Happiness of the Future Financial System with the Fintech white horse!

Thursday 16 May 2019 / Vahid Shamekhi /

Happiness of the Future Financial System with the Fintech white horse!

According to the OECD, by 2020, global gross domestic product (GDP) in the world will reach more than $ 100 trillion, of which about 20% is in the financial services sector; therefore, the global value of financial services is estimated about $ 20 trillion. This figure indicates the importance of the financial services industry in this area.

On the other hand, Fintech development and investment in these types of companies are growing rapidly. Trends such as the Internet of Things (IOT), application personalization, big data, smartphones, artificial intelligence, blockbuster technology, and new generations of communication technologies all contribute to the ever-growing Fintech.

According to PWC, investment in Fintechs has risen from $ 8.9 billion in 2012 to $ 57.9 billion just in the first half of 2018, which represents a large growth in the industry. According to a report released by KPMG, in the first half of 2018, the global investment in Fintech companies will exceed the total investment in 2017. Of this amount, $ 26 billion was in continental Europe, $ 14.8 billion in the Americas and $ 16.8 billion in Asia. One of the biggest investments is the WorldPay acquisition by Vantiv that worths $ 12.9 billion, while the other is a $ 14 billion venture capital in Ant Financial.

According to CBInsights report, currently there are 39 Unicorn Unicorns in the Fintech in the world valued at about $ 147 billion that have been developed by venture capital firms. These figures indicate the importance of the position of venture capital firms in this area and their focus on the financial services industry, especially Fintech.

Projections indicated that investors in Fintech would continue to grow in the coming years. According to PWC in 2018, 82% of financial services companies expect to increase their partnership with Fintech companies in the next three to five years. 77 % of companies expect to use Block chain technology in their processes or production system by 2020. In addition, 30% of large financial institutions have already invested in artificial intelligence. 75% of experts believe that startups are the main breakthrough in the financial services industry, most of which change their business model to B2B and provide a platform for other financial institutions. According to the PWC report, by 2020, the usable data will be more than 20 times that of today's data. Companies also invest in technologies related to data analysis, mobile, and artificial intelligence, focusing on emerging technologies on block chains, artificial intelligence, and biometric identification management.

Finally, forecasts suggest that investment in Fintech will continue to grow in the coming years, and the world will see the creation and increase of cooperation and partnership between Fintech companies and traditional financial services institutions; this means the prosperity of the future financial system will depend on the co-operation with the Fintechs.



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