Financial technology startups seem to have a promising future in the new decade. With nearly 60 upstarts including Stripe Inc. and Plaid Inc. that focus on financial services, valuations of more than $1 billion have assembled in recent years. Both Analysts and experts predict that there’s more to come.
Crux of the Matter
Exit strategies can be seen on the rise. Fiserv Inc., Fidelity National Information Services Inc. and Global Payments Inc. did a series of deals that transformed payment processing in the U.S. earlier this year.
As for Regulatory Scrutiny, Mark Zuckerberg defended Facebook Inc.’s plan to rebuild the world banking system in front of Congress. Thereby reassuring experts that there is a decent scope of government scrutiny ahead for financial technology players.
Famous for being dubbed as “neo-banks“, the new entrants in digital banking have already raised more than $3 billion in venture funding, in the first three quarters of this year. Chime, the leading U.S. digital bank, is now valued at $5.8 billion and is inspiring other newbies to take a risk and venture freely in this arena.
Most importantly, tech. giants would take a giant leap of faith in finance, with Apple launching a credit card with Goldman Sachs Group Inc., Alphabet Inc. announcing a checking product with Citigroup, and Facebook attempting to make a new global currency.
Curiopedia
Financial Technology or Fintech, is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance. The use of smartphones for mobile banking, investing services and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public. The services may originate from various independent service providers including at least one licensed bank or insurer. More Info
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