Fintechs are taking advantage of the increasing prevalence of mobile devices in connection and te near constant availability of the internet: the newest financial services products let consumers open an account in less than eight minutes or easily pay bills via smartphone. People have long been able to transfer money by sending an SMS, but now even withdrawing or depositing funds is possible on a smartphone. Sleek fintech solutions enable peer-to-peer lending, mortgage lending, cross-border money transfers and stock trading. Solutions are almost always optimised for mobile devices. Today, more than 1.8 billion people worldwide are already using mobile banking.
Global trend reflects digital shift
Global investment in fintech companies exceeded US$10 billion in the first three quarters of 2015 alone. The total number of fintech deals increased from 933 in 2014 to 1,162 in 2015. The number of megadeals (an investment of more than US$50 million) in the fintech sector also reached a new high of 63 in 2015, compared with 40 megadeals in 2014.
This reflects the broader digital shift underway in every aspect of society. Global consulting company Accenture predicts that around 30 per cent of all banking business will be conducted through fintech firms by 2020. Banks and financial institutions are heavily regulated to protect consumers’ investments, while many fintech firms are not. Even when it comes to providing secure payment processing or regulatory and legal compliance, fintechs don’t have the expertise or necessary licences to do so.
«The total number of fintech deals increased from 933 in 2014 to 1,162 in 2015. The number of megadeals (an investment of more than USD 50 million) in the fintech sector also reached a new high of 63 in 2015, compared with 40 megadeals in 2014.»
Quelle: | KPMG und CB Insights
Wirecard as a strong partner for fintech Wirecard
Bank operates under the oversight of the German Federal Financial Supervisory Authority (BaFin) and has all the necessary licences to issue (Issuing) and accept (Acquiring, account management and deposits) cards. Furthermore, as a technology company, Wirecard provides fintechs with easy access to software technologies and bank solutions, risk management support, card issuing and mobile payment processing, as well as the implementation of value added services such as bonus programmes.
As one of the world’s leading technology companies in the electronic payments sector and with its own bank within the Group, Wirecard is the right partner for fintechs. Its extensive knowledge combined with the innovative capability and speed of fintech companies make possible the exact kind of financial products that today’s users demand.