PitchBook分析师注：FinovateFall的17个要点（英）

(pitchBooK

EMERGINGTECHRESEARCH

17TakeawaysFromFinovateFall

Exploringthelatestproductsfromstartupsandbreakingdownkeyindustrythemes

PitchBookData,Inc.

JohnGabbertFounder,CEO

NizarTarhuniVicePresident,Institutional

ResearchandEditorial

PaulCondraHeadofEmergingTechnology

Research

InstitutionalResearchGroup

Analysis

PitchBookisaMorningstarcompanyprovidingthemostcomprehensive,most

accurate,andhard-to-finddataforprofessionalsdoingbusinessintheprivatemarkets.

RudyYang

SeniorAnalyst,Emerging

Technology

rudy.yang@

JamesUlan

Keytakeaways

LeadAnalyst,Emerging

Technology

james.ulan@

Data

MatthewNacionales

DataAnalyst

pbinstitutionalresearch@

Publishing

DesignedbyCarolineSuttie

PublishedonSeptember21,2023

Conferenceobservations

•Thisyear,morethan2,000senior-levelexecutivesandmorethan350financialinstitutionsattendedFinovateFall,anannualfintechconferenceinNewYorkCity.

•65companiestookthestagetoshowcasetheirproducts,exhibitingarangeofsolutionsacrossseveralsectors.

•Prominentthemesattheconferenceincludeduserexperience,fraudprevention,payments,personalizationandengagement,banking,customerservice,climatetech,andgenerativeAI.

Contents

Keytakeaways

1

Conferenceoverviewand

3

observations

GenerativeAI’sroleinfintech6

expands

Excitingroadaheadforpayments8

Climatetechmakesstrongshowing10

atFinovateFall

Personalization,engagement,11

rewards,andgamification

ThoughtsfromVCs

12

Additionaltakeaways

13

Startuphighlights

14

GenerativeAI

•FintechcompaniesareintroducinggenerativeAIproductsatagrowingrate.

•ManydemosshowcasednewgenerativeAIcopilots,whichweredesignedtoassistuserswithquerying,organizingdata,andgeneratinginsights.

•SomefintechinfrastructurecompaniesalsointroducednewgenerativeAIfeaturestohelpusersanalyzeconnecteddataandbetterpersonalizetheirproducts.

•AnotherprevalentusecaseforgenerativeAIwasimprovinghowcompaniesengagewithcustomersandexternalclients.

•ManyoftheshowcasedgenerativeAIproductswerestillintheirearlystages,leavinginvestorscautiousabouttheirfutureperformance.

1

(pitchBooK

PitchBookAnalystNote:17TakeawaysFromFinovateFall

Payments

•Keypaymentdiscussionswereprimarilycenteredonembeddedpayments,cross-borderpayments,andinstantpayments.

•Givenitslargetotaladdressablemarketandabilitytodrivebrandloyalty,

embeddedfinancecontinuestobeperceivedasoneofthelargestopportunitiesinpayments.

•Withincross-borderopportunities,cryptocurrenciespresentarealcasefordisruption.Specifically,seamlesstransfersbetweenfiatcurrencyandcryptocurrencyatscalecouldofferarobustsolution.

•WiththerecentlaunchofUSinstantpaymentsrailFedNow,investorsarealsoexploringreal-timepaymentopportunitiesinareassuchasremittances,B2Bpayments,earnedwageaccess,andinsurance.However,mainstreamusageofinstantpaymentsintheUSmaystillbeyearsaway.

Climatetechnologyinfintech

•Agreaternumberofcarbon-trackingstartupsarenowsellingsolutionstoUS

corporations,banks,creditunions,andfintechcompaniestoestimateemissionsfromconsumerpurchasesaswellasfromlendingcustomers.

