Fintech Feels the Heat: Private Equity's Shifting Tides
The capital markets fintech sector is undergoing a significant industrialization, driven by higher interest rates and the need to scale ageing private equity assets. Joe Channer of Delta Capita explains that the era of cheap money has ended, forcing a shift from innovation economics to infrastructure economics. This transition creates opportunities for businesses that can integrate 'trapped fintech assets' into larger, more efficient operational platforms to achieve institutional resilience.Uche Emeka • Fintech • 17 hours ago • 1 minute read •
Joe Channer, CEO of Delta Capita, highlights a pivotal shift in capital markets fintech, moving away from a previous era driven by abundant, cheap money and specific problem-solving. For years, fintech thrived on the assumption of plentiful capital, with private equity and venture investors pouring borrowed money into niche businesses across capital markets. This fostered a culture prioritizing growth over profitability and tolerating client concentration risk, with little concern for efficiency, as many believed this financial climate would persist indefinitely.
However, this paradigm has fundamentally altered due to
Loading...