Earlier this year, we analyzed venture capitalists’ predictions for fintech in 2023, and what we found was surprising: Out of a group of 15 peer VC firms, the vast majority didn’t even mention the word "consumer." Fast forward to today, and that sentiment has persisted. The agenda for the recent annual Money20/20 fintech conference only had a handful of consumer-oriented sessions over the course of its four days of programming. Consumers, it seems, are just not on the industry’s mind.
It’s not crazy that my VC friends and peers aren’t putting a ton of energy toward new consumer fintech models right now. After all, the last 24 months have brought about a reckoning in fintech: valuations continue to see "significant downward pressure" from their frothy peak of 20x revenue, heightened interest rates are upending some business models, and banking sector instability has caused everything from perceived to existential challenges for the fintech industry. Saying the last two years have been rough for the sector would be an understatement–and that’s particularly true for consumer-focused businesses.
