- Increased level of fintech adoption. The number of fintech users is likely to keep increasing significantly, probably even double in 2016. As reported by EY in its Fintech Adoption Index, most of the users are high income, young (18-34 years) people living in urban areas. Among the various fintech products the ones seeing the brightest future in 2016 are payment services and savings/investments management, including online investing.
- Peer-to-peer lending goes mainstream. Looking closely at digital investing, peer-to-peer lending is the model that will turn mainstream. Experts have estimated that the European P2P lending market alone will be worth roughly €327 million in 2016 and we will probably witness other IPOs of online lending companies after the ones happened in 2015 (i.e. Lending Club and Yirendai).
- New markets for equity crowdfunding. Equity crowdfunding will keep developing and growing too. We can expect major changes especially in the USA, where Title III will enter into act in April 2016, unleashing the full power of online investing, which in this way becomes accessible to any saver in the country. Other markets will open up, like India and Australia, where new regulations are expected soon. In general, there will be increased attention to the sector by local and international authorities, which will continue working to fully understand the phenomenon and how to frame it.
- Traditional finance gets closer to fintech. Last but not least, traditional finance actors will increase their presence in the fintech sector. How? In multiple ways. Institutional investors will likely expand their portfolio via online investing platforms, while venture capitalists and other professional investor will increasingly invest in promising fintech companies. Banks and traditional lending actors, challenged by smaller, more agile fintech offers, will have to start innovating if they did not yet, developing digital products or partnering with existing ones.
This is a first insights into a few possible major trends for fintech and online investing in 2016. If you wish to get a deeper understanding, we suggest you to join Crowd Valley’s free webinar held by our CEO, Markus Lampinen, on the 12th of January. More details and registration available at this link.
Photo credit to: Alexander Mueller
About the author - Irene Tordera
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem and she works also for the European Crowdfunding Network.