GGV Capital U.S. is excited to unveil the inaugural Embedded Fintech 50, a list highlighting the rising stars in fintech innovation.
Congratulations to the companies that earned a spot!
Why Embedded Fintech?
Financial services are fundamental enablers of commerce. The next phase of fintech innovation will be marked by financial services integrating closer to commercial activity, meeting end-users at the point of need. In other words, financial services will become embedded into the flow of commerce.
The first wave of commercial fintech innovation in the early 2010s was marked by companies going D2C to acquire customers. When the market was dominated by legacy incumbents, the D2C strategy worked effectively as incumbents were weighed down by technical debt and struggled to respond quickly to new digital offerings.
Consumer fintechs — such as Chime in the U.S., Nubank in LatAm, and Revolut in Europe — quickly established themselves around the world, successfully acquiring young, digital-native customers. Yet the success of D2C fintechs has motivated new entrants to crowd the space and for incumbents to upgrade their digital capabilities, heightening competition and costs of user acquisition.
How should new fintechs differentiate their product offering, access proprietary data for underwriting, and acquire customers profitably in today’s increasingly competitive environment?
We believe the answer is in “embedded fintech.”