Latest news with #NigelMorris
Economic Times
3 days ago
- Business
- Economic Times
Where the fintech sector is headed next: QED-BCG Global Fintech Report 2025
Fintech may still make up only a small slice—just 3%—of global banking and insurance revenue, but its impact is growing fast. A recent QED–BCG Global Fintech Report reveals that fintech revenues rose 21% year-on-year, outperforming the broader financial services sector, which grew just 6%. Public fintechs also saw better profitability, with 69% now in the black—up from less than half the previous year. In an exclusive interview with ET, QED Investors cofounder Nigel Morris said, 'Regulators are now internalising that fintech is here to stay.' Fintechs have a role to play in the future of how financial services are delivered, he added. Here are five key trends the report says will shape the next wave of growth. Agentic AI Many top fintech firms are just starting to move from testing generative AI to full-scale use. But the next big step is agentic AI, a type of AI that acts more independently and intelligently. This tech could be as revolutionary as the internet or smartphones, the report claimed. For now, it's helping earlier-stage fintechs speed up software development and cut costs. In the long run, it could transform everything from personal finance apps to business software. The report puts it clearly: 'Agentic AI will change the game . . . eventually.' Onchain finance is gaining momentum—but there's work to do Blockchain isn't just about crypto anymore. With better technology and more regulatory clarity, the stage is set for onchain finance to grow. Onchain finance refers to financial activities and transactions performed on stablecoins are helping smooth cross-border payments. But, as per the report, the real opportunity lies in asset tokenisation —turning things like property, private funds, and bonds into digital assets. This could cut costs, speed up settlement times, and open up huge new markets. However, a few key challenges still need to be addressed: Building secure, high-quality bank-grade infrastructure. Creating common industry standards everyone can follow. Offering clear, consistent rules and guidance from regulators. Financial giants are already testing the waters, but mass adoption will take time. Challenger banks should grow deep, not wide Challenger banks, which are digital-first financial institutions, now bring in $27 billion in fintech revenue. To keep growing, they're adding new products, increasing deposits, and targeting wealthier expanding into new countries? That's trickier. Different regulations, cultures, and fierce competition make international moves for now, focusing on serving existing markets better is the smarter bet, the report opines. Fintech lending has fresh momentum 'Lending remains a significant opportunity for fintechs, given that they have only penetrated about 3% of the $2 trillion in global lending revenues,' the report now, fintechs manage $500 billion in loans—a drop in the ocean compared to $18 trillion in US household debt things are changing. Fintechs are getting better at underwriting and have more seasoned customer data. With $1.7 trillion in assets under management and increasing interest in fintech-backed loans, there's an estimated $280 billion growth opportunity for private credit funds in this there's one unknown: how well these new lending models will hold up through a full economic downturn. The next big growth wave: B2B(2X), infrastructure, and lending The first fintech boom gave us big names in digital wallets, buy-now-pay-later, crypto trading, and challenger banks. While there's still room to grow, it's getting harder to break into these report says that the next phase will focus on three fresh spaces: B2B(2X): Businesses still struggle with things like payments and accounting. Fintechs can solve these pain points—especially when their tools are built into existing software platforms. Businesses still struggle with things like payments and accounting. Fintechs can solve these pain points—especially when their tools are built into existing software platforms. Financial infrastructure: Banks and institutions need to upgrade. AI and blockchain-based systems can modernise the global financial backbone—but it'll take time and strong partnerships. Banks and institutions need to upgrade. AI and blockchain-based systems can modernise the global financial backbone—but it'll take time and strong partnerships. Lending (again): There's still a huge untapped market in business and secured lending. Fintechs are ready to move beyond personal loans and bring fresh ideas to this space.
