FinTech and the benefits of starting a business in this industry
Financial technology continues to be one of the fastest growing sectors in the world. Technology has allowed almost instantaneous transmission of financial information and transactions. We believe that as people find efficient ways to store and spend their money, they’ll continue to adopt these technologies. Recently, the growth of Bitcoin and blockchain has revolutionised this sector. There are so many benefits from FinTech and SORQ may be able to help.
One of FinTech’s main benefits is the growth opportunity. The only limiting factor is the technology that powers products and services. As tech continues to expand, individuals continue to generate new ideas
According to CB Insights, equity funding for FinTech is up year on year from fiscal 2017 to 2018, with $8.67B invested in 2017 vs $24.09B invested already in 2018. 23 of the top 250 FinTech companies in 2017 have now reached a valuation of $1B or more. All of this points to strong and continued innovation and growth in the FinTech sector.
SORQ has the infrastructure to help facilitate growth and progress. This benefits someone who has a business mind but maybe doesn’t understand the regulations and laws surrounding their business, as we enable them to allocate time elsewhere. So you can continue putting time and energy into growing your business.
Beyond FinTech’s growth prospects, a benefit of entering the sector is that it probably fulfils a need many firms have. Take blockchain, for example, and how it has started to affect businesses. The transmission of information or financial transactions continues to be targeted by hackers and other criminals.
Blockchain has allowed companies and financial institutions to begin testing ways to transmit data efficiently. In fact, AvidXChange, a merchant services company focused on payments automation, raised $300M in Series F from MasterCard Worldwide and other investors, including Peter Thiel, using just such technology for payment processing.
This largely affects hospitals and doctors’ offices, as well as financial institutions. Blockchain started as a financial technology, but it has begun to affect other market areas. If you can find a financial technology and expand it to other businesses, you will quickly grow your business.
A more specific example includes large investment banks. They are beginning to use blockchain technology to process trade orders. It allows the orders to flow quickly and benefit from a more secure process.