How to Invest in Fintech

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February 3, 2020

We all remember the frustration and labour of effort to transfer money to our friends and family, sometimes even taking up to three days to complete! 

Over the last decade, Fintech has skyrocketed from an idea of changing traditional banking to be a commonplace activity.

Paypal paved the way for this global money revolution. The customer-centric approach and the ability to make a few clicks, so your funds are transferred across state lines or across borders with ease.

Fintech isn’t going anywhere fast, its growth in the market place has been exponential and is more successful than most other stocks. London is the leading city in Europe for investment deals, however, The United States is still the global giant in the fin-tech arena with investment deals in the range of 10 billion dollars!

Countries like Germany, Italy and Sweden have all seen high levels of investment in fin-tech
in 2019.

What is Fintech?

“Fintech” or financial technology is the term used to describe business and companies that adopt innovative software such as AI, Data and analytical applications or mobile technology to disrupt and improve the finance industry.

The abbreviated term encapsulates everything from direct deposits, B2B payments, AI and mobile banking platforms.

Some of the reasons fin-tech has seen such extraordinary grown in the market is due to being customer-centric in its approach and gives the end-user exactly what they need. 

By observing and experiencing the more traditional method of banking fin-tech businesses are targeting what matters most to the customer. By developing extremely effective solutions to cater to human life and error, they have cracked the simplest of banking pain points that customers had with traditional banks. 

What are the benefits?

With companies like Tide, Monzo and Revolut make tracking expenses, managing savings so easy. Thanks to smarter solutions that track every penny that comes in and out of your account, you no longer need to keep hold of countless receipts and work on spreadsheets. 

Thanks to alternative credit methods fin-tech companies can offer a wider choice of loan option to its customers.

A report from a U.S consumer payment study found that customers are more than happy to use their smartphone for financial tasks, including:

80% for halting payments for a fraudulent transaction.
- 51% for making payments for purchases at the checkout's point-of-sale (POS).
- 56% for transferring money to family and friends.

63% of consumers are now using mobile banking apps, this is a 17% increase since 2015 and that percentage rockets to 80% for those under the age of 34.

What are the investment opportunities with fin-tech?

We’ve all read the countless stories of investors not investing at the right time. Gary Vaynerchuk not investing in Uber, he states that if he would have invested £25,000 in the start-up company in the beginning, his ROI would stand at 300 million dollars.

London currently has the most international investors with a huge 54% of total VC investors from outside the UK

It’s not surprising that the markets across the world are on the rise with fin-tech stock, London has seen 114 deals, New York 101 and San Francisco 80.

How can you get investing? Speak to one of our advisors today to get started.

Apple Inc is rumoured to be the best stock to buy right now.

With the release of iPhone7 a few years ago changing and disrupting the way we communicate Apple is poised to be the go-to stock for anyone wanting to invest in fin-tech.

The global tech giant is now worth over a trillion dollars and the stocks continue to climb. One day after the release of the iPhone 10, Apple Stocks cleared a flat base with a 221.47 buy point a day later the stock climbed above its all-time high of 233.47 in 2018 to 280 circa 26% increase above the buy point. 

Apple is not the only company to see such successful growth. Monzo Bank has seen a 25% increase in share prices also.

The stock market is seeing record highs with fin-tech, there has never been a better time to invest and see very positive returns on said investments.

We have already helped some of our clients secure this level of return on their investments, can we help you on your investment journey? 

AI investment group are a wealth and asset management company that specialises in these types of investments you can find more information here and talk with us about your future investment plans.