With over $150 million of grain transactions financed on our global grain marketplace, we know first hand how much value effective and simple fintech products can unlock along a very complex and fragmented value chain.
- // - // - // - // - // -
The last few years of tech news headlines were dominated by the word “fintech.” From massive fundraises to customer growth to product launches to scandals – new disruptors were everywhere in consumer banking, credit, payments, investment, and crypto.
But the industries where most fintech is focused today represent only a fraction of the $23 trillion global financial services market.
Fintech’s next wave will focus on improving the less well-known, less ‘sexy’ markets fundamental to the global economy – and one of the largest markets primed for disruption is agriculture finance. 2022 saw a quiet but steady rise in fintech products being built for the massive agriculture industry, and they’re only getting started.
Agriculture Lending: Oxbury Bank in the UK raised funding twice last year to originate £650 million in agriculture loans to UK farmers. Tarfin in Turkey and Agro.Club in Eastern Europe provide supply chain financing to underserved medium-sized farmers who generally have to turn to their ag input suppliers for loans at exorbitant rates. Companies like Crowde in Indonesia and Campo Capital in Brazil set up a peer-to-peer farm lending network. Players like Traive, AgroLend, TerraLUNA3 +0.1% Magna, and Agree all tackle farm lending across Latin America. ProducePay allows Mexican farmers to take out loans secured by their US purchasers.