There is a narrative in technology that is not in the public gallery enough and it is the growth of startups in financial technology. If you are still in doubt, you will get many of them here about fintech startups. Look at their complexity and think of their potential to impact various verticals.
If you underscore the influence of fintech in financial sector, maybe you haven’t met successful fintech companies such as Advanced Payment Solutions (APS), one of the most inventive payment solutions companies in Europe. APS is not only challenging High Street banks, but also providing secure and fast solutions. It is focused on offering easy to use banking services to individuals, public sector and small businesses. This fintech company has specialized in business expense, current account, prepaid account and lending products.
If you haven’t heard about APS’ impact, it has:
– Over 1.2 million Cashplus cards that have been issued to date
– Served 50,000 SMEs
– Provided banking solutions to over 30 percent of the local authorities in the United Kingdom
– processed more than £3 billion payments
This is an exciting moment for a fintech startup. For venture capitalists, this is a hot trending topic. Today, only few professionals will ask: what’s fintech?
The main reason why fintech startups are representing a paradigm shift is because it influences how we deal with money. Fintech has implications in personal finance, mobile payments, credit score research lending & financing, block-chain, markets and exchanges, investment, wealth and asset management and banking. Therefore, fintech touches many aspects of our financial involvement.
The fintech startup is an institution that has the potential to provide something better, more data friendly and more seamless to enhance our financial involvement.
The fintech companies are not a rarity. They are common and have considerable growth potentials. Though the market is very hot for them, it is still to be saturated with them.
The number of fintech startups is an indication that those companies are challenging the traditional banking. Though the exact number of fintech startups is hard to pinpoint, industry watchers and data sources estimate that Asia has around 2,500 fintech startups. United States and United Kingdom have approximately combined total of 4,000 fintech companies.
The investment from fintech companies has been growing exponentially. Going by CB insights since 2010, approximately $24 billion has been invested in fintech startups worldwide.
If you want to read about 100 fintech startups that have provided exiting solutions, visit here. In that site you will meet fintech companies such as ZhongAn, an innovative property insurance company. This company uses big data technology to help with product design, auto claims, precision marketing, automatic underwriting and risk management.
Since Fintech companies are performing many of the banking services, it is difficult to determine whether it will replace the traditional banking industry completely or they will be integrated completely. Will there be establishment of a new type of digital banking? I believe it is still too early to answer that question since the golden age of fintech is likely to occur between 2018 and 2026.