There has been much ado among investors about fintech and impact investing in recent times, but are they really revolutionary? Standard Chartered Private Bank – in collaboration with the Economist Intelligence Unit – has launched Innovation in Investment, a report that explores how technology is creating new investment opportunities for investors. It takes a closer look at two areas impacting the investment landscape – the growing demand for impact investing and the influence of fintech on the delivery of financial services.
Among its main conclusions are:
- Previously the domain of institutional investors, impact investing – which considers environmental, social and governance criteria as well as returns is growing among a wider base of high-net-worth investors as a more idealistic socially engaged generation comes to the fore.
- Emerging markets will catch up with – and at times surpass – developed markets. This is both as destinations for impact investing as well as in the development and adoption of fintech solutions for a wider base of investors.
- Green will go mainstream. With more jurisdictions mandating sustainability reporting and more investors embedding sustainability principles in their mission statements, data on sustainability approaches and performance will be as important (and scrutinised) as financials in presentations by companies and funds.
- Technology will democratise investment. The gaps between large institutional investors and HNW investors in terms of access to information and investment opportunities will narrow as solutions emerge to harness and analyse data on behalf of the individual user. Automated and mobile platforms will provide individual investors with a wider range of asset management solutions at lower overall cost.
To learn more, download the report here