The Role of FinTech in the Global Economic Recovery
As it has been acknowledged by various analysist and institutions including the UK government, FinTech has an important role to play in the global recovery from the COVID-19 induced recession. Despite a steep recovery in the stock markets, particularly for the big players in technology-related businesses, reality is not the same for the economy as a whole. Despite the efforts by many governments to facilitate loans and credits by decreasing interest rates, small businesses around the world are still having a hard time remaining afloat. Millions of jobs have been lost worldwide, and only a handful of companies and individuals have manage to benefit or even maintain a stable economic situation throughout the pandemic.
Higher public expenditure and currency dilution can, at best, create short term incentives for people to spend and invest their money in the short term. Nevertheless, these measures can have unfavorable macroeconomic effects in the long term such as overinflation and the risk of making the recession yet worse. Although the private sector can contribute in various ways to dynamizing economies, each individual company can only do so to a small extent and within their specific industry.
This landscape does not seem to leave room for any straight forward solutions. However, there is an industry that can make incredible large-scale contributions towards generating faster and more dynamic economies across the world. That is the FinTech industry, which has the ability to create a more inclusive financial system, drastically reduce frictions for capital mobility and create the basis for freer, healthier, more transparent and competitive markets. Financial technologies are the solution to promote financial inclusion, giving people on all income levels more opportunities to work, create businesses and thrive financially. This is how the global economic recession can truly be overcome.
In Konzortia Capital, we’ve made it our mission to be the leaders in the creation of this new financial world, and our steps towards fulfilling this mission have been consistent and firm. We are developing a new technological framework meant for the whole financial industry to operate using distributed ledger technologies, making transactions easier, faster, more secure and less costly. Our subsidiary companies will provide world scale financial services within this framework, ranging from online banking to global crowd-investing and liquid private equity assets trading. We will be making the first and most significant step so far towards this goal in the first months of 2021, when we’ll be launching the first MVP of our banking platform SBank.
The services lent through SBank’s platform will be aimed towards making banking services more inclusive as well as improving the efficiency of big and small companies through fund management services. This will have a twofold positive economic effect. For one, people who had previously no access to banking and other financial services will now be able to do so at a low cost, with more opportunities to spend, take credits and loans to create businesses, or save their money effectively. Businesses will increase their efficiency and have wider avenues for promoting and selling their products. Because SBank is projected to operate on a large scale, its services are bound to have great economic effects beyond the revenue generation of the company itself. Furthermore, SBank will make it easier and cheaper to carry out transactions that involve multiple currencies, making economies more interconnected and increasing opportunities to expand businesses internationally.
SBank’s ability to generate positive economic effects on a large scale is yet another reason why it represents such a great business opportunity. As the company’s MVP is expected to launch by the beginning of the next year, customers will begin to experience the advantages that come with smart banking. We thus invite readers to visit www.konzortiacapital.com and register to our newsletter to follow any updates regarding Konzortia Capital’s progress as a company, investment opportunities and the state of the FinTech industry.