In a recent article posted in Forbes magazine, the growth and future of the Fintech industry is analyzed by reviewing its performance in the market over the last 6 years. Fintech investments jumped from $1.8 billion in 2010 to $5.2 billion through Q1 2016 from seed investments to bank takeovers and acquisitions. It is the advancements in traditional banking that Fintech startups are trying to impact positively.
While this industry has massive room for growth and opportunity, many analysts believe that the opportunity for growth is hindered by the amount of increasing regulations within the insurance and corporate finance sector. The more “tightly regulated” a certain avenue of finance is, the more longer it will take to express growth. One of the ways to counter the sluggish rise of these sectors are through the increasing amount of Fintech startups being created in different cities/regions such as London, Zurich and Singapore. These cities are very attractive for any Fintech entrepreneurs due to the more “friendly” governmental and business regulations put into action. Because of this disparity, the current hubs such as New York and Palo Alto may lose their titles of premier financial capitals if regulations continue to roughen and those abroad remain more friendly.
http://www.forbes.com/sites/nikolaikuznetsov/2016/11/22/the-next-phase-in-fintech/#477a982a4a29