FinTech this, FinTech that. You’re hearing a lot about the FinTech industry, but that’s because it’s truly increasing at an enormous rate around the world.
Why? There are a lot of reasons, not the least of which is a dissatisfaction with a traditional financial services industry that brings with it significant regulations, high fee structures for customers, and lack of internal innovations.
For a long time, all of this seemed unavoidable, with the big banks usually being the only available option to customers, who begrudgingly searched for competing banks with the fewest annoyances.
But a new breed of tech companies is proving that mentality wrong, and we’re now in the midst of a rapidly growing wave of potential disruptors and innovators looking to change the space.
Not convinced it’s a big thing yet? Here are a few stats to change your mind.
- The Economist stated that FinTech is “arguably the hottest spot in a bubbly funding environment for startups”. There are a lot of people who think the Economist is worth listening to.
- According to a recent Accenture report, global investment in financial technology tripled last year to hit $12.2 billion.
- The same report cited that US investments in FinTech now lead globally after having tripled in 2014.
- In case you were wondering, you can be sure that the possible disruption that could come is making the traditional financial industry nervous.
- In London, 40% of the $1.18bn (£75bn) being invested into London businesses was being directly invested into local FinTech (that’s 32% of all the VC funding raised in the entire UK during the same time period).
- The Monetary Authority of Singapore (MAS) has committed S$225 million ($166.48 million) over the next five years to growing the fintech segment of the startup ecosystem in Singapore. That seems to indicate some confidence in the space, right?
- Did you notice the quiet increase in FinTech hires that’s going on in China? Some might call it a hiring spree.
- A lot of cities are vying to become the next FinTech hub…. like Hong Kong, London, New York, and Mumbai. They’re liking ramping up because of the huge number of opportunities that come from such a quickly growing industry.
We’re biased here at untapt, but all of this is really good thing. The solutions to this long-standing dissatisfaction are why we’re here.