Citi’s Thierry Jenar talks fintech success formula – Private credit, AI, and going green

As fintech continues to grow, so does the need for resilience, adaptability, and a clear strategy for funding, AI, and sustainability. Fintechs today face a market that demands more than just innovation; investors expect profitable growth, regulators are setting higher standards, and consumers are increasingly aware of companies’ Environmental, Social, and Governance (ESG) commitments.

To better understand the forces shaping fintech’s future, Bobsguide spoke with Thierry Jenar, Global Head of Digital, Tech, and Comms at Citi’s Commercial Bank. Thierry leads Citi Commercial Bank’s coverage for technology and digital mid-sized corporates globally and brings an insider’s view on how fintechs can position themselves to thrive in today’s complex environment. From smart funding choices to the impact of AI and the growing importance of ESG, here are Thierry’s insights on what fintechs need to succeed.

Funding strategies: Finding the right fit

Fintech funding has diversified as the sector has grown, with more options available beyond the venture capital that dominated early-stage rounds. Today, mid-sized and scaling fintechs can tap into a broader pool of capital, including private credit, venture debt, and even traditional bank loans. This shift reflects the maturing industry and gives fintechs more flexibility in how they finance their growth.

“For early-stage companies, capital usually comes from private sources—founders, venture capitalists, and family offices,” Thierry explains. “But for later-stage fintechs, we’re seeing more interest in private credit as a significant funding alternative. It’s becoming an option for companies that have moved beyond the early stages and need capital to scale but don’t necessarily want to go public or take on traditional bank debt.”

Private credit, now a $1.5 trillion market (approx. £1.18 trillion), has emerged as a key funding source for growing fintechs that might not fit the risk profile of traditional banks. “Direct lenders can often be more flexible in their terms compared to banks,” Thierry says. “It’s not that one is better than the other; it’s about finding the right match for the company’s needs. Private credit provides a tailored approach that fintechs can use to their advantage.”

As private credit grows, fintechs face new choices about how to raise capital. “Direct lenders may offer more borrower-friendly terms than select banks, though they tend to be pricier due to the cost of funds,” he notes. “For fintechs, it’s about weighing that flexibility against cost and figuring out which option aligns best with their stage of growth and goals.”

 

AI as a core driver of fintech success

Artificial intelligence (AI) has quickly become one of the most transformative tools for fintechs, with applications ranging from customer service to fraud detection. For Thierry, AI is more than just a useful tool—it’s essential for fintechs looking to stay competitive. “Every company needs an AI strategy,” he says. “It’s as transformative as the internet was—maybe even more so because the rate of change is so rapid.”

The global AI market is projected to grow from £163 billion in 2023 to over £1.4 trillion by 2030, and fintech is no exception. Investors are increasingly interested in companies that have a clear AI strategy, seeing it as a sign of forward-thinking innovation. Thierry explains, “Companies with a strong AI vision are likely to be favoured over those who haven’t yet adopted it. We’re only at the beginning of this AI transformation, but the impact is clear. Companies that don’t integrate AI are at risk of falling behind.”

For fintechs, AI isn’t just about keeping up with trends; it’s about driving tangible business results. “AI can play a role in every part of the fintech model—from customer engagement and fraud detection to personalising services,” Thierry notes. “The applications are endless, and for fintechs, using AI effectively can set them apart in a crowded market.”

Thierry compares the current AI boom to the internet’s rise, stressing that companies need to take it seriously. “Just like the internet changed how companies operated, AI is changing how fintechs will grow and innovate. Without a clear AI strategy, fintechs risk being left behind.”

Embracing ESG to meet modern expectations

With 79% of global investors now factoring ESG criteria into their decisions, the pressure on companies to demonstrate sustainable practices has reached a new level. ESG is no longer a “nice-to-have” for fintechs but a critical part of their business strategy.

“For us at Citi Commercial Bank, ESG is about both supporting companies committed to sustainability and helping others make that transition,” Thierry says. “It’s a dual approach. ESG isn’t just a value-add anymore—it’s something that investors and customers expect to see integrated into the business.”

Thierry explains that Citi Commercial Bank’s approach to ESG has two main components. First, they work with mid-sized companies that are already engaged in sustainable activities, such as those focusing on renewable energy or climate tech. Second, it helps companies that may not have strong ESG practices develop a strategy to improve them. “We’re seeing interest from mid-sized fintechs who want to take steps toward having a sustainable transition strategy, and we can support them with that.”

For fintech companies, integrating ESG can offer a competitive edge. “Investors are looking for businesses that contribute to positive social and environmental change,” Thierry says. “Those fintechs that align with ESG principles and showcase a commitment to sustainable practices stand out in the eyes of both investors and customers.”

Citi Commercial Bank’s support extends to guiding fintechs through this transition. “We work with clients across the board, helping those who already have strong ESG credentials deepen their impact while supporting others as they shift toward a more sustainable business model,” Thierry adds.

Private credit vs. traditional debt: Weighing the options

As fintechs scale, they face new funding options beyond just venture capital. While public markets and traditional bank loans remain available, private credit has grown as a viable alternative for mid-sized companies seeking capital to support rapid growth. According to Preqin, the private credit market is expected to double by 2026, making it an increasingly appealing option for fintechs.

“Private credit has emerged as a major player, especially for mid-sized companies,” Thierry explains. “Hedge funds and asset managers are filling the gap by offering flexible lending options without the same regulatory requirements as banks. For fintechs, this can be a good alternative if they’re looking for capital but aren’t ready to go public.”

Private credit offers fintechs borrower-friendly terms that can be more tailored than traditional bank loans. However, as Thierry points out, this flexibility comes with a higher cost. “Direct lenders provide more room to negotiate terms, but it does come at a higher price. For CFOs and founders, the decision really comes down to balancing the cost of flexibility against the stability of traditional options,” he says.

Thierry notes that fintechs sometimes use a combination of funding sources to optimise their capital structure. “It’s not uncommon for companies to have a mixed debt stack, where they might use a bank loan, or credit facility, alongside direct lender funding,” he says. “This approach may give them the flexibility they need while managing costs.”

Adaptability is key in a changing market

As the fintech industry matures, companies face increasing scrutiny from investors and regulators alike. From smart funding decisions and AI adoption to prioritising ESG, the ability to adapt quickly is crucial for fintechs seeking success.

“The biggest thing for fintechs is to be adaptable,” Thierry says. “The landscape is always changing—investors want different things, regulators are introducing new rules, and competition is intense. Fintechs need to stay flexible and be ready to pivot when needed. Resilience is key.”

For Thierry, adaptability and resilience are not just buzzwords; they’re essential qualities for any fintech aiming to thrive in this environment. “Companies that can handle the pressures of scaling, regulation, and evolving investor expectations will be the ones that make a real impact.”

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Thierry Jenar joined Citi Commercial Bank (CCB) in 2012 to build its U.S. technology strategy and launched the U.S. Technology, Media, and Telecom (TMT) Group, serving companies with $100M–$3B in revenues. In 2016, he expanded globally, establishing CCB’s Digital Segment across EMEA, APAC, LATAM, and Mexico, and in 2018, launched the Digital Venture Banking Group for early-stage, venture-backed firms. Appointed CCB’s first Global Industry Head in 2022, Thierry oversees Digital, Tech, and Comms, supported by 130 bankers worldwide. Based in San Francisco, he is a Business Senior Credit Officer and a member of Citi’s Payment Intermediaries Oversight Committee.

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