Understanding the FinTech Effect

Investments in financial technology have grown exponentially in the past decade – rising from $1.8 billion in 2010 to $19 billion in 2015. The global investments in financial technology ventures in Q1 2016 were reported to reach $5.3 billion, representing a 67% increase over the same period last year. The percentage of investments that went to FinTech companies in Europe and Asia-Pacific nearly doubled to 62%. At such a scale, the financial technology industry cannot remain detached from national ecosystems and has a significant impact on trends, the flow of the funds among market participants and financial watchdogs’ attention.

Moreover, financial technology facilitates structural changes in the market, opening up opportunities for previously ‘invisible’ groups of population, strengthening the position of small businesses in the ecosystem, lifting people from pov ...