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HomeFintech NewsHigh net worth investors investing significantly in the Fintech sector (Fintech News...

High net worth investors investing significantly in the Fintech sector (Fintech News Today)

It is a well-known fact now that Fintech sector does not have any dearth of investors. In fact, most of the high net worth investors are consistently investing in this sector. According to a private investment platform by the name of Capitama, most of the high net worth investors are investing in the Fintech sector.

At least 70% of the high net worth investors are investing in this sector. Moreover, they are primarily focusing on the Fintech companies which are developing software as well as technology solutions.

According to the CEO of the platform, Capitama, in the last 3 years, Fintech sector has bagged a lot of investment. This is also backed by the growth which the Fintech sector has seen. Moreover, he believes that the Fintech sector in the UK will continue to expand inside of Brexit.

Also, according to a study, the social benefit of the investments in the Fintech sector is over € 300 million each and every year. As a result, the Fintech sector is receiving a lot of investments which are prompting it to develop better and better products and invest in research and development as well.

Also, the trend of investing in private companies is also increasing. As a result, the high net worth individuals are conducting the due diligence are hiring the forms in order to conduct the due diligence for their investments. This is making it easier for them to invest in companies which are not listed on the stock exchanges. Most of the Fintech companies are privately held. That is why the high net worth individuals are able to invest in them quite easily.

The trend of investing in the Fintech companies is not just limited to the developed economies. Even the developing economies like India, Brazil, Russia the number of investors investing in the Fintech companies is pretty high. As a result, the investments in the Fintech industry worldwide are increasing at a rapid pace. Capitama further reported that the investments are divided into different stages. The early-stage investments start from 72%. The buyouts and the real estate investments thereafter follow.

With the Fintech industry gaining on a significant amount of investments from the high net worth individuals, it is no surprise that the products which are being developed by the Fintech industry are much better as compared to the traditional banking and finance solutions which are being used by the banking industry. This is also increasing the adoption of the Fintech products and services by the banking industry.

 

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.
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