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Investment funds

The technology that makes money from money.

Fintechs
Fintech
Categoría
Investment funds
Tipo de contenido
Actualidad
Tiempo de lectura
minutos
Publicado
21 Dec 2023
A business model that designs and applies new technologies to financial and investment activities, taking advantage of the increased use of digital finance but, above all, relying on new consumer preferences.

Why invest in this trend?

  • Goodbye, cash!
    The increase in electronic payments is such a strong global trend that it is predicted that by 2026 only 10% of transactions will be made in cash, forcing companies to accept and integrate new forms of electronic payment.
  • Not only does it change the way we pay, FinTech is present in all financial activities
    Digital banks, loans, credits, investment platforms, online brokers, insurance, blockchain, cryptocurrencies, etc.
  • A potential audience of more than 8 billion people, the world population.
    World Bank estimates indicate that 76% of the population owns a checking account.
de los millenials utilizan la banca online. 97% de los consumidores (entre 18 y 20 años) compró un producto de servicios financieros en los últimos 12 meses. 82% de los consumidores prefieren realizar sus operaciones bancarias online. 78% de los consumidores prefieren que su banco sea completamente online. 27%
Source: Blackrock

Financial inclusion: The most human side of FinTech.

  • 24% of the world's population is still unbanked.
    Provided by the World Bank, these data clearly demonstrate that much still remains to be done, and it is here that FinTech offers solutions for facilitating access to financial services.
  • A technology that breaks barriers.
    A real and convenient alternative for those without access to traditional banking services, mainly due to the cost-free use of digital tools, the ease and speed in using applications, the minimum requirements for access and operating documents, etc.
Financial inclusion: The human side of FinTech
But there is another key factor in the FinTech revolution: Technological obsolescence
But there is another key factor in the FinTech revolution: Technological obsolescence.
The risk posed by the use of legacy systems—outdated but still operational computer systems that are difficult to replace—is leading to the outsourcing of financial technology to specialised companies that offer three key solutions for their customers:
  • Saving:
    Reducing the high cost of replacing and/or updating systems and software.
  • Security:
    Reducing operational risk and, especially relevant, possible negative consumer experiences.
  • Compliance with legislation.
    FinTech companies facilitate compliance with ever-increasing and evolving legislation.

The financial sector is a major focus of disruption

Gross profits by sector ($trillion USD)

Source: BCG, Gartner, McKinsey, World Health Organization, Capital IQ, and Coatue analysis as of Oct-22.

FinTech applies its technology to one of the most profitable economic sectors.