The FinTech sector has quickly evolved over the past few years, from a growing field to a technological revolution. The development and popularization of digital solutions is transforming traditional institutions such as banks and financial firms. The process is not only digitizing money but also monetizing data to fit into the digitized world.
The reason for FinTech’s increasing popularity is due to the fact that FinTech solutions have huge potential benefits for both individuals and businesses, particularly those who were usually excluded from the opportunities offered to those with higher levels of accessibility. FinTechs understand what financial sectors, regions and specific competitors are drawing the most attention in the marketplace, and they are tailoring their services to meet their needs.
As with any market sector that is booming, investors are drawn to FinTechs. They have finally caught up with the incredible potential that this sector holds, and FinTech has become one of the most popular sectors to invest in, particularly during 2021.
According to research released by CB Insights, in the first quarter of 2021, Fintech companies worldwide raised $22.8 billion in investment, more than doubling the amount raised in the last quarter of 2020 and representing the largest venture capital-backed FinTech funding quarter ever. The first quarter 2021 numbers even surpassed the previous funding record from the second quarter of 2018 that included Ant Group’s $14 billion funding round.
When the funding is broken down by sectors, there were some that saw significant growth in Q1’21, while others saw only modest gains. The largest levels of funding were in the payments, digital banking, digital lending and wealth management sectors.
The benefits of FinTechs are undeniable for users, which explains this sector’s growth speed: improvement of customer service, further service scope, improved security, convenience. These reasons have also prompted investors to move towards FinTech, as all these factors translate to increased revenue for companies.
We at Konzortia Capital are focused on bringing technological solutions through an interconnected financial ecosystem offering financial services that fit a wide variety of users on an increasingly global scale. Our consortium has the potential to change banking services as we know them, and to change every participant of the financial industry in the process as well.
The future is FinTech. Will you be a part of this future, or will you stay behind on the digital revolution?
Visit www.konzortia.capital for more information on our path towards revolutionizing the financial industry