Time of India
3 days ago
- Business
- Time of India
Where the fintech sector is headed next: QED-BCG Global Fintech Report 2025
Fintech may still make up only a small slice—just 3%—of global banking and insurance revenue, but its impact is growing fast. A recent QED–BCG Global Fintech Report reveals that fintech revenues rose 21% year-on-year, outperforming the broader financial services sector, which grew just 6%. Public fintechs also saw better profitability, with 69% now in the black—up from less than half the previous year. In an exclusive interview with ET , QED Investors cofounder Nigel Morris said, 'Regulators are now internalising that fintech is here to stay.' Fintechs have a role to play in the future of how financial services are delivered, he added. Here are five key trends the report says will shape the next wave of growth. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Nu Mai Cumpăra Laptop! Acest Mini PC Face Tot la 1/3 Preț! Află mai multe Undo Agentic AI Many top fintech firms are just starting to move from testing generative AI to full-scale use. But the next big step is agentic AI, a type of AI that acts more independently and intelligently. Live Events This tech could be as revolutionary as the internet or smartphones, the report claimed. For now, it's helping earlier-stage fintechs speed up software development and cut costs. In the long run, it could transform everything from personal finance apps to business software. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories The report puts it clearly: 'Agentic AI will change the game . . . eventually.' Onchain finance is gaining momentum—but there's work to do Blockchain isn't just about crypto anymore. With better technology and more regulatory clarity, the stage is set for onchain finance to grow. Onchain finance refers to financial activities and transactions performed on blockchain. Currently, stablecoins are helping smooth cross-border payments. But, as per the report, the real opportunity lies in asset tokenisation —turning things like property, private funds, and bonds into digital assets. This could cut costs, speed up settlement times, and open up huge new markets. However, a few key challenges still need to be addressed: Building secure, high-quality bank-grade infrastructure. Creating common industry standards everyone can follow. Offering clear, consistent rules and guidance from regulators. Financial giants are already testing the waters, but mass adoption will take time. Challenger banks should grow deep, not wide Challenger banks, which are digital-first financial institutions, now bring in $27 billion in fintech revenue. To keep growing, they're adding new products, increasing deposits, and targeting wealthier customers. But expanding into new countries? That's trickier. Different regulations, cultures, and fierce competition make international moves risky. So, for now, focusing on serving existing markets better is the smarter bet, the report opines. Fintech lending has fresh momentum 'Lending remains a significant opportunity for fintechs, given that they have only penetrated about 3% of the $2 trillion in global lending revenues,' the report said. Right now, fintechs manage $500 billion in loans—a drop in the ocean compared to $18 trillion in US household debt alone. But things are changing. Fintechs are getting better at underwriting and have more seasoned customer data. With $1.7 trillion in assets under management and increasing interest in fintech-backed loans, there's an estimated $280 billion growth opportunity for private credit funds in this space. Still, there's one unknown: how well these new lending models will hold up through a full economic downturn. The next big growth wave: B2B(2X), infrastructure, and lending The first fintech boom gave us big names in digital wallets, buy-now-pay-later, crypto trading, and challenger banks. While there's still room to grow, it's getting harder to break into these areas. The report says that the next phase will focus on three fresh spaces: B2B(2X): Businesses still struggle with things like payments and accounting. Fintechs can solve these pain points—especially when their tools are built into existing software platforms. Financial infrastructure: Banks and institutions need to upgrade. AI and blockchain-based systems can modernise the global financial backbone—but it'll take time and strong partnerships. Lending (again): There's still a huge untapped market in business and secured lending. Fintechs are ready to move beyond personal loans and bring fresh ideas to this space.
