What Industries are Attracting Investors to Fintech Companies?

In every list of the most profitable and lucrative investment sectors, the only name that is most likely to be used is Fintech.

Following the simple formula that monetary transactions are something that consumers will require regardless of what the current economic situation is, the industry has been able to make itself recession-proof and thus investment-friendly. It is now an essential component of the economy due to the use of new technologies in its offerings and the user experience it delivers, which is one of the advantages of Fintech using digital technologies.

In this article, we’re going to explore the crucial Fintech sectors that are investing.


Fintech Business Models that Investors are betting on Their Fintech Revenue Model


According to a Brisk Logic study, the insurance industry is conscious of Fintech technology. There is plenty of evidence to suggest it is the insurance industry is moving toward digitalization via mobile applications.

Venture capitalists who think that the insurance sector is poised for disruption and to become an element of the new finance of tomorrow are looking at investment opportunities like social insurance, flexible policies, and dynamic pricing that are in line with the latest streams of data streaming through internet-connected devices. If you look at the trends that put Insurtech as a frontrunner in the positive effects of Fintech on startups, it’s one of the top Fintech sectors to invest in.

Digital Share Broker

The increased volatility of the price of shares has brought in an increase in the number of investors in the market. This renewed interest in shares are attracting is an indication of a new era that requires a platform that can help them understand the basics of the trading of stocks in a safer manner.

This is why brands such as Freetrade and Robinhood’s stock trading app get constant interest from investors, while companies like Numbers are receiving funding and are turning into unicorns.

Payments across borders

While there has been an increase in the volume of exchange payments due to the limitations on cross-border trade that were imposed as a result of the COVID-19 increase the number of foreign exchange payments will increase.

In other words, investors that are focused on the future are likely to begin backing promising foreign exchange companies right now. This will also lead to an increase in the adoption of specific solutions for cryptocurrencies that will eliminate the challenges that are associated with cross-border payment.


The main reason that has held back the Fintech domain from reaching mass adoption is numerous laws and compliances. Once you know how to create a PCI compatible application You will be required to comply with various other guidelines.

To address the problem In order to address this issue, the industry is constantly looking for new ways to improve regulatory compliance. 

Here are some solutions:

  • KYC & AML solutions
  • Solutions for managing data
  • Solutions to manage taxes
  • Solutions for monitoring trade
  • Portfolio risk management solutions
  • Regulatory change management solutions, etc.

The key to this expansion is the investors that are backing this RegTech domain. The year began with the signing of 149 RegTech deals that amounted to $1.1. Billion in value. This number then grew to 317 deals which amounted to $8.5 billion in 2019. The numbers are also the main reason why this domain is among the most important financial app domains entrepreneurs are looking to get into.

 Digital Operating Platform

There is a constant demand for operating platforms that will help lower costs and increase the effectiveness of banking, wealth management and insurance. As an ode to speedier digital transformation, these industries are seeking pre-built solutions that can be integrated into the existing system. Investors also prefer to support these companies that have a strong affinity for cloud-based operating systems.

Online Payment Processing

When we speak of payment processing services online We are talking about businesses that provide the infrastructure to process payments as well as transfer funds from one customer to another.

The industry is so lucrative that four of eight well-known Fintech companies are in this category: Ant Official, Stripe, Klarna and Adyen.

Savers App and Budget App

The current economic crisis has changed the way we calculate savings as well as investments and the amount we spend. It is now crucial to build up emergency funds in addition to allocating funds to other crucial spending areas.

Customers, to master the new budget formula management, have begun using programs such as Cleo. In addition, the market has started considering it to be one of the top Fintech areas that are suitable for Fintech investors.

Peer-to-peer lending Solutions

It is among the industries that directly impact the biggest financial institutions because it targets their most profitable area – loans. Peer-to-peer lending, or as they are often referred to as a new type of finance that connects people or entrepreneurs to potential investors.

The chance of being approved is significantly greater than banks, and their interest rates are significantly lower. The solution is aimed at fostering the growth of innovation by offering small businesses the capital needed to get projects up and running.

Fraud Analysis Software

Fintech firms focus on security and prevention of fraud by using Machine Learning and Artificial Intelligence to identify patterns in financial transactions that indicate an increased risk of fraud. This is what investors are also watching for.

Motives that Make Fintech an excellent investment avenue


1. Fiat money has gone digital

If you take a look back at the way your spending has changed in the past 10 years you’ll notice changes in the way you manage your transactions. In addition, most of your transactions have gone cashless thanks to digital payment in Fintech. If it’s using PayPass to pay for coffee, or using online banking to transfer money to family and friends Cash is slowly disappearing into the past.

