Catch the Fintech wave
Fintech is born at the interception of financial services and technology and is now growing wild.
The vibrant field of Fintech became both the hope and the challenge for the nebulous financial industry, suffering and suffocating but surviving since the global financial crisis of the last decade.
During the last 10 years, the investments in the Fintech field reached over 100 billion USD where the market size is estimated to be 900 billion USD as of 2016. In 2015, the investments in this field reached a decade high of 47 billion USD while in 2016 remained at 30 billion (1) due to mainly global economic slowdown and political uncertainties.
In this growth industry appeared more than 20 unicorns, having a market cap more than 1 billion USD. While they are mostly born in healthy and strong ecosystems like UK, USA East Coast and Central Europe, South East Asia is catching the wave at the front side. Open banking triggered by the European legislation push the boundaries of financial technologies out and flex the industry to accept in more of Fintech startups. The recent EY studies show that among the 20 largest financial markets, Fintech adoption rate is highest in China with 69% followed by India 52% and UK 42%.
The investors profile shifted from angels and VCs to more corporate VCs and financial institutions, showing a sign of growing coopetition rather than competition inside. Fintech is now the hot topic and has its own lingo. Fintech gurus pave the way to keep the heat up and sometimes blow too much to the smoke.
What’s going on? Are you in the right place and in the right moment to catch the tide? Are you a barney, learning how to surf and still a bit clucked of waves?
While the financial institutions are surfing Fintech with their grey belly, some startups are kooking, still too much remains in the field to explore in terms of business ideas, technology, empowerment and financial inclusion, creativity and innovation.
Definitely, it is not the time to sit back to catch the wave, gaze the lip and you will be in the soup soon.
So stay tuned, we going off!
Source 1. KPMG, CB Insights public information 2. Ernst and Young, Advisory Services
