PitchBook分析师注：FinovateFall的17个要点（英）

EMERGING

TECH

RESEARCHPitchBookData,Inc.John

Gabbert

Founder,

CEO17

Takeaways

FromNizar

Tarhuni

Vice

President,

InstitutionalResearch

and

EditorialFinovateFallExploringthelatestproductsfromstartupsandbreakingdownkey

industrythemesPaul

Condra

Head

of

Emerging

TechnologyResearchInstitutionalResearchGroupAnalysisPitchBook

is

a

Morningstar

company

providing

the

most

comprehensive,

mostaccurate,

and

hard-to-find

data

for

professionals

doing

business

in

the

private

markets.Rudy

YangSenior

Analyst,

EmergingTechnologyrudy.yang@James

UlanLead

Analyst,

EmergingTechnologyjames.ulan@Key

takeawaysConference

observationsDataMatthew

NacionalesData

Analyst•

Thisyear,morethan2,000

senior-levelexecutivesand

morethan350

financialinstitutionsattended

FinovateFall,anannualfintechconferenceinNewYork

City.pbinstitutionalresearch@•

65

companiestookthestagetoshowcasetheirproducts,

exhibitingarangeofsolutionsacrossseveralsectors.PublishingDesigned

by

Caroline

Suttie•

Prominentthemes

attheconferenceincludeduser

experience,

fraud

prevention,payments,

personalizationand

engagement,

banking,

customerservice,

climatetech,and

generativeAI.Published

on

September

21,

2023ContentsGenerative

AIKeytakeaways1•

FintechcompaniesareintroducinggenerativeAIproducts

atagrowingrate.Conference

overview

andobservations3•

Manydemos

showcasednewgenerativeAIcopilots,whichweredesigned

toassistusers

withquerying,

organizingdata,and

generatinginsights.Generative

AI’s

role

in

fintechexpands6•

Some

fintechinfrastructurecompaniesalsointroducednewgenerativeAIfeaturestohelpusers

analyzeconnected

dataand

better

personalizetheirproducts.Exciting

road

ahead

for

payments8Climatetech

makes

strong

showingat

FinovateFall10Personalization,

engagement,rewards,

and

gamification11•

Anotherprevalentuse

case

forgenerativeAIwasimprovinghowcompaniesengagewithcustomersand

externalclients.Thoughts

from

VCsAdditional

takeawaysStartup

highlights121314•

ManyoftheshowcasedgenerativeAIproducts

werestillintheirearlystages,leavinginvestorscautiousabout

theirfutureperformance.1PitchBook

Analyst

Note:

17TakeawaysFromFinovateFallPayments•

Keypaymentdiscussionswereprimarilycenteredon

embedded

payments,cross-borderpayments,

and

instantpayments.•

Givenits

largetotaladdressable

marketand

abilitytodrivebrand

loyalty,embedded

financecontinuestobe

perceivedas

one

ofthelargestopportunitiesinpayments.•

Withincross-borderopportunities,

cryptocurrenciespresent

arealcasefordisruption.Specifically,seamless

transfersbetween

fiatcurrency

andcryptocurrency

atscale

couldoffer

arobustsolution.•

WiththerecentlaunchofUSinstantpaymentsrailFedNow,investorsarealsoexploringreal-timepaymentopportunities

inareassuchas

remittances,

B2Bpayments,

earned

wageaccess,

and

insurance.However,mainstreamusage

ofinstantpaymentsintheUSmaystillbe

yearsaway.Climate

technology

in

fintech•

Agreaternumber

ofcarbon-trackingstartups

arenowsellingsolutionstoUScorporations,banks,

creditunions,and

fintechcompaniestoestimateemissionsfromconsumer

purchasesas

wellas

fromlendingcustomers.•

Because

manycompaniescan

replicatetheprocessofprovidingGHG

emissionsestimatesviaAPI,

itisdifficult

topickwinners

inthespace.

