Author : Naveen Prasad, Founder & MD at Group Agilis Nov 12, 2021
Finance and technology have never been as synchronized as they are today. Financial technology widely known as fintech is the integration of technology and financial services made to ease the life of consumers. Fintech now is one of the keen interests of investors all over the globe. As its growth rate is not going down anytime soon. Fintech is shaping the global economy to a greater extent. It’s not a bubble, it’s here to stay! Facts and trends are proving this right. More than 40 unicorn startups in 2019 were there in the finch sector and are constantly increasing.
What led to the Fintech rise
Fintech became mainstream around the world after the pandemic but it was still there decades ago. Fintech is a byproduct of the rise in technology-led during the era of the 2000s. The revolution in fintech was bought by the same person who is revolutionizing Space Tech and Electric cars. Elon Musk. Paypal is one of his most successful ventures and a breakthrough for the Fintech world. And now, nobody can think of finance without technology.
The current Fintech Scenario
Investors are bullish on Fintech companies and start-ups. Trends show the continuous growth of investments in the industry and growth is expected by every year passing. More than 67% of 2100 fintech entities came into operation from the last five years, showing promising growth in the sector. Can you guess which sector has the highest number of unicorns? FINTECH. With 79 unicorns it beholds the position of the largest sector with most unicorns. The future looks promising as Finance and Technology are themselves the most sought-after subjects individually. So, what happens when you combine two revolutions? You evolve exponentially. Fintech is the evolution.
The Key influencers
If there has to be only one influence on the rise of Fintech it would be Blockchain. Fintech followed the rise of cryptocurrencies. And the growth of crypto needs no description now. Fintech helped the retail customer and started to gain market share. The establishment of digital banking, APIs, digital-only banks helped Fintech to gain more exposure. Pandemic helped the sector to rise beyond its expected growth because pandemic helped the sector to increase its awareness and monetized it in every way possible.
The future of Fintechs
If we say Fintech will diminish soon, BlockFi, Paypal, Stripe or any other Fintech company or investors will ridicule us. We believe Fintech has enormous potential. After the pandemic, the Fintech sector has become more saturated, and yet new ideas, companies are entering the sector with full confidence. Showing compound annual growth rate (CAGR) of 7.9% since 2015, and is expected to grow at a CAGR of 9.2% to nearly $158,014.3 million by 2023. Fintech’s revolution won’t be similar to the digital revolution, it would be more significant.
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