Fintech continues to be one of the most exciting and well-funded spaces in tech. Potentially huge profits are attracting startups and investors to take on banks and major financial institutions. From currency conversions to lending there’s a whole range of startups trying to outcompete the banks by offering online products with clean interfaces.
Data analytics and machine learning are a staple of many, if not all, of these companies with most forgoing more traditional means of assessing applicants and activity for their own custom solutions. Some are picking up huge rounds such as California’s SoFi, which raised USD1bn to help students refinance loans. The biggest activity is outside financial hubs like New York, London and Frankfurt. It’s even outside of Silicon Valley. China is where the fintech revolution is arguably at its most major with companies like Alipay and Lufax racking up huge valuations. The gap is huge with Citigroup estimating the peer-to-peer loan market in China is four times larger than it is in the US.