Trends in Fintech should provide enormous growth opportunities |
Despite the recent weakness thanks to inflation and rising interest rate fears, the broad technology sector has been particularly hard hit, including fintech. However, investors can take a “buy the dip” approach and gain exposure to fintech as the sector continues to evolve via industry trends.
That said, it sets up fintech as an ideal growth play. Traditional financial firms are looking to integrate fintech products as the space gains more traction and work alongside the current financial sector establishment.
“Fintech, or financial technology, is changing the way we manage our money. From mobile banking to cryptocurrency, there are a host of innovative financial products and services that are changing the financial landscape. Finextra blog noted.
While the financial sector can be particularly resistant to change, fintech disruption accelerated during the height of the COVID-19 pandemic. As such, financial firms had to take on an “adapt or die” mentality in embracing fintech, and given its still nascent status, fintech is continually evolving and adopting trends that may further propel the space in the future.
“In 2023, there are 10 fintech trends of particular note, including the rise of decentralized finance, the use of artificial intelligence in financial services, and the growth of digital wallets and contactless payments,” the blog added. “As consumers increasingly embrace these technologies, it’s important for businesses to stay ahead of the curve to remain competitive in the digital financial revolution.”
Gain easy exposure as Fintech evolves
Fintech exposure can be gained, but with a large number of companies operating in the space, deciding where to invest can be daunting. There is an easier way: ARK Fintech Innovation ETF (ARKF).
With its active management, the fund seeks long-term growth, by investing in domestic and foreign shares in companies that are engaged in the fund’s investment theme of fintech innovation. A company is considered to be engaged in the topic of fintech innovation if it derives a significant part of its income or market value from the topic of fintech innovation, or it has stated its primary business to be within products and services focused on the topic of fintech innovation.
According to product websitethe adviser defines “fintech innovation” as the introduction of a technologically enabled new product or service that potentially changes the way the financial sector works, which ARK believes includes, but is not limited to, the following business platforms: transaction innovations, blockchain technology, risk transformation, frictionless financing platforms, customer-facing platforms and new intermediates.
For more news, information and analysis, visit Disruptive Technology Channel.
