With Steady Steps Fintech Revolutionizes the World

Most large financial groups remain convinced of the possibility of the block chain, to revolutionize parts of their industry and several central banks are examining the potential to use technology to create digital currency.

Venture capital investment in the block chain companies rose one-fifth to $ 544 million last year, according to KPMG. Major banks in Canada recently launched a project to place customer identities in a block-block system developed by IBM and SecureKey.

On the other hand, a group of European banks such as HSBC, Deutsche Bank and KBC agreed to work together to develop a block-block system to finance trade. The insurance industry has been slower than other areas of finance to awaken the digital disruption at its doorstep, however this area has very important projects for the efficient development of the insurance business.

According to some studies, new companies such as So-sure, Friendsurance, Lemonade, Guevara and Brolly have recently come up with plans to transform the sector. Venture capital investment in insurance technology companies doubled to almost US $ 1.2bn last year, according to KPMG.

According to Murray Raisbeck, KPMG’s insurance partner, “There seems to be a significant pent-up demand for solutions to the challenges facing the insurance industry, the need to improve operational efficiency and profitability. Customer, “he says,” When these challenges are combined with the increasing availability of technology … There is no doubt that investment in insurtech will continue to grow”.

On the other hand, fintech’s total investment in Asia advanced to a new record of US $ 8.6bn last year, although the number of deals fell more than 8 percent. More than half of Fintech’s total investment in the region came from an agreement: Financing from Ant Financial $ 4.5bn.

Notably, China has established itself as one of the two major fintech markets in the world, along with the US. Together, the two countries accounted for $ 9 per 10 dollars invested in fintech, according to a recent Citigroup report.

According to Ronit Ghose, banking analyst at Citigroup, “China’s specifics is that it has had a social and economic revolution at the same time as a technological revolution,” he also commented, “With the relatively weak existing payment systems and weak consumer banks Existing, this has allowed for the eruption of many innovations, a lot of changes and a lot of new participants”.

Reference: ft.com

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