This year brings us persistent, intractable challenges in financial services. FinTech startups are building investable solutions to address these problems. Here's a few:
1. Innovating the Back Office
The back office continues to be overlooked. In CB Insight’s recent FinTech Trends report, "Legacy technologies are pivotal in the functioning of the capital markets ecosystem, yet on average are ~38 years old and have remained static."
2. Servicing Humans
The underserved remain underserved. Little has moved the needle thus far for consumer segments traditionally left outside of mainstream financial services, including immigrants, thin file citizens and the elderly. The Center for Financial Services Innovation estimates an underserved market opportunity of $173 billion in 2017.
3. Uncovering Asset Management
Markets require transparency in wealth and asset management. A trends report from Capgemini highlights, “Many firms are moving toward Big Data and analytics applications as their clients become more demanding toward personalized and data-driven insights.” According to a recent BofA Merrill Lynch report, “Advances in computing technology, machine learning, and user-friendly interfaces will generate a US$5.2–6.7 trillion direct impact in the form of higher efficiency and output.”
This is your opportunity to explore under the hood of FinTech ventures that are solving for these nuanced challenges. This is your opportunity to catalyze the future of financial services.