Why Invest in Fintech? | Fusion - WeRIndia

Why Invest in Fintech?

Why Invest in Fintech

Finance and technology are arguably the largest industries in the world today. If we combine them, we get a very attractive sector, not just to investors but to consumers as well.

As you can see from this infographic (https://carsurance.net), fintech products such as PayPal and blockchain, for example, have been known to rake in billions in terms of market value. So, the question is, what’s all the fuss about?

Below are three reasons why everyone seems to be investing in this sector nowadays.

Fintech Has Just But Started

If you thought fintech is at its epitome, then you might be in for a shock. So far, the tech has only taken baby steps compared to other forms of technology that have gone ahead to become part of the lives of consumers.

Take, for instance, the evolution of mobile phones. They started off as communication devices, then turned into communication plus internet browsing, and today some can even be used as television sets. If the similar strides would be achieved in fintech, you probably wouldn’t need to ever visit a bank for whatever reason. Everything would be completed online.

Fintech Has Made the Financial Sector Competitive

Fintech is a relatively new form of technology to most people. This is perhaps why many investors are excited about it. The tech has introduced some level of freshness to a sector that had seen slow growth in the previous years.

And as you would imagine, with better things comes more competition. This is exactly what has hyped the finance sector as far as tech is concerned.

Financial players have been keen on implementing this cutting-edge form of technology in their businesses to enable them to stand out. In the end, the increased competition leads to the delivery of better products and services to the community.

Fintech Has the Attention of Venture Capitalists

A couple of years back, the mobile sector seemed like the best place to invest (of course, it still is). However, more recently, other players have come in to claim their share of the technology pie.

One such participant is fintech. Analysts believe that venture capitalists are nowadays not keen on investing in building of this tech but in its implementation.

Businesses that are implementing fintech in daily operations have received major boosts from investors due to the potential of the tech. Despite the challenges faced by some fintech sections, investors are now more than ever keen on investing in viable and well-regulated projects that meet safety and legality standards.

There you have it!

What other reasons do you think will make the fintech sector attractive to investors?

Image Credit:- “FinTech (Financial Technology)” by Investment Zen is licensed under CC BY 2.0.

Image Reference: https://www.flickr.com/photos/investmentzen/28790005453

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