Time of India
3 days ago
- Business
- Time of India
New-age cos' road to profitability; QED's Nigel Morris interview
New-age cos' road to profitability; QED's Nigel Morris interview Also in the letter: Most listed new-age startups improve Q4 profitability; Swiggy, Ola lag behind Why it matters: By the numbers: Between the lines: Brokerages highlighted rising margins at Nykaa and PB Fintech as signs of sustainable growth. Swiggy claims its peak burn is behind it; Blinkit says it will prioritise growth, even at the cost of profitability. Ather Energy narrowed losses, while Ola Electric lost EV share to Bajaj & TVS. The bottom line: Also Read: Regulators realising fintechs are here to stay: QED's Nigel Morris Fintech domination: Regulatory headwinds? Neobanking concerns: APAC in focus: UPI transactions rise 4.4% in May after April decline Numbers game: May's figure marks a 4.4% rise from April's 17.89 billion transactions, which had fallen from 18.30 billion in March due to a spate of service outages. In value terms, UPI handled Rs 25.14 lakh crore in May. This is up from Rs 23.95 lakh crore recorded in April. Also Read: Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: Job losses: How AI has painfully disrupted dreams of young software engineering graduates Uncertain days: Rise in anxiety: How to surivive: Also Read: BigBasket pilots 10-minute food delivery with Starbucks, Qmin in Bengaluru Going in-house: Starbucks, a joint venture between Tata Consumer Products and Starbucks Corporation. Qmin, a food delivery platform owned by Indian Hotels Company Limited (IHCL). Customers can also order beverages, including coffee, tea, and juice, along with snacks, meal bowls, and desserts. Tell me more: Also Read: Other Top Stories By Our Reporters VerSe Innovation allegedly billed without services; Indian company denies claims: Top illegal betting site Parimatch draws more visits than Amazon, X: LinkedIn lays off hundreds as tech giants continue to cut jobs: Global Picks We Are Reading After a torrid time on Dalal Street, new-age firms have taken a turn towards profitability in the March quarter. This and more in today's ETtech Morning Dispatch.■ AI and the Indian middle-class dream■ BigBasket's rapid food delivery foray■ Builder AI-VerSe dirty dealOut of 17 publicly listed new-age firms in India, 11 reported better profitability in the March quarter, either by narrowing losses or posting stronger profits. Top performers included Nykaa, Policybazaar, Delhivery , Ather Energy and Ixigo This points to stronger operational discipline across India's digital-first companies. But the momentum remains uneven, with quick commerce bleeding cash through the quarter.A few breakout names are beginning to show maturity, but India's new-age tech companies are still navigating the trade-off between growth and profitability, with quick commerce emerging as the new Morris, managing partner, QED InvestorsFintechs are no longer scrappy outsiders. They're scaling faster than traditional players and increasingly, regulators are recognising them as a permanent fixture in the financial services industry, QED Investors' cofounder Nigel Morris told us In an exclusive interview during his annual visit to India, Morris said fintechs are beginning to dominate categories such as earned wage access, money transfers, and neobanking. With AI reshaping everything from underwriting to product delivery, fintechs are adopting the technology at a far faster rate than legacy fintech sector is currently navigating tighter scrutiny, particularly around unsecured lending and digital compliance, pressures that have hit both fundraising and valuations. But Morris sees this as a 'natural cycle' that will ultimately lay the groundwork for the next wave of QED remains bullish on India, it is cautious about segments like neobanking, where many players have yet to show strong user engagement or effective cross-selling, said its Asia head, Sandeep Patil. Still, Morris believes the stronger fintechs will earn regulatory trust and may eventually secure banking which backs Jupiter, OneCard, Upswing, and Efficient Capital Labs in India, plans to invest $250–300 million in early- and growth-stage startups across India and the Asia-Pacific. The fund has deployed about $220 million in the region over the past five Payments Interface (UPI), the real-time payment system operated by the National Payments Corporation of India (NPCI), processed 18.68 billion transactions in May, a bounce back from April's Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and Reach out to us at spotlightpartner@ to explore sponsorship languages like Java, C++, and Python have done more than just build software . They built lives. For years, they offered a ticket to stable jobs, upward mobility, and a way out of the lower-middle-class trap. Millions rode that wave, often becoming the first in their families to do came AI. And with it, the middle class's dreams, written in the promise of software, are under jobs that generations of engineering students saw as a gateway to long, stable careers are no longer a given. AI has redrawn the industry map, leaving behind a trail of layoffs, shifting role definitions, and a rising cohort of under-skilled young developers are the worst hit. Many AI tools now outperform entry-level programmers, leaving them anxious, unsure, and struggling to prove their worth. The impact goes beyond the