•BecausemanycompaniescanreplicatetheprocessofprovidingGHGemissionsestimatesviaAPI,itisdifficulttopickwinnersinthespace.However,their

successhingesonmorethanthis.Winnersarelikelytogetafewthingsright:TheyshouldprovidearichsetofAPIfeaturesbeyondjustGHGemissions

foragivenproduct,maketheproductexceptionallyfunctionalandeasyfordeveloperstoaccess,andseamlesslyautomatereportingforgovernmentdisclosures.

Personalization,engagement,rewards,andgamification

•Wewatcheddemosfromahandfulofstartupsthatprovidepersonalizationand

engagementtoolsforbanksandfintechcompaniestoincorporateintotheir

mobileappsanddesktopsites.VCsandstartupsemphasizedthatrisinginterestrateshavecatalyzedbanksandfintechcompaniestopursueengagementtoolstobetterretaindeposits.

ThoughtsfromVCs

•MultipleVCsstatedthatfintechcompaniesareincreasinglydoingthesame

thing—thatis,partsoffintecharegettingcompetitiveassimilarstartupsspringup,particularlyinKYC/AML,fraudprevention,andoutsourcedcustomerservice.

•WespokewithseveralVCswhocommentedthattheyareseeingAI-based

fintechcompaniesthataresimplyawrapperdrapedoverOpenAI’sAPIsuite,

makingthemreplicable.Ontheotherhand,theyarealsoseeingnewAIstartups,foundedbystrongtechnicalteams,thatarebuildingpromisinganddifferentiatedindustry-specificofferings.

2

.

(pitchBooK

PitchBookAnalystNote:17TakeawaysFromFinovateFall

Conferenceoverviewandobservations

Fintechinnovationcontinuesacrossallfronts

FinovateFallisanannualconferencethattakesplaceattheMarriottMarquisinNewYorkCity.The2023eventtookplacefromSeptember11to13andwasattendedby

morethan2,000senior-levelexecutivesandmorethan350financialinstitutions

(FIs).Asinprioryears,FinovateFall’suniqueagendashowcasedarangeoffinancialtechnology(fintech)startupsthroughaseriesofdemos.Atotalof65companies

tookthestagetoshowcasetheirproductsinseven-minuteslots,exhibitingarangeofimpressivesolutionsinthefintechspace.Importantly,thesestartupsoperated

acrossamultitudeofsectors,includingbanking,capitalmarkets,lending,payments,treasurymanagement,wealthtech,loyaltyandrewards,financialservices

infrastructure,regulatorytechnology(regtech),insurancetechnology(insurtech),andpropertytechnology(proptech).Webelievethisillustratestheabundanceofopportunitieswithintheoverarchingindustry.

Prominentthemesattheconferenceincludeduserexperience,fraudprevention,

payments,banking,personalizationandengagement,andclimatetech.Notably,

theconferenceillustratedtheacceleratingdevelopmentofgenerativeartificial

intelligence(AI)withinthefintechsector.WhereasgenerativeAIproductsfrom

fintechcompaniesweremuchrarerearlierin2023,severalcompanieswereable

toshowcaselivegenerativeAIproductsatFinovateFall.Theseapplicationsof

generativeAIcommonlyleveragelargelanguagemodels(LLMs)tocreatechatbotsthatassistwithdatasummarization,customersupport,andfraudmonitoring.In

addition,wewerehappytoseeafewcompaniesfocusonclimateimpact,asthethemehashistoricallybeenabsentfromUS-basedconferences.Overall,wewereimpressedwiththediversityofproductspresentedattheconferenceandwerepleasedtoseebanksandincumbentsalsoembracinginnovation.

