The Fintech Bubble: Principles of investing in Fintech

fintech curse

Since its emergence, fintech has been one of the growing industries worldwide. People immediately preferred fintech services over financial services offered by traditional banks. Many fintech start-ups came in recent years and, some of them even became successful. The market cap of fintech is continuously increasing due to more and more customers preferring digital transactions.

Traditional banks are arranging fintech training courses for their employees to undergo digital transformation. If you are looking to invest in a fintech start-up or start your fintech firm, you should have a basic understanding of the fintech bubble. Read on to know about some principles for investing in the fintech industry.

Did you notice the fintech bubble exploded?

Gone are the days when only a handful of fintech companies were there in the market. At present, many fintech firms are competing with each other. In 2015, there were more than 350 fintech start-ups that caught headlines. However, the number of fintech start-ups decreased as the fintech bubble exploded.

Many fintech firms had already established themselves at the top and it got hard for newcomers. However, this does not mean that fintech training courses are of no use.

Even if the fintech bubble exploded, the global market cap of the fintech industry is continuously increasing. The predicted CAGR (Compound Annual Growth Rate) for the fintech industry is also high. The only thing that is challenging in the fintech industry is the increased competition. At present, you will have to compete with many fintech giants to build your market share.

The top fintech firms have already gained the trust of customers and, it is hard to displace their market. However, with the right business strategies and reliable services, you can still become a fintech giant even after starting late.

Principles for investing in the fintech industry

Some of the principles for those looking to invest in the fintech industry are as follows:

  • If you are buying shares of any fintech company, look for those that are continuously innovating. There is no compulsion that you should buy shares of a fintech giant. A fintech company that is constantly innovating itself is moving in the right direction.

  • If you are investing in a fintech start-up, look for the technology stack used by the fintech platform. Invest in a fintech platform that uses blockchain for making digital transactions secure and fast. A financial technology course can help you understand the technologies used for creating a fintech platform.

  • Invest in a fintech platform that offers many financial services to customers. Besides facilitating customers with digital transactions, a fintech platform can also provide P2P lending, gold/stock trading, and many other services. Third-party integrations also make a fintech platform more popular than others.

  • Due diligence is required before investing in the fintech industry. If you are starting your fintech firm, perform due diligence to know the right time to start. You should consider market disruptions, trends, and financial reports before investing in the fintech industry or starting your fintech firm. A financial technology course can help you understand the driving features of a fintech platform.

How to learn financial technology?

You should obtain a fintech certificate online to become an expert in financial technology. We at Imarticus Learning ensure industry-oriented FinTech courses that can help in knowing the industry practices. Besides investors or entrepreneurs, our fintech courses are beneficial for young enthusiasts looking to build their careers.

Our fintech courses will make you work on several hands-on projects and case studies. Job aspirants will also receive placement support to kickstart their careers in the fintech industry. Obtain your fintech certificate online with Imarticus right away!

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