However,theirsuccesshingeson

morethanthis.Winners

arelikelytogetafewthingsright:TheyshouldprovidearichsetofAPIfeaturesbeyondjustGHG

emissionsforagivenproduct,

maketheproduct

exceptionallyfunctional

and

easy

fordeveloperstoaccess,

and

seamlessly

automatereporting

forgovernmentdisclosures.Personalization,

engagement,rewards,

andgamification•

We

watcheddemos

fromahandfulofstartups

thatprovidepersonalizationandengagement

toolsforbanks

and

fintechcompaniestoincorporateintotheirmobileappsand

desktop

sites.VCsand

startups

emphasizedthatrisinginterestrateshavecatalyzedbanks

and

fintechcompaniestopursue

engagement

toolstobetter

retaindeposits.ThoughtsfromVCs•

MultipleVCsstatedthatfintechcompaniesareincreasinglydoingthesamething—thatis,

parts

offintecharegettingcompetitiveas

similarstartups

springup,particularlyinKYC/AML,fraud

prevention,and

outsourced

customerservice.•

We

spokewithseveralVCswho

commentedthattheyareseeingAI-basedfintechcompaniesthataresimplyawrapper

draped

overOpenAI’sAPIsuite,makingthemreplicable.On

theotherhand,

theyarealsoseeingnewAIstartups,founded

bystrongtechnicalteams,thatarebuildingpromisingand

differentiatedindustry-specificofferings.2.PitchBook

Analyst

Note:

17TakeawaysFromFinovateFallConferenceoverview

andobservationsFintech

innovation

continues

acrossall

frontsFinovateFallisanannualconferencethattakesplaceattheMarriott

MarquisinNewYork

City.The

2023eventtookplacefromSeptember

11to13and

wasattended

bymorethan2,000

senior-levelexecutivesand

morethan350

financialinstitutions(FIs).As

inprioryears,

FinovateFall’suniqueagendashowcasedarangeoffinancialtechnology

(fintech)startups

throughaseries

ofdemos.

Atotalof65

companiestookthestagetoshowcasetheirproducts

inseven-minuteslots,

exhibitingarangeofimpressivesolutionsinthefintechspace.

Importantly,these

startups

operatedacross

amultitudeofsectors,

includingbanking,

capital

markets,

lending,

payments,treasury

management,

wealthtech,loyaltyand

rewards,financialservicesinfrastructure,

regulatorytechnology

(regtech),insurancetechnology

(insurtech),and

property

technology

(proptech).We

believethisillustratestheabundanceofopportunities

withintheoverarchingindustry.Prominentthemes

attheconferenceincludeduser

experience,

fraud

prevention,payments,

banking,

personalizationand

engagement,

and

climatetech.Notably,theconferenceillustratedtheacceleratingdevelopmentofgenerativeartificialintelligence(AI)withinthefintechsector.WhereasgenerativeAIproducts

fromfintechcompaniesweremuch

rarerearlierin2023,

severalcompanieswereabletoshowcaselivegenerativeAIproducts

atFinovateFall.These

applicationsofgenerativeAIcommonlyleveragelargelanguagemodels

(LLMs)tocreatechatbotsthatassistwithdatasummarization,customersupport,

and

fraud

monitoring.Inaddition,wewerehappytosee

afewcompaniesfocuson

climateimpact,

as

thetheme

hashistoricallybeen

absent

fromUS-based

conferences.Overall,wewereimpressed

withthediversityofproducts

presentedattheconferenceand

werepleased

tosee

banks

and

incumbents

alsoembracinginnovation.3PitchBook

Analyst

Note:

17TakeawaysFromFinovateFallStartupswithproductdemonstrationsatFinovateFallIPOprobability(%)M&Aprobability(%)EstimatedemployeesYearfoundedLast

knownvaluaton

($M)Last

fundraisingamount

($M)Last

fundraisingdateTotal

capitalraised

($M)Company1Kosmos9342291082499219201720172021201520172016201920152017201520182022202020162018202120192013202120212015202220222021201020132017201620202018201620172019$55.0$25.0$24.0$289.9N/A$15.0$10.0$6.0$40.0$29.0$50.0$4.0$13.5$4.3$9.1June

