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ReadersSpeak

resents a substantial departure from the scenario in 2016
when over 50 percent of funding favored B2C ventures, a
noteworthy trend." The pivot from B2C to B2B, he pointed
out, is being driven "by the changing financial landscape
Shifting tides in fintech: from B2C to B2B and the challenges faced by consumer-focused startups.

Serial entrepreneur Norris Koppel, founder of Monese, As rising interest rates tightened the capital flow, many
a British-Estonia company offering alternatives to tradi- B2C fintech companies found themselves at a crossroads:
tional bank services, shared his views on why fintechs are either demonstrate a viable path to profitability or face
shifting focus from business-to-consumer to business-to- failure. In response, a growing number of these compa-
business services. He speaks from personal experience. nies are repurposing the technology originally designed
Monese, Koppel noted, was launched as a B2C play offer- for consumers and redirecting it toward businesses, par-
ing checking accounts and money transfer services, and ticularly financial institutions."
like many other fintech enterprises, the company expand-
ed into B2B tech to achieve additional growth in its drive He additionally stated that this B2C to B2B transition holds
toward profitability. the potential to redefine the fintech landscape significant-
ly and is an approach being used by others—notably chal-
"There's a significant shift within the fintech landscape lenger bank Starling, which indicated it will need to sell
that could reshape the industry's future," he wrote. "In its software to other banks to fulfill its global ambitions.
2023, fintech activity underwent a remarkable pivot from
consumer-oriented ventures to business-focused proposi- Expanding into B2B
tions." He cited data from Dealroom.co, stating that "an
astonishing 58 percent of fintech funding was directed Have you noticed fintechs in your sphere expanding
from a base of B2C transactions into more B2B transac-
toward business-to-business (B2B) software-as-a-service
(SaaS) startups by the end of November 2023, overshadow- tions? How successful have these efforts been? Have you
observed common pitfalls to avoid? Please share your
ing the 20 percent allocated to business-to-consumer (B2C)
startups, https://dealroom.co/guides/fintech-guide. This rep- thoughts on this or other topics of interest to the payments
industry at greensheet@greensheet.com.

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