The Fall of Traditional Banking Stocks Means A Great Opportunity for Fintech Companies
Coupled with an overall bad year for the biggest banking companies in the market, a recent scandal involving some of the biggest banks in the world has recently hampered the confidence of investors within the industry. The involvement of many big players in very serious money laundering scandals has contributed to the damages caused by the COVID19 crisis, from which the traditional banking sector had not fully recovered. The services provided to customers by traditional banking branches could not satisfy the customers’ demand for a higher versatility, whereas investors are contemplating moving their money elsewhere. As a result, the FinTech industry has come off as a large winner.
With the COVID19 outbreak, standing on a line to carry out basic transactions such as making deposits and withdrawals has become even less of an exciting idea of the average customer. This is largely the reason why many customers, especially within the younger demographics, have opted to partially or completely replace their traditional banking branches for Fintech online banking apps. This is added to the benefits of the overall lower fees and handling costs, which online banks offer. As a result, contrary to what has been going with traditional branch banks, FinTech companies have seen an unprecedented level of growth throughout 2020. This momentum is expected to keep up through 2021, as technologies advance, and the FinTech industry becomes the alternative to make financial services simultaneously more complex and accessible.
This newfound momentum, which has been increasing since 2018, means that now is a great opportunity to invest in the FinTech industry, particularly on startup companies with a higher flexibility to mold their business model to cater to the new demands in the market. Within this young and thriving industry, there is a high chance for investors to hit a home run by finding the next unicorn company, as there is not just a huge market to address, but also a lot of room for innovation.
Perhaps the most promising company within this market is Konzortia Capital, a private Fintech consortium which aims to redefine the financial industry through an ingenious application of distributed ledger technologies. Konzortia Intends to create a technological framework for the entire financial industry to operate, within which its subsidiaries will offer unique financial services that range from online banking with instant global remittances, to private equity investment and equity assets trading in a global secondary market. On top of this, the equities of Konzortia itself are offered in the form of a unique new asset class, with the benefits of a private equity and the liquidity of a publicly traded stock. This means investors have the possibility of achieving exponential growth with high dividend yields, while also having a clear exit strategy.