1,

2022February

17,

2021N/A$15.0$5.7$6.0$72.3$59.0$47.8$4.0$13.6$4.3$166.0$8.5N/A1%78%85%N/A95%N/A94%64%83%N/A80%89%N/AN/A28%87%86%N/A94%69%64%N/AN/AN/AN/AN/A71%N/A88%N/A32%51%92%N/AAgtools1%AI

SquaredAlto

SolutionsApitureN/A3%N/A4%1%January

4,

2022July

14,

2022August

22,

2022October

27,2022February

24,2023March

30,

2022January

26,

2023May

4,

2023N/AAutobooksAutoCloudBankjoy$220.0$10.0$38.5$14.3$122.8N/A602310030N/A274040195%N/A9%1%Bits

of

StockBudCashy$6.6N/ACD

ValetN/AN/AN/A47%1%ChimneyClimateTradeCloverlyN/A$1.3N/A$1.3N/A$14.8$19.0$5.7N/AJanuary

24,2022May

11,

2023April

5,

2023N/A$23.0$23.1$7.6$45.0$12.6N/AConnect

EarthCREED1%10N/AN/A4%1%DataVisorDebbie1286$390.0$7.0$40.0$1.0May

9,2023N/A$140.0$1.2Effectiv27130N/A17N/A$4.5N/AJanuary

1,

2023January

17,

2017N/A$9.0N/A1%Engage

PeopleeSelf.aiN/AN/AN/AN/AN/AN/A1%N/AN/AN/AFeaturebyteFinalytics.aiFinTechInsightsFlybits$24.0N/A$5.7N/AApril

28,

2022N/A$5.7N/A551N/A$0.7$35.0N/AApril

14,

2010July

16,

2019N/A$0.7$45.1N/A79201324N/AFundicaN/AN/A1%Fyle$20.5N/A$8.6$0.3$1.5October

3,

2019August

8,

2023May

1,

2022June

13,

2022January

25,

2023N/A$10.9N/AGreenPortfolioHappyNestIllumaN/A1%4415$5.5$1.7$7.5$2.0$25.0N/A$2.5$38.7N/A1%Inscribe49126$115.0N/A1%interface.aiN/ASource:

PitchBook

•

Geography:

Global*AsofSeptember

19,2023Note:Probability

data

is

based

on

PitchBookVCExit

Predictor

methodology.4PitchBook

Analyst

Note:

17TakeawaysFromFinovateFallStartupswithproductdemonstrationsatFinovateFallcont.IPOprobability(%)M&Aprobability(%)EstimatedemployeesYearfoundedLast

knownvaluaton

($M)Last

fundraisingamount

($M)Last

fundraisingdateTotal

capitalraised

($M)CompanyJaid27642120172015201820112017202120191992201520142018201720182013201820222014202120142022201220172005202220172019202220202022201120212019N/A$3.6$6.0N/ADecember

14,

2022August

17,

2022December9,2021N/A$3.6$37.5N/AN/A1%N/A80%N/AN/AN/AN/AN/AN/A85%78%N/A74%89%74%N/AN/A79%N/A83%N/AN/AN/AN/AN/A90%83%N/AN/AN/A57%N/AN/AKard$100.5N/ALemonadeLXPMacroMicroMahalo

BankingMerlin

InvestorNayaOneN/AN/AN/AN/AN/AN/A13%20%N/A1%2N/AN/AN/A262N/A$20.0$1.3July

19,2022September

1,

2021October

1,

2021March

4,

2022May

2,

2023February

15,

2023July

1,

2021$20.0$1.3N/A3590675006563021$12.6$18,800.0$168.0$510.5N/A$1.4$1.4NuanceN/A$4,402.4$204.3$131.2$7.0Nymbus$70.0$10.5$7.0$8.5$20.0$5.0$0.2N/AOcrolusPangea

