FinTech Revolution

FinTech is the business of accelerating financial services through technology. These services include the ways in which consumers and businesses manage, move and store their money. Initially, Fintech was buttressed by start-ups but now tech giants and deep pocketed banks are also contributing towards the development of the industry.

Mobile phones worked as a boon for finance industry. Despite having low potential customers, companies like Alipay and WeChat Pay in China, Paytm in India, and M-Pesa in Kenya were quintessentially making profit by intensifying their services to wealthier customers.

Facebook emerged as a new player in the industry as it plans to instigate Cryptocurrency in public. With its magnanimous social media reach of 2.4 billion active users every month, Facebook is projected to attract even more audience to its digital currency called Libra. Libra is expected to launch in 2020. Last year, global remittances by migrants reached a record of $689 billion. If Libra could tackle even a small portion of that, it can gain enormously. Till now, policymakers in the U.S. and other superpowers are opposing this plan as it could undermine their monetary authority. Mark Carney, governor of the Bank of England, alluded that central bankers could create a digital currency on their own as an alternative to permitting tech giants to do so.

North America is gradually cultivating Fintech businesses. Till August, U.S. banks had already made 24 fintech investments in 2019. The most agile were Goldman Sachs, Citigroup, and JPMorgan Chase. Start-up Robinhood Financial, Credit Karma are each valued at $4 billion or more. India—home of start-up Paytm—surpassed China in the number of fintech deals. But China still boasts its most treasured fintech Lu.com valued at $39 billion.

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