Thematic Investing
FinTech
Big Tech has hit the financial services sector, creating attractive growth opportunities for the transformative technologies of fintech companies.
billion adults locked out of banking services (2021)
% of e-commerce transactions in the US executed via digital wallets
% compounded annual growth rate of bank spending on software services through 2025
Why invest in fintech?
Cash is still king in business, but the rise of e-commerce and e-wallets mean cashless payments may soon dominate purchases. A similar story is playing out within the hallowed halls of finance, where legacy lenders and industry stalwarts face disruption from nimble upstarts which are low on overhead and high on tech savvy. To combat competition, Big Banks are investing in Big Tech to lower costs and attract next-gen and emerging market clients.
The strategy
The FinTech strategy invests in digital payment systems with the scale and know-how to process transactions with speed and low cost. This is opening huge opportunities among underbanked populations in emerging markets but also low-margin segments in developing ones. It also invests in the companies providing third-party solutions to revamp and streamline the fragmented legacy systems of big banking conglomerates serving disparate customers globally.
Blockchain is another exciting arena. It enables the rapidly expanding world of cryptocurrencies but it’s also supporting innovation in more run-of-the-mill services such as insurance claim handling and asset ownership registrations in trade finance. Cybersecurity is also a critical investment area as assets move from physical vaults to digital bits.
Secure long-term growth with an investment in FinTech and the future of finance.