TechnologiesPayitoff$38.5$26.5$19.0N/ANovember

10,

2021July

22,

2021January

7,

2022April

5,

2020N/A$9.3Peach6316$27.5$6.6N/A2%Plinqit1%QuickFi226N/AN/A6%ReguloN/AN/ASavana1298$47.4N/A$25.0$3.2$37.5$3.5N/AApril

5,

2022September

1,

2023N/A$52.8$3.2$57.3N/ASAVVI

AIN/A6%SESAMm11717$94.2$18.0N/ASetuplyN/AN/AN/AN/AN/AN/A6%SRM15N/AN/ASupraFin5N/AN/ASeptember

9,2019December

16,

2021N/AN/ATelesign668108432268$1,300.0N/A$487.0N/A$78.4N/ATrue

Digital

GroupTrust

&

WillTrustworthyUnion

CreditUprise$169.2$70.0N/A$15.0$15.0$5.0$1.4February

23,

2023April

7,

2022January

19,2023July

11,

2022N/A$50.5$20.3$5.0N/A1%N/AN/AN/A1%N/AViffy4N/A$0.2$1.8$0.2$7.0Wealth

AccessWysh5812$8.5April

13,

2020N/AN/AN/AN/AN/AN/AZero

Bank

Design

FactoryN/AN/AN/AN/AN/ASource:

PitchBook

•

Geography:

Global*AsofSeptember

19,2023Note:Probabilitydatais

based

xon

PitchBookVCExit

Predictor

methodology.5PitchBook

Analyst

Note:

17TakeawaysFromFinovateFallGenerative

AI’s

rolein

fintechexpandsStartups

leadthe

charge

in

generative

AIFintech

companies

arenowintroducinggenerativeAI

products

atagrowingrate.Priortothethirdquarter

ofthisyear,limitedapplicationsofgenerativeAIwereseen

fromlate-stagefintechstartups

and

FIs.

We

discussedthisinfurther

detailinour

Q2

2023RetailFintechReport

and

Q2

2023EnterpriseFintechReport.Evenwithindustry

leaders

suchas

Stripeand

J.P.

Morgan

announcingearlyinterestingenerativepretrainedtransformer(GPT)models,

wesawfewnewlaunchesofgenerative-AI-poweredproducts.

However,severalstartups

atFinovateFalldemonstratednewproducts

and

services

incorporatinggenerativeAI,

suggestingtheincreasingfocuson

AIwithinthefintechindustry.Manydemos

showcasednewgenerativeAI

copilots,

whichweredesignedtoassist

users

withquerying,

organizingdata,

and

generating

insights.

Usage

ofLLMs

inthese

scenarioscan

lead

togreaterefficiencies

and

timesavingsforusers—bothinternalteamsand

customers.

Inaddition,most

ofthegenerativeAIfeaturesshownatFinovateFallwereoffered

as

additionalcomponents

tothecompanies’mainproduct

offering.

IntegratinggenerativeAIinthismanner

can

significantlyenhancethevalueofaproduct

and

service,

potentiallyleadingtohighercustomerconversionratesand

retention.Ahandfulofcompaniesdemonstratingtheirproducts

atFinovateFallillustratedthisopportunity.Capitalmarketsdatastartup

MacroMicropresenteditsMacroMicroGPT

tool,whichleveragesthecompany’sdatabaseand

OpenAI

tohelpanalystsderiveinsightsmorequickly.Banking

researchplatformFinTechInsightsdemonstratedits

FinTech

InsightsGPT

offering,

showinghowpromptssuchas

“Show

me

thefivemost

adoptediOSfeaturesfromtheUSmarketthatIammissing”can

greatlyassistwithbankingcompetitoranalysis.Environmental,social&governance(ESG)analytics

companySESAMm

sampled

its

generativeAIassistant,whichhelpswithsummarizingand

trackingESG

risks

on

companiesinrealtime.

Document

securitizationplatformTrustworthypresentedits

Autopilotfeature,whichutilizesgenerativeAItoautomaticallyextract

keydetailsand

generatesummariesfromdocuments

uploaded

toits

platform.Some

fintech

infrastructure

companies

also

introducednewgenerativeAIfeaturestohelp

users

makesense

ofcustomer

data.

