Since 2010, more than a whopping $50 billion has been invested into fintech firms and the revolution – that is changing the way consumers obtain loans, conduct research and manage money – is showing no signs of slowing down, according to Accenture’s analysis of CB Insights data.
Fintech refers to financial technology or an industry comprising companies that utilise technology to provide financial services or drive technological innovation in provision of financial services.
Riding on this fintech growth wave, Golden Equator Capital launched its second Technology and Innovation Fund – which has a strong focus on ASEAN fintech companies. With a fund size of SGD100 million, it will focus primarily on growth-stage companies.
“They succeed when banks decide to acquire them and they start working together,” explains Managing Partner Daren Tan of Golden Equator Capital. “We see such acquisitions as a win-win process as the banks provide capital and pave the way for these companies to grow the businesses,” he adds. “As an investor, we will also make some commercial gains when these acquisitions take place,” he reveals.
With the rise of tech-savvy consumers in the region, banks will need to deploy more automation when it comes to providing financial services – therefore, they have to turn to tech companies for solutions and collaborative opportunities.
It is no wonder then that the potential in fintech investment is huge. “We can expect to see a potential upside of 70-80% in fintech investment,” Tan shares.