Why the world is investing in FinTechs

“FinTech” – an abbreviation for financial technology, is the term for the industry wherein technology is created to improve financial services. FinTech companies provide a variety of services, including payments, lending, operations, investing, regulation, and more; and can range from start-ups to established companies.

This industry has been gaining traction since the mid-2010’s, however, as the world shifted during COVID-19, the reliance on technology to perform services increased. When many services that require human activity were rendered inaccessible, the legitimate need for actionable solutions took centre stage!

The macro-economic climate of the world has been permanently altered; and as the world begins to recover from the pandemic, some of the changes the world has endured have become permanent, and as such, banks, VCs, and other entities have shifted where their funds are invested.

The global financial services industry continues to remain under pressure to adopt new technologies to remain competitive – a problem that actually predates the pandemic.

Trade finance spans across multiple industries and geographies and is greatly affected by changing landscapes from governmental and banking regulations to international trade affairs. Traydstream has developed cutting-edge technology, that digitises and automates trade finance processing to help banks and corporates alike to mitigate operational risk, increase efficiency and digitalise the entire trade ecosystem.

The pandemic certainly sparked the race to digital in the financial services space.  Banks started looking at digital solutions in earnest and the best evidence of this has been the willingness to invest in trials and Proof of Concepts to see if these such  solutions can really make a difference.

We have had our skin in the game longer than most entities that occupy our space and have been at the forefront of this transformative process for years.  As industry experts, we have previously lived through the challenges faced by banks in processing and checking trade documents and the genesis of our organisation comes from these challenges and wanting to make a difference!  Technology today has hugely advanced thanks for AI and ML based approaches and we are delighted that our technology has been implemented in production across multiple clients globally where we now can share many success stories and used cases.  As both technology and the needs of our clients have evolved, we will continue to innovate and develop to support client needs.

FinTech start-ups have raised $125B in VC funding globally [2021], 2.8x more than in 20201.  Looking at EMEA region, total fintech investment continues to surge, with over $39 billion invested in H1’21, compared to $26 billion during the whole of 2020. In the UK alone, the figures have also been increasing as the previous annual high for fintech VC investment attracted $15 billion in H1’21, compared to $9 billion during all of 2020.

As the world continues to consume and rely on ever more sophisticated technology, we expect investment to continue to rise. The number of Fintec solutions will continue to grow at a rapid pace, and new opportunities will arise as economies stabilise and working practices lean more towards digital initiatives. We are excited about the small difference we are making and working with partners to increase value to our clients.

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