Key subsectors look to propel fintech in a more difficult market | PitchBook
Summary
Fintech Nexus, NYCs largest fintech conference, reinforced that fintech valuations are normalizing downward but havent bottomed—and capital is becoming scarce.Despite todays venture recession,on payments, embedded finance, accounts payable and accounts receivable, and vertical software.These subsectors are tackling huge markets and could generate attractive profit margins.We believe that some companies margins will be boosted by generative AI. Yet VCs outlined that most portfolio companies have not defined a clear generative AI strategy. Nevertheless, select early-stage startups are building with generative AI tools.We also think that large banks and insurance companies are considering generative AI—but so far fintechs are beating them to it. Since the conference last week, Ramp, MoneyLion, and Public all announced or mentioned new product features that will use generative AI.In our research note, weve compiled the main highlights from the conference that every fintech investor should know:We also want to speak to investors about the event. To set up a call to discuss what we learned, email me and senior fintech analyst Rudy Yang today.