Throughout the first half of 2019, we’ve had countless meetings here at ETFmatic with existing or potential B2B partners. In these meetings we’ve received many questions about the growing trends in the Fintech and financial sectors. Most of these questions can be categorised by one of our 4 identified main trends of 2019. We’ve decided to quickly give our thoughts about each of those trends.
- Artificial Intelligence: AI has not only become a staple in the tech start-ups, like ETFmatic, but is also starting to spread across and integrate into all other industries, from giant tech companies to traditional banks and the medical field. Products including Alphabet’s self-driving car, AI systems like Amazon’s Alexa and Apple’s Siri and automated services like investment advice or image recognition are being developed by innovators and invested in for the high returns they seem to bring. These adaptations of AI are increasing the productivity and lowering the overall costs for many different types of companies.
- Internet and Digitalisation: With the rise of inter connectivity around the world (internet usage has now penetrated ~53 percent of the global population), most companies are beginning to integrate digital offerings into their platforms, if they haven’t already. One way companies are doing this is offering an e-commerce or another online platform or service to help monetize and retain users, which is what we help companies do here at ETFmatic. According to We Are Social, global e-commerce sales increased 18 percent in 2018 (to a total of 15.2 percent of the total global retail market share). By 2025, it will increase to almost 20 percent of the total global retail market share.
- Impact Investing: Recently, in a successful attempt to increase investing among Millenials, companies have introduced impact investing, or the use of investments to promote long-term social change in the areas in which investors believe there hasn’t been enough progress. There has been a rapid increase in the amount of money invested in the causes important to this group, especially in ESG (environmental, social, governance), gender-focused and alternative energy investments. In an April 2019 report from the Global Impacting Investment Network (GIIN), the value of the impact investment market has already reached USD $500 billion.
- Big Data and Data Security: According to Frost and Sullivan, the amount of digital content around the world doubles every 18 months. And with all this new digital content, more consumers than ever are concerned with their data security (especially with the recent data breaches from prominent companies). Newer, stronger digital security has become a priority for our clients and has the potential to be a prime source of innovation and opportunity for companies and high returns for investors