On one side, Fintech companies rely on this change to ensure their platforms remain popular and, on the flip side investors and users appreciate the ease of use this new technology gives. These two motives are sufficient for digital payments to be one of the most desirable Fintech areas to put your money into.

2. Information is the new oil

Fintech companies typically collect massive amounts of data regarding consumer spending habits. If used in a strategic manner the data could be used to fill in every loophole that exists in conventional financial services.

The area in which it is most effective in improving the customer experience. It can also be used to inform customers about how much they should invest, save and invest.

3. Mobile phones serve as wallets

The time you needed to carry around a wallet to keep your money is over. It is now possible to keep your bank and card details on your smartphone and pay for goods and services at almost every service and retail store agency that is based in the.

Fintech companies are in an early stage of the massive change towards a wallet-less, cash-free society. These mobile wallet apps companies utilize the latest technology that is required to streamline payments and offer a fantastic experience for users and that is something innovation is specifically designed to do.

4. The societal ramifications

Fintech app development companies have the ability to service millions of users across the world – including areas that are not banked. They offer services that change how businesses are run. By bringing transactions to an un-fiat basis and allowing them to stop the cash circulation that is black. These Fintech-based application development companies assist governments in collecting taxes and provide credit to people and businesses in developing countries. This is also one reason for why investing in Fintech is increasing among brands that are socially conscious.

5. Acquirers in the Fintech industry often have deep wallets.

One of the most distinctive features of the Fintech area is that Fintech firms’ competition tends to be wealthy. These are typically businesses such as Mastercard as well as Visa or banks that are looking for acquisition opportunities in hopes of increasing their market share or expanding their coverage.

Access to capital readily available in the Fintech space from these rivals also creates an industry that is ideal for M&A activities.

The above points provide a clear indication of why it’s the best moment for you to put your money into Fintech application development for mobile devices, and why it is important to work with a Fintech software development company. However, having the intention to do so isn’t enough. It is equally important to know the most effective Fintech sectors investment techniques. There are numerous methods that have come up in financial service consulting, but only a few have been identified as one of the best Fintech industries to put your money into.

After we have a glimpse at the Fintech scene into 2021 as well as beyond and the factors leading to the maturation of the Fintech sector on an investment basis Let us, conclude with an examination of the Fintech investment trends in the Fintech sector that will be in the news in the coming year and for a long time to follow.


1. Deals that are more daring and larger

With investors focusing more on advanced stage Fintechs, as well as the increasing size of deals, will surely increase. In the coming years high-risk deals that target companies that have established models of business will be in high demand. We will also witness investors’ attention shift to firms that have expertise in many sub-domains.

2. Transactions taking place in several locations

In the near future in the near future, we’ll witness Fintech deals taking place in geographic places that are distinct from the countries that are outside of traditional markets such as Australia, the US as well as Australia, UK. The regions where high investment is anticipated include Latin America, Southeast Asia and Africa.

3. Inclusion in the Big Tech Giants list

Through the use of the channels of Google Pay and Apple Card technology giants such as Google as well as Apple have already begun to establish their own presence in the Fintech sector. The tech giants along with brands such as Tencent, Ant, and Alibaba continue to target countries in need – either directly entering the market or through strategic alliances.

4. Big Fintechs will invest in early phases startups 

To expand their reach in the coming years of Finance the well-established Fintech software development firms will begin investing in new Fintech brands as well as Fintech service providers for software development. The motive behind this will differ from expanding their capabilities, to gaining access to highly skilled professionals quickly.

5. Partnerships that will be established

Partnerships will be a constant growth between new Fintech firms and major tech players as well as between traditional businesses and Fintechs. They will be targeted at the customer and will be focused on the creation of higher value and greater capacity.

6. Re-bundling of Financial Services

In the last 10 years, it was only possible to imagine having a relationship with one to two financial products. However, today, the amount has risen to 5-10. The responsibility of managing these non-related services has fallen on clients and we’re not enjoying it. This has resulted in an increase in the demand for platforms that can meet the majority of our financial requirements all in one location.

7. Increased emphasis on cybersecurity products

The attention on cybersecurity-focused Fintech companies would increase as the traditional financial institutes will shift their focus from building the services from the ground up to buying them.

Final Note

Overall it is clear that the Fintech sector is huge potential, which is the reason why investors are drawn to it. One of the most significant advantages this sector has is the ability for small businesses to compete with the same level of quality as traditional institutions and banks. If you’re looking for an experienced application development business located in the USA and Canada, you can reach Brisk Logic at our experts and fintech app developers will be happy to provide you with solutions.


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