professional, with mental health issues becoming increasingly common.'More than 60% of engineering students don't have enough hands-on knowledge and experience,' says TeamLease Digital's Neeti Sharma, adding that beyond college degrees, what's needed is certifications in AI, cloud, security, or data science, working on real projects (like sharing code on GitHub), and joining hackathons or its services, the Tata Group's grocery delivery firm, BigBasket, has entered the rapid food delivery space , offering 10-minute deliveries in select Bengaluru pin its 10-minute food play, BigBasket has tapped into Tata's in-house brands. New offerings include items from:The move comes five months after cofounder and CEO Hari Menon said on X that BigBasket would enter the food delivery market. In a December 2024 post, Menon had announced plans to expand BigBasket's SKUs to over 30,000 in all tier-1 cities, launch pharma deliveries via Tata 1mg, and introduce a food delivery VerSe Innovation, the parent company of the news aggregator platform Dailyhunt, and London-based AI startup allegedly inflated revenue by issuing invoices to one another without providing services in many instances, according to a Bloomberg betting and gambling platforms such as 1xBet, Parimatch, Stake, Fairplay, and BateryBet drew a staggering 5.4 billion visits in FY25, with Parimatch alone generating more traffic than Amazon, X (formerly Twitter), LinkedIn, Hotstar, Quora, or Reddit, according to a study by CUTS job and networking platform LinkedIn has joined the growing list of tech giants laying off employees, reducing 281 positions across California.■ How the loudest voices in AI went from 'regulate us' to 'unleash us' ( Wired ■ The math tutor and the missing $533 million ( Rest of World ■ Can the Gulf really become an AI superpower? ( FT
Time of India
3 days ago
- Business
- Time of India
Regulators realising fintechs are here to stay: QED's Nigel Morris
Fintechs are no longer scrappy outsiders. They're scaling faster than traditional players and increasingly, regulators are recognising them as a permanent fixture in the financial services industry, QED Investors' cofounder Nigel Morris told us. In an exclusive interview during his annual visit to India, Morris said fintechs are beginning to dominate categories such as earned wage access, money transfers, and neobanking. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Fintechs are no longer scrappy outsiders in the financial world; they are scaling faster than traditional players, dominating high-growth segments and increasingly being recognised by regulators as a permanent feature in the financial services industry, according to QED Investors cofounder Nigel Morris 'Regulators are now internalising that fintech is here to stay,' Morris told ET in an exclusive interaction during his annual India visit. Fintechs have a role to play in the future of how financial services are delivered, he visit comes at a time when India's fintech sector is navigating tighter regulatory oversight, particularly around unsecured lending and digital compliance. He sees this not as a setback, but as a necessary phase. 'It's a natural course laying the groundwork for the next wave of innovation.'Referring to the recently released QED–BCG Global Fintech Report, Morris said, fintechs are not only growing faster than incumbents, they're starting to dominate key categories. 'Earned wage access (allowing employees to access a part of their wages before the payday) is a great example—Refyne in India operates in a space where there isn't a single incumbent,' he said. 'In money transfers, it used to be Western Union, now it's Wise and Remitly. For buy now, pay later, Klarna and Affirm are dominating, not banks. In neo-banking, look at Nubank, Monzo and Chime. What we're seeing is that incumbents, either by default or by design, are simply not playing in these spaces.'It would be 'very interesting' to see how India's landscape evolves, whether the legacy players step up or continue to lag behind, he said. 'Their (banks') skills might not be as relevant; they've got other things on their mind.'A key trend QED is tracking is how artificial intelligence is reshaping financial services from underwriting to product delivery. 'Fintechs are adopting AI at a much faster rate than incumbents. That's not surprising,' said Morris. 'They're more digital, more tech-centric and faster in how they move.'This tech-led agility, he said, is giving fintechs an edge in product innovation, risk assessment and consumer engagement, while legacy institutions are still weighed down by infrastructure and regulatory US-based fund plans to deploy $250–300 million in early- and growth-stage startups across India and the Asia-Pacific region. Armed with a $925 million fund raised in 2023, QED is eyeing investments across Indonesia, Singapore, Japan and other APAC the past five years, the fintech-focused VC firm has invested roughly $220 million in Asia. Its India portfolio includes early bets in neo-banking platform Jupiter, credit card sourcing platform OneCard, financial infrastructure startup Upswing and Efficient Capital Labs, which offers financing solutions for SaaS companies. In December 2024, QED led a $25 million funding round in OneCard While India's fintech sector has faced increasing regulatory scrutiny, especially around NBFCs (non-banking financial companies) and unsecured lending, Morris doesn't see this as a deterrent. 