3

Year

Estimated

Company

probability

employeesfoundedvaluaton($M)amount($M)dateraised($M)

PitchBookAnalystNote:17TakeawaysFromFinovateFall

StartupswithproductdemonstrationsatFinovateFall

IPO

probability

Lastknown

Lastfundraising

Lastfundraising

Totalcapital

M&A

1Kosmos

93

2017

$55.0

$15.0

June1,2022

$15.0

(%)

1%

(%)

78%

Agtools

42

2017

$25.0

$10.0

February17,2021

$5.7

1%

85%

AISquared

29

2021

$24.0

$6.0

N/A

$6.0

N/A

N/A

AltoSolutions

108

2015

$289.9

$40.0

January4,2022

$72.3

3%

95%

Apiture

249

2017

N/A

$29.0

July14,2022

$59.0

N/A

N/A

Autobooks

92

2016

$220.0

$50.0

August22,2022

$47.8

4%

94%

AutoCloud

19

2019

$10.0

$4.0

October27,2022

$4.0

1%

64%

Bankjoy

60

2015

$38.5

$13.5

February24,2023

$13.6

5%

83%

BitsofStock

23

2017

$14.3

$4.3

March30,2022

$4.3

N/A

N/A

Bud

100

2015

$122.8

$9.1

January26,2023

$166.0

9%

80%

Cashy

30

2018

N/A

$6.6

May4,2023

$8.5

1%

89%

CDValet

N/A

2022

N/A

N/A

N/A

N/A

N/A

N/A

Chimney

27

2020

N/A

$1.3

N/A

$1.3

N/A

N/A

ClimateTrade

40

2016

N/A

$14.8

January24,2022

$23.0

47%

28%

Cloverly

40

2018

$45.0

$19.0

May11,2023

$23.1

1%

87%

ConnectEarth

19

2021

$12.6

$5.7

April5,2023

$7.6

1%

86%

CREED

10

2019

N/A

N/A

N/A

N/A

N/A

N/A

DataVisor

128

2013

$390.0

$40.0

May9,2023

$140.0

4%

94%

Debbie

6

2021

$7.0

$1.0

N/A

$1.2

1%

69%

Effectiv

27

2021

N/A

$4.5

January1,2023

$9.0

1%

64%

EngagePeople

130

2015

N/A

N/A

January17,2017

N/A

N/A

N/A

eSelf.ai

N/A

2022

N/A

N/A

N/A

N/A

N/A

N/A

Featurebyte

17

2022

$24.0

$5.7

April28,2022

$5.7

N/A

N/A

Finalytics.ai

5

2021

N/A

N/A

N/A

N/A

N/A

N/A

FinTechInsights

51

2010

N/A

$0.7

April14,2010

$0.7

N/A

N/A

Flybits

79

2013

N/A

$35.0

July16,2019

$45.1

1%

71%

Fundica

20

2017

N/A

N/A

N/A

N/A

N/A

N/A

Fyle

132

2016

$20.5

$8.6

October3,2019

$10.9

1%

88%

GreenPortfolio

4

2020

N/A

$0.3

August8,2023

N/A

N/A

N/A

HappyNest

44

2018

$5.5

$1.5

May1,2022

$1.7

1%

32%

Illuma

15

2016

$7.5

$2.0

June13,2022

$2.5

1%

51%

Inscribe

49

2017

$115.0

$25.0

January25,2023

$38.7

1%

92%

interface.ai

126

2019

N/A

N/A

N/A

N/A

N/A

N/A

Source:PitchBook•Geography:Global*AsofSeptember19,2023

Note:Probabilitydataisbasedon

PitchBookVCExitPredictor

methodology.

4

Year

Estimated

Company

probability

employeesfoundedvaluaton($M)amount($M)dateraised($M)

PitchBookAnalystNote:17TakeawaysFromFinovateFall

StartupswithproductdemonstrationsatFinovateFallcont.

