by: Grow VC Group
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Innovation in the financial sector has arrived late compared to other industries, for example telecommunications, but it eventually happened, mainly driven by small, external actors – the so called fintech startups – which are today posing a serious threat (or a huge opportunity) to incumbents.

The uprising of fintech and finance 2.0, which took place only recently, was favored by a magical mix of a few major ingredients, among which:

  1. The financial crisis. The big crisis of the financial sector back in 2008 brought to the surface the in-transparency and bad practices of some of the most prominent players, hitting hard on the general trust level that consumers had had until then towards banks and other actors in finance.
  2. New generations and the use of internet. Millennials have born and grown up with the internet. Any Information can be found within a few seconds and any purchase can be made with just one click. Everything is accelerated and more accessible. It is natural that these customers look for and demand the same characteristics also from common financial services like, payments, banking and saving management.
  3. Increased adoption of mobile. The diffusion of smartphones has increased tremendously in the last five years, providing easy access to the internet to a great variety of people of different social extractions, no matter where they live. Think of countries like Nigeria, where most of the population can use the Internet thanks to mobiles. Reaching a bank office, for some, may involve quite a long trip. What if the bank account could be reached by simply swiping on the smartphone’s screen instead?

Whatever the way chosen by finance incumbents, it is clear that the level of competition in the financial sector will increase, with new, more agile players bringing to the market a more transparent, convenient and efficient service. The consumer will then be the ultimate winner, gaining a diversified offer for better prices.

Read the whole article on Crowd Valley Blog.

Fintech use in 5 years

Source: Transferwise

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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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This entry was posted on Tuesday, February 9th, 2016 at 2:00 pm and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.