'The regulators stepped in with a cautionary stance—rightly so,' he said. 'They said we have to really think about AML, KYC and about a little bit more scrutiny to make sure that the banks that partner with the fintechs are living up to the responsibilities that they have. From there, move to a new equilibrium… I think that's a natural cycle.'QED Asia head Sandeep Patil, who oversees India investments, echoed the view. 'I'm not turning a blind eye to what's happened. Yes, regulations have slowed lending and caused short-term pain. But we're far more optimistic about the long term,' he reset in the fintech market has affected funding in the sector. Cred is in talks to raise fresh funds at an around $4 billion valuation—down from $6.4 billion in 2021, as reported by ET on April 14 . QED portfolio firm Klarna of Sweden dropped from $46 billion to $6.7 billion before recovering to a targeted $15 billion ahead of IPO . Stripe went from $95 billion to $50 billion before a tender offer lifted its valuation to $91.5 billion.'The rise and fall played out over just two and a half years,' Morris said. 'But in the last year, things have been relatively stable.'He noted that public fintechs traded at 4–5x revenue pre-Covid, surged to 20x during the digital wave, and are now returning to more rational however, continues to buck that trend. 'India benefits from a roaring wind at its back, strong GDP growth and a different economic cycle compared to the US, UK, or Latin America,' he bullish on India, QED remains measured on certain sub-sectors like neo-banking.'Many haven't demonstrated meaningful product engagement or cross-sell success,' said Patil. 'They either don't have a wide enough product suite, or they haven't had enough traction on the core banking product. Then you're just another account inside someone's app—and the story doesn't go anywhere.'Still, Morris believes that the good fintechs will earn regulatory trust and potentially, banking licences. 'In the long run, I believe some of them will end up with licences at different speeds in different markets,' he said. 'But there's still room for strong partnerships between good fintechs and good banks. That's the opportunity.'Morris has long pushed back against the hypergrowth-at-all-costs mindset that defined much of the past decade's startup boom. 'I've always railed against the model of blitzscaling in financial services—the idea that you acquire a load of customers, lose money on every one of them, and figure out the model later. I've never believed in that,' he said. 'We are incredibly meticulous and focused on unit economics.'In the Indian context, that model faces even more pressure. 'The cost to acquire it is really low. But the ARPU (average revenue per user) is equally low,' he said. 'So, we're playing a different economic game. In the end, how those two net off is critical. You're dealing with a much larger customer base with thinner economics per user. The bet is on how big they can get, who they can partner with, and what else they can sell and at what rate.'
Yahoo
28-03-2025
- Business
- Yahoo
Fintech VC powerhouse Frank Rotman stepping down from QED Investors to found his own startups
Prolific fintech investor and QED Investors co-founder Frank Rotman said Friday that he will transition to a partner emeritus role by year's end to focus on founding his own startups. But those startups won't necessarily be financial technology companies. In a post on X, Rotman – who helped start QED in 2007 – declared that 'the first business' that he plans 'on getting out of the ground is in the music industry.' He wrote: 'It's easy to call me crazy for all the obvious reasons, but it's worth reserving judgment until you learn more about the business that's evolved in my head and sat on the shelf for years. It will be fun to build and could actually make a huge difference to an industry that none of us could imagine living without.' Rotman started Alexandria, Virginia-based QED, which today has $4 billion in assets under management nearly two decades ago with Nigel Morris and Caribou Honig. He led the firm's investment in Credit Karma and played a role in QED's investments in unicorns such as Greensky, Flywire and SoFi. (In fact, QED was the first institutional money into Credit Karma). Other companies that the firm has backed include Creditas, Nubank, AvidXchange and Bitso. QED exclusively invests in companies building financial technology at the pre-seed to Series A stages. Rotman, who goes by the handle 'The Fintech Junkie' on X, said he will transition to his new role on January 1, 2026. He will continue to serve in a part-time advisory role to QED over the coming years. Besides founding music startups, Rotman said he likely plans to write a book centered around his 'observations and frameworks for the startup and VC worlds.' He wrote in the X post: 'This shouldn't surprise anyone who knows me – writing is my oxygen. I can't imagine a life without it even though ChatGPT and Claude are better writers than I am.' In a statement, QED Managing Partner Nigel Morris noted that he and Rotman had worked together for over 30 years - previously also at Capital One. 'Frank, at his core, is an entrepreneur and I have no doubt he will excel in his next chapter,' he said. QED Investors' Partner Amias Gerety will be promoted to lead QED's U.S. investment team.