IPO

probability

Lastknown

Lastfundraising

Lastfundraising

Totalcapital

M&A

Jaid

27

2017

N/A

$3.6

December14,2022

$3.6

(%)

N/A

(%)

N/A

Kard

64

2015

$100.5

$6.0

August17,2022

$37.5

1%

80%

LemonadeLXP

21

2018

N/A

N/A

December9,2021

N/A

N/A

N/A

MacroMicro

2

2011

N/A

N/A

N/A

N/A

N/A

N/A

MahaloBanking

26

2017

N/A

$20.0

July19,2022

$20.0

N/A

N/A

MerlinInvestor

2

2021

N/A

$1.3

September1,2021

$1.3

N/A

N/A

NayaOne

35

2019

$12.6

$1.4

October1,2021

$1.4

N/A

N/A

Nuance

9067

1992

$18,800.0

N/A

March4,2022

$4,402.4

N/A

N/A

Nymbus

500

2015

$168.0

$70.0

May2,2023

$204.3

13%

85%

Ocrolus

656

2014

$510.5

$10.5

February15,2023

$131.2

20%

78%

PangeaTechnologies

30

2018

N/A

$7.0

July1,2021

$7.0

N/A

N/A

Payitoff

21

2017

$38.5

$8.5

November10,2021

$9.3

1%

74%

Peach

63

2018

$26.5

$20.0

July22,2021

$27.5

2%

89%

Plinqit

16

2013

$19.0

$5.0

January7,2022

$6.6

1%

74%

QuickFi

22

2018

N/A

$0.2

April5,2020

N/A

N/A

N/A

Regulo

6

2022

N/A

N/A

N/A

N/A

N/A

N/A

Savana

129

2014

$47.4

$25.0

April5,2022

$52.8

6%

79%

SAVVIAI

8

2021

N/A

$3.2

September1,2023

$3.2

N/A

N/A

SESAMm

117

2014

$94.2

$37.5

N/A

$57.3

6%

83%

Setuply

17

2022

$18.0

$3.5

N/A

N/A

N/A

N/A

SRM

15

2012

N/A

N/A

N/A

N/A

N/A

N/A

SupraFin

5

2017

N/A

N/A

September9,2019

N/A

N/A

N/A

Telesign

668

2005

$1,300.0

$487.0

December16,2021

$78.4

N/A

N/A

TrueDigitalGroup

10

2022

N/A

N/A

N/A

N/A

N/A

N/A

Trust&Will

84

2017

$169.2

$15.0

February23,2023

$50.5

6%

90%

Trustworthy

32

2019

$70.0

$15.0

April7,2022

$20.3

1%

83%

UnionCredit

26

2022

N/A

$5.0

January19,2023

$5.0

N/A

N/A

Uprise

8

2020

N/A

$1.4

July11,2022

N/A

N/A

N/A

Viffy

4

2022

N/A

$0.2

N/A

$0.2

N/A

N/A

WealthAccess

58

2011

$8.5

$1.8

April13,2020

$7.0

1%

57%

Wysh

12

2021

N/A

N/A

N/A

N/A

N/A

N/A

ZeroBankDesignFactory

N/A

2019

N/A

N/A

N/A

N/A

N/A

N/A

Source:PitchBook•Geography:Global*AsofSeptember19,2023

Note:Probabilitydataisbasedxon

PitchBookVCExitPredictor

methodology.

5

(pitchBooK

PitchBookAnalystNote:17TakeawaysFromFinovateFall

GenerativeAI’sroleinfintechexpands

StartupsleadthechargeingenerativeAI

FintechcompaniesarenowintroducinggenerativeAIproductsatagrowingrate.

Priortothethirdquarterofthisyear,limitedapplicationsofgenerativeAIwere

seenfromlate-stagefintechstartupsandFIs.Wediscussedthisinfurtherdetailinour

Q22023RetailFintechReport

and

Q22023EnterpriseFintechReport

.EvenwithindustryleaderssuchasStripeandJ.P.Morganannouncingearlyinterest

ingenerativepretrainedtransformer(GPT)models,wesawfewnewlaunches

ofgenerative-AI-poweredproducts.However,severalstartupsatFinovateFall

demonstratednewproductsandservicesincorporatinggenerativeAI,suggestingtheincreasingfocusonAIwithinthefintechindustry.

