If you’ve read or watched any business news in the last couple of years, you’ve probably stumbled across the term ” fintech.”
Fintech — an amalgam of finance and technology — is everywhere these days. And for good reason. We’ve already seen how companies like Apple (ticker: AAPL), Facebook (FB) and Netflix (NFLX) can disrupt industries and create new ones along the way. Now, that startup mindset has finally spread to finance.
These days you can find fintech permeating every corner of our industry, changing the way people do research, get loans, manage money and even invest. And it doesn’t look like that trend is going to stop.
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Fintech is poised to explode. According to a report from International and CB Insights, last year global investment in fintech companies reached $19.1 billion, with $13.8 billion of that money going into fintech firms backed by venture capitalists. The latter represents a 106 percent increase from 2014.
All of this led us at Benzinga to start the Benzinga Fintech Awards, an annual awards show and gala dedicated to recognizing the most innovative companies in fintech, specifically in the capital markets. This year, in only its second year, we had more than 200 companies apply to be a part of our gala.
Part of what makes fintech so fascinating is not just that it’s bringing much-needed change to our industry, but the way it’s making life easier for everyday investors.
You versus Wall Street. A common complaint against Wall Street is that the average trader and investor doesn’t have the same research tools as big institutions. Fintech companies are closing that gap.
Slingshot Insights brings crowdfunding to research, creating a revolutionary new product that enables people to pool their money to access interviews and analysis from industry experts. For example, using Slingshot Insight’s platform, you can hear directly from doctors about a particular biotech stock.
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TipRanks has become a go-to source for anybody looking to do research on analyst ratings, allowing you to see which analysts have the best calls on particular stocks.
For those interested in trading options, Quantcha offers a quick and easy way to search through thousands of potential options trades.
When it comes to finding alpha, companies like Metricle, Running Alpha, Prattle and HedgeSPA all provide unique data points for investors looking to gain an edge.
Of course, having all this new data would be useless without ways to organize and analyze it. That’s where companies like Ormsby Street, Zoonova, uxMarketFlow and Alpha Hat come in. They not only collect swathes of data, but can help you interpret it as well.
Fintech is far more than just investing. Something that’s particularly exciting is all the innovation taking place in the alternative investment and lending space. Companies like Credibly let small businesses get off their feet and expand without the red tape of banks, and Even Financial helps those looking for personal loans find the best lender for them.
For people struggling with their loans, CommonBond offers a platform to refinance.
If investing in real estate is your cup of tea, then you may like SeedFeed, which has aggregated crowdfunded real estate investments onto its easy-to-use platform.
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And then you’ve got a company like OurCrowd, which allows you to invest alongside venture capital firms and angel investors in pre-vetted startups.
Leveling the playing field. These are just a few examples of fintech firms that have made investing easier in one way or another. But many people simply don’t have the time or willingness to do their own research — they want more direct stock picks and recommendations. We’ve seen development in this field as well.
Stockal, Vetr, Trade Ideas and Tradespoon are just a few of the new companies aimed at educating people about trading and investing.
Who’s going to win? Fintech is changing all the time — that’s what makes it great. Events like the Benzinga Fintech Awards aim to capture the moment in fintech, but what was cool and new one year may be old news the next.
Traditional banks and brokerages are going to continue to adapt to all this new competition, which will in turn only prove better for investors.
The best part about fintech is it’s only going to continue to grow. The companies mentioned here are only a fraction of the industry’s up-and-comers. And as the traditional banks and brokerages continue to adapt to all this new competition by introducing their own fintech products, it’s going to get easier for you invest and manage money.
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Fintech Will Change the Way You Invest originally appeared on usnews.com