Open

bankingplatformBuddemonstratedhowits

AIchatbotJascan

be

leveragedtostrategicallytargetandcraft

therightproducts

forconsumers.

Forexample,promptssuchas

“Show

mecustomersthatarelikelytowantamortgage

inthenext

sixto12months”can

helpBud’susers

offer

therightproducts

totheircustomers.

Relatedly,digitalbankinginfrastructureplatformApiturepresentedSensei,

its

AItoolthathelpsgeneratereal-timeinsightsbased

on

customerdata.Another

prominent

use

case

forgenerativeAIwasimprovinghowcompaniesengagewithcustomers

and

external

clients.

Bankjoy,aninfrastructureproviderfordigitalbanks,

demonstratedthiswithits

AIchatbotJoy.As

anadditionalofferingtoBankjoy’splatform,

Joycan

be

implementedtoquicklyengageinconversation6PitchBook

Analyst

Note:

17TakeawaysFromFinovateFallwithbankingcustomers,

setupnewaccounts,

and

executetransfers.

Startupsinterface.ai

and

eSelf

AIalsopresentedAI-poweredassistantsthatcan

effectivelycommunicatewithcustomers,

drivingefficiencies

incustomersupport.Additionally,techgiantMicrosoft

alsotookthestagetoshowcasehowits

AIcopilotcan

assistcustomersupport

teamsbycrafting

personalizedresponses

andextracting

insightsfromstoredconversations.Software-as-a-service(SaaS)startupJaidsimilarlyexhibitedits

AI-as-a-serviceproduct,

whichcan

interpretand

respondtohumancommunicationssuchas

email.Inindustriessuchas

capitalmarketswheresettlingtrades

isoften

manual,Jaid’ssolutioncan

greatlyincreaseefficiencybyoptimizingmundanetasks.With

greatpromisescomesgreatskepticismManyoftheshowcasedgenerativeAI

products

werestillintheirearlystages,leavinginvestorscautious

about

their

future

performance.

WhileattendantsatFinovategenerallyagreed

on

thepotentialofgenerativeAItosignificantlyimpacttheindustry

inapositiveway,

manyweresimultaneouslyskepticaloftheshort-termimpacts

giventhenascency

ofthetechnology.One

panelistbelievedthattheindustry

couldbe

moments

awayfromwidescaledisappointmentshouldnewAIproducts

fallshort

ofthegrand

promisesofgenerativeAI.Inour

view,generativeAIhasclearuse

cases

fordrivingefficiencies

inareassuchas

customersupport,

code

completion,and

dataaggregation.

However,webelievetheindustry

isstillonlyintheearlyinningsofdevelopingwell-testedand

reliableapplications.Thiswasevidentinafewlivedemos,

wheresome

applicationsfailedtoact

as

intendedor

wereslowtoproduceresults.Hence,

weexpect

theupcomingquarters

tobe

acriticalperiod

forgenerativeAIinfintech.As

newLLM-poweredproducts

arereleased

tothemarket,additionaldatapoints

on

theirperformance

shouldbecome

available.Further

insighton

consumersatisfactionwithnewgenerativeAIofferings

couldalsohelpanswertheongoingdebateoverwhetherahumantouchisstillnecessary.Thiswasaprominenttopicattheconferenceand

wasfrequentlybroughtupinareassuchas

customersupportand

financialadvisory.Some

attendants

at

the

conference

also

stated

that

generative

AI

may

currently

betoo

immature

todeploy

for

fintech.Fraud

prevention,

know

your

customer

(KYC),and

anti-money

laundering

(AML)

were

frequently

cited

as

segments

tobe

cautiousabout.

We

believe

this

is

largely

due

tothe

stringent

regulations

and

accuracystandards

that

banks

and

FIs

adhere

to.LLMs

are

only

as

good

as

the

data

they

aretrained

on,

and

it

is

likely

a

model

will

need

toperform

with

immense

accuracybefore

being

deployed.

