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Fintech: the best kept secret of this nearly 230 billion euro sector

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According to a recent report by Boston Consulting Group, fintech revenues are expected to increase six-fold, from $245 billion (€228 billion) to $1.5 trillion (€1.39 trillion) by 2030. Banking fintech is expected to account for nearly of 25% of all bank ratings globally by 2030, a prediction that has led to billions in venture capital funding, some 30,000 start-ups being created and new product launches by incumbents in technology and financial services.

“Berkeley Payments is a unique company in our industry, the financial technology industry,” says its CEO. Lawrence Tepperman. “We’re not your typical startup. We’ve had 100% growth since day one.”

Typical fintech startups around the world received a record total funding of $140 billion (€130 billion) in the 2021 flagship year, down from $75 billion (€70 billion) last year (but up from $50 billion). , or 46.5 billion euros), in 2019 and 2020), according to CB Insights. However, at the end of 2022, there were 312 fintech unicorns globally, up from 250 at the end of 2021. According to the Boston Consulting Group, the decline in 2022 was just a short-term correction in a positive long-term trajectory.

Yet these well-funded startups follow the typical growth-at-all-costs business model, “hugging customers and doing it at a loss,” says Tepperman. On the other hand, it emphasizes stability and peace of mind that Berkeley She offers her clients: “We’ve been growing 30-40%, turning a profit every year, and putting that money back into the business. With a different business model, we focus on execution,” says Tepperman.

Mass customization

Founded in Toronto in 2005, Berkeley Payments has focused until nearly five years on one market segment: the provision of prepaid cards used in loyalty and rewards programs, promotions and incentives by major Canadian banks. When Mr. Tepperman became CEO of Berkeley in 2018, after holding various leadership positions in the financial services industry, he set about transforming the company into a global provider of Banking as a service (BaaS).

today, Berkeley It has a single platform that makes it easy for North American companies to develop and implement whatever payment programs they want to create for their clients, entirely under their own brand. “The reason no one has heard of Berkeley is because the company name never came up,” says Tepperman. “From the call center to our websites, to everything our clients and their customers see, they only see their own brand name.”

Lawrence Tepperman calls this “end-to-end customization,” offering a flexible, easy-to-use, out-of-the-box platform that is fully customized for each client, allowing them to turn on and off “different features to do exactly the software they need at a specific time, and adjust as their needs change.” “.

Payment processing involves authorizing and settling a payment between the customer and the merchant, entering payment details, checking for funds availability, and transferring funds from the customer’s account to the merchant’s account. This process allows businesses to securely accept payments from various payment methods, such as credit cards, debit cards, prepaid cards, e-wallets, and bank transfers. Berkeley aspires to be a global leader in payments innovation.

According to Mr. Tepperman, the company now has more than 2,000 corporate clients, incl Hyundai, LG, Coca-Cola, Mercedes, Kellogg’s, Kraft, L’Oreal, Abbott, JG Wentworth, and the Red Cross.

The payment processing market has been behind the emergence of the fintech sector, and Berkeley is well positioned to thrive in the future Boston Consulting Group They have been identified as the following two segments of growth sectors: enabling economic players to better serve consumers and better serve businesses; and small business service.

With its ever-expanding platform, which regularly adds new features, Berkeley is ready to make itself known to a wider audience. “We’re ready to pitch to the public a little braver than ever before,” said Tepperman.

Translated article from the American magazine Forbes – Author: Jill Press

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