ManydemosshowcasednewgenerativeAIcopilots,whichweredesignedto

assistuserswithquerying,organizingdata,andgeneratinginsights.Usageof

LLMsinthesescenarioscanleadtogreaterefficienciesandtimesavingsforusers—bothinternalteamsandcustomers.Inaddition,mostofthegenerativeAIfeaturesshownatFinovateFallwereofferedasadditionalcomponentstothecompanies’

mainproductoffering.IntegratinggenerativeAIinthismannercansignificantly

enhancethevalueofaproductandservice,potentiallyleadingtohighercustomerconversionratesandretention.

AhandfulofcompaniesdemonstratingtheirproductsatFinovateFallillustratedthisopportunity.CapitalmarketsdatastartupMacroMicropresentedits

MacroMicroGPTtool,whichleveragesthecompany’sdatabaseandOpenAIto

helpanalystsderiveinsightsmorequickly.BankingresearchplatformFinTech

InsightsdemonstrateditsFinTechInsightsGPToffering,showinghowprompts

suchas“ShowmethefivemostadoptediOSfeaturesfromtheUSmarketthatI

ammissing”cangreatlyassistwithbankingcompetitoranalysis.Environmental,

social&governance(ESG)analyticscompanySESAMmsampleditsgenerativeAI

assistant,whichhelpswithsummarizingandtrackingESGrisksoncompaniesinrealtime.DocumentsecuritizationplatformTrustworthypresenteditsAutopilotfeature,whichutilizesgenerativeAItoautomaticallyextractkeydetailsandgenerate

summariesfromdocumentsuploadedtoitsplatform.

SomefintechinfrastructurecompaniesalsointroducednewgenerativeAI

featurestohelpusersmakesenseofcustomerdata.OpenbankingplatformBuddemonstratedhowitsAIchatbotJascanbeleveragedtostrategicallytargetandcrafttherightproductsforconsumers.Forexample,promptssuchas“Showmecustomersthatarelikelytowantamortgageinthenextsixto12months”canhelpBud’susersoffertherightproductstotheircustomers.Relatedly,digitalbankinginfrastructureplatformApiturepresentedSensei,itsAItoolthathelpsgenerate

real-timeinsightsbasedoncustomerdata.

AnotherprominentusecaseforgenerativeAIwasimprovinghowcompanies

engagewithcustomersandexternalclients.Bankjoy,aninfrastructureprovider

fordigitalbanks,demonstratedthiswithitsAIchatbotJoy.AsanadditionalofferingtoBankjoy’splatform,Joycanbeimplementedtoquicklyengageinconversation

6

(pitchBooK

PitchBookAnalystNote:17TakeawaysFromFinovateFall

withbankingcustomers,setupnewaccounts,andexecutetransfers.Startups

interface.aiandeSelfAIalsopresentedAI-poweredassistantsthatcaneffectivelycommunicatewithcustomers,drivingefficienciesincustomersupport.

Additionally,techgiantMicrosoftalsotookthestagetoshowcasehowitsAI

copilotcanassistcustomersupportteamsbycraftingpersonalizedresponsesandextractinginsightsfromstoredconversations.Software-as-a-service(SaaS)startupJaidsimilarlyexhibiteditsAI-as-a-serviceproduct,whichcaninterpretandrespondtohumancommunicationssuchasemail.Inindustriessuchascapitalmarkets

wheresettlingtradesisoftenmanual,Jaid’ssolutioncangreatlyincreaseefficiencybyoptimizingmundanetasks.

