Fintech: Investors What You Need to Know

fintech investment trends

Fintech: Investors What You Need to Know

You probably heard of this term, FinTech, being discussed at your investment clubs and wondered what it’s all about and how should an investor how can profit. Here’s how to take advantage of this trend globally

 

FinTech is an abbreviation for financial technologies. This means it is the interconnected, data-driven new technology is being applied in the financial banking sector usually by institutions in the backend of their business for efficiency and cost savings. As such these new companies are disrupting traditional financial business models by offering mobile credit card payments such as Intuit’s app Quickbooks Gopayment, money transfers by smartphone, loans online, digital fundraising and asset management.

 

This is not just a fad. FinTech can be a huge moneymaker for investors. Venture capital firm Accenture recently reported that their investments in fintech companies internationally started in 2008 at $930 million and has grown to more than $12 billion in 2016. One of the most successful companies in this industry has been Kabbage.com reviews are positive for its continued growth serving entrepreneurs with business loans and line of credit financing. 

 

This explosive growth is touching every business sector not only financial services – use this to your advantage. 2019 trends include artificial intelligence and robotic process automation. 

 

In the past, if you wanted to launch a new business you would need to go into your local bank office and apply for a loan. Similarly, if your store wanted to accept credit cards it would require an account with a specialized merchant credit card provider and a telephone landline and expensive equipment to lease.

 

Happily, this is no longer the case, fintech has broken the stronghold of traditional banks and lenders. Now when you are an entrepreneur and want to launch your company you can go online with an app on your smartphone and within minutes have submitted a loan application that will be reviewed through data connections to your online banking and accounting software.

 

Today along with mobile payments and instant money transfer services these fintech revolutions are making it easier than ever to start and run a business.

 

Because it’s easier than ever for startup companies to accept credit card payments due to mobile credit card readers and lower volume requirements for account except it is much easier to do business almost anywhere because via cell phone you can safely and easily accept credit card payments from your customers.

 

Fintech is not just changing businesses and their banking transactions but is also rapidly changing customer behavior.  

 

These days consumers are becoming accustomed to being able to access data anywhere via their smartphone. So they expect to be able to buy and sell within their investment portfolio and to deposit checks simply by scanning with their cell phone.

 

Even with this explosive growth fintech is forecasted to be only in its infant stages. The financial industry will continue to change rapidly and savvy investors will want to stay informed as part of their long-range strategies to not lose out on opportunities and gain profits.

 

Top Fintech Stocks by Investor Place

 

Paypal

Alibaba

SoftBank

LexinFinTech

Guidewire

 

https://investorplace.com/2018/03/10-fintech-stocks-to-own-for-next-10-years/

 

Further reading:

 

https://www.inc.com/magazine/201509/maria-aspan/2015-inc5000-fintech-finally-lifts-off.html

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