Blockchain and beyond: what’s driving FinTech in 2022?

The last year proved that technology continues to revolutionise the financial world. From greater adoption of electronic payments, integration of financial functions in non-financial platforms and intensifying competition in the buy-now-pay-later space, we see no shortage of FinTech evolutions in 2022.

This time last year, we set out our expectations in our outlook: FinTech positioning for a re-opening in 2021. Despite the global economy still trying to recover from the pandemic, 2021 saw the acceleration of many secular FinTech growth trends and helped to increase the digitalisation of the broader economy.

Our 2022 views and positioning

We are optimistic for 2022. In this year’s outlook, we expect blockchain to be adopted more broadly, and other trends like embedded finance and open banking to accelerate. We also relay our current convictions – including our contrarian position in payments companies – and how we categorise opportunities across the FinTech market, from personal finance and disruptive technologies to cybersecurity and efficiency enablers.

Following our research-driven methodology, we aim to select high-quality, profitable compounders with pure FinTech businesses that benefit from structural trends, and which are trading at reasonable valuations. We have also accounted for uncertainty in the global economy as countries weather the ongoing pandemic and markets digest different rates of inflation and central-bank policy approaches around the world.

We believe in managing a balanced portfolio that combines the stability of established FinTech companies, the predictable growth of enabling technology providers and the high growth of up-and-coming FinTech enterprises.

To read our outlook and portfolio positioning for 2022, download our investment viewpoint using the button provided.

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