Fintech companies are easing the burden on consumers amid inflation
It’s no secret that inflation has taken a toll on consumers’ bank accounts, but financial technology (fintech) companies are trying to ease the burden by finding ways to offer cost-effective financial transactions.
A Fintech Magazine article noted that fintech companies are doing their part to make the current retail environment easier, such as offering buy now, pay later options or easing consumer loan requirements. This could help fintech companies innovate at a time when the wider tech sector is suffering from higher interest rates.
“In response to the increasing cost of living challenges faced by our customers and to keep pace with changing customer demand, we are working with our lenders to significantly scale our product offering,” says Joanne Robinson, director of Lenders at UK Auto Finance fintech Zuto.
“We are reviewing our products to ensure we have choice, a range of options for customers in different circumstances – including PCPs, personal loans, refinance products and hire purchase options available over the longer term,” Robinson added.
For investors, this means that fintech companies can position themselves for future growth prospects. As such, they can pick up innovative companies at value-oriented prices.
One ETF to gain Fintech exposure
As a growth opportunity, fintech can provide niche exposure to a sector that should continue to expand exponentially over the next few years. Instead of finding different stocks that can offer this level of growth, exchange-traded funds (ETFs) such as Global X FinTech ETF (FINX) can provide wide exposure.
FINX seeks to provide investment results equivalent to the Indxx Global Fintech Thematic Index. The index is designed to provide exposure to listed companies in developed markets that offer financial technology products and services, including companies involved in mobile payments, peer-to-peer (P2P) and marketplace lending, financial analysis software and alternative currencies, as defined by the index provider.
The fund gives investors exposure to the following:
- High Growth Potential: FINX enables investors to access high growth potential through companies that use technological innovations to disrupt and improve the delivery of financial services.
- An unrestricted approach: The fund’s composition transcends classic sector, industry and geographic classifications by tracking an emerging theme.
- ETF efficiency: In a single trade, FINX offers access to dozens of companies with high exposure to the fintech theme.
For more news and information, visit Thematic investment channel.
