Fintech Investments – Momentum building up!

Fintech (Finance + Technology) is no longer a buzzword. It is an area that is radically changing how we live as society and how we do business professionally.

Consumer are gradually using Fintech to transfer money, get loans, make payments, get investment advise, make investments, etc., without going through traditional big bank branch, or through and investor/advisor – all at a fraction of cost. And it doesn’t look like that trend is going to stop. That’s why big banks are watching this space and gradually buying into Fintech.

A common complaint against Wall Street is that the average Joe/investor doesn’t have the same research tools as big institutions. Fintech companies are closing that gap.

McKinsey’s research shows that Fintech investments in Retail exceeds other categories, with minimal impact on large institutions as can be seen below. Hence, big banks are not necessarily worried that Fintech will eat their business anytime soon (as of now!).

Mckinsey Panorama - FintechRevenues

Some interesting stats around Fintech space –

Fintech is here, and here to stay …

Fintech continues to evolve and is opening up world of possibilities for consumers. How big institutions leverage these to create competitive advantage remains to be seen.

Fintech is not just about technology, it’s an Innovation!

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