Withgreatpromisescomesgreatskepticism

ManyoftheshowcasedgenerativeAIproductswerestillintheirearlystages,leavinginvestorscautiousabouttheirfutureperformance.WhileattendantsatFinovategenerallyagreedonthepotentialofgenerativeAItosignificantlyimpacttheindustryinapositiveway,manyweresimultaneouslyskepticaloftheshort-

termimpactsgiventhenascencyofthetechnology.OnepanelistbelievedthattheindustrycouldbemomentsawayfromwidescaledisappointmentshouldnewAIproductsfallshortofthegrandpromisesofgenerativeAI.

Inourview,generativeAIhasclearusecasesfordrivingefficienciesinareassuch

ascustomersupport,codecompletion,anddataaggregation.However,webelievetheindustryisstillonlyintheearlyinningsofdevelopingwell-testedandreliable

applications.Thiswasevidentinafewlivedemos,wheresomeapplicationsfailedtoactasintendedorwereslowtoproduceresults.

Hence,weexpecttheupcomingquarterstobeacriticalperiodforgenerativeAIinfintech.AsnewLLM-poweredproductsarereleasedtothemarket,additionaldatapointsontheirperformanceshouldbecomeavailable.FurtherinsightonconsumersatisfactionwithnewgenerativeAIofferingscouldalsohelpanswertheongoing

debateoverwhetherahumantouchisstillnecessary.Thiswasaprominenttopicattheconferenceandwasfrequentlybroughtupinareassuchascustomersupportandfinancialadvisory.

SomeattendantsattheconferencealsostatedthatgenerativeAImaycurrentlybetooimmaturetodeployforfintech.Fraudprevention,knowyourcustomer(KYC),

andanti-moneylaundering(AML)werefrequentlycitedassegmentstobecautiousabout.Webelievethisislargelyduetothestringentregulationsandaccuracy

standardsthatbanksandFIsadhereto.LLMsareonlyasgoodasthedatatheyare

trainedon,anditislikelyamodelwillneedtoperformwithimmenseaccuracy

beforebeingdeployed.Toachievethis,companieswillinevitablyneedtoengagein

rigoroustestingtoeliminatebiasesandconstructexplainableoutcomes,inadditiontomakingsurethatconsumerdataisnotatriskofsecuritybreaches.Onepanelist

fromaregtechcompanynotedthattheindustryisstillyearsawayfrombeingreadytodeploygenerativeAIforpreventingfraud.Still,manyrecognizedregtechasanareathatcouldbesignificantlyenhancedbygenerativeAIinthefuture.

7

(pitchBooK

PitchBookAnalystNote:17TakeawaysFromFinovateFall

Excitingroadaheadforpayments

Noshortageofopportunities

Keypaymentdiscussionswereprimarilycenteredonembeddedpayments,

cross-borderpayments,andinstantpayments.Otheropportunitiesdiscussedincludedcreatoreconomypayments,connectedfinance,treasuryautomation,

andubiquitouswallets.WhilewefoundmostoftheconferencetobedominatedbygenerativeAIandfraudpreventionthemes,webelievethepaymentssegmentcontinuestopresentsignificantinvestmentopportunitiesandgapsforfintech

companiestosolve.AccordingtoPitchBook’sdataasofQ22023(andexcludingStripe’s$6.9billiondeal),thepaymentssegmentremainsthemostwell-fundedfintechsegment,makingup30.0%ofthefintechvertical’strailing12-monthVCfundingof$34.0billion.

Thefutureofpaymentsisembedded

Givenitslargetotaladdressablemarketandabilitytodrivebrandloyalty,

embeddedfinancecontinuestobeperceivedasoneofthelargestopportunitiesinpayments.Inakeynotediscussion,embeddedfinancecompanyMarqetacitedthepotentialforannualembeddedfinancetransactionsintheUStogrowfrom

$2.6trillionin2021tomorethan$7.0trillionin2026.1,2Forcomparison,theUS

B2Bpaymentsmarketiscurrentlyestimatedtosee$25.0trillioninpaymentflowsannually.3Marqetaalsonotedthat47%ofconsumersgloballywouldconsider

receivingfinancialservicesfromanonfinancialprovider.4Whilethisisanotably

highpercentage,thereremainssignificantroomtogrow.Weexpectthatthe

continuedentranceofstronglybrandednontraditionalfinancecompaniesintothefintechspace,asseenwithApple,T-Mobile,Shopify,andWalmart,willcontinuetopushtheubiquitousnessofembeddedfinance.

