believe that projects at the intersection of Fintech, Proptech, Legaltech and Blockchain have great prospects now. I see great potential here”
Bitcoin, Ethereum – 2023/2024
It should be understood that the exchange rate of these major cryptocurrencies is highly correlated with the US financial market. This means that growth will resume when the US market overcomes the current challenges.
“I have such goals in mind for 23/24 year: Bitcoin 30k, ETH 2-3k”noted Alexander Lukianchuk, CTO of TAG Fintech.
The company noted that at the moment, while the crisis is in full swing, it is important for individual investors and fintech companies to define their main values, focus the company around them and remove the excess. In times of crisis, access to cash is limited, so instead of uncontrolled growth, it is necessary to reflect more and strengthen the areas that already work and show strong potential, striving to be the best, not the biggest.
“We are working hard on strategy right now and I cannot make any specific announcements. One thing is certain: our plan is to become one of the leading players in the Middle East market, where the potential remains one of the most interesting in the world. We believe that the user experience is high quality customer service is the key to winning in this region. Our analysis of current players shows that based on these parameters, there are no strong competitors in the region. While our team sees how we create the service significantly better”, summarized Alexander Lukianchuk.
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