This Week in Fintech ending 3rd September

This week our experts brought you the following insights based on their experience as investors, entrepreneurs & executives.

Monday Ilias Hatzis our Greece-based crypto entrepreneur (Founder & CEO at  Kryptonio a “keyless” non-custodial bitcoin and cryptocurrency wallet, that lets users manage bitcoin and crypto, without private keys or passwords and Weekly Columnist at Daily Fintech) @iliashatzis wrote Lightning Network grows as Bitcoin rises

With bitcoin’s value rising again, the adoption of the Lightning Network is also on the rise. The Lightning Network is a second layer on top of the Bitcoin blockchain, that enables private payment channels to be established between users. The Lightning Network has experienced continued growth at an increasing rate, in the number of nodes, the number of channels, and network capacity over the past several months. For the first time, the Lightning Network has exceeded 25,000 active nodes, indicating that the network is becoming more powerful. Since July, the number of channels has increased to 65,323 and expanded their capacity by roughly 78%, from 1,800 to over 2,379 BTC, based on data from 1ml.

Editor note: A good overview of the growth & innovations of Lightning Network which is so critical to the future of Bitcoin. 

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Tuesday Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote: Fintech is now big and mainstream,  but that does NOT make it boring

When the first wave of Fintech got rolling after the 2008 financial crisis, the idea of taking on the financial establishment was only a gleam in the eye of the wildest futurists. One Bitcoin was worth small fractions of a US dollar and reaching parity was a massive future milestone that few thought would happen.

In late August 2021, BTCUSD is in mid $40k range and according to research by UBS, Fintech industry revenues will more than triple from USD 150bn in 2018 to USD 500bn in 2030, implying an average annual growth rate about three times faster than the broader financial sector’s.

Editor note: Fintech is a big growth market, but what investors want to know is which Fintech companies are best positioned to grow fast and which actually are growing fast (rather than overhyped “growth stocks” with too high valuations). 

Wednesday Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote his weekly roundup of Stablecoin news.

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Thursday

Rintu Patnaik, an Insurtech expert based in India, wrote: The Themes Spurring Insurance Mergers and Acquisitions

Mergers and acquisitions (M&A) in insurance are thriving on the back of macro factors – low interest rates, pandemic-related impacts and deepening specialization. For instance, in life and annuities, equity and reinsurance deals are far from abating, with price competition among reinsurers creating a seller’s market. The rush to add digital capabilities in response to changing customer expectations, is spurring investments. In the EY-2021 Digital Investment Index, global FIs reported that the M&A route to augment digital capabilities surpassed ROI expectations 52% of the time versus 45% and 31% for partnerships and in-house initiatives.

Editor note: Required reading for all investment bankers.

Christian Dreyer @x3er, the Swiss based CFA who focusses on how XBRL changes our world wrote his weekly roundup of XBRL news.

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Friday Howard Tolman, a well-known banker, technologist and entrepreneur in London, wrote his weekly roundup of Alt Lending news.

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