How fintech has taken over the world.
If you are looking for an investment sector that is seeing growth all around the world, fintech may be right for you.
With financial technology, or fintech, the way we manage our money has changed significantly since the 1950s, in more ways than you may be aware. Even today, new companies are creating ways to make financial management easier and in the palm of your hands.
The shift we are seeing is that of a digital age. Tech-savvy individuals are seeking easy access, convenience, efficiency, and speed in every part of their lives, including their finances. Having the ability to make transactions from the convenience of a phone or other electronic platform is what is creating this strong push towards fintech. Roughly 1-in-3 apps today are used by people to manage their finances.
Today, fintech plays a large role in our daily lives with mobile wallets, payment apps, and even robo-advisors for retirement planning and wealth management. You can even find equity crowdfunding platforms for access to private and alternative investment opportunities.
Fintech has grown so much that in the past five years, investment in the industry has more than tripled. There is a boom in fintech companies all over the world, from Silicon Valley and New York to Asia – financial hubs in Singapore and Hong Kong to Australia. These startups are offering tech-enabled payments, currency exchange, crowdfunding, online lending, and wealth management services. To prove how fintech has found its way into the lives of everyone around the world, we have gathered some interesting facts about the sector from regions all over the world.
Europe is home to many financial centers that are embracing the power of fintech. London, in particular, has numerous financial service companies that have attracted talent from all over the world, including skilled developers.
London also has favorable regulations in terms of finance and banking that have brought in startups from other European destinations.
If cryptocurrency is your preferred fintech development, you may be excited to know that one of the most coveted financial centers in the world is also an emerging crypto center. Switzerland has always had a progressive viewpoint on individual banking and privacy, and this holds true with cryptocurrency regulation – with an open attitude towards digital money. Economics Minister, Johann Schneider-Ammann, stated in January of 2018 that he would like to see Switzerland as “the crypto-nation.”
While many nations like China and South Korea have banned initial coin offering, Swiss officials want to see the ICO market prosper while also keeping up the standards and integrity of the financial markets. The financial authority, Finma, believes there are economic opportunities in the digital currency startups. There is an ICO working group that is working to increase the legal certainty, protect existing financial centers, and ensure tech-neutral regulation.
While many countries try to increase their investment opportunities and business in technology, Silicon Valley remains the dominant force of fintech, though that could still change. Like many other regions. The US saw a large increase in 2017, reaching nearly $6.5 billion. Almost 1 in every 5 fintech deals made in 2013 went to a company based in Silicon Valley.
Interest continues to grow in 2018 that is marked by a group of investments that were valued at over $100 million, including investments in Credit Karma, Robinhood, and Atom Bank.
Banks account for a large portion of the funding but many major institutions are taking a step back from investing. European banks, however, are investing more.
When you think of Latin America, are you thinking of an increasing fintech industry and growing opportunities for investors? No? Well, you should!
Between 2017 and 2018, fintech deal activity has increased by nearly 20%. In 2017, it was reported that investment in fintech was around $571 million as investors began seeing the importance and profitability of fintech in the region.
Much of this increase is thanks to a push in Brazil after banks were forced to pull back from some services. A gap in the market was left that is now being filled by fintech companies. For this reason, compared to Mexico and Chile in the same region, Brazil is a much more attractive place to seek fintech investment opportunities.
Since 2014, Brazil and Mexico have made the most fintech deals in the Latin America region but Mexico has been lacking a bit. Last year, Mexico’s contribution of deals went from 37.7% to around 15%.
South East Asia
While many are flocking to the more popular financial centers for their fintech investment, many experts are encouraging individuals to not forget South East Asia, especially Singapore and Indonesia.
Singapore has a long history as a leading financial center in Asia, while Indonesia has a large population with growing interest in technology and increasing disposable income.
South East Asia as a region witnessed a 173% increase from 2015 to 2016 in fintech companies. It was a growth from $122 million to $333 million, according to FinTech Global.
Alpen Partners Wealth Management International AG, the sister company of Alpen Partners AG, is now a registered investment advisor at the U.S. Securities and Exchange Commission (SEC). Together with our partner Swiss private banks, our company can now offer the full Swiss private banking experience to American clients, both resident and non-resident.
Building on many years of experience in private banking in Switzerland, Alpen Partners Wealth Management International AG provides investment advisory services to U.S. clients. Swiss banking is highly regarded around the world, well known for being sophisticated and discreet. In 2017, it was reported that $7.5 trillion in assets are held in Swiss banks and almost 51% of that is generated from clients outside of the country. Choosing Switzerland as a banking destination is choosing years and years of financial stability and growth.
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