NEW YORK--(BUSINESS WIRE)--Portage, a global investment platform in fintech and financial services, and Taktile, a risk decision engine provider, have identified the Top 50 US fintechs at the forefront of business finance and lending innovation in 2023. At the same time, they have uncovered the strategies and technologies these companies use to drive industry growth.
This year, the B2B finance sector has seen considerable growth, with fintechs bringing game-changing products to the market, from embedded lending solutions to commercial credit cards.
Portage has been witnessing the rise of leading B2B fintechs, particularly in the United States. Simultaneously, Taktile has been actively involved in this growth story, empowering several US fintechs to elevate their underwriting strategies with its risk decision engine.
“The continued and anticipated growth in B2B transactions brings along new challenges across a multitude of industries and different sizes of business. From topics such as cross-border complexities to increased compliance and underwriting risks, we see technology at the center of this perfect storm”, explained Portage Partner Ricky Lai.
Embedded Lenders Find Their Feet in B2B
In the realm of B2B sales transactions, the global market for B2B payments surpasses its B2C counterpart, fueled by the growing demand for financing among businesses to procure goods and services. This dynamic scenario presents significant opportunities for fintech companies to play a pivotal role in serving the needs of this burgeoning market.
Within the current business landscape, embedded B2B lenders have clearly demonstrated their product-market fit, leveraging innovative technologies to open new avenues. From pioneering Buy Now, Pay Later (BNPL) solutions to cutting-edge B2B2X offerings, these advancements are proving instrumental in reducing friction within the sales process. This capability is evolving into a vital competitive differentiator, positioning companies at the forefront of innovation in B2B finance.
Unlocking B2B Finance with Automation and Alternative Data
Lenders, recognizing the need to enhance the speed, accuracy, and volume of underwriting decisions, are intensifying efforts to embrace new technologies.
As per research conducted by Taktile, nearly 60% of B2B lenders had strategic plans to increase the automation of their underwriting processes by a minimum of 5 percentage points in 2023. Additionally, 58% of B2B lenders planned to prioritize the augmentation of underwriting decisions through integrating novel data sources, marking a significant focus for the year.
The recent breakthroughs achieved by decision engines and open banking data providers have empowered B2B lenders to reach unprecedented levels of innovation in their underwriting processes. This marks a decisive leap forward in the industry's commitment to delivering efficient and groundbreaking financial solutions tailored to the dynamic needs of the B2B sector.
Outlook for the Future of B2B Finance
The escalating demand for business credit is driving innovation in B2B solutions, creating a thriving subsector within the finance industry.
Looking ahead, we foresee a significant uptick in fintechs utilizing data and automation to elevate B2B underwriting operations and compliance decisioning. The industry is just beginning to tap into the vast potential of these cutting-edge technologies.
A notable trend on the horizon is the rapid growth of AI-driven B2B underwriting, capturing increasing attention from venture capitalists as AI reshapes the financial landscape.
While solid economics and fundamentals remain vital, continuous growth in this dynamic industry is anticipated as innovation gains momentum. We eagerly anticipate how fintechs will evolve to meet the needs of businesses seeking rapid and accessible financial solutions.
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About Taktile
Taktile is a powerful decision engine redefining how banks and FinTech companies approach credit risk assessment, onboarding, fraud detection, and dynamic pricing. Trusted by leading companies like Branch, Novo, Rhino, and Kueski, Taktile's decision engine adapts seamlessly to any use case. Taktile empowers risk teams to quickly build, run, and optimize automated risk decisions - without engineering support. Through its Data Marketplace and cutting-edge experimentation features, companies can enhance their risk and pricing accuracy and rapidly implement policy improvements. This not only accelerates growth but also saves valuable time and resources. Founded by machine learning experts, Taktile is headquartered in New York and has offices in London and Berlin. Learn more at www.taktile.com
About Portage
Portage is a global investment platform focused on fintech and financial services with US$2.5B under management. Our team partners with ambitious companies across all stages through Portage Ventures and Portage Capital Solutions. We provide flexible capital and deliver a global network of investors, commercial partners, advisors, and value-creation experts. Our dedicated value creation team provides portfolio companies with hands-on support in go-to-market, tech & cyber, business acceleration and M&A, and partnerships to accelerate their paths to success. With deep industry knowledge and entrepreneurial experience, Portage is committed to supporting the leaders who are reshaping financial services. Portage is a platform within Sagard, a multi-strategy alternative asset management firm with over $15B under management, operating in the United States, Canada, Europe, and the Middle East. For more information, visit www.portageinvest.com
