Insurtechs like Yuanbao and Waterdrop can help close the insurance gap, considering that China's internet users stood at 989 million at the end of 2020 and it has a fintech adoption rate of 87% among digitally active consumers, per a 2019 EY report.

Visa’s and Mastercard’s latest biometric partnerships get them more involved in an increasingly popular space, which can help prevent them from losing market share to fintechs and remain leaders in the payments industry. They also complement the issuers’ existing fraud prevention initiatives.

The Series C round makes Trade Republic the highest-valued fintech in Germany. Currently also available in Austria and France, the trading app plans to use the funding to expand “aggressively” across the Eurozone in the next four months—and later into the UK.

This could be a boon for fintechs that offer accounting solutions—like US-based Pilot—as they can strike partnerships with ecommerce companies to supplement their financial services repertoire.

To get moving, Revolut will apply for a banking and trade license, but Storonsky said that it may acquire a local fintech to expedite its licensing process. Revolut’s measured strategy is wise, given that India has market headwinds for neobanks and offers considerable potential for growth.

Challenger banks and other fintechs are positioning themselves as the go-to alternatives to digitally deficient incumbents. Toronto-based neobank Koho may be the most visible standalone challenger and recently raised CA$70 million ($52.2 million) in fresh capital.

High customer satisfaction coupled with a consumer fintech adoption rate of 72% could help deepen customer loyalty and establish Nubank as a significant competitor in the region. Nubank could capitalize on favorable trends and broaden its offering in Colombia. To take advantage of pandemic-era relief, millions of Colombians opened their first bank accounts as of June 2020.

Afterpay could become an even more formidable newcomer once its pending sale to US-based fintech Square closes. The tie-up, valued at around $29 billion, will create a company big enough to endure a full licensing process, should it choose to.

Two Europe-based fintechs have expanded their respective banking operations throughout Europe, demonstrating the potential value of market expansion to their growth goals. Klarna has extended its open banking product to a total of 24 European countries.

The news: The UK credit-scoring fintech raised the mega-round from US fund Invus Opportunities, valuing it at £503 million ($645 million), per Sky News. Clearscore says it will use the funding to grow its product suite and staff. What does it do? Clearscore enables 14 million consumers across the UK, Australia, and South Africa to check their credit score for free.

Its customers include high-profile names like Co-op and Capital One, as well as fellow fintech Curve. And future growth will likely stem from increased awareness and employees demanding better benefits:.

The addition of these obstacles in a regulatory environment that was previously very friendly to aspiring licensed banks could drive an increasing number of fintechs into the arms of established BaaS providers like Westpac and Volt, which can provide a license and plug-and-play technology to get upstarts off the ground quickly.

With the new funds, Plum is banking on growing consumer interest in ESG investing: 30% of Plum investors in October ranked ESG funds as their preferred investing option, per Finextra, underscoring how adding sustainable investing options is key to Plum’s and other fintechs’ user growth going forward, as Insider Intelligence expected.

Wefox can profitably target new markets with high fintech adoption, like the Netherlands, as well as undertapped insurtech markets, like Spain. Since global insurtech Lemonade is pursuing a European expansion roadmap, it makes sense for wefox to prioritize scaling across Europe before Lemonade gains first-mover advantage.

With a consumer fintech adoption rate of 72%, challengers like Nubank are primed for success as they look to bring consumers long overlooked by incumbents into the banking ecosystem through digitization.