There is a lot of buzz around fintech companies these days. Fintech is the combination of financial services and technology to increase efficiency, security, transparency, and profitability for financial institutions. Fintech companies are not only changing the way that consumers handle their finances, but also how business owners can process payments on top of that.
Today’s post will highlight some aspects to consider if and when investing in the blooming fintech industry, so you can get started building your fintech portfolio right away. Fintech is a new term for an old concept. Fintech means financial services delivered using technology. It includes the use of internet, mobile apps, artificial intelligence, high speed computers and data analytics to make financial processes more efficient.
Investors are optimistic about the future of fintech companies because they have seen many startups with great ideas go on to become successful businesses, some have even turned into huge unicorns in recent years. The fintech industry is one of the fastest growing markets in today’s economy. This is mainly due to the reach and accessibility that digital technology has given us. Fintech companies are using this opportunity to make banking more convenient, faster, and cheaper for the average consumer and in return these companies are getting massive returns for their investors in record time.
Fintech, short for “financial technology,” is the application of technology to improve financial services.
1) The fintech industry has become a major source of innovation and growth in our Global economy.
2) Fintech companies offer a wide range of new and innovative but also technology based financial products and services, including mobile payment systems, peer-to-peer lending platforms, robo-advisers and digital investments’ advice.
3) Fintech firms are attracting both venture capital funding from the private equity market and institutional corporations, even governments are actively looking into fintech.
In the past, financial services were provided by a single group of people to a single customer segment, banks mainly. Today, technology has driven a lot of change in the industry. Financial institutions are no longer tied down by geography and can reach their target markets anytime and anywhere through mobile apps and online portals. This is how fintech companies have emerged.
The financial services industry is undergoing a massive transformation. In the past decade, the industry has been disrupted to a great extent by emerging technologies such as mobile payments, online banking, and crowdfunding platforms. The arrival of fintech companies has completely changed the way millions interact with their money. And while many traditional financial institutions have reacted to this disruption by investing in fintech startups themselves, some large corporations have chosen a different approach to remain competitive in today’s marketplace: investing in innovation through innovative fintech ventures they are building. This opens a sea of opportunities for small, medium and large investors.
If you’re interested in investing, but aren’t sure where to start, it’s time to turn your eyes towards fintech. These companies are revolutionizing the way money works. Our VPWB specialists can gladly present you with several Fintech opportunities ready to be, purchased, launched or developed. Please contact us.