What is the true age of Fintech?

“Progress means putting technology at everyone’s reach” (Inspired from Henry Ford’s thoughts)

Although there is no one definition for FinTech, one of the most accepted ones is financial business models based on new consumer habits. It is a sector that in 2018 attracted over $39,57 billion investment with 15% YoY growth rate. From a . Desde la perspectiva de financiación, se traduce en 52 millones de rondas y 2475 inversores.

FinTech is a global Phenomenon; operations outside core markets (US, UK and China) are increasing share (39%). This industry concentrates 39 unicorns – those companies that raise +$1B seed capital.

But, did you know that FinTechs are not millennials? What is more, the story started 150 years ago and experts differentiate 3 phases:

• FinTech 1.0. (2nd half of the 19th Century): Franck McNamara founded the first credit card. It allowed to pay in New York restaurants with a 7% commission).
• Fintech 2.0.  (Middle of the 1960s until 2nd half of 20th Century). The ATM was born, avoiding queues in branches and enabling money withdrawals out of office hours. Additionally Black Monday meant the point of reference to the deployment of electronic Payments, leveraging on digitalization and its capability to release stocks in a massive way lowering costs.
• FinTech 3.0. (From 2008). New business models supported by the merging power of technology and finance to make things different and life easier. With focus on specialised microsectors and processes, not necessarily linked to traditional Banking, the volumen of companies that raise funds has reached another record multiplying by a factor of 5 in the last years. In the same way, investors have also doubled, with corporates accounting for the bulk of the market (67%).

Today we are used to a hyperconnected world, in a dynamic of constant change. This drives us to face a challenge that combines IT, Regulation and Data.

Understanding new technologies, new business models and changes in customers’ behavior is key to capitalize ideas and opportunities that help companies improve, develop and grow.

For debate: which is the next stop of this journey and the key success factor?