Most Attractive Fintech Sectors to Investors

July 16, 2021
Sarah Gormley

As the world of fintech continues to expand throughout Europe, it continues to rise as a profitable sector for investment. That being said, it can be stressful trying to figure out which fintech sector, in particular, to invest your money in. To help you, here is a breakdown of the 9 fintech sectors that are most attractive to investors:

 

1. Insurtech

The insurance sector is heading head-on into the fintech era. Insurtech companies combine information from the insurance sector and the tech industry to help both insurance companies and brokers become more efficient and successful. 

2. Digital Share Broker

The stock market continues to be volatile, drawing in many new investors. To these investors, understanding the basics of the share market is critical to success. That being said, many stock trading apps have been getting attention recently — some even becoming unicorns. 

3. Cross-Border Payments

The Covid-19 pandemic has halted many cross-border payments, meaning that in the following months they will rise again. This is a great investment for future-centric investors. In addition, cross-border payments go hand in hand with cryptocurrency, a form of payment people are adopting all over the world. 

4. RegTech

The fintech sector is constantly finding new ways to improve regulatory compliance since it is the one thing holding the sector back from achieving mass adoption. 

5. Digital Operating Platform

Operating expenses are growing at a very fast rate, making digital operating platforms very desirable. There is no need to hire and train more workers, which has proven to be very cost-efficient. In addition, the digital platform works much faster than humans ever could, showing that it saves companies both time and money. 

6. Online Payments Processing

During a time where people cannot leave their homes, virtual transactions are vital. The ability for people to make payments for goods or services over the internet, while in the comfort of their own home, has changed the world of payments. 

7. Saving and Budgeting Apps

The pandemic has forced people to rethink how they buy, invest, and save. Apps designed to help users track their expenses have become extremely important, especially in terms of saving up emergency funds. 

8. Peer-to-Peer Lending Solutions

While it can get a bit risky, peer-to-peer lending is an alternative form of finance where individuals are connected with potential investors. Investors make unsecured personal loans to consumers with the hope of being rewarded a double-digit return percentage.

9. Fraud Analysis Software

Security is one of the largest issues in the fintech sector. There is a high level of risk that comes with completing online financial transactions, those being the chance of fraud and money laundering occurring; Software created to analyze and limit this risk is a high priority. 

 

Reference:

Saxena, Prateek. “Top 9 Fintech Sectors That Are Attracting Investors’ Attraction.” Appinventiv, 7 July 2021, appinventiv.com/blog/investment-friendly-fintech-sectors/. 

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