Signed in as:
filler@godaddy.com
Signed in as:
filler@godaddy.com
What is Fintech?
Fintech is short for Financial Technology and it is the application of new information technologies to products and services in the financial industry. Fintech is very broad in nature and it ranges from payment processing, robo-advisory, personal finance software, crowdfunding platform, peer-to-peer lending, and virtual currencies.
Global Momentum
According to KPMG, global investments in fintech ventures have grown significantly in recent years and reached $111.8 billion in 2018.
The Players
There are four groups of players in the fintech ecosystem, each competing to achieve a competitive advantage over rivals, get ahead of regulatory changes, and adapt to global and societal shifts.
Large Financial Institutions
They are well-established banks and insurance companies. These companies are also called the “incumbent” as they are traditional financial services companies embracing the use of new technologies to do business. This group of players includes Allstate, Bank of America, JP Morgan Chase, and Wells Fargo.
Big Tech
In recent years, we have seen the big techs diversifying their business into the financial services space. Apply Pay and Facebook’s Libra are two prominent examples.
Infrastructures
They are companies that use technology to build payment processing and settlement infrastructures. They include American Express, Fiserv, and Mastercard.
Startups or Unicorns
They are the disruptors of the financial services industry. These companies, often startups, use innovative technology or process to provide value to customers that traditional companies have not. A few examples are Stripe, Robinhood, Bill.com, and Grab.
The Verdict
Fintech has taken the financial services industry by storm, and it is our view that fintech will continue to disrupt and reshape the business landscape of the financial services industry in the next decade. At the core, big data, artificial intelligence, and automation are the key drivers of fintech and we anticipate this sector will continue to grow at a rapid pace.
Find out if investing in fintech is right for you. Book an online appointment today.
Constantly Evolving ™
® / TM Trademark(s) of Pegasi Private Wealth. Copyright © 2018-2024 Pegasi Private Wealth and Pegasi Wealth Advisory All Rights Reserved.
Disclaimer: While every effort is made to ensure the timeliness and accuracy of the information available on this site, Pegasi Private Wealth of ACPI assumes no liability or responsibility for the completeness, accuracy, or usefulness of any of the Information.
Aligned Capital Partners Inc. (“ACPI”) is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and the Canadian Investment Regulatory Organization (“CIRO”). Investment services are provided through Pegasi Private Wealth of ACPI, an approved trade name of ACPI. Only investment-related products and services are offered through Pegasi Private Wealth of ACPI and are covered by the CIPF. Fee-based financial planning and consultation services are provided through Pegasi Wealth Advisory. Pegasi Wealth Advisory is an independent company separate and distinct from Pegasi Private Wealth of ACPI.