Investor Confidence in the FinTech industry Increases with New Regulatory Toolkit
The Commonwealth Secretariat recently assembled a team to develop a regulatory toolkit providing the technical guidelines for governments to adopt proper and friendly regulations for Fintech companies to be able to establish themselves in a wide array of jurisdictions. This news brings excellent prospects for the industry as a whole, and is expected to increase investor confidence in startup as well as already established companies.
When issuing this toolkit, the Commonwealth Secretariat intended to increase the perspective of growth for the FinTech industry, making it more attractive for investors. The FinTech industry’s growth has been recognize as being essential as one of the means to overcome the present economic crisis, since these technologies have the potential to decrease frictions in capital mobility all across the world.
With lower transaction costs and times, as well as lower need for intermediation and higher financial inclusion, the global economy can become more dynamic and opportunities to create successful businesses are bound to increase. This is not to mention that FinTech companies can become important alternatives to promote financial inclusion, particularly in countries where access to banking is lower. These are many of the reasons why there are currently so many international efforts to promote innovation among the FinTech industry.
In Europe, the friendlier regulatory environment has been one of the elements that has allowed FinTech products to gain so much ground among consumers. Around 70% of millennials in this continent have been found to be using FinTech products or services on a somewhat regular basis. This same level of reception is possible in other continents if the proper regulations are issued and applied, which is much simpler with the new toolkit.
For investors, this means a great opportunity to become a part of this booming industry from its early stages. Investing in startup Fintech companies could be the best way to generate significant profits, as the prospects of the industry become ever more positive. Having had an unprecedented of growth throughout 2020, the FinTech industry is expected to yield even better results in 2021, with the new regulations and a higher demand than ever.
One of the best possible choices to invest on a FinTech startup right now is Konzortia Capital. This is a private Fintech consortium with a highly innovative business model that could mean a radical shift in the entire financial industry. By creating a wide and inclusive distributed ledger technological framework for the whole financial industry to operate, Konzortia Capital intends to make all financial transactions faster, simpler, less costly and more secure. The services being offered by Konzortia’s subsidiaries range from highly sophisticated online banking with multi-currency support, to global scale capital raising, trading, investing, brokerage and wealth management. Furthermore, their new asset class is aimed at providing investors with an asset that has the liquidity of a publicly traded stock with the benefits and potential for growth of a private equity.