These areas of fintech could become important in the coming years. In a great conversation on the FF Virtual Arena, Tarun Gupta of Skip the capital shared his journey from investment banking to fintech investing and told us how compliance can become a strategic advantage.
Huge sums of money are still being poured into the fintech sector, which continues to grow. This list of The 250 hottest startups in Europe from Sifted, shows that there are still many neobanks and fintechs doing this business. Now many funding goes to AI right now, but even within fintech, areas like wealth management are seeing a lot of investment.
This is why it is so important to hear from those who deal with financing and investments. Watch more interviews like this on our Virtual Arena page.
Watch the full interview to learn more about:
- Compliance as a competitive differentiator.
- Jump Capital’s investment philosophy.
Emerging threats related to payment fraud and the measures needed to prevent it.
From Investment Banking to Fintech Investing
Of course, whenever we create a profile like this, we like to get a good overview of their career. After giving us an update, Gupta provided valuable insights tailored to fintech professionals, bankers, and enthusiasts passionate about the industry’s evolution. Gupta began his career in investment banking, working on mergers and acquisitions, where he gained in-depth knowledge of transaction processes. From there, he moved into corporate development at Scientific Games, driving growth through multiple acquisitions. But it was his interest in supporting early-stage companies throughout their growth trajectory that led him to Jump Capital.
Here he specializes in fintech investments, leveraging his extensive experience to identify and support transformative startups.
Jump Capital Investment Philosophy
Founded 12 years ago, Jump Capital focuses on early-stage investments (Seed to Series A) across three core verticals: enterprise software, IT infrastructure, and financial technology. Gupta devotes his time exclusively to fintech, seeking innovative solutions to address pressing “burning” problems exacerbated by macroeconomic trends such as regulatory changes or shifts in consumer behavior.
As for what they’re looking for, the company looks at two main things.
- Identify software solutions that deliver measurable ROI to address important business challenges.
- Supporting founders with unique knowledge and resilience, essential traits for navigating the unpredictable startup landscape.
Fintech Compliance: From Cost Center to Competitive Advantage
One of the big talking points in financial services is always compliance. But Gupta speaks of a paradigm shift when it comes to how compliance is viewed in the industry. Traditionally viewed as a back-office cost, compliance can now be seen as a differentiator, particularly amid increasing regulatory scrutiny. He explained how robust compliance frameworks can drive sustainable growth and position businesses competitively. Gupta noted that many compliance processes remain manual and outdated, providing a great opportunity for innovative software to streamline and improve these functions.
Payment fraud: emerging threats and innovations
There’s also a lot of talk about payment fraud, and Gupta highlights two pressing areas: chargeback disputes and push payment scams. He highlighted the growing prevalence of “friendly fraud,” particularly among younger consumers, and the need for banks to adopt more sophisticated tools to resolve disputes. Gupta highlighted regulatory developments in the U.K. that require banks to reimburse victims of push payment fraud, a trend he expects will influence the U.S. market.
He highlighted the delicate balance fintechs must strike: introducing enough friction to deter fraud without disrupting the user experience. Innovative solutions, such as systems that suspend high-risk transactions for verification, are paving the way for more secure and user-friendly financial ecosystems.
Gupta’s insights underscore Jump Capital’s commitment to identifying and developing fintech solutions that address critical industry challenges. It’s a great look at one of the companies driving the industry forward.