#129: Short Takes: Will Vertical AI Surpass Vertical SaaS in Finance?; Pix by Proximity
W FINTECHS NEWSLTTER #129
👀 Portuguese Version 👉 here
👉 W Fintechs is a newsletter focused on financial innovation. Every Monday, at 8:21 a.m. (BrasÃlia time), you will receive an in-depth analysis in your email.
Welcome to the Short Takes edition! As the name suggests, unlike deep dives, these editions will explore a variety of topics that might later evolve into full deep-dive editions.
Short Takes is designed for entrepreneurs, investors, and operators looking for quick, actionable insights.
This edition is sponsored by
Iniciador is the complete infrastructure platform specialized in Regulated Open Finance, enabling Payment Initiation and Data Access.
The solution removes technology and compliance concerns, allowing clients — with their own regulatory license or using Iniciador’s — to focus on new products and business growth.
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The rise of Vertical AI is profoundly transforming various processes within the financial sector. Unlike more generalist AI solutions, Vertical AI is characterized by applications specifically designed for individual industries, addressing unique challenges and optimizing processes tailored to each segment.
In sectors where manual work is routine, these technologies can drive significant transformations—accounting being a prime example. Traditionally resistant to technological change due to its need for precision and regulatory compliance, accounting has begun adopting AI-driven platforms to automate repetitive tasks such as reconciliations and month-end closings. This automation not only enhances efficiency but also allows professionals to focus on higher-value strategic activities.
By 2029, the market for AI agents is expected to grow by $42 billion, driven by the demand for hyper-personalized digital experiences and the expansion of AI-powered SaaS platforms.
From 2022 to July 2024, over $1.5 billion has been invested in startups focused on AI agents, signaling a growing interest in verticalized solutions that provide industry-specific automation and intelligence.
Despite this promising landscape, the adoption of Vertical AI is not without challenges. Issues related to data privacy and integration with legacy systems remain some of the biggest obstacles for these technologies.
Many areas within the financial sector are still ripe for transformation, reinforcing that the rise of Vertical AI is not just a passing trend but an inevitability for industries seeking large-scale efficiency and precision.
Vertical AI is not merely an evolution of Vertical SaaS — it is its inevitable successor. While traditional software has brought efficiency, AI is redefining the operational structure of companies, eliminating friction and making previously manual processes not just faster, but obsolete. The key differentiator is no longer just selling technology; it’s about deeply understanding the industry’s pain points, speaking the language of decision-makers, and delivering solutions that enhance capabilities rather than merely replacing human labor.
Founders who possess deep market insights and cultivate strategic relationships with key decision-makers such as CEOs and CFOs will have a competitive advantage. Ultimately, Vertical AI is not just about automation — it is about efficiency and competitive gains.
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"Is it Pix? Just Tap!"
Just in time for Carnival in Brazil, Pix by Proximity is now live — both online and offline world.
More convenience, more simplicity, and faster payments. Last year, contactless card payments accounted for 67.2% of in-person transactions.
Currently, Brazilians make nearly 3 million contactless payments per hour, according to Abecs, and this number is expected to grow even further with Pix’s new tap-to-pay functionality.
Check out the flow below 👇
Until the next!
Walter Pereira
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Disclaimer: The opinions expressed here are solely the responsibility of the author, Walter Pereira, and do not necessarily reflect the views of the sponsors, partners, or clients of W Fintechs.