Q Smart Limited - Discusses Factors Driving FinTech Investment

LUXEMBOURG CITY, LUXEMBOURG / ACCESSWIRE / February 15, 2018 / When venture capital (VC) firms begin circling an industry sector, this typically portends exciting developments. In some cases, it is more the lure of the hype and hopes for impressive returns, but most often VC investors prove the first to recognize the potential of innovative businesses. Blockchain and cryptocurrencies have sparked a frenzy over the last few years, further highlighting the attraction of financial technology ( fintech) startups and the benefits inherent in supporting them. VC firms led the way but are no longer the only ones with sights firmly set on this sector: top financial institutions along with individual investors are pouring capital into fintech enterprises, betting that advanced solutions will drive efficiency, cost-savings, security, and profitability. Leading brokerage Q Smart Limited explores the reasons for this keen investor interest, examining in greater detail motivators in the securities industry.

There is little doubt that overall technological progress has come to dictate investment trends in the past three decades. Widespread consumer adoption of digital solutions and applications has turned nearly all industries on their head, the impact is especially pronounced in financial services. Advisory, wealth management, and brokerage firms are in a never-ending race to improve their offerings as clients demand uninterrupted access, impeccable customer service, convenience, and personalization. Just how serious financial services providers are about fintech is apparent from the PwC Global FinTech Report 2017: a vast majority of multinational banks, insurance companies, and investment management firms plan to join forces with fintech developers in the next three to five years, projecting average returns of 20% from these partnerships. The reason behind this push is the fear of ceding ground (and thus revenues) to nimbler, more innovative competitors, as 88% of the survey participants stated.

Q Smart Limited also points to a recent report from Mediant as particularly revealing with regard to fintech investment drivers in the securities industry. More than 75% of the survey participants said they would allocate more capital in 2018, the majority of them specifying that the management of operational risk is their primary reason for an increase in fintech spending. Among broker-dealers, the key motivator is the changing regulatory landscape and the need to ensure prompt compliance with new rules. Meanwhile, machine learning, artificial intelligence, and blockchain were cited as the technologies whose impact would be most pronounced over the next five years. Commenting on the insights, Mediant CTO Stacey Robinson said in a statement: "The survey results in the 2017 Trends in Fintech and Investor Communications report show that in years to come, fintech will continue to be crucial for reducing costs, optimizing internal processes, maintaining regulatory compliance, and meeting investors' needs."

Q Smart Limited is an industry-leading provider of contracts for difference (CFDs) on currencies, indexes, commodities, and stocks. In operation for almost 20 years, it focuses on trades in financial products on over-the-counter (OTC) and organized stock markets. The company supports both retail and institutional customers in executing successful transactions and maximizing profitability. Serving clients from offices in Auckland, Hong Kong, Tel Aviv, Oslo, and Sao Paulo, the broker relies on sophisticated technological solutions to accomplish its mission of offering unsurpassed execution and strong liquidity.

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SOURCE: Q Smart Limited

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