Optimismremainsforcrypto

Withincross-borderopportunities,cryptocurrenciesofferarealcasefor

disruption.Internationalpaymentscontinuetoremainalargepainpointfor

companiesasglobalizedtradeincreases.Thisisduetothecomplexityofmoving

moneyacrossmultiplebanknetworks,whichoftenresultsinhighfees,longtransfertimes,andlittlevisibility.Inakeynotediscussion,remittancecompanyMoneyGramstatedthatbuildingaclosed-loopnetworkoflocalbankscouldhelpsolvecurrent

cross-borderpaymentproblems.Notably,thisishowleadingmoney-movement

startupssuchasAirwallexandTerraPayseamlesslytransferfundsacrossborders.However,MoneyGramalsodiscussedhowbuildinganetworkwithcryptocurrenciesinasimilarmannercouldpresentanothersolutionforinternationalpayments.

1:“EmbeddedFinance:WhatItTakestoProsperintheNewValueChain,”Bain&Company,MattHarris,etal.,September12,2022

.

2:“EmbeddedFinanceTransactionValuetoMoreThanDoubleto$7TrillioninUSby2026,ButFinancialInstitutionsMustMoveQuicklytoKeepUp,

Bain&Company,JeffTijssen,September13,2022.

3:“HowIndustry4.0IsDefiningtheFutureofBusinessPayments,”Mastercard,2022.

4:“StateofPaymentsReport,”Marqeta,2023.

8

(pitchBooK

PitchBookAnalystNote:17TakeawaysFromFinovateFall

MoneyGram’spartnershipwithStellar,ablockchainenablingthetokenizationanddistributionofmoney,andCircle,acryptocurrencytransferplatformthatmanagestheUSdigitalcoin(USDC)stablecoin,enablesuserstoseamlesslyconvertbetweencashandUSDC.Thecompanynotedthatwhilesolutionsenablinginteroperabilitybetweenfiatcurrencyandcryptocurrencyhavenottakenoffatscale,theyhave

proventobesuccessfulthusfar.Forthisapproachtoreachmainstreamadoption,webelievethereneedstobebetterclarityoncryptocurrencytransaction

regulations,greaterinteroperabilityamongblockchains,andsignificantlylowerfeescomparedwithotherdigital-moneytransfermethods.

However,manyleadingcompaniesareslowlyenablinginteroperabilitybetween

cryptocurrencyandfiatcurrency,whichmayacceleratecryptocurrency’susecaseincross-borderpayments.Forexample,onSeptember11,2023,PayPalannouncedon-andoff-rampcapabilitiesforWeb3payments.ThisenablesusersintheUS

toconvertbetweencryptocurrencyandfiatcurrencyfromtheircryptocurrencywalletsandPayPalbalances.

Mixedopinionsoninstantpayments

WiththerecentlaunchofUSinstantpaymentsrailFedNow,investorsarealsoexploringreal-timepaymentopportunities.Attheconference,manyinvestorsfoundthegreatestusescasesforinstantpaymentstoexistinearnedwage

accessandB2Bpayments.Theconnectingthemebetweentheseusecasesis

bettermanagementofcashflowconstraints;individualswhoarelivingpaychecktopaycheckhavethepotentialtoreceivefasteraccesstotheirwages,while

businessescanbenefitfromgreaterliquidityandcashflowforecasting.