To

achieve

this,

companies

will

inevitably

need

toengage

inrigorous

testing

toeliminate

biases

and

construct

explainable

outcomes,

in

additiontomaking

sure

that

consumer

data

is

not

at

risk

ofsecurity

breaches.

One

panelistfrom

a

regtech

company

noted

that

the

industry

is

still

years

awayfrom

being

readytodeploy

generative

AI

for

preventing

fraud.

Still,

many

recognized

regtech

as

an

areathat

could

be

significantly

enhanced

bygenerative

AI

in

the

future.7PitchBook

Analyst

Note:

17TakeawaysFromFinovateFallExciting

roadaheadforpaymentsNoshortageof

opportunitiesKeypaymentdiscussionswereprimarilycentered

on

embedded

payments,cross-border

payments,

and

instant

payments.

Other

opportunities

discussedincludedcreatoreconomypayments,

connected

finance,

treasury

automation,and

ubiquitouswallets.Whilewefoundmost

oftheconferencetobe

dominatedbygenerativeAIand

fraud

preventionthemes,

webelievethepaymentssegmentcontinuestopresentsignificantinvestmentopportunities

and

gapsforfintechcompaniestosolve.AccordingtoPitchBook’sdataas

ofQ22023(andexcludingStripe’s$6.9billiondeal),thepaymentssegment

remainsthemost

well-fundedfintechsegment,

makingup30.0%

ofthefintechvertical’strailing12-monthVCfundingof$34.0

billion.Thefuture

of

paymentsis

embeddedGivenits

largetotaladdressable

marketand

abilitytodrivebrandloyalty,embedded

finance

continuestobe

perceived

as

one

ofthelargest

opportunitiesinpayments.

Inakeynotediscussion,embedded

financecompanyMarqetacitedthepotentialforannualembedded

financetransactions

intheUStogrowfrom$2.6trillionin2021tomorethan$7.0

trillionin2026.1,

2

Forcomparison,theUSB2Bpaymentsmarketiscurrentlyestimatedtosee

$25.0

trillioninpaymentflowsannually.3Marqetaalsonotedthat47%ofconsumers

globallywouldconsiderWhilethisisanotablyreceivingfinancialservices

fromanonfinancialprovider.4highpercentage,thereremainssignificantroomtogrow.We

expect

thatthecontinuedentranceofstronglybranded

nontraditionalfinancecompaniesintothefintechspace,

as

seen

withApple,

T-Mobile,Shopify,and

Walmart,willcontinuetopushtheubiquitousnessofembedded

finance.Optimism

remainsfor

cryptoWithincross-border

opportunities,

cryptocurrencies

offer

areal

case

fordisruption.

Internationalpaymentscontinuetoremainalargepainpointforcompaniesas

globalizedtradeincreases.

Thisisdue

tothecomplexityofmovingmoneyacrossmultiplebanknetworks,

whichoften

resultsinhighfees,

longtransfertimes,

and

littlevisibility.Inakeynotediscussion,remittance

companyMoneyGramstatedthatbuildingaclosed-loopnetworkoflocal

banks

couldhelpsolvecurrentcross-borderpaymentproblems.

Notably,thisishowleadingmoney-movementstartups

suchas

Airwallexand

TerraPayseamlesslytransferfunds

acrossborders.However,MoneyGram

alsodiscussedhowbuildinganetworkwithcryptocurrenciesinasimilarmanner

couldpresentanothersolutionforinternationalpayments.1:“Embedded

Finance:

What

It

TakestoProsper

in

the

New

ValueChain,”

Bain

&Company,

Matt

Harris,

et

al.,

September

12,

2022.2:

“Embedded

Finance

Transaction

ValuetoMore

Than

Double

to$7

Trillionin

USby2026,

But

Financial

Institutions

Must

MoveQuickly

toKeep

Up,Bain

&Company,

Jeff

Tijssen,

September

13,

2022.3:

“How

Industry

4.0

Is

Defining

the

Future

ofBusiness

Payments,”

Mastercard,

2022.4:

“State

ofPayments

Report,”

Marqeta,

2023.8PitchBook

Analyst

Note:

17TakeawaysFromFinovateFallMoneyGram’spartnership

withStellar,ablockchainenablingthetokenizationanddistributionofmoney,and

Circle,acryptocurrency

transferplatformthatmanagestheUSdigitalcoin(USDC)stablecoin,enables

users

toseamlesslyconvertbetweencash

and

USDC.

