According to the World Bank’s Global Financial Inclusion Database, only 51% of the population in Latin America and the Caribbean has a bank account. This figure varies greatly between countries, with more than 80% of the adult population remaining ‘unbanked’ in Nicaragua for less than 35% in Brazil and Costa Rica.
The adoption of equity and debt crowdfunding has left most if not all policy makers and regulatory bodies challenged to find the right framework to properly regulate the array of platforms launching into the market. These platforms have given accredited and retail investors alike access to alternative investments they would not otherwise have. One area overlooked by most investors and now being addressed by regulatory bodies is investment liquidity. Venture capitalists and business angels traditionally would achieve liquidity with the acquisition of the investment. Crowdfunding differs, an IPO or acquisition isn’t out of the questions but it certainly is less likely.
According to a report published by Accenture Strategy and the Partnership Fund for New York City, Q1 2016 was the first quarter ever that New York passed Silicon Valley in fintech venture financing.
The Monetary Authority of Singapore (MAS) launched a consultation paper in February last year proposing measures to facilitate access capital for startups and SMEs. With the responses received, 8 June 2016 MAS announced new measures to simplify the use of securities crowdfunding (SCF) for companies that are looking to raise funds, as well as for crowdfunding platform operators.
What is Insurance Technology (InsurTech) all about? It’s a sub-sector of Fintech that is growing fast and vigorously, with annual investments that increased fivefold in the past three years, totaling $3.4bn of funding poured into the sector since 2010. Insurance behemoths are paying attention like never before.
Markets always move toward greater efficiency, history has taught us that much. Technological advancements in computing power has been remarkable, but the growth and pace of development keeps on accelerating. Have you thought through the extent of the plausible impact of artificial intelligence (AI) and machine learning in the financial services market? Go ahead, try.
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