Investors will be cautious and investments will be meaningful, Alexander Lukianchuk from TAG Fintech

Alexander Lukyanchuk from TAG Fintech believes that investors will be cautious when investing in new fintechs in the near future.

The turbulence of financial markets in 2022 has undoubtedly affected the development of fintech projects and startups in all areas. High inflation across the globe, the increase in interest rates, high level of volatility in the stock markets and other economic events make investors extra cautious.

Despite this, a crisis in the neobanking sector is much less likely than in other industries. Back in 1994, Bill Gates said: “Banking is needed, banks are not”. Vantage Market Research expects the fintech market to exceed $330 billion by 2028. The market is growing by 20% annually. And experienced market players know this. That is why the TAG Fintech team is quite optimistic about the future of the industry.

TAG Fintech is a Pakistani fintech startup founded by Talal Gondal in 2020. Later Alexander Lukianchuk joined the team. In 2021, the startup became a sensation by being among the top 5 companies in the Middle East and South Asia for the raised investment. According to Alexander Lukianchuk, the startup raised more than $12 millions after graduating from Y-Combinator, and the most recent investors valued the company at $100 million.

Fed interest rates and inflation. How the market reacts: TAG Fintech

Alexander Lukianchuk said that the situation on the global market, namely the inflation level, increases of interest rates, the fall of valuation of fintechs and startups in the venture capital market puts great pressure on the industry, that includes TAG Fintech.

Under these circumstances, we need to be even more efficient. This will allow us to go through the turbulence with minimal losses and become stronger. Otherwise, you can lose everything. For many startups, this period of time and this severity of the recession will be fatal.

As for cryptocurrency market events that people are worried about, TAG Fintech is affected only indirectly, explained the сompany’s CTO. Today, TAG works only with fiat money. But the oversaturation of the global market with resonant events can lead to mistrust or excessive caution on the part of investors which is reasonable.

Cryptocurrency will change the market. TAG is ready for the transition

Alexander Lukianchuk believes that cryptocurrency undoubtedly has a great future. Now it’s hard to predict when this trend will really take hold. One thing is known, the transition will be happening rapidly and this will change the market dramatically.

Currently, neobanks are working more on integrating existing fiat features, as well as improving the user experience and service convenience in general. Along with this, players try to be prepared for greater use of the crypto and TAG Fintech also follows this strategy.

It should be noted that the scope of business interests of the company and founders is broader than just banking. It is expected that there will be more service transformation in the future.

Alexander Lukianchuk: “We are constantly evolving. I am interested in observing the innovation of mechanisms in fintech: payments, money transfers, curious in exploring possibilities in Proptech & Legaltech. I am keen on finding viable ways of using smart contracts and building a full-fledged DAO in these domain models. Today our goal is to create a highly competitive service to work with fiat money, and we all keep abreast and follow the trends. In the future this will allow us to offer new and unique solutions at a time when the TAG team and the market are ready for this. I believe that projects at the intersection of Fintech, Proptech, Legaltech and Blockchain have great prospects now. I see great potential here”

Bitcoin, Ethereum – 2023/2024

It should be understood that the exchange rate of these major cryptocurrencies is highly correlated with the USA financial market. This means that growth will resume when the USA market overcomes the current challenges.

“I have in mind such targets for 23/24 years: Bitcoin 30k, ETH 2-3k”, noted Alexander Lukianchuk, CTO of TAG Fintech.

The company noted that at the moment, while the crisis is in full swing, it is important for individual investors and fintech companies to define their main values, focus the company around them, and remove the excess. In times of crisis, access to cash is limited, so instead of uncontrolled growth it is necessary to reflect more and strengthen those areas that already work and show strong potential, strive to be the best, not the biggest.

“We are working hard on strategy right now, and I cannot make any specific announcements. One thing is certain: our plan is to become one of the leading players in the Middle East market, the potential of which is still one of the most interesting in the world. We believe that user experience, high quality of customer service are the keys to win in this region. Our analysis of current players shows that based on these parameters, there are no strong competitors in the region. While our team sees how to make the service significantly better”, summed up Alexander Lukianchuk.

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