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Brian Ferdinand is a New York based financial consultant and entrepreneur. He has over 15 years of experience in advanced trading methodologies and technologies, creating strategic growth and managing large scale portfolios.

4 Factors Driving FinTech’s Explosive Growth

According to a recent comprehensive report by consulting firm Accenture, the future of the financial technology sector is blindingly bright. Consider these stats:

  • Global investment in fintech grew by 201% in 2014
  • Fintech investments rose from $4.05b to $12.21b from 2013-14
  • Compared to 63% overall VC investment growth in 2014, fintech growth is exponential

 

4 Factors of FinTech’s Growth Spurt:

 

1. Jobs Act legislation: Recent rulings included the deregulation of equity crowdfunding and private startup investments unleashing a surge of investors.

 

2. Popular Disruptors: The popularity of fintech startups like Robinhood and Lending Club is just the beginning of a huge wave of disruptive startups out to shake up Wall Street and bring more accessibility, transparency, and lower costs to financial services than traditional banks and investment firms. Investors want to ride this wave into the future.

 

3. Open architecture: led by Goldman Sachs, longstanding financial institutions are starting to embrace application interface programs (APIs) that are accessible to outside developers. Goldman has posted its proprietary source code on GitHub, opening the door to developer and programmer collaboration—which will ultimately lead to faster innovations and a chance at keeping up with the new tech startup disruptors.

 

4. Smarter due diligence: The financial industry is next in a line of industries poised to be revolutionized by automating more workflow, driven by advancements in pattern recognition algorithms and predictive coding. The result will be lower overheads and greater efficiency, a win-win in the eyes of investors.

Image via Flickr/Tony Blay