Why and where to invest in this emerging sector.
Are you bored with your portfolio? Maybe you’re just ready to take on a new challenge. The emerging fintech sector may be what you are looking for. Financial technology is spreading like wildfire, making its way through the business world. It is settling in and beginning to play an integral part in the way finances are managed.
If you want to be a part of the “next big thing,” investing in fintech can do that for you.
Introduction to Fintech
Fintech is used to describe a wide range of services and products and has a relatively long history. With a name that has “technology” as a major concept, many think that it only refers to the most recent apps that deal with paying your bills without having to deal with physical currency, but technology has had a hand in financial management for years. Almost 65 years, to be more specific.
There has been a recent shift for those looking to manage their finances that has drawn people to using technology to help them with the task. With this push, fintech startup companies directly help with traditional banking and financial institutions. In several countries around the globe, fintech companies are slowly taking over, providing services and products that were once found only through financial institutions.
The shift we are seeing is that of a digital age. Tech-savvy individuals are seeking easy access, convenience, efficiency, and speed in every part of their lives, including their finances. Having the ability to make transactions from the convenience of a phone or other electronic platform is what is creating this strong push towards fintech. Roughly 1-in-3 apps today are used by people to manage their finances.
Fintech is a fairly new area of investment and combines two of the most promising sectors in today’s world: finance and technology. It is highly popular among small businesses and startups.
Why Invest in Fintech
The fintech market is predicted to take off and investors are catching on. Compared to other forms of technology, fintech is just starting out. We see it in the form of virtual wallets, paying apps, and now with new currencies taking hold. There is still so much to be created in the world of fintech.
There is always a draw to new things because who knows what could end up being the next Apple? The next new thing could be the one that goes big, and I’m sure most investors would love to be a part of the new wave. The added benefit of being the child of both the technology and financial sectors provides an added layer of security for those who are worried about the newness of the tech.
Many venture capital adventures, who have been enjoying the benefits of mobile technology for years, are now seeking other technologies, including fintech. Their focus is on business people who can utilize fintech, such as those working in the financial and business sectors.
Fintech has proven to be more than the next technology fad. It will almost be essential for the business world. In fact, it is changing how we do business and handle our money. Here are just a few examples.
Cryptocurrency is digital money that uses cryptography for security. Cryptography is writing and solving puzzles. With the cryptography step, it is difficult to counterfeit. The currency does not have a central authority and can be used for a variety of things such as buying goods and investing.
Digital currency has the ability to make transferring funds easier between two parties. The transactions don’t cost much and allow users to avoid high fees experienced when using most banks and wire transfers.
Blockchain is the digital, public ledger where cryptocurrencies occur. Through a blockchain, everyone in the network can see every account balance. Every transaction is a file with a sender, recipient public key, and the number of coins involved in the transaction. The transaction is sent with a private key by the sender in the form of cryptography.
There is more to blockchain than just cryptocurrency. It is fairly agreed upon that blockchain will grow beyond just cryptocurrency. Big banks have been making deals with major technology companies and even small startups to develop ways for blockchain to work for them.
Artificial Intelligence and Hedging
As computers become more necessary in quantitative hedge fund strategizing, some are relying solely on them. Artificial intelligence [link to Artificial Intelligence and Hedge Funds page], or AI, is in the early stages of hedge fund managing. Knowing that AI can be a significant help when it comes to your investments and financial goals, we couldn’t pass up the opportunity to get on board.
Consider partnering with a firm that uses artificial intelligence with a built-in portfolio management system. With this system, we can stay up to date with the growing number of investment opportunities for you and make sure you are getting the most out of your hedge fund.
Where We Come In
If you are ready to make the leap into the world of fintech, Alpenrose can help. Alpenrose Wealth Management International AG, the sister company of Alpenrose Wealth Management AG, is now a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). Together with our partner Swiss private banks, our company can now offer the full Swiss private banking experience to American clients, both resident and non-resident.
Building on many years of experience in private banking in Switzerland, Alpenrose Wealth Management International AG provides investment advisory services to U.S. clients. Swiss banking is highly regarded around the world, well-known for being sophisticated and discreet. In 2017, it was reported that $7.5 trillion in assets are held in Swiss banks and almost 51% of that is generated from clients outside of the country. Choosing Switzerland as a banking destination is choosing years and years of financial stability and growth.