FinTech has undoubtedly fuelled acquisition and expansion in the global business arcade. The undisputed leader in the FinTech market continues to be Europe followed by Asia. Chances are high that investors become more selective while investing in FinTech in 2020.
It seems that the investors are carrying out a highly scrutinized approach towards financial estimates and governance policies while eyeing constantly at exits from investing in FinTech business.
2020 will witness the FinTech mergers by the giants in the market and extend the FinTech business offering to more of adjacent services. It is true that the investor lost confidence in FinTech business after continual IPOI flops that happened in 2019- Uber, Lyft, Peloton to name a few.
On the positive side, the investors have learned their lessons and now have decided to invest on secured business fractions rather than notional business. However even after all these flaws, M&A in this sector is still best supporting the small business start-ups to grow and expand.’
2019 was a remarkable year for FinTech investment globally with $135.7 billion invested in Fintech through 2693 deals. For investing in FinTech, there is no center of percussion, you make the point you choose a sweet spot for investing. If you ask if this is the right time to make investment in FinTech, be sure of the fact that market conditions are so favoring that this is the most appropriate time to make your move.
FinTech is subjected to open market economy, an unavoidable phase that could fail companies from investing. But to overcome the disruptive process of open market economy, companies should perform necessary research and be ready with the entire fiscal backup they need.