Financial Technology (Fintech) refers to the integration of technology into financial services for the benefit of improving their use and delivery to consumers. Fintech was initially applied to the backend of established financial institutions, but has now extended its wings to various sectors and industries such as education, retail banking, fundraising, non-profit, and investment management.
Today, one can see Fintech in practice all around the world. For instance, Joust Australia
, navigates its users around the maze of complexity surrounding home loans: helping consumers connect with lenders and brokers by matching each party’s requirements. Elsewhere in the world,
Robinhood pioneers the market for commission-free exchanges, while regular day-to-day shoppers can benefit from Afterpay’s ‘buy now, pay later’ platform to receive goods today and pay interest-free installments for their purchases.
The demand for existing and emerging companies to innovate and create solutions to modern problems is at an all time high. The adoption of fintech is widespread, streamlined by its ease of use and innovation to resolve inconveniences. Fintech companies are utilizing the number of opportunities to transform the marketplace, and investors should follow suit.
Investing in FinTech comes in many forms. One of the many, and perhaps the most obvious, is to invest in the development
of new technologies, however, like all asset classes, investors must do sufficient research and due diligence to ensure they find the most suitable and meaningful investments.
Due to its ever-changing market structure, investors need to be wary of the legal responsibilities and implications for the industry. Many companies entering the fintech space may have less experience in providing financial services compared to traditional banks. There are constant updates on industry regulations from government bodies such as ASIC & APRA. Nevertheless, investors can bypass these challenges by entrusting investments to a reputable asset management firm who have the expertise in these markets.
Having navigated new technologies such as blockchain and financial technology since 2012, the team at Greythorn are serial entrepreneurs that have experienced the first-hand challenges of building companies from the ground up. Greythorn aims to maximize the efficiency of our resources & capital to deliver superior results to our partners.
