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CB Insights Report Predicts Capital Markets Fintech Infrastructure to Be Focus for Investment in 2018

Posted in Insights

CB Insights, a research firm that tracks funding and other data in the startup world and beyond, recently published a report on “Fintech Trends to Watch in 2018.” The report offers a data-driven look at the global fintech landscape, including where investors are placing bets, and which fintech segments are poised for growth in the year ahead.

Before we get to predictions, let’s take a quick look at 2017 in-review. Global fintech financing hit a new record last year, with VC-backed fintech deals and funding totaling $16.6 billion. Elsen is proud to have contributed to the industry’s record-breaking growth with a $2.4 million seed extension round led by Hyperplane Venture Capital announced in December 2017.

Fintech goes under the hood to build a new finance engine

Outlined in the report are 10 fintech trends to watch in 2018, including “Capital markets fintech infrastructure becomes a focus area for investment.” This one is especially exciting to us here at Elsen as our team remains committed to helping mitigate the problem of “legacy technology stifling marketing innovation” with the Elsen nPlatform.

Today’s enterprise is increasingly data-driven, yet the financial industry lags behind other industries due to antiquated technology. Back-end technology powering financial institutions is often outdated and in serious need of modernization and innovation. Most companies still use decades-old technology at the core of their business, especially when it comes to the infrastructure used to store and analyze important financial data.

According to the report, fintech infrastructure helps startups and banks in these three ways:

1.Replacing legacy infrastructure - Startups help firms leverage the cloud to reduce the costs of delivering financial services and tools to customers.

2.Centralize disparate customer data - Startups are taking a picks-and-shovel approach to offer developers tools to help both banks and fintechs to centralize customer data and services.

3.Creating an open banking platform - Startups leveraging APIs help developers increase their time to market with new financial products and services and reduce development costs.

While there are many reasons financial institutions are hesitant to upgrade their systems - ranging from cost and complexity, to compliance and regulatory concerns - there is a major opportunity for the organizations that embrace and transition to a modern, cloud-based architecture that can provide easy access to vast quantities, of data and the means to analyze it. CB Insights predicts, "As legacy systems start to sunset, startups working on capital markets infrastructure companies will be pivotal to overhauling legacy technologies by leveraging cloud computing and newer programing languages."

Products built to improve the infrastructure layer will be key to driving the industry forward in the coming year. Elsen nPlatform helps finance professionals – not just data scientists - quickly get insights from data to drive overall business value. The platform’s high-performance computing system enables partners to build sophisticated applications for technical and non-technical users and run precise analytics effortlessly. We are proud to be on the right side of history, and excited to take part in the digital transformation ahead.

You can download the full CB Insights report at https://www.cbinsights.com/research/report/fintech-trends-2018/.

Visit the Elsen blog at https://elsen.co/blog to learn more about the Elsen nPlatform, and read industry perspectives from CEO Zac Sheffer and other key members of the Elsen leadership team.

Get the latest company and industry news by following us on Twitter at @ElsenInc.

Jane is Elsen’s chief storyteller and customer advocate, and also quarterbacks the company’s go-to-market strategy.

Prior to Elsen, Jane held CMO roles at early stage FinTech startups as well as leadership positions at MasterCard Worldwide, Standard Insurance, and American Express.

What Jane likes most about Elsen is the fantastic culture and the smart people she gets to work with. Beyond Elsen, Jane is an avid skier, golf lover, and a competitive equestrian. If you meet her, the first thing you’ll notice is that her personality is much larger than her petite stature.

Jane holds a BBA from the University of Notre Dame and an MBA from The University of Texas at Austin. She was also a Washington Campus Fellow for Public Policy.