VC Predictions: What specific prediction do you make for 2020?

By Oliver Smith on Wednesday 8 January 2020

Alternative LendingDigital BankingSavings and Investment

In Part 2 of our VC Predictions series, we pin down our three venture capitalists to make specific predictions.

VC Predictions: What specific prediction do you make for 2020?
Image source: Rob Moffat, Balderton Capital

The world of finance is all about making predictions on where the market will go next, so this week we’re asking three VCs well-versed in fintech investing for their 2020 predictions.

Tim Levene of Augmentum Fintech has backed the likes of ReceiptBank and Tide, Josh Bell of Dawn Capital leads the firm's fintech investments in startups like iZettle and Divido, and Rob Moffat of Balderton Capital sits on the boards of Cleo and Wagestream.

Yesterday we found out which sectors these three are most bullish about in 2020. Today in Part 2 we ask:

If you had to make one specific prediction for 2020, what would it be?

Tim Levene, CEO, Augmentum Fintech

Within Fintech you will see more of a focus on B2B and B2B2C as investors recoil from building expensively acquired customer bases that are failing to deliver meaningful revenue. 

Of course B2C will continue to flourish but we believe investors will become more discerning. 

Do not be surprised to see more consolidation within the sector, where 1+1 will likely = 3 for many subscale fintechs.

Josh Bell, General Partner, Dawn Capital

Open Banking will finally fulfill its potential for Europe’s consumers. 

With viable commercial models already availing of open banking and the access of financial information through APIs, tech has successfully caught up with earlier regulatory changes. 

In 2020 we will see broader Open Finance, with transparency across every sector of Financial Interactions, from pensions to insurance. The future is bright for consumers.

Rob Moffat, Partner, Balderton Capital

In the UK we will all be talking about payments via Open Banking by year-end. Other countries will be watching closely.

Come back tomorrow for the last in the series as we ask our three VCs: What do you think the UK IPO landscape looks like for fintechs in 2020?

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