MainstreamusageofinstantpaymentsintheUSmaystillbeyearsaway,

however.Whileinvestorsexpressedexcitementaroundthedevelopmentof

instantpaymentofferings,theyalsohadseveralconcernssurroundingitsrisks

andadoption.Concernsoverfasterfraudwerecommonlycited,giventhereare

currentlynosignificantconsumerprotectionsforinstantpaymentsfraud.Some

panelistssuggestedthatmultifactorauthenticationorsettingtransactionlimits

couldhelppreventscamsonreal-timepaymentnetworks.Tomeaningfullycombatinstantpaymentsfraud,however,consumerswillultimatelyneedtobeeducatedonpotentialrisksandhowtopreventthem.

Skepticismoverinstantpaymentsusagealsoappearedtostemfromconsumers’andbusinesses’limitedawarenessofinstantpaymentsoptions.Severalpaymentsstartupswespokewithattheconferencenotedtheywerenotprioritizinginstantpaymentsofferings,primarilybecausetherewaslittledemandfromcustomers.

Furthermore,apaneliststatedthatforapaymentrailtosuccessfullyevolve,itmustremainappealingtobanks,merchants,andconsumersalike.Banksandmerchantswilllikelyneedtoensurethatthebenefitsofintegratinginstantpaymentsoutweighanycostsandregulatoryconcerns,whileconsumerswillneedastrongreason

toshiftawayfromcurrentpopularpaymentmethods(suchasbycreditcardorApplePay).

9

(pitchBooK

PitchBookAnalystNote:17TakeawaysFromFinovateFall

Importantly,FedNowcurrentlysupportspush(credit)payments,butnotpull(debit)payments.Assuch,paymentswillneedtobeauthorizedbyconsumersbefore

theyaremade,creatingadditionalfrictionforindividualswhopreferpaymentstobeautomaticallyinitiatedfromtheirbankaccounts.Commonusecasesforpullpaymentscouldbesubscriptionservicesorrecurringbillpayments.Thereisa

possibilitythatpull-paymentfunctionalitycouldcomeonlineforFedNowinthefuture,butcurrentlimitationsmayleadconsumerstocontinuetransactingwithpreviouspaymentrails.

ClimatetechmakesstrongshowingatFinovateFall

ClimatetechhadanoticeablepresenceatFinovateFall.Carbon-trackingstartupsaresellingsolutionstocorporations,banks,creditunions,andfintechcompaniestoestimateemissionsfromconsumerpurchasesaswellasfromlendingcustomers.

Solutionsarebasedonapplicationprogramminginterfaces(APIs),sofinancial

institutionscanbuildcarbontrackingandoffsettingdirectlyintotheirmobileappordesktopwebsite.

EuropeanstartupshaveaheadstartbecausetheUK’sStreamlinedEnergyandCarbonReporting(SECR)rulealreadyrequireslargecompaniestoreporttheirenergyuseandrelatedscope1and2greenhousegas(GHG)emissions.

GHGoffsetsandreportingwillbecomealargemarketasEuropeadvances

regulationsandCaliforniamovestowardreportingrequirements.TheSecuritiesandExchangeCommission(SEC)couldmandateemissionsdisclosurestoo.Additionally,thousandsoflargecompanieshavesetnet-zerotargets.Applehascommitted

toacarbon-neutralsupplychainby2030,Walmartistargetingzeroemissions

fromoperationsby2040,andAmazoncommittedtonet-zeroemissionsby2040.Corporationsaredrivingdemandforsolarandwindenergy,electricvehicles,andhigh-qualitycarbonoffsets.

BecausemanycompaniescanreplicatetheprocessofprovidingGHGemissions

estimatesviaAPI,itisdifficulttopickwinnersinthespace.However,theirsuccesshingesonmorethanthis.Winnersarelikelytogetafewthingsright.Theymust

providearichsetofAPIfeaturesbeyondjustGHGemissionsforagivenproduct,maketheproductexceptionallyfunctionalandeasyfordeveloperstoaccess,andseamlesslyaut