Finance has an undeniable global reach. It is important to note that 100 million credit card transactions occur every day and about 15 billion shares of stock are traded daily.
As technology and finance continue to coalesce, the industry is set to be forever changed by the rise of new asset classes.
As a result of technology, new alternative asset products are being offered by invest-tech platforms who have also altered the way ESG and impact investing is done.
Innovation in the financial sector
The impacts of fintech can be felt across all financial sectors. The majority of executives in the sector have agreed that consumer banking would be the industry to be most likely elevated by technology.
Over the past five years, visits to physical banks have reduced by 36% as three out of every four Americans use their bank’s mobile app to meet everyday banking needs.
The way payment is being made for things is forever changed as more people are taking an interest in convenient forms of payments.
More than two billion people now use e-wallets as a lot more people are leaning more towards contactless payments for transactions.
Investors have begun feeling fintech’s impact and several in wealth management are starting to see the importance of technology in business strategy.
However, the way people invest is evolving as three out of every four persons prefer self-servicing.
As a result of this finding, new investors are three times more likely to trust invest-tech mobile platforms, as millions and millions of Americans downloaded trading mobile apps in just January 2021.
The rise of alternative assets
In the alternative asset industry, the implementation of technology in investing has led to significant growth. While fractionalization — is enforcing accessibility across all investment asset classes.
Fractionalization simultaneously takes out the initial capital requirement challenge and creates liquid digital markets for illiquid assets.
Fractionalized invest-tech platforms can be found across almost any alternative asset class. Investors can now buy equity shares in rare baseball cards or game-worn sports memorabilia.
Peer-to-peer lending platforms help investors with securing debt investments with certain screened individuals. If you’re interested in investing in something, chances are there’s an investment platform(digital) that makes that accessible.
Prioritizing sustainable investing
With the rise of so many investment opportunities, investors are starting to prioritize the most important non-financial matters — sustainability is at the top of the list.
66% of respondents around the world disclosed that they would pay more for a good that was made sustainably, and so more people are willing to make sacrifices for ESG.
Meanwhile, banking customers want their financial institution to become more sustainable — and most customers are ready to leave their bank if sustainability is not achieved.
The demand and supply for sustainable investing are incredible. Both institutional firms and retail investors are laying more emphasis on impacting investing.
Fintech is also pioneering the rise of other innovative investment offerings focused on sustainability.
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