The

companynotedthatwhilesolutionsenablinginteroperabilitybetween

fiatcurrency

and

cryptocurrency

havenottakenoff

atscale,

theyhaveproventobe

successfulthusfar.Forthisapproachtoreachmainstreamadoption,webelievethereneeds

tobe

better

clarityon

cryptocurrency

transactionregulations,greaterinteroperabilityamong

blockchains,and

significantlylowerfeescomparedwithotherdigital-moneytransfermethods.However,manyleadingcompaniesareslowlyenablinginteroperabilitybetweencryptocurrency

and

fiatcurrency,whichmayacceleratecryptocurrency’suse

caseincross-borderpayments.

Forexample,on

September

11,

2023,

PayPalannouncedon-

and

off-rampcapabilitiesforWeb3payments.

Thisenables

users

intheUStoconvertbetween

cryptocurrency

and

fiatcurrency

fromtheircryptocurrencywalletsand

PayPalbalances.Mixed

opinionsoninstant

paymentsWiththerecent

launchofUS

instant

paymentsrailFedNow,investorsare

alsoexploringreal-timepaymentopportunities.

Attheconference,manyinvestorsfoundthegreatestuses

cases

forinstantpaymentstoexistinearned

wageaccessand

B2Bpayments.

The

connectingtheme

between

these

use

cases

isbetter

managementofcash

flowconstraints;individualswho

arelivingpaychecktopaycheckhavethepotentialtoreceivefasteraccesstotheirwages,

whilebusinesses

can

benefit

fromgreaterliquidityand

cash

flowforecasting.Mainstream

usageofinstant

paymentsintheUSmaystillbe

yearsaway,however.Whileinvestorsexpressedexcitementaroundthedevelopmentofinstantpaymentofferings,

theyalsohadseveralconcernssurroundingits

risksand

adoption.Concernsoverfasterfraud

werecommonlycited,giventherearecurrentlyno

significantconsumerprotectionsforinstantpaymentsfraud.

Somepanelistssuggested

thatmultifactorauthenticationor

settingtransaction

limitscouldhelppreventscams

on

real-timepaymentnetworks.

To

meaningfully

combatinstantpaymentsfraud,

however,consumers

willultimatelyneed

tobe

educatedonpotentialrisks

and

howtopreventthem.Skepticismoverinstantpaymentsusage

alsoappeared

tostemfromconsumers’and

businesses’limitedawarenessofinstantpaymentsoptions.Severalpaymentsstartups

wespokewithattheconferencenotedtheywerenotprioritizinginstantpaymentsofferings,

primarilybecause

therewaslittledemand

fromcustomers.Furthermore,

apaneliststatedthatforapaymentrailtosuccessfullyevolve,itmustremainappealingtobanks,

merchants,

and

consumers

alike.Banks

and

merchantswilllikelyneed

toensurethatthebenefits

ofintegratinginstantpaymentsoutweighanycosts

and

regulatoryconcerns,

whileconsumers

willneed

astrongreasontoshift

awayfromcurrentpopularpaymentmethods(suchas

bycreditcardorApple

Pay).9PitchBook

Analyst

Note:

17TakeawaysFromFinovateFallImportantly,FedNowcurrentlysupports

push(credit)payments,

but

notpull(debit)payments.

As

such,

paymentswillneed

tobe

authorizedbyconsumers

beforetheyaremade,

creatingadditionalfrictionforindividualswho

preferpaymentstobe

automaticallyinitiatedfromtheirbankaccounts.

Common

use

cases

for