The combining of financial industry and technology did not only bring the two of the biggest sectors together, but have also contributed to the development of a new industry – fintech, or financial technology – as well contributing to the evolution of finances and technology in general.
At the same time, technology and financial industries are very tempting to investors when it comes to the stock market and IPOs, while there are plenty of reasons to consider investing in fintech, which is becoming a growing trend among individual as well as institutional investors.
Fintech Booming: Reasons to Consider Fintech Investments
Even though financial technology is yet to become a mature industry, many of well-known fintech companies are already worth billions even in the infancy of the sector of financial technology.
PayPal, for instance already topped 50 billion dollars in market capitalization, having a notably accelerated growth potential in oppose to other unicorn companies from different industries.
Companies like eBay, Netflix, Lyft, and Twitter are already worth billions of dollars, whoever, none of these startups are yet to match the monetary growth of PayPal, one of the most well-known companies in the sector of financial services.
Even the stats in the last two years speak in favor of fintech in the light of placing an investment in this industry as numerous venture capital firms and big-time investors are coming on board, alongside having 64% increase on global investments around fintech and companies working with financial technology.
The fact that fintech comes with user-friendly API that allows for easy integrations, usually working on software products, it becomes easy for this sector to integrate with other business, that way opening doors for many new opportunities, which all eventually brings profit to the table.
Where’s profit, there is an increased interest, and with the interest there comes the surging demand to affect the value of such companies to rise in the market, that way becoming profitable sources for investing.