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Fasanara Capital in the Hedgeweek 2025 Global Outlook Report
7 March 2025
Why Alternative Finance Must Embrace Technology
In 2024, elections in major economies revealed challenges like fiscal instability, rising inequality, and social polarisation, shaping the future of fintech lending. Unchecked government spending calls for a decentralised financial system powered by technology and data.
In 2025, fintech lending will continue to disrupt traditional banking, with institutional capital supporting large-scale lending to SMEs and consumers, especially in emerging markets. As interest rates decline, demand for uncorrelated income sources will grow, and fintech lending will provide steady returns with lower risks.
Institutional investors are drawn to fintech lending’s short loan durations, diversification, and lower default risk. The hedge fund industry must adapt to digital transformation to stay relevant, with early adopters reaping substantial rewards.
Read the full article in the Hedgeweek 2025 Global Outlook Report here.