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Why Investing in Fintech Is a Great Option Right Now

The link between finances and technology has grown so strong that the rise of fintech as its own field happened very quickly and almost without disrupting the market at first. Today, fintech is one of the most actively growing fields, and it provides lots of opportunities for investment and development. Both take significant skills to take proper advantage of, and in the latter case the time needed to acquire those skills can be quite long. But even on the investment side, there’s quite a lot that can be done to get ahead of others and build a nice platform for yourself.

The Tech Market Is Growing

The best thing about fintech is its direct link to the general technology market. Which, between things like AI, machine learning, smart devices and cloud computing, has been going through explosive growth in the last decade or so. A lot is coming up on the horizon, and much of it is likely going to be a game changer. There are also some recent developments with a very strong disruptive potential, like the release of GPT-3 – and there are already attempts to integrate them into the context of financial work. A lot of that might develop into high return investments with the right nurturing.

Finances Are Going to Be Even More Important in the Near Future

With the way the world has been going ever since the pandemic started, one uncomfortable truth floated to the surface: we were woefully unprepared for this. The financial market has suffered quite a lot, and even though it’s already recovering in some parts of the world, there are some serious predictions for what’s coming in the near future. It’s quite clear at this point that finances are going to be at the center of many discussions, some of which are likely going to be quite uncomfortable. But if we want to recover from this situation, there’s no way to circumvent that. Peter Derksen from Einvestment has already touched on this topic in his talks, reaffirming that finances will be a focal point in the near future.

New Developments on the Horizon

We already touched on this above, but it’s important to reiterate the fact that both the tech market and the financial one have some serious developments up ahead, and some of them are going to leave a lasting mark on many industries. Cryptocurrencies and blockchain in general have proven to have a solid place in all of this, and even though blockchain went through an uncomfortable initial phase where it was surrounded by a lot of skepticism, it did manage to live up to people’s expectations in the end, and proved to be a solid part of the market as a whole.

Strong Synergy Potential with Other Fields

Another great thing about fintech is its tight integration with many other fields, some of which were traditionally not very connected to finances or technology at all. Healthcare, automotive, and many other industries have been taking active advantage of the synergy potential with fintech, and have seen great improvements across the board in many aspects. Productivity is on the rise, and so is customer satisfaction – even in a global situation that makes the latter a more challenging part.

The Entry Barrier

As we said in the beginning, the only problem with fintech for those who might be interested in investing into it is that it comes with a relatively high barrier of entry. This can make the field challenging for those without significant experience in neither finances nor technology. But at the same time, various new opportunities are opening up in recent times, and it’s hard to tell what else is going to be brought to the table. It’s entirely possible that there will be new opportunities in the near future that are specifically beneficial to those with a completely different set of skills. And even now, the amount of learning required for entering this market is not that great if you consider some of its lighter aspects. But of course, for areas like AI, there is definitely a lot of learning that you’ll have to do upfront.

All in all, investing in fintech is not only an attractive option right now, it’s one with significant long-term potential that’s becoming harder and harder to ignore. It’s important to pay attention to the field even if you’re not actively thinking of investing in it immediately, because you never know how it might cross over into your own line of work in the near future.

 

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Amita Choudhary

Amita Choudhary

Marketing Manager

Princeton Growth Accelerator

Member since

07 Jun

Location

Princeton

Blog posts

13

This post is from a series of posts in the group:

Fintech

Fintech discussions and conversations around the development of fintech.


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